Altech Chemicals Limited (Altech/the Company) (ASX:ATC) (FRA:A3Y) is pleased to provide an update on the current status of construction activities at the Company's high purity alumina (HPA) plant site in Johor, Malaysia.

Maintenance workshop building: the installation of external wall cladding; a ventilation and roller door; and the internal mezzanine level (which will be used for spare-parts storage and for maintenance offices) have all been completed and there is now no outstanding work on the building structure (Figures 1 and 2 in link below). The internal fit-out and electrical works for the workshop are planned to commence in parallel with process building construction, which is currently envisaged to follow the completion of Stage 2.

On-site detention (OSD) storm water tanks: Construction of the tanks has progressed well, with all walls for the four tank zones now completed (Figure 3). Fabrication of the 84 precast concrete roof panels, which is being carried out on site, is approximately 50% complete. Installation of the first panels is now underway (Figures 4 and 5) and the OSD tank construction is expected to be finished by the end of October 2019.

Retaining walls: construction is complete with the exception of a 4-metre long section adjacent to the OSD tanks. This section shall be completed in parallel with the final construction stage of the OSD tanks, in October 2019.

Electrical substation: The design of the electrical substation building has now been approved by TNB (the national electrical utility of Malaysia), and detailed engineering drawings for fabrication and construction are being finalised. Preliminary excavation and earthworks are expected to commence during September 2019, with construction works expected to continue through to Q2-2020.

Stage 2 engineering activities are progressing well, with appointed EPC contractor SMS group now in final negotiations with a number of the key equipment package suppliers to complete third party engineering. Data from these engineering packages will be used to finalise civil loading calculations for final engineering of the process building structures, which will position these structures for construction.

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About Altech Chemicals Ltd

Altech 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.



Iggy Tan
Managing Director
Altech Chemicals Limited
Tel: +61-8-6168-1555

Shane Volk
Company Secretary
Altech Chemicals Limited
Tel: +61-8-6168-1555

Investor Relations (Europe)
Kai Hoffmann
Soar Financial Partners
Tel: +49-69-175-548320

Link: Altech - HPA Plant Construction Update

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