Cheltenham-based advanced materials engineering group, Versarien, is rapidly developing its business ties with China.

In an update, the company says it has signed a Framework Agreement with the Qingdao Municipal Bureau of Commerce in China's Shandong Province, China.

This covers cooperation in the fields of graphene research, development and industrialisation, including the potential establishment of a graphene focussed operation in Qingdao for Versarien.

Qingdao, is a major city with a population of over nine million people. It is one of the major areas of graphite production in China and is developing as a Chinese centre of excellence for graphene, with an already established graphene industry innovation demonstration base.

Versarien has led the way in the development of graphene-related technologies, pioneering production of materials that have exceptional qualities and can withstand the most extreme conditions. The uses for graphene are virtually limitless.

Neill Ricketts, CEO of Versarien, commented: "We are making significant progress in developing our relationships in China, both with government bodies and industry. Our discussions in Jinan regarding establishing the "China-UK Jinan Graphene Industrial Park" continue to make good progress and I am pleased that we have signed another agreement in Shandong Province to progress our Chinese plans.

"As I stated in our annual results published in July 2018, the announcement of the Letter of Intent (last January) in Jian led to significant interest from other parties in China and resulted in possible links with another 23 cities or companies in China, a number which has since grown.

"We are conscious that we need to establish formal relationships with the most appropriate parties and in doing so we should seek to protect, as far as possible, the Company's IP as well as conclude the best deal for Versarien and its shareholders.

"I am delighted by the support we are receiving from the Chinese Government at all levels, together with the UK Department for International Trade and I look forward to making further announcements as our relationships in China progress and we enter into further agreements."