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LONDON (Alliance News) - Versarien PLC said Monday it is making "significant" progress in developing its relationships in China.
The advanced materials engineering company said discussions in Jinan, the capital of the Shadong province in eastern China, are "progressing".
The graphene company signed non-binding letters of intent in January to establish the 'China-UK Jinan Graphene Industrial Park' in the Jinan innovation zone. The total project cost is anticipated at around GBP55.0 million.
The project was entered into with the Shandong Institute of Industrial Technology Fund, Jinan Qing Na Material Technology Co Ltd, and the Jinan innovation zone's administrative committee.
Versarien set up a Hong Kong subsidiary to become the joint venture partner, and will be used as a platform for joint ventures in other countries.
The engineering company said it has set up a framework agreement with the Qingdao Municipal Bureau of Commerce, also in the Shadong province, to cover cooperation between fields of graphene research, development and industrialisation.
The framework agreement includes the potential establishment of a graphene focused operation in Qingdao.
"We are making significant progress in developing our relationships in China, both with government bodies and industry. Our discussions in Jinan regarding establishing the 'China-UK Jinan Graphene Industrial Park' continue to make good progress and I am pleased that we have signed another agreement in Shandong province to progress our Chinese plans," said Neill Ricketts, chief executive officer.
Ricketts added: "The announcement of the letter of intent in Jian led to significant interest from other parties in China and resulted in possible links with another 23 cities or companies in China, a number which has since grown."
"We are conscious that we need to establish formal relationships with the most appropriate parties and in doing so we should seek to protect, as far as possible, the company's intellectual property as well as conclude the best deal for Versarien and its shareholders."
Shares in Versarien were up 0.6% Monday at 128.80 pence each.
