Ezhou diamond enterprises hold a group to develop joint procurement and reduce costs

On January 6th, Ezhou Diamond Tool Industry Association held an exchange meeting on “Innovation and Sharing”. More than 200 diamond companies and 56 material suppliers gathered to discuss how to develop in the new economic normal.
Ezhou diamond tool industry is a “grassroots industry” that originated in the private sector in the 1980s. It is also a high-tech industry. Its sales once occupied more than 60% of the national market. Statistics show that in 2015, Ezhou diamond tools scale enterprises have reached more than 20, more than 200 small and medium-sized enterprises, with an annual output value of more than 3 billion yuan and a profit and tax of 350 million yuan.
However, in the past 30 years, there have been low-end competition and price competition between Ezhou diamond cutter companies, and there is a big gap with market demand.
In November last year, Ezhou Diamond Tools Industry Association was established. Secretary-General Yan Tao said that the association will coordinate the development of various enterprises, promote professional division of labor, learn from each other's strengths, and benefit each other. “Now, the association’s joint procurement of raw materials such as diamonds, metal powders and equipment can reduce costs by 20%.”
At the meeting, Ezhou Rural Commercial Bank, China Postal Savings Bank and Ezhou Diamond Tools Industry Association signed a credit agreement to provide 1 billion yuan of credit. Yan Tao said, "Where members of the association have financing needs, they can all be financed through association guarantees."

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