By
Reuters
Revealed
November 21, 2024
Russia’s Alrosa, the world’s largest producer of tough diamonds by quantity, might droop some manufacturing in 2025 and lower workers because it grapples with low international costs, the sanctions-hit firm’s CEO, Pavel Marinychev, mentioned on Thursday.
Reuters
Marinychev mentioned the worldwide diamond trade was in a “deep crisis,” with costs falling for a second consecutive 12 months. For Alrosa, this disaster is exacerbated by a ban on Russian diamond gross sales to G7 and EU nations as a part of Western sanctions.”Certain areas that are less profitable, which are at the borderline of profitability, may be subject to suspension during this crisis period,” Marinychev instructed a neighborhood tv station within the Yakutia area of Russia’s Far East, the place most of Alrosa’s manufacturing is predicated.
He added that manufacturing in these areas may very well be rapidly resumed if the market recovers.
“We are currently in a rather difficult situation. Our task is to endure and wait out this period, to wait for prices to start rising again,” Marinychev added. The Russian authorities typically buys diamonds from Alrosa via a state fund.
Marinychev mentioned that the corporate deliberate to chop its labour prices by 10% within the coming 12 months. This measure would come with some reductions of its 35,000 workers, though he didn’t specify the extent of the cuts.
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