THE BOURSE WHISPERER: Altech Chemicals (ASX: ATC) announced the signing of a sales and distribution agreement with the Australian subsidiary of Mitsubishi Corporation, Mitsubishi Australia.
The deal covers Alltech’s proposed high purity alumina (HPA) product.
Under the agreement Mitsubishi emerges as the exclusive seller and distributor of Altech’s final HPA product to the Japanese market.
“The Agreement with Mitsubishi marks another important milestone for the company’s HPA project,” Altech Chemicals managing director Iggy Tan said in the company’s announcement to the Australian Securities Exchange.
“We are delighted to partner with one of Japan’s largest companies and a very reputable name worldwide.
“Altech’s 4,000 tonnes per annum HPA plant will position the company not only as one of the world’s largest producers of HPA, but also as one of the world’s lowest cost producers of HPA.”
Altech declared the Japanese market to be important for the company saying the agreement with Mitsubishi provides the required marketing and distribution experience for its HPA.
In 2014, consumption of HPA in Japan was an estimated to represent 21 per cent of estimated total global HPA demand for the year.
As Japan’s largest general trading company with more than 200 bases of operations in approximately 90 countries worldwide, Mitsubishi is a good fit for Altech.
Mitsubishi has been engaged in long-term business with customers from around the world in virtually every industry, including energy, metals, machinery, chemicals, food and general merchandise.