- Versarien said it had agreed to establish a graphene manufacturing centre in China that would cost about £55m to build.

A non-binding letter of intent was entered into by Versarien together with the Shandong Institute of Industrial Technology Fund, Jinan Qing Na Material Technology and Jinan Innovation Zone Administrative Committee.

The aim was to build the "China-UK Jinan Graphene Industrial Park" in the Jinan Innovation Zone, Shandong Province, China.

The agreement envisages as a first stage the establishment of a 100,000 square foot manufacturing facility to produce and sell Versarien's proprietary Nanene few-layer graphene nano-platelets.

Versarien would provide its intellectual property on a licensed basis together with production know how, whilst the other joint venture partners would provide the factory and funding for plant and equipment.

The second stage objective was the establishment of the first Chinese graphene industrial park, the "Jinan Graphene Valley" including a graphene research institute with funding coming from the joint venture partners.

The total project cost is anticipated to be in the region of 500m yuan, or about £55m, Versarien said.

At 9:25am: [LON:VRS] Versarien PLC share price was +17.1p at 88.5p

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