Altech Batteries Ltd Stock Market Press Releases and Company Profile
Targets Fixed Price Contract for HPA Plant
Targets Fixed Price Contract for HPA Plant

Perth, Feb 22, 2017 AEST (ABN Newswire) - Altech Chemicals Limited (googlechartASX:ATC) (Altech/the Company) is pleased to advise that it has reached agreement with its appointed engineering, procurement and construction (EPC) contractor M+W Group on a framework for a fixed price EPC contract for the construction of the Company's proposed Malaysian high purity alumina (HPA) plant.

Highlights

- Fixed price contract framework agreed for HPA plant

- Warranty, performance and completion guarantees

- Liquidated damages for late completion and bonus for early delivery of plant

- Significantly de-risks project for shareholders and debt providers

- Detailed engineering ongoing to determine final fixed contract price

A fixed price EPC contract is a very positive outcome for shareholders, project financiers and the HPA project as it significantly de-risks the construction phase of the project; specifically, completion risk (cost and timeline) and project operability risk (at completion and handover). Further, typical fixed price contract provisions will apply such as throughput performance guarantees and warranty periods, a performance bond, warranty bond, liquidated damages for delay in completion and a bonus for early completion. The process guarantee remains with Altech and the technical risks have been minimised through extensive test work and pilot plant testing.

Work is ongoing with M+W Group to finalise details of the fixed price EPC contract. Information from the continuing detailed engineering and design work is required to enable the various equipment suppliers to submit binding quotations for incorporation into the final contract price. Up to 50 M+W Group engineers, situated in both Germany and Singapore, are engaged in plant engineering and design, such is the level of resource required to deliver the fixed price contract.

Detailed engineering has been ongoing since mid-2016 with the work anticipated to be completed during Q2 2017, which will enable the Company to submit its application for German government-backed export credit finance and the total debt package.

Commenting on the fixed price contract, Altech managing director Iggy Tan said, "Reaching conceptual agreement with M+W Group on a fixed price construction contract is a significant de-risking accomplishment for Altech shareholders. The fixed price contract also delivers to debt providers a high level of comfort in terms of total project costs, potential cost overruns and completion delays. This is a great outcome and achievement for the Company", he said.


About Altech Batteries Ltd

Altech Chemical Ltd ASX:ATCAltech Batteries Limited (ASX:ATC) (FRA:A3Y) is a specialty battery technology company that has a joint venture agreement with world leading German battery institute Fraunhofer IKTS ("Fraunhofer") to commercialise the revolutionary CERENERGY(R) Sodium Alumina Solid State (SAS) Battery. CERENERGY(R) batteries are the game-changing alternative to lithium-ion batteries. CERENERGY(R) batteries are fire and explosion-proof; have a life span of more than 15 years and operate in extreme cold and desert climates. The battery technology uses table salt and is lithium-free; cobalt-free; graphite-free; and copper-free, eliminating exposure to critical metal price rises and supply chain concerns. 

The joint venture is commercialising its CERENERGY(R) battery, with plans to construct a 100MWh production facility on Altech's land in Saxony, Germany. The facility intends to produce CERENERGY(R) battery modules to provide grid storage solutions to the market.

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Contact

Corporate
Iggy Tan
Managing Director
Altech Batteries Limited
Tel: +61-8-6168-1555
Email: info@altechgroup.com

Martin Stein
Chief Financial Officer
Altech Batteries Limited
Tel: +61-8-6168-1555
Email: info@altechgroup.com



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