7th Apr 2014 08:04
LONDON (Alliance News) - Graphene NanoChem PLC saw its shares rise early Monday after it signed one profit-boosting joint venture deal and neared agreement on another.
In a statement, it said its Platinum NanoChem Sdn Bhd subsidiary has entered a joint venture with Scomi Oiltools Sdn Bhd to produce and supply a range of speciality chemicals, including PlatDrill and other graphene-enhanced green chemicals, exclusively for the oilfield chemicals market.
Scomi Oiltools is a subsidiary of Scomi Energy Services Bhd.
The first stage of the JV will be the building of a 45,000 tonne a year chemical production plant and a 30 tonne a year graphene nanomaterial plant by the start of 2016.
Capital expenditure for the JV will be about GBP14.7 million, funded 70% by debt, and Graphene NanoChem's equity component of capital expenditure is GBP2.2 million.
The JV will have access to Scomi's existing customer base, which has an order book of GBP844 million, Graphene NanoChem said.
"This is the outcome of two years of joint development with Scomi Oiltools, which has expanded far beyond the scope of the initial collaboration on graphene-enhanced drilling fluid," Graphene NanoChem said in a statement.
"As well as revenue from the JV resulting in a material uplift to the group's results from 2016, we will also be targeting new opportunities within Scomi's operations," he added. We expect this JV to be a model that we can replicate in a number of other applications."
Separately, the company said the same subsidiary has signed a heads of agreement for a joint venture collaboration with Emery Advanced Materials, a subsidiary of Emery Oleochemicals Sdn Bhd, focused on developing a new generation of speciality chemicals for plastic additives, biolubricants and rubber.
A heads of agreement is a tentative, non-binding deal made before a formal agreement is signed.
Graphene NanoChem shares were up 9.3% at 99.5 pence Monday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
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