Altech plans fixed price contract for HPA plant construction

<p>Altech Chemicals Limited has announced that it has reached an 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&rsquo;s proposed Malaysian high purity alumina (HPA) plant.</p> <p><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/hpa%20plant.png" alt="News" width="517" height="226" /></p> <p>A fixed price EPC contract insures the risks during the construction phase of the project like completion risk (cost and timeline)and project operability risk (at completion and handover). The contract will offer 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.</p> <p>About 50 M+W Group engineers, situated in both Germany and Singapore, are engaged in plant engineering and design. Detailed engineering has been going on since mid-2016 with the work anticipated to be completed during Q2 2017.</p> <p>{googleAdsense}</p> <p>Commenting on the fixed price contract, Altech managing director Iggy Tan said, &ldquo;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.&rsquo;&rsquo;</p>