Cosmos commences fundraising efforts for Malaysia Poly Plant & Targets 2016 Completion and Production

by Matt Margolis

Nearly 7 weeks ago, GT Advanced Technologies announced the signing of a $336m supply agreement with Cosmos Chemicals Berhad to provide equipment and technology for a 25,000 metric ton annual (MTA) polysilicon facility.  At the time the announcement the funding of the agreement was not certain, however news that surfaced yesterday indicate that Cosmos has commenced the funding raising efforts and the overall project has the support of the state governments and other agencies.

GT Advanced Technologies Inc., (Nasdaq:GTAT), today announced the signing of a $336 million supply agreement with Cosmos Chemicals Berhad to provide equipment and technology for a 25,0000 metric ton annual (MTA) polysilicon facility, a project sponsored by Saudi Arabia based Project Management & Development Company (PMD), that will be located in Sarawak, Malaysia.  Under the terms of the agreement, which is subject to financing, GT will supply its complete suite of polysilicon production equipment and technology including engineering services, hydrochlorination, SDR™ CVD reactors, filament production, and polysilicon processing. Cosmos Chemicals Berhad is currently securing final financing for the project. Contingent upon completion of this step, GT expects the project to commence in phases beginning with the commissioning of engineering work followed by an equipment order.

Yesterday, Bid Ocean Network reported that Cosmos Petroleum and Mining has commenced the fund-raising for the proposed Polysilicon Plant in Sarawak.    According to the news source the  National Bank of Abu Dhabi (NBAD) was appointed the Financial Advisor and Lead Arranger for the fund-raising.   The plant is expected to be completed and producing polysilicon in 2016.  Based on the estimated completion and production target of 2016, it means that GT’s $336m of revenue will likely be spread over the 2H 2015 and 1H 2016.   Highlights from the Bid Ocean Network update are below:

 The Cosmos Petroleum & Mining Sdn. Bhd., an affiliate company of the Project Management & Development Company (PMD), is raising funds for the development of the proposed 25,000-tonne per annum Polysilicon Manufacturing Plant in the Samalaju Industrial Park, Bintulu, Sarawak.

The National Bank of Abu Dhabi (NBAD) was appointed the Financial Advisor and Lead Arranger for the fund raising.

The plant was granted some 250 acres of land at the Samalaju Industrual Park by the Sarawak State.

The project has the support of the state government and other agencies, being part of a major heavy industrial manufacturing development in Sarawak. The development will provide job opportunities for the local people.

The MIDA and MITI have issued a manufacturing license to the project. It has also been decided ahead that the Sarawak Energy Berhad will supply electricity to the Project.

The plant is expected to come into operation and production by 2016.

 

The summary of the Cosmos project is below, GTAT will be providing the Technology.

 

 

Full Disclosure: I am long GTAT and have no plans to buy or sell any holdings