Smolensk Kristall To Start Polishing In China

Russia’s biggest diamond polisher, Smolensk Kristall, plans to start polishing diamonds in China in a move aimed to reduce production costs, taking advantage of reduced labor costs.

Kristall will hold 51 percent of the joint venture. Its partner in the JV is Brilliant Trading. Together they plan on manufacturing $10 million worth of Russian diamonds in the plant that Kristall will supply with the needed technology. Smolensk's Hong Kong affiliate, Smolensk Diamond Asia Ltd., will run the project.

Until recently Russian companies could not manufacture outside of the country because of strict rough diamond export rules that have only recently been relaxed by President Putin.

"The project will enable Kristall to boost international sales and significantly reduce the costs of diamond production," the Kristall said in the statement.