Altech Advanced Materials AG (AAM) is currently planning to...

Altech Advanced Materials AG (AAM) is currently planning to invest in the Altech Chemicals subsidiary, Altech Chemicals Australia PTY LTD ("Altech Australia") for up to USD 100 million with up to 49%. AAM is currently implementing its capital raising strategy to finance this investment.
Altech Australia is currently building a production plant for high-purity aluminum oxide (99.99%; 4N HPA) 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 among others required for the production of LED lights and as a separator for lithium-ion batteries, which e.g. for electric vehicles and smartphones. According to market studies, the demand for 4N HPA should average 30% p.a. grow by 2028. The patented process from Altech Australia allows the production of HPA as a cost leader since the HPA can be obtained directly from kaolin. This enables production without the use of energy-intensive aluminum. The decrease in the production volume for the first 10 years was secured by an off-take agreement with Mitsubishi Australia and the production capacity and quality is guaranteed by the German plant engineering company SMS group GmbH from Düsseldorf, who has also agreed to equity for the Altech HPA -Project project.
The overall project has a remaining investment volume of around USD 390 million, of which KfW-IPEX Bank has already committed USD 190 million under certain conditions and SMS group GmbH has already entered into an equity commitment of USD 10 million. Altech Chemicals Limited is currently in discussions with Macquarie Bank regarding the provision of $ 90 million mezzanine capital. The remaining $ 100 million is expected to be made available by AAM.