Advanced materials engineering group, Versarien Plc an update today as it ramps up its business dealings in China.
In January, Versarien signed a non-binding Letter of Intent (LOI) with three Chinese entities in Shandong Province-- the Shandong Institute of Industrial Technology Fund, Jinan Qing Na Material Technology Co Ltd and Jinan Innovation Zone Administrative Committee-- to establish the “China-UK Jinan Graphene Industrial Park.”
Graphene is a semi-metal comprised of a single layer of carbon atoms, yet, is an excellent conductor of heat and is astoundingly strong; researchers at the Massachusetts Institute of Technology (MIT) used graphene to make a material that was 5% as dense as steel but 10 times stronger. As such, there are a myriad of practical uses for graphene, from fittings in computers to protective body armour.
Versarien’s patented manufactured graphene, Nanene, is possibly the largest world order of graphene to date, setting the company up as a leader in the unique semi-metal’s market.
The graphene manufacturing facility established by the LOI is only the first part of the company’s strategy to root itself into Chinese markets. To ease its business in Asia, Versarien has also formed a wholly owned Hong Kong-based company to continue dealings with China and other Asian countries.
Versarien’s Framework Agreement with Qingdao MBC places a further emphasis on facilitating a smooth entrance into Chinese Markets. The agreement covers “cooperation between the parties in the fields of graphene research, development and industrialisation, including the potential establishment of a graphene focussed operation in Qingdao for Versarien.”
Crucially, the agreement repeatedly stresses how Qingdao MBC is to “assist Versarien with establishing partnerships and business relationships with Chinese enterprises, including providing assistance in identifying any appropriate strategic investors.”
This condition positions Versarien well for the upcoming year, if not quite ahead of the curve.
Diversification away from business with the European Union bloc will be essential for any UK company to continue growing as Brexit approaches with only one seemingly certain condition of the deal-- a withdrawal from the EU’s single market. A heightened interest in creating ties with Chinese markets, therefore, is not a novel thought for British industry leaders in the Brexit era.
In fact, a common rallying cry for Brexit has been the very notion that, freed from EU restraints, UK companies would find new success in engaging with growing foreign economies-- such as China.
To prove this hypothesis, Prime Minister Theresa May brought a delegation of around 50 U.K. business leaders, which included Versarien Founder and CEO Neill Ricketts, to China this February in order to cement Sino-British ties in deals worth about £9bln.
The supported integration into the Chinese market outlined by Versarien’s Framework Agreement would certainly allow the company to differentiate itself and find success.
As Versarien hopes to shape the graphene sector, it has also jumpstarted its strategy for carving a leading place into the UK’s new business world order. A trained eye, therefore, should be kept on Versarien--the last time the company signed a new deal in the Chinese market, back in July, it finalized 23 more in the following weeks.
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