Metech International‘s joint venture Asian Eco Technology (AET) has entered a collaboration agreement with Ningbo Meishan, which has Zongheng Capital as a partner, to provide the lab-grown diamond player US$100 million in funding via debt and/or equity financing, according to a filing to SGX Friday.
The US$100 million will be used to increase AET’s lab-grown diamond production capacity and capability with the proceeds mainly earmarked for the construction of manufacturing facilities in Singapore, Metech said.
Zongheng Capital, an equity investment fund management company in China, invests in private and listed companies, specialising in key investment areas such as medical and health, intelligent manufacturing and smart digital services, such as artificial intelligence (AI), software and big data, the filing said.
Under the agreement, “at a mutually agreed time,” Ningbo Meishan and AET will set up a joint venture, with Ningbo Meishan likely to invest funds, while AET contributes technical expertise and funds, the filing said.
Samantha Hua, deputy CEO and executive director of Metech, said the financing is “a clear vote of confidence in AET’s technical expertise
and capabilities,” as producing lab-grown diamonds has significant technological barriers.
“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 diamonds, there are more commercialisation of scientific discoveries for industrial applications of diamonds in the
next generation of semiconductors, aerospace, electric vehicles, medical equipment, among others,” she said in the statement.