Tag: Metech International Limited

SGX-listed Metech International Limited (“Metech” or the “Company”, and together with its subsidiaries, the “Group”), is pleased to announce that its joint venture company, Asian Eco Technology Pte. Ltd. (“AET”) has entered into a Strategic Collaboration Agreement with Ningbo Meishan, which Zongheng Capital is one of the ordinary partners. Ningbo Meishan with intention to provide funding of US$100 million in AET’s lab-grown diamond business activities through debt and/or equity financing.

Highlights:

– A lab-grown diamond is a diamond: chemically, physically and optically identical to a mined diamond, hence without the need for mining, lab-grown diamonds are a sustainable source of this important material
– Diamonds are more widely known to be used in jewellery but diamonds are also commonly used for industrial applications and there are more advancements for diamonds to be used in the next generation of semiconductors, aerospace, electric vehicles, medical equipment, among others.
– AET has the technological capabilities to produce the highest grade of lab-grown diamonds
– Ningbo Meishan with intention to provide funding of US$100 million in AET through debt and/or equity financing and the proceeds will be primarily used to increase AET’s lab- grown diamond production capacity and capabilities in Singapore

The funding of US$100 million is for the purpose of increasing AET’s lab-grown diamond production capacity and capabilities. The proceeds will be primarily used for the construction of AET’s lab-grown diamond manufacturing facilities in Singapore.

Zongheng Capital is one of the earliest equity investment fund management companies in China and it was co-founded by the founders and core management team of Alliance PKU Management Consultants Ltd and industry’s top elites. Alliance PKU Management Consultants Ltd is China’s first registered management consultancy company.

Since its establishment, Zongheng Capital has provided management consulting services to more than 5,000 mid-sized and large enterprises, as well as over 500 listed companies.

Zongheng Capital undertakes investments in private and listed companies, specialising in key investment areas that include medical and health (including medical equipment, biopharmaceuticals, medical services, health industry, eldercare services), intelligent manufacturing (including robots, Industry 4.0, Internet of Things), and smart digital solutions (including artificial intelligence, big data, enterprise services and software technology). For more information on Zongheng Capital, please visit http://www.zonghengcapital.com/

Since the announcement on 24 September 2021 in relation to the establishment of a joint venture in the business of lab-grown diamonds between Asian Green Tech Pte. Ltd, a wholly-owned subsidiary of the Company, and X Diamond Capital Pte. Ltd., the Company has made various announcements detailing the development of this lab-grown diamond business.

The Company is currently preparing, and is liaising with its sponsor, to seek its shareholders’ approval for a proposed business diversification of its core business to include the manufacturing and distribution of lab-grown diamonds and such other related activities at an extraordinary general meeting (the “EGM”).

Ms. Samantha Hua, Deputy Chief Executive Officer and Executive Director of Metech, said: “The production of lab-grown diamonds is highly specialised with significant technological barriers.

As such, this US$100 million financing is a clear vote of confidence in AET’s technical expertise and capabilities. It represents a huge step forward in our plans to build on our vision and realise our business ambitions in the global lab-grown diamond market.

This comes at an opportune time when lab-grown diamonds are gaining more consumer acceptance and more importantly, with the unique and extreme properties of diamond, there are more commercialisation of scientific discoveries for industrial applications of diamond in the next generation of semiconductors, aerospace, electric vehicles, medical equipment, among others.”

About Metech International Limited
(Bloomberg: CENR:SP / Reuters: METE.SI / SGX Stock Code: V3M)

Listed on the Singapore Stock Exchange, Metech International Limited (“Metech”) has a multi-pronged business model that aligns with the macro trends in the area of environmental and sustainability.

While proactively evaluating new business opportunities to broaden its business model, Metech continues to build on its capabilities and extend the value propositions of its business units.

Issued on behalf of Metech International Limited by 8PR Asia Pte Ltd.

Media & Investor Contacts:
Mr. Alex TAN
Mobile: +65 9451 5252
Email: alex.tan@8prasia.com

SGX-listed Metech International Limited (“Metech” or the “Company”, and together with its subsidiaries, the “Group”), is pleased to announce that its wholly-owned subsidiary, Asian Green Tech Pte. Ltd (“AGT”), has entered into a joint venture agreement (“JVA”) with X Diamond Capital Pte. Ltd. (“XDC”) on 24 September 2021 to establish a joint venture, pursuant to which AGT and XDC (collectively, the “Parties”) will incorporate a joint venture company (“JV Company”) in Singapore to carry out the business of manufacturing and distribution of lab-grown diamonds (the “Joint Venture”).

Under the JVA, AGT shall operate and manage the JV Company while XDC shall provide technical support to the JV Company.

The Rising Popularity and Applications of Lab-Grown Diamonds

A lab-grown diamond is a diamond: chemically, physically and optically identical to a mined diamond.

While diamonds are more widely known to be used in jewellery, diamonds are also commonly used for industrial applications as they are extremely effective at polishing, cutting, and drilling.

Furthermore, lab diamonds have the edge on mined diamonds with regards to their purity and hardness, with lab-grown diamonds found to be ten times more durable than natural diamonds. The US Department of Energy reports that diamond-based components reduce energy losses by up to 90%(1).

According to figures published by Diamond Foundry, the total environmental footprint of mined diamonds is much higher than lab diamonds(2).

In May 2021, the world’s largest jewellery, Pandora, says it will no longer sell mined diamonds and will switch to exclusively laboratory-made diamonds due to concerns about the environment and working practices in the mining industry(3).

Lab-grown diamond production has ballooned in recent years, with 6-7 million carats produced in 2020 alone, though still a tiny industry compared to diamond mining, which peaked at 152 million carats in 2017 and currently stands around 111 million carats. But lab-grown diamonds are increasingly pitched as the sustainable choice to price- and planet-conscious young consumers. In addition to Pandora, De Beers, Vrai and Kimai have begun selling lab-grown diamonds as well as or in place of mined ones(4).

According to Statista, the market size of lab-grown diamonds is forecasted to increase its value to approximately US$29.2 billion by 2025 and grow to nearly 19.2 million carats by 2030(5).

The Joint Venture is aligned with the Group’s strategy to expand further into the environmental and sustainability business.

As lab-grown diamonds are created without the need for mining, they are a more sustainable production of diamonds and there are also opportunities to integrate renewable energy in such manufacturing activities, hence it is aligned with the Group’s environmental and sustainability business model.

Ms. Samantha Hua, Deputy Chief Executive Officer and Executive Director of Metech, said: “With better technology and declining production costs, lab-grown diamonds will be a sustainable solution to the declining supply of mined diamonds. In addition, the millennial generation are also more conscious about the environmental, sustainability and ethical impact of mined diamonds. With our joint venture, we have the capabilities to create our own quality diamonds in Singapore and establish new channels to make it accessible to a wider consumer base. I believe that we are in the early stages of this emerging consumer trend and we are excited about the opportunities ahead.”

About Metech International Limited
(Bloomberg: CENR:SP / Reuters: METE.SI / SGX Stock Code: V3M)

Listed on the Singapore Stock Exchange, Metech has a multi-pronged business model that aligns with the macro trends in the area of environmental and sustainability.

While proactively evaluating new business opportunities to broaden its business model, Metech continues to build on its capabilities and extend the value propositions of its business units.

For more information, visit www.metechinternational.com.

Issued on behalf of Metech International Limited by 8PR Asia Pte Ltd.
Media & Investor Contacts:
Mr. Alex TAN
Mobile: +65 9451 5252
Email: alex.tan@8prasia.com

(1) https://www.bbc.com/future/article/20200207-the-sparkling-rise-of-the-lab-grown-diamond
(2) bit.ly/3kFndrM
(3) https://www.bbc.com/news/business-56972562
(4) bit.ly/3udv1nS
(5) https://www.statista.com/topics/7108/lab-grown-diamond-industry/

This press release is to be read in conjunction with Metech’s exchange filings on 24 September 2021, which can be downloaded via www.sgx.com.

This announcement has been prepared by the Company and its contents have been reviewed by the Company’s Sponsor, RHT Capital Pte. Ltd. (the “Sponsor”) for compliance with the relevant rules of the Listing Manual Section B: Rules of Catalist of the Singapore Exchange Securities Trading Limited (the “SGX-ST”). The Sponsor has not independently verified the contents of this announcement. This announcement has not been examined or approved by the SGX-ST and the SGX-ST assumes no responsibility for the contents of this announcement, including the correctness of any of the statements or opinions made or reports contained in this announcement.

The contact person for the Sponsor is Mr Khong Choun Mun, Registered Professional, RHT Capital Pte. Ltd. at 6 Raffles Quay, #24-02, Singapore 048580, sponsor@rhtgoc.com.