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- Stage 1 of Altech’s High Purity Alumina plant in Malaysia is nearing completion
- Building of the workshop and structure is complete, and Stage 2 engineering activities have begun
- The construction update comes in light of a purchase agreement with a German paper company earlier this month
Altech Chemicals has updated shareholders on the construction of its High Purity Alumina plant after a recent purchase agreement with German paper company.
Earlier in August, Altech confirmed the purchase of a 29 per cent interest in Youbisheng Green Paper AG, to be re-named Altech Advanced Materials AG (AAM). In return, Youbisheng agreed to buy a 49 per cent stake in Altech’s HPA Project.
AAM is set to buy interest in the project for US$100 million and has so far paid €500,000 in non-refundable fees.
AAM is now in the process of raising funds through issued shares to support the US$100 million investment.
Atlech’s HPA plant is currently under construction, and the company updated shareholders today on the status of the project.
The majority of Stage 1 construction is nearing completion with the installation of external wall cladding, ventilation, a roller door, and the internal mezzanine level having all been completed. This completion means there is no more outstanding work on the building structure.
Construction of the storm water tanks has also progressed well, with walls for the four tank zones having been completed.
Manufacturing of the 84 concrete roof panels, which is being carried out on-site, is approximately 50 per cent complete.
Installation of the first set of panels is underway and the construction of the water tanks is expected to be finished by the end of October 2019.
As for retaining walls at the project, construction is complete with the exception of a four metre long section of wall. This section will also be completed in parallel with the building of the water tanks.
The design of the electrical components in the building has been approved by the National Electrical Utility of Malaysia, and detailed drawings for the manufacturing and construction are being finalised.
Preliminary excavation and earthworks are planned to begin during September 2019 and expected to continue through to the second half of 2020.
On top of all this, Stage 2 activities are progressing well with the appointed contractor, SMS Group, 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 structures.
Altech’s share price is slightly up this morning, trading for 10.5 cents apiece in a $74.31 million market cap.
