Frankfurt (pta018/09.07.2020/12:15) - Highlights:
* All Stage-2 construction work successfully completed
* Handover and punch list items finalised
* Electrical substation ready for switch gear installation and supply connection
* Excellent Safety Record
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 3 June 2020 construction activities at the site recommenced in early June 2020, following the easing of the Malaysian Government's COVID-19 Movement Control Order, which was imposed on 18 March 2020. Outstanding Stage-2 construction involved completion of the site electrical substation, which primarily consisted of internal fit-out, drainage, sewage and landscaping. These works have now finished, and this marks the completion of all works included in the Stage 2 construction scope by the appointed EPC contractor Metix (a wholly owned subsidiary of SMS group, Germany).
A formal handover inspection of the substation was completed toward the end of June and the small number of identified punch list items were all rectified by 30 June 2020. The electrical substation was a critical path item and Altech will now proceed to make the substation available to the local electricity service provider TNB (Tenaga Nasional Berhad) for the installation of switchgear and the incorporation of the substation into to the local electrical grid.
Stage 1 and 2 early works construction activities have been completed with a total of 137,916 lost time injury (LTI) free hours at the site by the EPC construction team and its appointed subcontractors. Our gratitude goes to the Safety and Health assurance management for the successful implementation of all procedures to achieve this excellent safety record. A total of 288 personnel were involved in the site-based construction activities.
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|
|stock exchanges:||regulated market in Frankfurt; free market in Dusseldorf; open market in Berlin|