New York, NY--In 2008, world production of industrial diamonds will exceed $2.3 billion. The majority of these will be used in abrasive and cutting tool applications. Manufacturers of cutting tools and superabrasives have long recognized the advantages of diamond over other abrasive products, such as ceramic and cemented carbides, but have not been able to justify the added expense of using diamond products over these less expensive materials. Continually, however, efficiencies in synthetic diamond production and the development of untapped mines in Canada and South America, lower the cost of diamond materials. The result has sparked an increased interest in diamond tools.

The US market for cutting tools, such as drill bits for construction, saw blades and grinding wheels, has been dominated by materials such as aluminum oxide ceramics or tungsten carbide as the abrasive component. However, superabrasives such as cubic- or polycrystalline boron nitride and diamonds offer distinct advantages, such as greater wear resistance and cleaner finish. These characteristics result in increased tool life (in some cases by a factor of fifty.) The main disadvantage of superabrasives is price which can be as much as ten times greater than ceramic or carbide. Ironically, the tool would long outlive the times-ten price differential, but OEMs contend that the tool actually outlives the job for which it is needed, and that buying five carbide blades, for instance, is more cost effective than buying one diamond tool blade. Thus, the market for ceramic and carbide cutting tools continues to represent a huge potential for diamond tool makers.

Within the cutting tools sector, superabrasive products (i.e., diamond and CBN/PCBN) make up approximately 10% of the total world market. Diamond tools make up slightly less than 50% of the total. Over 94% of the industrial diamonds used will be synthetically produced. Even with the increased market for natural industrial diamonds which total 67.7 million carats in 2008, the industrial diamond industry will remain dominated by synthetic products which equal approximately 1,182.8 million carats in 2008.

Manufacturers of synthetic diamonds include Momentive Performance, E6, Ilgin and St. Gobain.

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