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04 JULY 2018 AL CIRCLE

Altech Chemicals to utilize 'disruptive technology' to lower HPA production costs

EDITED BY : HEENA IQBAL 2MINS READ

Altech Chemicals Limited has provided an update on the development of its high purity alumina (HPA) project in Malaysia. The company’s Managing Director Iggy Tan updated Proactive Investors that Altech’s HPA plant can lower production costs by utilising disruptive technology.

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Altech is aiming to become one of the world's leading suppliers of 99.99% (4N) high purity alumina (HPA). The company will construct a 4,500tpa HPA plant at the Tanjung Langsat Industrial Complex, Johor, Malaysia.

Iggy Tan said: "We're going to build a 4,500 tonne per annum plant, but the growth in [demand] is so strong that we expect there will be 20 times our plant in growth by 2025... we are the only project in the world today that's at funding stage... we have a totally different process, we're disruptive, and we find that our cost of production is nearly a third of the conventional cost."

The plant will produce high purity alumina directly from kaolin  clay, which will be sourced from the Company’s 100%-owned kaolin deposit at Meckering, Western Australia. Production costs are anticipated to be considerably lower than established HPA producers.

HPA is 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.

Global HPA demand in 2016 was approximately 25,315 tonnes per annum and is likely to grow at a compound annual growth rate (CAGR) of 16.7 per cent, until 2024, primarily driven by the growth in worldwide adoption of LEDs.

Last month, Altech Chemicals received the official manufacturing licence from the Malaysian government for its high purity alumina (HPA) plant. The company had already received a letter of ‘No Objection’ from the Johor State Investment Centre.

Altech has received support for its HPA project from MIDA, Johor Corporation, the state of Johor and the Malaysian federal government.


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EDITED BY : HEENA IQBAL 2MINS READ

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