The non-binding LOI has been entered into by Versarien together with the Shandong Institute of Industrial Technology Fund, Jinan Qing Na Material Technology and Jinan Innovation Zone Administrative Committee with the view to establishing the “China-UK Jinan Graphene Industrial Park” in the Jinan Innovation Zone, Shandong Province, China.
The LOI includes as a first stage the establishment of a 100,000 square foot manufacturing facility to produce and sell Versarien’s proprietary Nanene few layer graphene nano-platelets. Versarien will provide its intellectual property (IP) on a license basis together with production know how, whilst the other joint venture partners will provide the factory and funding for plant and equipment.
The second stage is planned as the establishment of the first Chinese graphene industrial park, the “Jinan Graphene Valley” including a graphene research institute with funding coming from the joint venture partners. The total project cost is anticipated to be in the region of 500 million yuan (approximately £55 million).
It is the Company’s intention to form a wholly owned Hong Kong company which will become one of the joint venture partners, whilst ensuring the strongest protection of its IP. Further announcements will be made as appropriate, including when final agreements are entered into.