- A lab-grown diamond is a diamond: chemically,
physically and optically identical to a mined
diamond - Strong market prospects in lab-grown
diamonds that are driven by environmental, sustainability
and ethical concerns of mined diamonds - New business
venture is aligned with Metech’s environmental and
sustainability business model and creates new growth drivers
for the Group
Singapore, Sept 26, 2021 – (ACN
Newswire) – 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.
© Scoop Media
Credit: Source link