EMA to Merge With Rama Manufacturing
December 15, 04
Israeli diamond firm EMA Diamond Manufacturing Ltd, a DTC Sightholder, will merge with Rama Manufacturing. EMA says the planned merger, set to go into effect February 1, 2005, is part of its growth strategy. At the same time, Chimera Ltd will close its offices and join EMA.
The sides feel that to achieve optimum performance in the current market, the combination of the companies will allow them to reach a +$200 million turnover required to navigate through rising rough diamond prices, an increased cost of doing business, and a polished market characterized by dwindling manufacturing margins.
EMA is a relatively young diamond company, established 11 years ago. It has seen tremendous growth over the past few years, and became a Sightholder last year during the last selection by the Diamond Trading Company (DTC).
It has strong manufacturing with its main facilities in Panyu, China, employing some 600 cutters, and marketing offices in New York, Hong Kong, Tokyo and Antwerp. EMA is one of a handful of Sightholders involved in the DTC Forevermark pilot program.
Rama is a U.S. company owned by members of the Ratzersdorfer family. Its strength is its supply ‘programs’ – diamond purchasing plans by jewelry firms. It supplies some of the biggest retail chains in the
Rama has an annual turnover of about $50 million. Following the merger, EMA group turnover will be $150-$200 million a year, making it one of the biggest diamond firms in
In the U.S., EMA and Rama will merge their operations and will be called EMA-Rama Inc. Naftali Ratzersdorfer will serve as President and Frank LaRoux as Executive Vice President.
Chimera, affiliated with Rama, is based in Israel and involved in marketing polished diamonds and some diamond and jewelry manufacturing.
According to the Diamond Controller at the Israeli Ministry of Industry, Trade and Labor, EMA exported $67 million worth of polished in 2003 and Chimera $26 million, making them the 11th and 29th biggest exporters respectively.
Chimera will close its Israeli headquarters in Ramat Gan and move into EMA’s offices at the Israeli Diamond Exchange.