Executes Stage 1 Construction Agreement for HPA Plant
Executes Stage 1 Construction Agreement for HPA Plant
Perth, July 12, 2018 AEST (ABN Newswire) - Altech Chemicals Limited (Altech/the Company) (ASX:ATC) (FRA:A3Y) is pleased to announce that it has executed a stage 1 construction works agreement with its appointed engineering, procurement and construction (EPC) contractor SMS group GmbH (SMS) of Germany, for the commencement of construction at its Malaysian high purity alumina (HPA) plant site in Johor, Malaysia.

Highlights

- Stage 1 works construction agreement executed with SMS

- Works to occur in parallel with project finance close

- Bulk earthworks, retaining walls, storm water tanks and foundation piling

- Also includes site electrical sub-station structure and maintenance workshop

- Majority of the ~A$10 million site works credited against US$280 million EPC contract

Construction works covered under the stage 1 construction agreement includes bulk earthworks; extensive foundation piling; the construction of retaining walls; underground storm water/process discharge tanks (OSD tanks); construction of the site electrical sub-station structure; and construction of a maintenance workshop. The maintenance workshop will be used as the construction site offices during stage 2 of the HPA plant construction. Engineering works incorporated in the stage 1 construction program include the finalisation of layout drawings and the construction permitting process (Development Order) from local authorities.

The stage 1 agreement covers the first 6-7 months of the proposed two year construction period. The value of the works is approximately A$10 million, the majority of which will be credited against the US$280 million lump-sum fixed-price HPA plant EPC contract awarded to SMS which will commence following finance close.

Altech has decided to equity fund stage 1 construction in Malaysia to maintain project momentum and the works will be conducted in parallel with project finance close.


About Altech Chemicals Ltd

Altech Chemical Ltd ASX:ATCAltech Chemicals Limited (ASX:ATC) (FRA:A3Y) is aiming to become one of the world's leading suppliers of 99.99% (4N) high purity alumina (HPA) (Al2O3).

HPA is a high-value, high margin and highly demanded product as it is the critical ingredient required for the production of synthetic sapphire. Synthetic sapphire is used in the manufacture of substrates for LED lights, semiconductor wafers used in the electronics industry, and scratch-resistant sapphire glass used for wristwatch faces, optical windows and smartphone components. There is no substitute for HPA in the manufacture of synthetic sapphire.

Global HPA demand is approximately 25,315tpa (2016) and demand is growing at a compound annual growth rate (CAGR) of 16.7% (2016-2024), primarily driven by the growth in worldwide adoption of LEDs. As an energy efficient, longer lasting and lower operating cost form of lighting, LED lighting is replacing the traditional incandescent bulbs.

    


Contact

Iggy Tan
Managing Director
Altech Chemicals Limited
Tel: +61-8-6168-1555
Email: info@altechchemicals.com

Shane Volk
Company Secretary
Altech Chemicals Limited
Tel: +61-8-6168-1555
Email: info@altechchemicals.com

Investor Relations (Europe)
Kai Hoffmann
Soar Financial Partners
Tel: +49-69-175-548320
Email: hoffmann@soarfinancial.com



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