SGX-listed Metech International has set up a joint venture to produce so-called “lab-grown” diamonds to what it says is growing demand.
Citing estimates by Statista, Metech notes that 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 – up from some 6 – 7 million carats produced last year.
The joint venture, via Metech’s subsidiary Asian Green Tech, is with X Diamond Capital, and will have an initial paid up capital of $500,000. It will be 51% held by Metech and X Diamond Capital, the remaining 49%.
X Diamond Capital has three shareholders: Deng Yiming; Xu Kang and Yang Hanyu, holding 40%, 35% and 25% respectively.
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It is in the business of wholesale of jewellery made from precious metal and stones and the manufacture of piezo-electric devices.
“With better technology and declining production costs, lab-grown diamonds will be a sustainable solution to the declining supply of mined diamonds,” says Samantha Hua, Metech’s deputy CEO and executive director.
“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,” she adds.
On May 31, the company had announced another joint venture with Jurong Barrels & Drums Industries to explore water treatment businesses in China.
Metech closed Sept 24 at 19 cents.
