IDMA, WFDB Consider Joining Forces

RAPAPORT... The International Diamond Manufacturers Association(IDMA) is considering an alliance with the World Federation of DiamondBourses (WFDB) in response to the crisis in the global cutting sector. "With the changes in the diamond-manufacturing sector's landscape,as well as due to the many other challenges the diamond industry is facing, thetime may have come for the diamond trade to unite under a single header andspeak with a single voice on behalf of its members," IDMA president RonnieVanderLinden said Friday. Many factories have closed in countries such as Armenia,Namibia, South Africa, Russia, Sri Lanka and Thailand, VanderLinden noted. Evenin China, the number of active cutters has shrunk from more than 40,000 tofewer than 5,000 in a short space of time, he continued. "This is, of course, having a profound impact onour membership, and this year, several of our members have indicated they donot have the wherewithal to continue their IDMA membership," VanderLindenadded. WFDB president Ernie Blom insisted the conversations were "notmerger talks." "We are exploring how best to use our combined strengths forthe benefit of our members," Blom added. "We are pursuing this for [thatreason] and to see how we can act symbiotically together." IDMA and WFDB started discussing the initiative "manyyears" ago, but made significant progress during the World Diamond Congress inMumbai last month, VanderLinden added. Representatives of IDMA met with Blomand members of the WFDB's executive committee at the end of the congress topresent a proposal, he explained. VanderLinden noted the example of the United StatesJewelry Council, which formed in 2015 as an alliance of 16 trade organizations.Replicating that format in the global diamond industry would be beneficial, asit gives the trade a single representative voice, he said. "The industry's current, difficult environment requires amore united and coordinated effort and approach, especially when we considerpressing issues like the search for new, alternative financing partners and themany reputational issues we are facing," he observed. Meanwhile, Prince Mbetse, president of the South African Diamond ManufacturingAssociation, has been elected as IDMA vice president, succeeding Phillippe Roolant. MatthewSchamroth, a board member for the Diamond Manufacturers & ImportersAssociation of America, became IDMA secretary-general, replacing Kim Lanny.Image: A brilliant-cut, 0.45-carat polished diamond with a laser inscription. (Bjoern Wylezich/Shutterstock)