Singapore, Sept 28: Metal industry expert Metech International Ltd has announced that it is venturing into the production and distribution of lab-grown diamonds as a sustainable solution to the declining supply of mined diamonds.
In a statement, Metech said its wholly-owned subsidiary Asian Green Tech Pte Ltd (AGT) has signed an agreement with X Diamond Capital Pte Ltd (XDC) to incorporate a joint venture (JV) company to manufacture and distribute lab-grown diamonds.
Under the agreement, AGT will operate and manage, while XDC will provide technical support to the JV company.
“With better technology and declining production costs, lab-grown diamonds will be a sustainable solution to the declining supply of mined diamonds,” Metech deputy chief executive officer Samantha Hua said in the statement.
“With this JV, 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,” she said.
German company specialising in market and consumer data, Statista, has forecast that the market size of lab-grown diamonds will increase to about US$29.2 billion by 2025, and grow to nearly 19.2 million carats by 2030.
“In addition, the millennial generation is conscious of the environmental, sustainability and ethical impact of mined diamonds,” Hua said, highlighting that this aligns well with the company’s environmental and sustainability business model.
Statistical reports published by America’s top producer of man-made diamonds, Diamond Foundry, revealed that the total environmental footprint of mined diamonds is much higher than lab-grown ones.
A lab-grown diamond is identical to natural diamonds, in terms of its chemistry and physical as well as optical appearance, but the former is found to be 10 times more durable.
In industrial applications, diamonds are commonly used for polishing, cutting and drilling as they are extremely effective, with opportunities for lab-grown ones to be integrated into renewable energy in manufacturing activities.
Listed on the Catalist Board of the Singapore Exchange Securities Trading Ltd (SGX-ST), Metech has a multi-pronged business model that aligns with the macro trends in the area of environmental and sustainability.
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