Altech Chemicals Limited (Altech/the Company) (ASX:ATC) is pleased to advise the attendance of managing director Iggy Tan at the Johor Corporation official lease signing ceremony. The lease is for the land Altech has secured at the Tanjung Langsat Industrial Complex, Johor, Malaysia as the site of its proposed high purity alumina (HPA) plant. Highlights
- Lease signing ceremony secures HPA site at Johor
- 20-year lease agreement, with 20-year renewal option
- Johor is the ideal location for HPA production and distribution
The Company executed a 20-year lease agreement, which includes a 20-year renewal option, with TPM Technopark Sdn Bhd, a wholly-owned subsidiary of Johor Corporation.
The lease signing and presentation ceremony was held in Johor, Malaysia on 23 November 2016, at which the president and chief executive officer of Johor Corporation, YB Dato Kamaruzzaman Abu Kassim formally presented Altech managing director Iggy Tan with the lease documents.
The site that the Company has secured at Johor, Malaysia is in the established Tanjung Langsat Industrial Complex; the site is approximately 4 hectares in size and is in a section of the industrial complex specifically reserved for chemical facilities. The site was selected for its proximity to hydrochloric acid, lime and limestone plants - all required consumables for the Company's proposed HPA plant. Reticulated natural gas and high voltage power is also readily available to the site, as is access to processing water. In addition the kaolin feedstock for the proposed HPA plant will be shipped in sea containers from the port of Fremantle, Western Australia to the nearby container port of Tanjung Pelepas. Final HPA product from the HPA plant will also be distributed through Tanjung Pelepas, which is the 17th largest port in the world, shipping more than 7 million sea containers annually.
Altech managing director Mr Iggy Tan commented, "Johor is currently the preferred destination for business investment in Malaysia. Costs of business in Johor are estimated at 30% less than in Kuala Lumpur and 60% less than in Singapore. With three ports; low cost and established power, gas, road, telecommunications and other business infrastructure and its proximity to Singapore, Johor is the ideal site for Altech's downstream high value-add HPA processing plant.
"We firmly believe that the benefits of locating our HPA plant in Johor will enable Altech to position itself in the lowest quartile of the world's HPA producers. This is important when you are competing in a global market" he concluded.
About Tanjung Langsat Industrial Complex
The Tanjung Langsat Industrial Complex is located approximately 40km to the south-east of the city of Johor Bahru and caters to light, medium to heavy industries. The industrial hub contains multinational production groups from petrochemical, oil and gas, resource-based, ferrous and non-ferrous metal, biofuel, marine, palm oil and oleochemicals. Major companies operating within the Tanjung Langsat Industrial Complex include major Spanish steel manufacturer Acerinox Group; Titan Petrochemicals; Kiswire; Dairen Chemicals; Dialog and Lion Eco Chemical.
Iggy Tan Managing Director Altech Chemicals Limited Tel: +61-8-6168-1555 Email: info@altechchemicals.com Shane Volk Company Secretary Altech Chemicals Limited Tel: +61-8-6168-1555 Email: info@altechchemicals.com
