De Beers Group on Thursday announced that it is closing its lab-grown diamond (LGD) jewellery brand Lightbox, and renewing its focus on natural diamonds.

As part of the closure process, De Beers Group is discussing the sale of certain assets, including inventory, with potential buyers, the diamond major said in a statement.

Element Six, De Beers Group's subsidiary that previously produced lab-grown stones for Lightbox, will now focus on industrial solutions using synthetic diamonds.

Lightbox, established in 2018, has highlighted that LGDs are a distinct product from natural diamonds, with different attributes and different value.

The company further stated that the proposed closure of the Lightbox business reflects a key executional milestone in De Beers Group's Origins Strategy, as set out in May 2024, to focus on high-return activities and streamline the business.

The closure will enable De Beers Group to reallocate investment to initiatives focused on reinvigorating the desire for natural diamonds through category marketing.

"As we move towards becoming a standalone company, we continue to optimise our business, reduce costs and build a focused De Beers that is positioned for profitable growth. The persistently declining value of lab-grown diamonds in jewellery underscores the growing differentiation between these factory-made products and natural diamonds," De Beers Group Chief Executive Officer Al Cook said.

Lightbox has helped to highlight the fundamental differences in value between these two categories, he added.

Courtesy: Rediff.com