Scio Diamond Technology Corporation has entered into a joint-venture agreement with two unnamed partners to produce type lla, single-crystal CVD diamonds in China for a specific gemstone market. The South Carolina-based laboratory-created diamond producer says it has signed the joint-venture agreement as the "technology and delivery provider" and that its two partners in the vertically integrated consortium "bring more than 75 years collective experience in the gemstone industry."

The China facility will be initially fitted with 100 Scio-designed diamond-growing reactors as well as support equipment, such as lasers operation and HPHT pressing machines. The facility will have the capability to expand to 400 diamond-growing reactors over the next two years.

Scio says that its current production technology produces 32,000-plus rough carats of diamonds annually with its 10 growers. The joint venture will be employing "the next level of technology" at its outset, which will increase production by an additional 50 percent.

According to Scio CEO Michael McMahon, the partners have worked on this deal since April. Scio is providing its patented CVD Diamond Technology to the joint venture through a licensing agreement that provides Scio with both an equity position and licensing revenues. Scio's partners are responsible for providing the joint venture 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," says McMahon. "We have spent our first year of operations focused on the mass-production of high quality diamond, which has now been recognized."

From now until the first of the year, the JV team will be engineering and installing the infrastructure of the China facility as well as hiring and training the technical staff. Much of the upfront training will be taking place in Scio's headquarters in Greenville, South Carolina.

The new entity is estimated to begin producing diamonds in the summer of 2014.