Heidelberg (pta020/11.03.2020/15:00) - Highlights:
- Electrical substation nearing completion
- Construction ahead of schedule
- Excellent safety performance on site
- 125,000 hours lost time injury free
Altech Advanced Materials AG ("AAM") (FRA: AMA1) is pleased to provide information regarding the current status of construction activities on Altech Chemicals Australia PTY LTD ("Altech Australia") High Purity Alumina (HPA) plant site in Johor, Malaysia.
Construction of the onsite electrical substation has continued to progress and is now ahead of schedule. All major structural works are now complete and the majority of external detailing of the building has been finished. The EPC consortium (SMS group and Metix) and its subcontractors have recently commenced internal finishing and architectural detailing, the completion of sewerage and drainage works, and the finalisation of vehicle access requirements.
The substation is now expected to be completed during April 2020, approximately four (4) weeks ahead of schedule. Handover of the building to Altech will be after final inspection and the identified of any punch list items. The substation will be turned over the local electricity service provider TNB (Tengaga Nasional Behad) for inspection by its project team ahead of switchgear installation, which is planned in parallel to the HPA plant construction to ensure that electricity supply is available well in advance of plant commissioning.
Construction progress can be viewed at https://www.youtube.com/watch?v=xWJYMHXLK0Q
As at the end of February 2020, the EPC construction consortium and subcontractors had completed 125,303 lost time injury (LTI) free hours on site. The Stage 1 and 2 construction activities have seen a total of 253 employees and contractors inducted, and work completed with one (1) first aid / medical treatment case, and zero (0) lost time injuries.
About Altech Advanced Materials AG
Altech Advanced Materials AG ("AAM") currently plans to subscribe up to 49% in Altech Chemicals Australia PTY LTD ("Altech Australia") for up to USD 100 million from Altech. AAM is currently implementing its capital raising strategy to be able to fund the investment.
Altech Australia is currently building a high-purity alumina (99.99%, 4N HPA) production facility for 4,500 tons p.a. in Malaysia and also has its own deposit for the mining of the main raw material kaolin. 4N HPA is needed for the production of LED lights as well as a separator for lithium-ion batteries, e.g. needed for electric vehicles and smartphones. Market demand for 4N HPA is expected to grow with a CAGR of 30% p.a. until 2028. The process patented by Altech Australia allows the production of HPA as cost leader, as the HPA can be obtained directly from kaolin. This allows production without the use of energy-intensive aluminium. The production volume for the first 10 years is secured by an off-take agreement with Mitsubishi Australia and the production capacity and quality is guaranteed by the German plant manufacturer, SMS group GmbH, Dusseldorf, which has also agreed to contribute in equity to the Altech HPA project.
The project has an investment volume of approximately USD 390 million, of which KfW-IPEX Bank has already committed USD 190 million under certain conditions and of which USD 10 million is assumed as equity investment from SMS group GmbH. Altech Chemicals is in talks with Macquarie Bank on the provision of USD 90 million in mezzanine capital. The remaining USD 100 million is to be made available by AAM.(end)
|emitter:||Altech Advanced Materials AG|
Ziegelhäuser Landstraße 3
|contact person:||Hansjörg Plaggemars|
|phone:||+49 6221 64924-0|
|stock exchanges:||regulated market in Frankfurt; free market in Dusseldorf; open market in Berlin|
|ISIN(s):||DE000A2BPG14 (share), DE000A2LQUJ6 (share)|