Vladivostok, September 3, 2016 – PJSC ALROSA, the world leader in diamond mining, has announced that an agreement was signed with KGK Diamonds (I) Private Limited on the partnership in the development of cutting and polishing facilities in Eurasian Diamond Centre in Vladivostok.
Under this agreement, ALROSA will assist KGK in the creation of a diamond cutting company on the territory of the Diamond Centre in the Far East, and will supply rough diamonds to the company taking into account the existing long-term obligations to other buyers.
ALROSA has been supplying untreated natural rough diamonds to KGK since 2008. Annual purchase of ALROSA’s natural rough diamonds by KGK Group for the manufacture of polished diamonds in Russia and abroad exceeds USD 200 million.
KGK, in its turn, will ensure the creation of a legal entity, lease or purchase of the premises, training and hiring of the staff, purchase and installation of the equipment, setup of manufacturing processes, financing of a newly created legal entity, including for the purchase of rough diamonds.
The creation of KGK’s new cutting and polishing facilities in Vladivostok is planned in July 2017. As it is planned, the new plant will reach its design capacity (cutting of not less than 15,000 carats of natural rough diamonds per year) within the period of 4 years from the start of operations. In the first year of operation, the headcount of the new company will be 150 employees, and it will go up to 500 in subsequent years.