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RAPAPORT... Scio Diamond Technology Corporation entered into a joint venture with unnamed partners to produce type IIa, single crystal, chemical vapor deposition (CVD) diamonds in China. The joint venture's facility is expected to host 100 Scio designed diamond-growing reactors initially, as well as support equipment, such as lasers operation and high pressure-high temperature (HPHT) pressing machines.
The facility will have the capability to expand to 400 diamond-growing reactors over the next two years, according to the company's statement. Scio's current set up in Greenville, South Carolina produces about 32,000 carats a year with 10 machines.
Scio is providing its patented CVD technology to the partnership through a licensing agreement that provides Scio with both an equity position and licensing revenue. The partners are responsible for funding as well as associated technologies.
"This venture affirms the acceptance of Scio's technology platform and our proven ability to mass produce quality diamond, by two of the industry leaders in their respective fields," said Michael McMahon, Scio's CEO.
He expects that the new venture will begin producing high-quality diamonds by the middle of 2014.
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