HPQ (High Purity Quartz) is proud to be featured in Irish Tech News:
HPQ (High Purity Quartz) will attend Blockchain Festival Vietnam (24-25 May, 2018) at GEM Center which is just a short walk from HPQ office.
See you there!
Bitcoin News Vietnam (BTCNEWS.VN) has recently published an article about HPQ (High Purity Quartz) project – https://btcnews.vn/cong-ty-singapore-dang-goi-von-qua-hinh-thuc-ico-de-xay-dung-mot-nha-may-o-viet-nam.
The article is in Vietnamese so here is the translation:
Singaporean company is fundraising via ICO to build a factory in Vietnam
From a university lab in Moscow, to an industrial park in Ho Chi Minh City, meet HPQ (https://hpq.io), the first industrial commodity-backed ICO in South-East Asia
A team of finance professionals and chemical and industrial engineers have teamed up to launch the first industrial commodity-backed ICO in South-East Asia. The team is raising USD1.65 million to introduce a novel and environmentally-friendly approach to produce high purity quartz (HPQ) from Vietnamese sand.
The jurisdiction of the ICO is Singapore. For the time being, Singapore is one of the most ICO-friendly countries. After the ICO, the Singaporean company will use the total amount raised to build a factory in Ho Chi Minh City, Vietnam. It will be the 1st high purity quartz production facility in Vietnam, and one of the most novel HPQ production lines in the world.
The HPQ token is being launched at USD2 with the company promising to buy back the token at a price of USD4 in 18 months’ time. Alternatively, what could be more interesting for investors is the possibility of redeeming the token from month 13 for 1kg of high purity quartz. At current market prices, this could provide investors a return in excess of 2x, and potentially as much as 5x. The fact that each token is guaranteed by a physical commodity is what makes this ICO such an exciting and lower risk prospect for investors.
High purity quartz (HPQ) is a key raw material used in the semi-conductor, solar, lighting and optical industries. It is a white powder and essentially a very pure version of quartz, defined as having at least 99.995% SiO2 content. HPQ is a necessary element for the production of any modern gadget, such as solar panels and mobile phones.
Instead of the classic method of quartz purifying (taking out the impurities through chemical processes step by step), the team, founded by Vladimir, a chemist and inventor, Alexander, an equipment engineer and factory design specialist, and Sergei, an Economics graduate and equipment and technologies engineer from Russia, “pull” only the needed element, SiO2, out of the raw quartz-containing material which can be quartz sand of any purity. This cutting-edge technology has the potential to completely disrupt the global HPQ monopoly and team is very confident that it can thrust the company to immediately become a global player in the billion-dollar industry.
The initial idea came up through a university research project. After many years of testing in the laboratory, the project’s team finally produced a pilot production line in 2012-2013. Following this, the team spent time conducting market research, obtaining feedback from buyers, and building up the demand. The team considered various locations to base the project, including Russia, Singapore, Malaysia, New Zealand, Slovenia and Canada. Eventually though they decided Vietnam would be the best fit for a variety of reasons, such as low utilities cost, cost of raw materials, labour cost etc. Sergei was the first team member to move permanently to Vietnam. However, the team still lacked funding to move the project forward. The team contacted nearly every local bank in Vietnam, but none of the banks were willing to finance “green field” projects without full collateral.
Then in mid-2017, Sergei met Sami on a flight from Hanoi to Ho Chi Minh City and the pair immediately struck up a chord. Unlike many foreign investors who did not understand Vietnam or who were put off by the anti-Russian sentiment in the news, Sami, who was already based in Vietnam, was very excited about the project, and things started to move much faster. Sami, who had previously worked as an analyst for a leading global private equity group, pulled in some investment from ex-colleagues in London, Zachary and Henry, and together the team built a second pilot production line. Henry who previously built JustEat in the UK from startup to $2.44Bn IPO will be leading Business Development, along with Zachary who previously co-founded private equity firm, TLG Capital.
Unlike other industrial mineral markets, there is limited competition in the global HPQ industry with two producers handling more than 80% of global production, mainly sourcing their raw material from one location in Spruce Pine, USA. For most buyers there is simply not enough availability of ultra pure and high purity quartz. If there is any product available, then it is only affordable to big buyers such as Samsung.
In the next several years, the team have plans to expand production to 30,000 tonnes per annum, grow revenue beyond USD$100 million, and continue R&D in order to expand into other industrial technologies.
We are based in Ho Chi Minh City – please feel free to visit.
Address: Room 33, 3rd floor, Indochina Park Tower | 04 Nguyen Dinh Chieu St., DaKao Ward, District 1, Ho Chi Minh city, Vietnam
Tel. +84 28 62564470, fax +84 28 62564472
(Mon-Fri 10am-5pm, Sat 10am-12.30pm local HCMC time UTC/GMT+7)
IMPORTANT NOTE: This is the project office in Vietnam because the factory will be built in Ho Chi Minh City (Vietnam). Please note that the legal jurisdiction of the ICO is Singapore
The best place to build a factory in Vietnam is in an industrial park.
An industrial park is a special government-approved area with proper infrastructure (electricity supply, water supply, waste treatment, etc.) for industrial production and incentives for tenants. Some industrial parks have specialization (based on accepted industries) but most of them only have specific environmental standards, and every business that complies with those standards may become a tenant.
There are 2 main options to consider when thinking of a factory workshop:
- Long term lease of land (40-50 years) and building a factory.
- Ready-built factory for lease.
Option 2 (ready-built factory for lease) is very convenient because you receive a completely ready-made workshop (it may have a standard design, or may be custom-built for you) without lots of paperwork and expenses. The industrial park does everything for you – you pay only the regular rental fees according to your agreement.
Industrial parks allow businesses to avoid the upfront expenses related to setting up a factory.
For example, if we need to buy/lease land and build a factory workshop, we will require about 1 million USD more than our current capital requirement (the amount will vary depending on the area, location and construction type).
Usually, in every industrial park, there are a couple of ready-made workshops that you can immediately use. However, if you want the industrial park to build a brand new factory for you it takes only 3 to 6 months, depending on the industrial park and the urgency.
We have visited many industrial parks around Vietnam, especially in the Ho Chi Minh City (HCMC) area.
Though Hanoi is the capital of Vietnam, Ho Chi Minh City is still the main financial, industrial and cultural center of Vietnam. It is the main city for doing business and has very good infrastructure. Most international flights arrive here and it is a good location to export products especially as there is a port right next to the city.
We have previously also considered the Da Nang area where industrial parks and local authorities offer good terms, but we are sure that HCMC is still the best choice.
The overall terms are the same in most industrial parks (investment incentives like tax holidays, etc.) but we needed to choose the best possible option based on:
- Availability of ready-built factories (ready or custom-built)
- Rental fees and terms
- Management level and quality
In the end, we have decided to choose Phuc Long Industrial Park.
It is located near Binh Chanh District of Ho Chi Minh City, in Long An.
What we liked at Phuc Long:
- On-site customs (inside of industrial park)
- All investment incentives (tax holidays, etc.)
- Great support by management
- Quick construction of factories (industrial park belongs to TVP Steel company which produces the main components of buildings right inside the industrial park)
- Good quality of standard workshops (sound and dust insulation, etc.)
- Reasonable prices for leasing and facilities
- Fully developed infrastructure
- Good % of occupation by international companies
- Management board is friendly and flexible
- Turn-key services (paperwork, etc.)
- Good transport infrastructure.
Here are some photos:
Is it the only good industrial park? Of course not. But others have some issues which are not favorable for us: for example, very bad design of standard workshop which can’t be amended (single metal sheet walls, etc.), high rent(especially with very good location), unavailability of ready built factories, bad customer service, bad payment terms, etc.
For the time being, Phuc Long Industrial Park is the best option with quite a low “entrance ticket”. It allows us to quickly start with our minimum production line, and offers us the space to expand in the future.