Perth, Australia, Feb 27, 2020 - (ABN Newswire) - Altech Chemicals Limited (ASX:ATC.AX - News) (HAM:A3Y.F - News) is pleased to provide information about various European based initiatives that have recently commenced to support the Company's objective of closing the balance of finance for its Malaysian high purity alumina (HPA) project. A key remaining step includes a capital raise by Frankfurt Stock Exchange listed Altech Advanced Materials AG (AAM) of ~ EUR69.4 million (if fully subscribed) and the exercise of its option to acquire up to a 49% direct interest in Altech's HPA project for US$100 million.
Mr Uwe Ahrens, who is a member of the AAM management board and the alternate director for Altech non-executive director Tunku Yaacob Khyra, has been posted to AMM and will be based in Germany. Mr Ahrens is a German national who has resided in Malaysia for in excess of 20-years and has retained a very strong business network in Germany. He is a senior member of the management team of the Melewar group, a major shareholder of Altech.
During his posting to Germany Mr Ahrens will:
- Work closely with the other members of the AAM management board and its appointed Placement Agent (a Swiss International Investment Bank), to promote AAM's capital raise to potential institutional investors in one-to-one meetings and in group presentations (refer ASX Announcement of 5 February 2020);
- Increase engagement with emerging participants in the bourgeoning European lithium-ion battery sector and promote Altech's HPA project, the Company's 99.99% (4N) HPA product and the Altech partnership/investment opportunity. An objective is to link with one or more European based 4N HPA end-users that appreciate the advantage of a current commitment to accepting future volumes of the Company's 4N HPA product at pre-agreed or other transparent pricing, and/or directly partnering with the Company for the development of its HPA project; o Liaise with various research bodies such as the internationally renowned Fraunhofer Society for the advancement of applied research, about HPA product attributes and various test work, plus identify and capture any opportunities for Altech presented by the European Union's Battery 2030 Roadmap initiative - for details view:
Altech Chemicals managing director, Mr Iggy Tan said "from our interactions with attendees at various European battery conferences - including the Advanced Automotive Battery Conference, Wiesbaden, Germany - and from recent meetings with European banks, funds and other professional investors, it is clearly apparent that there is a new sense of urgency in Europe, and particularly in Germany, to accelerate the development of a European based lithium-ion battery manufacturing sector as a cornerstone to support a faster than previously anticipated transition to electric vehicle production.
For Altech and our proposed 4N HPA product, the current momentum in Europe presents a unique window of opportunity which we must endeavour to capitalise on. The posting of Mr Ahrens to Germany, will I believe, provide us with the additional required "boots-on-ground" to directly represent and advocate for Altech and our 4N HPA, whilst at the same time providing assistance to AAM for its impending capital raise."
About Altech Chemicals Ltd:
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.
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