Rosy Blue Sets Up New SA Plant, BEE Agreement, Jewelry Deal

Rosy Blue Manufacturing (PTY) Ltd, a new Diamond Trading Company (DTC) Sightholder in South Africa and a division of the international Rosy Blue Group, has announced three significant developments in its South African operations.

After investing 13.5 million rand ($2 million), Rosy Blue Manufacturing said it has established a diamond cutting plant that can compete with cutting operations in India and China. Rosy Blue acquired its diamond manufacturing operation in Cullinan from Diamond SA-Monnickendam Ltd in August 2003.

It has also implemented a Workers Trust at its diamond cutting plant. The Trust will "give back to our staff a stake in the business in a producing country that has long been the backbone of the diamond and jewelry industry,” said  Managing Director of Rosy Blue Manufacturing Vishal Mehta.

A further announcement is a Black Economic Empowerment (BEE) partnership with Sphere Holdings to reinforce Rosy Blue's part in the changing South African diamond industry and to come into line with new laws.

In addition, Rosy Blue Manufacturing is going into partnership with jewelry wholesaler Kashikey and jewelry manufacturer Nagahori. The two Japanese companies have combined sales of more than $90 million, and are moving upstream in the diamond industry value chain.

“We entered into this partnership with a view to expanding Kashikey’s operations in the diamond industry and to create a bridge between South Africa, a producing country and Japan, the second largest diamond jewelry market in the world,” said Hisao Kato, President of Kashikey.

“We are confident that this cooperation will have a beneficial effect on the diamond market because consumer information and needs will be conveyed upstream. Furthermore, selling diamond jewelry with a Sightholder partner will contribute significantly to consumer confidence in diamonds.”

According to Mehta “The attainment of a South African DTC customer supply of rough diamonds, followed by partnerships with South Africa’s Sphere Holdings, Japan’s Kashikey and Nagahori, as well as the establishment of a Rosy Blue Worker’s Trust were all initiatives by the leadership of Rosy Blue with the goal of strengthening and expanding operations in South Africa."