Alrosa looks at merging its diamond manufacturing units

The subject on how to improve and increase Alrosa’s diamond cutting and polishing operations was recently discussed by the company’s Executive Committee, reports say. The company had implemented a scheme last year to improve the performance of its cutting and polishing factories, the results of which the Committee deducts are ‘satisfactory’, reports say. The scheme entailed re-allocating different categories of rough supplies, basis costs and margins, among its cutting and polishing factories.

Now, to further the development of its diamond polishing business, it plans a merger between its current diamond manufacturing operations, Alrosa's Moscow-based subsidiary Brillianty Alrosa (Alrosa Diamonds), the Barnaul-based Barnaul Kristall Cutting and Polishing Factory LLC (100 percent), and the Orel-based Orel-Alrosa LLC (51 percent), with the main production facilities to be based in Barnaul. Its factory in Moscow will continue to specialize in large and fancy-colored diamonds, which would be sold through international auction houses under the Alrosa marketing program. Alrosa is considering approaching large international jewellery manufacturers to become its strategic partners.