KGK to Invest $50M in Polishing Near Vladivostok

man-cutting-diamondMoscow: Back in September 2016, ALROSA announced a partnership with Indian company KGK Diamonds Private Ltd, a global leader in diamond cutting, to develop cutting and polishing facilities in Eurasian Diamond Centre in Vladivostok. The agreement entailed ALROSA assisting KGK in the creation of a diamond cutting company on the territory of the Diamond Centre in the Far East, supplying rough diamonds to the company taking into account the existing long-term obligations to other buyers.

The KGK Group is now set to create a new cutting facility near Vladivostok which will polish rough diamonds from ALROSA. The total investments will amount to $50 million. KGK plans to employ up to 500 people at their new facility and to open a training centre for its staff to cut up to 9,000 carats of diamonds monthly. The first work will begin in July this year with the factory completion slated for the end of 2019.

KGK has already found a location in the city, which it aims to use before a new factory is complete. Additionally, the Indian investors were granted a certificate of residence for the newly-created Free Port of Vladivostok, which will give them tax and customs preferences, and lower costs for ships in the port. The KGK group has branches in Moscow and the diamond region of Yakutia, and sees its new facility in Vladivostok as a gateway to the markets of Asia-Pacific region.

Indian companies were major auction buyers at ALROSA’s latest auction of industrial grade and gem quality natural rough diamonds in the Eurasian Diamond Centre held in March. In 2017, ALROSA is planning to sell 2 million carats of all types of diamonds worth USD 73 million through its Far East branch. Auctions of special size 10.8+ and industrial grade rough diamonds will be held in the next 3 months.