IDE President Shmuel Schnitzer: "This is an important day for us after the opening of the small diamond factory of stones of up to three carats. The picture will now be completed with the opening of a plant for larger stones."
IDE management and members held a meeting about the new diamond factory that is being planned for the manufacture of large diamonds from 10 carats and larger in the heart of the Israel Diamond Exchange complex.
IDE President Shmuel Schnitzer said the factory right under the Maccabi building would be a real asset due to its location which will allow diamantaires to be able to go and consult and check on the polishing work and this.
Israel Diamond Manufacturers Association President Kobi Korn said: "Every now and again over the years the idea has arisen for the establishment of such a factory. The idea of a cutting and polishing plant here started several years ago. Large diamonds worth hundreds of thousands of dollars that are polished abroad need a high level of supervision and security. Although the factory won't be in the sealed IDE complex, there will be a hermetic passageway to it from the IDE.
Diamond Controller Shmuel Mordechai said: "I believe this factory will be a blessing for the domestic diamond sector and for all those who use the new factory's facilities. I am sure that we are heading for a new period in our history which will lead to the return of some of the manufacturing here."
Dvash gave a detailed briefing on the factory and the conditions that diamantaires need to meet to be accepted. "I am very happy to be a member of the management that is working on two planes simultaneously. We are trying to deal with the ongoing problems while also sowing the seeds of future success. Our job is to create a better environment and the conditions for people to flourish. This factory came about because of necessity after people turned to Shmuel and then to me.
"There are many Israeli firms which manufacture large goods. When we checked it out more deeply we found that there are several issues with the insurance companies. Large diamonds need two security people to accompany them because they are so expensive. I was also told by manufacturers that large diamonds are sent to Belgium and New York for manufacturing because the conditions in Israel are not there for the cutting and polishing of such diamonds.
"But this factory gives a range of solutions. Regarding the insurance companies, we sat with just about all of them to discuss it. We are going to create the plant with a passageway from the bourse to ensure security is tight. As long as the person does not step out of the bourse complex, and this is what I was promised, as long as he does not go out, as far as the insurance premiums are concerned he is considered as being within the exchange, the insurers said.
"It also means that there is no need to go out of the building in the heat or the rain but simply to go to the Maccabi building and go down to the factory. Easy access to the factory will allow diamantaires to quickly check on their diamonds.
"We set up a sub-committee to discuss these issues and the bourse management, I am happy, to say debated it and gave it its approval. It is a space of 400-450 sq meters and its planning use has been approved by the Ramat Gan municipality."
Dvash said there was no connection between the two factories, apart from that both aim to provide a great value added service to Israeli manufacturers. "There is no support or subsidy. Our target is simply to make life easier for manufacturers of large diamonds. There will be 15-18 tailor-made rooms for polishing, and each person will be in his room and can do whatever he wants. We do not intend to invest a lot in it."
Dvash explained that there will be a committee to decide on who is accepted to manufacture in the new plant. "Anyone can register and the person will be checked for suitability for acceptance. There will be no polishing of small diamonds even of 1 carat and one-and-a-half carats. The whole aim is to give priority to manufacturers of large diamonds. I believe there is already great demand for the factory, and we are also checking another place and permits for it if, indeed, it is needed. We aim to start pushing the idea forward straight after the Jewish New Year and Yom Kippur.
"I would also like to point out the polishing courses that the already established factory does. This year there have been seven courses. And there are a range of other course planned."
Among the acceptance regulations are that:
It is only for manufacturers of large diamonds – of 10 carats and more
That the applicant has a valid manufacturer/trader license
There is priority for members of the Israel Diamond Exchange
At least three years of experience as a manufacturer of large diamonds is required
Three recommendations are needed from IDE members
Impeccable past/reputation is critical
There is a commitment to renting for at least 30 months in advance with the possibility of extending it by a further 30 months
Firms must be registered with the official Companies Register
They must be legally allowed to employ workers
They must abide by conditions relating to insurance, including the acquisition of supplementary insurance where needed
Applicants must not have debts or be the subject of complicated claims
The IDE is not responsible in any way for the work of the factory or relations between suppliers and manufacturers
Each company that is approved by the Acceptance Committee will be required to pay a fee to show its seriousness
