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22:07 | Aug 16 | 2011

Diamond Way to China

“EPL Diamond” Group of Companies – the Sakha (Yakutia) Republic diamond-brilliant complex leader. The Yakut company was one of the first to perform the economic activity in the international area in Asia-Pacific region. Having managed with diamond cut launch in Shanghai the company opened its branded jewelry store in Beijing.

The “EPL Diamond” Research and Production Company”, Ltd, CEO Valery Fedorov gave an interview to our magazine.

– Mr. Fedorov, as we know the “EPL Diamond” Group of Companies is strongly represented in Russian cities and regions as well as abroad – in Israel and the USA. Nevertheless you “turned back” towards East, where you based a factory and opened a jewel store in PRC. What factors predetermined to make such an ambitious and risky step?

– Our company started to perform in China by establishing “EPL Diamond” representative office at The Shanghai Diamond Exchange and building “EPL-Shanghai” factory afterwards.
At this plant we organized a so-called “spark diamonds” cut which are often of marginal profit in Yakutia.
Today Russia has difficulties with jewelry and lapidary companies legislative regulation. VAT and customs regulation features in Russian Federation are the main problems here.
So this led us to open a factory in PRC. Then, after this overture has turned out successfully, we opened our branded jewel store in Beijing in 2009. The reason for choosing countries like China and India for diamonds manufacturing is the fact that one carat lapidary costs there are three times lower than here in Yakutia.
– Do you meet any difficulties while working in the domestic PRC market?
– China people show cautious attitude due to their national mentality. The old Chinese proverb runs like this “seeing a tiger showing you his teeth does not mean he is smiling”. Generally China is one of the priority areas for international activity for our company. Our main competitive advantage is steady extra-quality production, achieved by implementing expensive high-end technologies in jewel and lapidary production
– Please reveal the main goals and international activity outlooks for “EPL Diamond” Group of Companies.
– Our crucial point is “EPL Diamond” positions consolidation in Asia-Pacific region.
The high professional staff contributes greatly to faster implementation of this goal. We joined together to let the beautiful Yakutian brilliants conquer the whole world.
The pressing issue today is the one regarding the Special Economic Zone (SEZ) of Industrial-Production type organization in Yakutsk – the capital of The Sakha (Yakutia) Republic.
The residents of this SEZ in Yakutia will be provided with the lower tax rates and custom duties. In other words the VAT problem will be automatically solved in case the SEZ appears. 
This step is also considered helpful in fulfillment of the republic strategic tasks in international trade and economy in gene­ral. Moreover SEZ will provide people with new workplaces, raise their competitive potential and increase their own contribution to GDP of the country.