Heidelberg (pta018/03.06.2020/11:30) - Highlights:
* Stage 2 HPA plant construction work has recommenced
* COVID-19 Standard Operating Procedures implemented
* Electrical substation construction expected to be completed during July 2020
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.
As announced in our company release of 30 March 2020 the Malaysian government forced the closure of all non-essential government and private business premises by end of March 2020, resulting in the suspension of all construction works and closure of Altech's HPA plant site at Tanjung Langsat, Malaysia. Subsequently, the MCO (Movement Control Order) was extended on four occasions, until 9 June 2020.
The Malaysian government recently announced a relaxation of MCO restrictions under a revised Conditional Movement Control Order (CMCO). The CMCO provides for the recommencement of business activities, such as construction, but only if pre-approval is obtained from the Ministry of International Trade and Industry (MITI). A key condition of the re-commencement of activities is a commitment by the business to implement Standard Operating Procedures that follow the Malaysian Ministry of Health guidelines for COVID-19.
Altech has now received the necessary MITI approval for business recommencement and has implemented the required COVID-19 related workplace standards for personal and workplace hygiene, including individual screening (COVID-19 testing) and social distancing. COVID-19 testing for all personal was completed last week, and final site inspection by the Construction Industry Development Board (CIDB) for verification of implementation of the new procedures has been conducted; this allowed for the re-commencement of construction activities at site.
Prior to the suspension of construction activities, work on the site electrical substation was nearing completion, with only cosmetic architectural detailing and internal fit out of some mechanical and electrical systems remaining. It is expected that these outstanding works will now be completed by July 2020, followed by rectification of any punch list items and a final handover inspection of the substation to Altech.
The Management Board
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 Chemicals Ltd, Australia. 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|
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