|
|
Israel
By Avi Krawitz
The Israel Diamond Exchange (IDE) is building a new diamond cutting facility in Ramat Gan as part of its effort to reestablish the country as a major manufacturing center. “We have to emphasize our strengths, which are our knowledge, financing and manufacturing,” explained Yoram Dvash, chief executive officer (CEO) of Y. Dvash, a manufacturer specializing in fancy shape diamonds, who is overseeing the project in his capacity as chairman of IDE’s industry committee. He noted that the factory “is an important step in the right direction for the industry because a healthy industry needs to develop its manufacturing capacity.” Dvash added that the local diamond industry is focused on three things: sourcing rough diamonds, manufacturing and marketing its polished supply. To advance these goals, he said that IDE recently launched the Israel Rough Diamond Weeks to strengthen access to rough, while Israeli diamantaires have effectively marketed themselves via a prominent presence at the various trade shows. “Now, we have to strengthen our manufacturing,” Dvash stressed.
The factory, which is projected to open in the next two months, will provide space and equipment for companies to do their own manufacturing onsite, or to outsource cutting operations to the team of workers employed at the plant. Dvash said he expects 80 to 100 people to be employed at the facility and that it will also serve as a training center to encourage a new generation of manufacturers in Israel. Shmuel Schnitzer, president of IDE, added that the exchange will target the ultrareligious community and newly discharged soldiers for its employee base as part of the government’s program to stimulate employment within these sectors. Dvash envisages that the training program will include about 30 students, who would work at a minimum salary while being mentored by more experienced craftsmen at the factory. The so-called Modern Manufacturing Center will consist of about 12 rooms that will hold two to ten workers each. Dvash reported that Sarine Technologies and OGI Systems, along with other organizations and companies, donated a total of approximately $300,000 worth of equipment to ensure that the factory has the most up-to-date and sophisticated equipment.
“Our intention is to create a one-stop shop providing cutting, polishing and laser capabilities for all shapes and colors of diamonds so that a manufacturer can access every service he needs,” Dvash explained. “We will provide such support as technology and gemological equipment, and there will be a technical supervisor stationed at the factory.” He added that bourse members will be able to manufacture at a discounted cost, which will enable them to be more competitive and to improve their profit margins. Israel’s manufacturing sector, which peaked at an estimated 20,000 workers in the 1980s, has declined in the past two decades with India’s emergence as the dominant diamond cutting center. Schnitzer and Dvash argue that today Israel can compete with India in manufacturing better-quality and larger Gemological Institute of America (GIA) dossiers because the labor cost contribution in manufacturing these goods is marginal. In particular, they said the factory will focus on manufacturing triple EX diamonds. Dvash implored the industry to support the project. “If everyone would take 10 percent of their capital to manufacture in Israel, we’ll have a basis from which to rebuild the industry here,” he said. “Our intention is that this is just the beginning and we will establish other factories focused on other types of goods.”
Trading in the IDE was stable but relatively slow in May as many remained in vacation mode through the Independence Day holiday that took place at the beginning of the month. The focus quickly turned to preparations for the Las Vegas shows, with approximately 100 companies participating in the event that took place after press time from May 30 to June 2. “The Israeli participation has increased and has become very significant this year,” said Nissim Palomo, chief marketing officer of the Israel Diamond Institute Group of Companies (IDI), in IDI’s newsletter. “We are very excited about this show since the United States diamond market is returning to itself. We are expecting this to be a very good show.” Local diamantaires who spoke with Rapaport Magazine reported that polished sales have been steady so far in 2014 and they expect the positive momentum to continue for the rest of 2014. In particular, they note that U.S. demand is robust while the Far East has slowed since the March Hong Kong show, although many argue this was largely expected because the second quarter has been seasonally slower than other periods in previous years. Israel’s Diamond Controller’s office declined to publish the country’s import and export data for the first quarter of 2014 without explanation.Article from the Rapaport Magazine - June 2014. To subscribe click here.
|
|
|
|