Altech Chemicals Ltd (ASX:ATC) HPA Plant Construction Update, January 2020

Perth, Australia, Jan 28, 2020 - (ABN Newswire) - Altech Chemicals Limited (Altech/the Company) (ASX:ATC) (HAM:A3Y) is pleased to provide an update on the current status of construction activities at the Company's high purity alumina (HPA) plant site in Johor, Malaysia.

Construction of the site electrical substation commenced in September 2019, and is progressing ahead of schedule. The superstructure is now nearing completion as shown in Figure 1*, with architectural detailing and mechanical fit out expected to commence shortly. The substation design is in accordance with the requirements of the local electricity service provider TNB (Tenaga Nasional Berhad) the largest electricity utility in Malaysia, and all required approvals have been obtained for the structural, mechanical and electrical elements of the facility.

Substation construction is currently expected to be completed by May 2020. After completion and a handover inspection, the substation will be turned over to TNB for inspection by its projects team ahead of switchgear installation which will take place in parallel with the balance of HPA plant construction, to ensure that electricity supply is available well in advance of HPA plant commissioning.

On site, the EPC construction team and its subcontractors have now completed a total of 117,425 lost time injury (LTI) free hours. The Stage 1 and 2 activities have seen a total of 241 employees and contractors inducted onto the construction site, and all works have been conducted with no first aid or medical treatment cases.

Stage 2 engineering activities continue to progress, with SMS group GmbH (SMS) now having placed orders with approximately 80% of the third party engineering long lead item vendors for completion of their vendor engineering packages. SMS has also continued to work on completion of equipment arrangement drawings, piping and electrical layouts using the latest design information provided by these equipment vendors.

*To view photographs, please visit:
https://abnnewswire.net/lnk/E06X055D

About Altech Chemicals Ltd:

Altech Chemicals Limited (ASX:ATC) (FRA:A3Y) is aiming to become one of the world's leading suppliers of 99.99% (4N) high purity alumina (HPA) (Al2O3).

HPA is a high-value, high margin and highly demanded product as it is the critical ingredient required for the production of synthetic sapphire. Synthetic sapphire is used in the manufacture of substrates for LED lights, semiconductor wafers used in the electronics industry, and scratch-resistant sapphire glass used for wristwatch faces, optical windows and smartphone components. There is no substitute for HPA in the manufacture of synthetic sapphire.

Global HPA demand is approximately 25,315tpa (2016) and demand is growing at a compound annual growth rate (CAGR) of 16.7% (2016-2024), primarily driven by the growth in worldwide adoption of LEDs. As an energy efficient, longer lasting and lower operating cost form of lighting, LED lighting is replacing the traditional incandescent bulbs.

Contact:

Corporate
Iggy Tan
Managing Director
Altech Chemicals Limited
Tel: [phone]
Email: [e-mail]

Shane Volk
Company Secretary
Altech Chemicals Limited
Tel: [phone]
Email: [e-mail]

Investor Relations (Europe)
Kai Hoffmann
Soar Financial Partners
Tel: [phone]
Email: [e-mail]

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