Altech Appoints M W Group as EPC Contractor for HPA Project
Perth, Mar 18, 2016 AEST (ABN Newswire) - Following a week long project familiarisation and design hand-over meeting held at the offices of M+W Group in Stuttgart, Germany this week, Altech Chemicals Limited (Altech/the Company) (
ASX:ATC) has formally appointed M+W Group as its Engineering, Procurement and Construction (EPC) contractor for its high purity alumina (HPA) project.
Highlights
- M+W Group appointed as EPC contractor
- Leading global engineering and construction group with extensive Asian experience
- Project familiarisation and design hand-over meeting held in Germany this week
- Established Singapore and Malaysian offices, with extensive Malaysian construction experience
Attendees at the Stuttgart meeting included Altech management, representatives from Simulus Engineering (the Perth based multi disciplined engineering company and lead consultant for the HPA project bankable feasibility study), M+W Group, and for part of the week representatives from KfW IPEX-Bank.
The appointment of M+W Group as EPC contractor by Altech marks the formal commencement of the final detailed engineering design phase of the Company's HPA project, in preparation for the commencement of construction.
M+W Group has advised Altech that it has selected a specialist chemicals processing team to be assigned to the project "We are delighted by the opportunity of being part of this new state of the art chemical facility" said Mr Robert Savarese, Head of M+W Group Global Chemicals Business Development. "We are excited to have been appointed EPC contractor and we look forward to engineering an efficient sustainable solution for Altech".
Background
Following the completion of the HPA project bankable feasibility study (BFS) in June 2015, Altech and Simulus Engineering have focussed on optimising the proposed HPA production process, plant configuration and equipment selection and the update of equipment and consumables pricing, this culminated in the release of an update to the BFS earlier this week (refer ASX Announcement dated 16 March 2016 for details). During this time, the project team also completed initial detailed engineering work which is now in the process of being transitioned to M+W Group in Germany and includes all process instrumentation diagrams, equipment specifications and also the three dimensional plant layouts and design.
Project Financing
As previously announced, Altech has mandated German bank KfW-IPEX Bank Gmbh (KfW-IPEX), to provide structuring and financing services in relation to the provision of senior debt project financing for the Company's proposed HPA project. Furthermore, the Company, with the support of KfW-IPEX intends making application under the export credit insurance guarantee scheme of the Federal Republic of Germany (ECA cover) for ~US$40.0 million of project debt finance cover on the basis that it has estimated that approximately US$40 million of project capital expenditure should qualify for ECA cover. Interest rates charged by lenders on debt that is supported by ECA cover is typically at attractive conditions, as the repayment of the debt is insured, also long tenure is usually available in accordance with OECD guidelines. Additional senior debt (currently estimated at ~US$20.0 million) will be required, and it is expected that this will be at normal commercial terms and rates of interest.
M+W Group
M+W Group GmbH, based in Stuttgart, Germany, is a leading global high-tech engineering company. Established in 1912, the company manages projects of all dimensions on behalf of clients from various sectors, including electronics, chemicals and pharmaceuticals, energy and information technology — from semiconductor plants to nanotechnology research centres. M+W Group offers a full range of services from concept and design to turnkey solutions. During the financial year 2015, the M+W Group generated sales of 3,0 billion euros with around 6,000 employees worldwide. The firm has a strong presence in Asia with - among others - regional offices in both Singapore and Penang, Malaysia, and has successfully completed over 700 projects in the Asia Pacific region where it employs around 2,200 highly skilled and experienced staff. For more information please visit www.mwgroup.net
M+W Group will have responsibility for engineering, procurement and construction of the Malaysian portion of the HPA project (~US65.5 million), and intends to make use of its cost effective local Malaysian and Singaporean subsidiaries for the majority of the construction works. Assuming the success of Altech's ECA cover application, M+W group will play an important and critical role in the management and co-ordination of all equipment and services suppliers under the scheme. M+W Group has previous experience at managing projects where ECA cover was made available.
Commenting on the appointment of M+W Group, managing director, Iggy Tan said "M+W Group brings vast construction experience and knowledge to the project. With a strong presence in Asia, and specifically experience at project construction in Malaysia, the use of its local Singapore and Malaysian offices for construction with detailed design in Germany is a perfect combination for us."
About Altech Batteries Ltd
Altech Batteries Limited (ASX:ATC) (FRA:A3Y) is a specialty battery technology company that has a joint venture agreement with world leading German battery institute Fraunhofer IKTS ("Fraunhofer") to commercialise the revolutionary CERENERGY(R) Sodium Alumina Solid State (SAS) Battery. CERENERGY(R) batteries are the game-changing alternative to lithium-ion batteries. CERENERGY(R) batteries are fire and explosion-proof; have a life span of more than 15 years and operate in extreme cold and desert climates. The battery technology uses table salt and is lithium-free; cobalt-free; graphite-free; and copper-free, eliminating exposure to critical metal price rises and supply chain concerns.
The joint venture is commercialising its CERENERGY(R) battery, with plans to construct a 100MWh production facility on Altech's land in Saxony, Germany. The facility intends to produce CERENERGY(R) battery modules to provide grid storage solutions to the market.
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