Leather industry news

Pakistan tanners visit South East Asia
Pakistan/Vietnam/Indonesia
Published: 11 February, 2010
Eleven member tanners of Pakistan Tanners Association (PTA) led by their chairman, Gulzar Firoz, visited Vietnam and Indonesia between February 1-6 says a press release from the PTA.

The delegation visited Ho Chi Minh City where they met the Ho Chi Minh Shoes & Leather Association and other members of the association. One to one meetings were also held with buyers and successful trial orders were obtained say the PTA, with many further orders in the pipeline. The footwear industry in Vietnam is predicted to export footwear worth $4.2 billion in the future. The delegation also visited some Vietnamese based tanneries and large shoe factories.
On the second part of the trip the delegation visited Jakarta, Indonesia where they met the Footwear Association and Tanners Association of Indonesia. A detailed program was organised by the Pakistan Embassy who invited more than 50 buyers from tanneries, shoes factories and glove manufacturers to the meeting. Members of the PTA held one to one meetings and successful initial orders were placed. According to the PTA, Indonesian tanneries are producing only 30% of the leather required for their own manufacturing sectors and therefore it has great potential for selling semi and fully finished leathers into the country




Fujian authorities may compensate tanners

China
Problem facing the tanners in China for further leather industry construction work.
According to the sources in China, some members of the local authorities in Zhangpu, Fujian Province are considering stopping any further construction of the part-built tannery cluster in the area.
If this decision is confirmed and implemented it will affect a number of tanneries who have already invested significant time and funds constructing new facilities within the proposed cluster site.
It is understood that the local authorities, before they make their final decision on the matter, will have detailed discussions with the tanners who have invested in Zhangpu to hear their comments and will compensate any losses born by those tanneries if the stoppage becomes permanent.
At the moment it is not clear when this situation will be resolved one way or the
DyStar restart dye production in Leverkusen
Germany
The DyStar production facility in Leverkusen has been started again according to press statement released on October 28 by the preliminary insolvency administrator of DyStar Textilfarben GmbH & Co. Deutschland KG, Dr Stephan Laubereau. ‘We are very happy’, explained Laubereau.
First they will concentrate the production programme of dyestuffs and intermediate products for the paper, leather and plastics manufacturing industries but not for the textile industry. This contributes 20 percent of the facilities total capacity.
‘In addition we are working at full speed and checking the production of dyestuffs for the textile manufacturing industry’, said Laubereau. All 383 employees at the location in Leverkusen are involved in the restart.
Purchase agreement for DyStar executed - leather unit excluded
Germany
Operations at DyStar Textilfarben GmbH and DyStar Textilfarben GmbH & Co. KG at the four German DyStar sites in Brunsbüttel, Leverkusen, Frankfurt am Main and Ludwigshafen are now set to restart under the new management of Kiri Dyes & Chemicals Ltd. (KDCL). The deal does not include DyStar’s leather chemical activities or the manufacturing site at Gerestried.
‘The investor has secured financing of the purchase price and also met other conditions. The purchase agreement concerning operations of the German DyStar Group, the necessary assets and the 36 international subsidiaries has been executed’, insolvency administrators Miguel Grosser from the law firm JAFFÉ Rechtsanwälte Insolvenzverwalter and Dr. Stephan Laubereau from PLUTA Rechtsanwalts GmbH confirmed on February 4. This leaves up to 750 jobs in Germany and some 2,000 jobs worldwide secure. The exact purchase price was not disclosed.
The investor, BSE-listed Indian manufacturer and supplier Kiri Dyes & Chemicals Ltd., plans to continue the sites in Frankfurt/Main, Leverkusen, Ludwigshafen and Brunsbüttel and resume production as quickly as possible. After the German DyStar Group filed for insolvency at the end of September, only the indigo production in Ludwigshafen continued without interruptions.
Meanwhile, DyStar Textilfarben GmbH was also able to carry on full operations, the global supply of dyes, additives and services for the textile and leather processing industries, under the responsibility of insolvency administrator Miguel Grosser even after opening insolvency proceedings on December 1, 2009.
Productions in Brunsbüttel, Geretsried and Leverkusen, on the other hand, needed to be halted at the end of November 2009, requiring staff involved to be laid off. Upon execution of the purchase agreement, the vast majority of the staff laid-off in total can now be reemployed at their old workplaces.
Along with the 90 jobs in Ludwigshafen, KDCL’s buyer concept also provides new jobs for around 130 employees in Brunsbüttel, some 260 in Frankfurt, including the 50 employees of DyStar Textilfarben GmbH in Frankfurt who previously performed central functions from purchasing to sales for the DyStar Group, and roughly 236 in Leverkusen.
‘From where we stand, this is a major success to be able to save four production sites in Germany with so many jobs given the current difficult economic setting’, the insolvency
administrators underlined. ‘Looked at this way and from the point of view of the creditors, Kiri’s concept was without alternative. There was no other binding offer meeting the requirements and the necessary financing conditions.’
After an intensive worldwide search for investors, three potential buyers remained in the end with whom negotiations continued. In December 2009, the purchase agreement was finally signed with KDCL. Its execution, however, was conditional on the availability of financing, the necessary anti-trust approvals, and other conditions (consent of the banking consortium and other creditors). The banking consortium and the creditor committees had already given their consent. Now, KDCL has met the financing conditions and the relevant Cartel Authorities have given their approval.
‘Synergies of both the companies, DyStar and KDCL, will provide long term sustainable and successful future to DyStar. Dystar and KDCL jointly have created competitive advantages with completion of this acquisition, which will strengthen global leadership of DyStar, and will create high values for all their stake holders such as investors, employees, creditors and vendors. DyStar will continue to operate as an independent company in the market’, said Manish Kiri, managing director of KDCL.
Further information:
Founded in Ahmedabad in 1998, Kiri Dyes & Chemicals Ltd. today is a global market leader in the manufacture and supply of dyes and intermediates, focussing primarily in the Asian and North American markets. The acquisition of the DyStar Group will provide KDCL access to new markets and customer groups, specifically in Europe.

Sadesa Sena gets gold medal
Thailand

Sadesa have 3 gold and 1 silver LWG medals
International tanning group, Sadesa announced on November 13, that their Sena tannery in Thailand has been awarded the highest-level 'gold medal' against the Leather Working Group (LWG) environmental protocol. Certification was given following a LWG leather-manufacturing audit.
Now in its fourth year the LWG environmental stewardship programme only awards the highest gold medal rating to tanneries which meet the highest environmental standards set-out in the LWG audit protocol.
Sadesa’s Sena plant in Ayutthaya, Thailand is the groups third gold medal rated tannery following awards to their Sadesa Kabinburi tannery in Thailand and Sadesa San Luis plant in Naschel, Argentina. The company also have silver medal status for their tannery in Jiangmen, China.
The LWG is made up of leading international brands, tanneries and leather chemical suppliers and aims to raise environmental standards throughout the leather supply chain.
Clariant colour forecast – autumn/winter 2010/11
First published in June 09
Within Clariant`s globally launched shoe concept, the Leather Business have launched their new shades and trends for the autumn/winter 2010/11 fashion season. The latest Global Colour Card illustrates the four stylish themes: Go West, Lakeland, Locomotive and Modern Sculpture.
They have also developed innovative colour recipes and processes to satisfy specific demands of their clients by using Clariant’s dye and pigment ranges. With this service the leather specialists from Clariant provide their customers with exclusive fashion trend information well in advance of the season.
Based on the input of internationally known trend institutes and fashion specialists, Clariant unveil four fashion themes for the autumn/winter 2010/11 season:
Go West
This theme reflects the rugged outdoor life of cowboys and ranch hands of the old Wild West with golden saddlery browns, cactus greens and blanket reds – full of winter warmth.

Locomotive
From the feeling of nature this group uses tones of dust and smoke evocative of early steam train rides with dusty winter neutrals, travel-worn effects, soft pinks, greens and browns.

Lakeland
Is inspired by wild nature from the windswept hills and stormy skies. Colours such as lichen gold and foxglove mauve contrast with a moody blue palette. It throws new light on natural tones.
Modern Sculpture
A trick of light and shadow on contemporary art sculptures contrast with sharp bright colours and harmonious dark shades. Crisp black and white add a modern edge.
Dye and pigment ranges
All four themes are illustrated on leather samples showing both wet-end formulations produced with Clariant’s range of Melioderm dyes to cover every tanner’s dyeing needs and the finishing recipes are based on Clariant’s Neosan 2000 and PPE pigment ranges.
In addition, all colours shown are pantone specific and can be easily adapted to any finishing formulation needed. Together with Pelcroma – the professional colour management system from Clariant – an accurate, fast and simple colour matching is guaranteed.

Clariant announce plant and job cuts
Worldwide
Clarinet has its own technical lab and its technical leather staff in all over the leather industrial world.
Clariant, the specialty chemicals maker which includes leather chemicals, announced on November 19 plans to further optimise their global production network in order to address overcapacities and to reduce costs.
The proposals are the first conclusions of Clariant's 'Global Asset Network Optimization' (GANO) project, which comprises a detailed evaluation of Clariant's entire production network. The sites nominated for closure are Huningue, France; Pontypridd, UK; CIVAC, Cuernavaca in Mexico; and parts of two plants at Clariant sites in Germany, at Gendorf and Frankfurt. In addition, Clariant will now initiate an evaluation of all strategic options for its site in Onsan, South Korea.
Approximately 570 jobs worldwide will be affected by the proposals. Clariant has entered into consultation with employee representatives and authorities in the affected countries. The company is committed to treating all employees in a fair and transparent manner.
Project GANO is part of a wider restructuring program at Clariant aimed at closing the gap the company has compared to peers regarding several key performance indicators. The Project addresses the structural deficits of Clariant's production network as well as long term overcapacity issues. It will continue to identify further optimisation potential.
Full implementation of the initial Project GANO proposals affecting the nominated sites, including transferring production to other parts of the Clariant site network, is expected to be completed between 2011 and 2013. The restructuring costs amount to approximately CHF 150 million (€99 million), the vast majority of which will be made in 2009 and 2010.
Clariant ceo, Hariolf Kottmann commented: ‘As we have stated 2009 and 2010 will be years of restructuring for Clariant. Project GANO is a key component of that process. Once completed, it will significantly improve the efficiency of our production network and increase Clariant's competitiveness.'
Specific information on how the cuts will affect the leather chemicals business to follow.
Clariant team-up with Modeurop
Worldwide

Clariant's global colour concepts
Modeurop, the fashion forecast group at DSI (Das Schuhinstitut) and Clariant, the maker of colorants and chemicals for the dyeing, tanning, retanning and finishing of leather, have established an innovative, colour forecasting partnership, it was announced on December 3. This cooperation will provide tailored, reliable and consistent colour forecast to the footwear leather processing industry. It targets the entire value chain, from tanneries through to shoe manufacturers and retailers.
The cooperation between the two partners will bring considerable benefits to shoe makers and their suppliers. Shoe manufacturers and tanneries can be provided with information on colour and trends well in advance of the season. In the future all Clariant colour charts will include Modeurop specified colours. Thanks to Clariant’s international presence, Modeurop’s colour information will now reach the most important tanneries worldwide. Marga Indra-Heide, fashion consultant at Modeurop, comments on the cooperation agreement made in October 2009: ‘As a result of our partnership with Clariant, Modeurop colours have been elevated onto the prestigious global stage, adding an international dimension to our business.’ Clariant have years of expertise in colorants and chemicals for leather manufacturing.
Clariant’s leather chemicals lend the various shoe leather grades the properties that are highly valued by the industry and consumers, such as abrasion resistance, lightfastness, water repellency or tear strength. Within the scope of its worldwide Global Shoe Concept, Clariant already offers its customers from the shoe leather industry a world-established fashion trend forecast also interpreting colour previews, future trends and effects on leather.
‘The cooperation with Modeurop in the field of colours provides real added value for our customers in the shoe leather upper business, and is a further piece in the overall mosaic of our Global Shoe Concept’, explains Ralph Walter Schneider, Clariant’s head of PM Finishing.
Famous Vic tanners scale down
Spain
The Catalonian town of Vic in Spain has one of the highest tannery concentrations in the country but has seen some of its most famous names scale back their activities this year.
The oldest and once largest tannery in the town, Colomer Munmany have dramatically reduced their processing of sheepskins especially doubleface in the town since their JV with Chinese processor, Henan Prosper was announced a year ago. The Chinese hold a 90% stake in the recently formed Colomer Moda. Much of the processing equipment from Vic has now been transferred to the new plant in China which will begin operation early next year, leaving an R&D facility in Vic. Leather International contacted Colomer Munmany concerning the ownership of other elements of business such as Ledexport and their international processors and trading companies but no formal response was provided.
Curtidos Codina another famous name from the town have confirmed that they no longer process ovine leathers in Spain. Instead, Codina have long established plants in Brazil processing hairsheep and goat skins and are now the largest single exporter of finished hairsheep and goat leathers from Brazil. Codina Group own the Curtume Cobrasil tannery in Parnaiba, Piauí and a finishing plant situation in Novo Hamburgo, Rio Grande do Sul.
They also have established a commercial office in Dongguan, China. They supply major brands in China, Europe, Brazil and USA.
National Beef report higher profits
United States
National Beef Packing have posted a 13% increase in profits this year thanks to reduced cattle purchases, lower cattle prices and other cost cutting, according to a recent filing with the Securities and Exchange Commission.
For the fiscal year ended August 29, the Kansas City based company said net earnings were $149.2 million, compared with $124.5 million in the fiscal 2008, which was one week longer than this year's reporting period. The profit came despite a decrease in sales to $5.45 billion, some $400 million less than total revenues in 2008.
‘The decrease resulted partially from a decrease of approximately 2.5% in the number of live cattle purchased on a per week basis in addition to the additional week in fiscal year 2008’, the company stated in its filing. ‘Also contributing to this decrease was a lowering of live cattle prices of approximately 7.4%.’ Operating income was $174.7 million for fiscal year 2009, a 12.9% increase over 2008, primarily resulting from increased profitability from sales of commodity beef products, exports and value-added products. Improved profitability in commodity beef sales primarily resulted from better demand relative to the price of cattle, the company said.
National Beef includes a tanning division known as National Beef Leather processing cattle hides from their own packing plants in the USA.
Source: Hidenet.com
Stahl appoint fashion design team
Worldwide


Carmen Rimoldi and Sergio Belloni of Bianco & White
Stahl have appointed a new team of Italian fashion consultants, Bianco & White, to support their fashion design, colour and advice programme. Based in the fashion centre of Milan, the consultancy is run by Carmen Rimoldi and Sergio Belloni, both of whom have had many experience of working with the various sectors of the leather industry on a worldwide basis.
Bianco & White first appeared on the fashion scene when it was founded by Rimoldi and Belloni in July 2000. Rimoldi is a fashion, design and scene-designer graduate from NABA and an inventor of exclusive graphic images. Among her current projects are a range of specially branded shoes and bags.
Her colleague, Belloni, is a stylist for women’s shoes working with some of the world’s most prestigious brands. He is also a shoe technician. He is also an advisor to the chemical industry and to tanneries in the field of finishing and the study of new colours and products.
Together they will provide Stahl with an in-depth knowledge of colours, trends and new materials almost two years ahead of the season to which they refer. This knowledge will be invaluable for Stahl’s exclusive strategic and stylistic fashion support for contemporary leather finishing.
Belloni’s and Rimoldi’s first collaboration with Stahl will be the summer 2011 colour preview, details of which will be
ISA Tan Tec celebrate opening of new eco-tannery
Vietnam

More than 350 invited guests of the China based German leather producer ISA Tan Tec attended the opening of its new tannery in Vietnam on January 22. ISA Tan Tec are aiming to provide a new standard for sustainability in leather making combining environmental and socially responsible leather production. ‘It is surprising to see solutions for so many challenging issues put into action by the company’, said Tran Van Lieu head of Binh Duong Industrial and Export Processing Zones Authority (BDIZA), Vietnam.
The new tannery features innovative use of renewable energy and utilisation of waste heat from production processes and the company has applied German standards to working conditions, efficiency and environmental technology with the new plant. ‘For many years, we have been working on the vision of fundamentally overhauling leather production in a bid to make it green. We have now achieved that goal. With this tannery, we show how economic success goes hand in hand with ecologically and socially sustainable economic practices’, says Tom Schneider, ceo, ISA Tan Tec.
The ISA Tan Tec team would like to see the efforts put into this project serving as an example for future enterprises expanding not only into Vietnam but also other major Asian countries. At the new tannery a total of 250 employees will process twenty million square feet of leather every year for customers such as Timberland, New Balance, Keen, Patagonia and Merrell.
The guests attending the opening ceremony included Conrad Cappell, Consul General of Germany and Aneta Nikolova of UNESCAP. ‘I’m passionate about finding strong solutions which were thought not easy to implement, but ISA have managed to turn into a successful tool’, Aneta Nikolova said.
Guests at the opening were shown the creative atmosphere and the ingenious, economical use of resources, such as a windmill used for pumping water and that the wastewater is cleaned in an engineered constructed wetland and subsequently reused. Likewise, the tannery also collects rainwater for use in production processes and water is heated in a solar thermal system without CO2 emissions. A half-open bamboo wall ensures natural cooling and a pleasant temperature inside the production building.
Tom Schneider took the opportunity to thank customers and partners for their support: ‘We know that many of our friends share our vision. Without the generous support of government officials from both international and local community, the science and financial sectors, we would not have been able to achieve our goals so fast and comprehensively.’
Cotance statement on Greenpeace report
Worldwide
The Social Partners of the European Leather Industry (Cotance) addressed, in their Social Sectoral Dialogue Committee Meeting of December 15, 2009 (in Brussels), the allegations made to the leather industry in general and to certain European tanneries and their customers in particular in the Greenpeace report released over internet on the deforestation of the Amazon (http://www.greenpeace.org/international/press/reports/slaughtering-the-amazon).
They appreciate the gravity of the problem uncovered by Greenpeace and express upfront their solidarity with the objective of preserving the environment and notably the avoidance of irresponsible harm to the Amazon rainforest. The European Social Partners dissociate themselves from any form of unsustainable generation of hides and skins notably the one highlighted in the Greenpeace report.
However, Cotance and ETUF-TCL regret the distorted vision with regard to the link made in the report between the deforestation issue and the leather industry that has been further conveyed in the general press, amplifying the damage caused to the image of the leather industry and to the reputation of the people who work in the leather value chain including European tanners and their customers.
Social Partners understand that the general public deserves to know that the leather industry does not drive the demand for animal breeding and the development of herds or flocks for an increased supply of raw materials anywhere in the world and can thus not be accused of driving the deforestation of the Amazon rainforest. The supply of hides and skins is independent from the demand for raw materials in the leather sector. Hides and skins are residues produced in the process of generating food for the people. If not processed to leather, the amount of hides and skins generated by the meat industry would become a significant waste disposal problem for society in general. The leather sector fulfils thus an important societal role in the management of waste and the valorisation of a residue generating wealth and employment in the process.
Besides, tanners face a real challenge in influencing up-stream operators’ policies also because of their size and relative bargaining power with regard to their suppliers. The vast majority of the European leather sector is composed of SME’s, while the suppliers of raw materials are generally large industries.
The Social Partners of the European leather industry would welcome increased transparency in the hides and skins supply chain. Cotance and ETUF-TCL are in fact the first to call for support in improving the traceability of raw materials in the supply chain for fulfilling sustainability objectives such as the one highlighted by Greenpeace, but also others, such as those related to animal welfare. Presently, companies have difficulties in obtaining information on the concrete origin of the raw hide or skin and face problems in recognising and prevent the procurement of raw materials from unsustainable sources.
Meanwhile, the Social Partners of the European Leather industry intend to go further in their sustainability agenda by developing together an appropriate Code of Conduct for their supplies of raw materials and effective instruments for transparency on the origin of hides and skins that should allow the sector’s operators to identify the origin and communicate with the animal husbandry sector on common sustainability objectives.
Indian market on the up
India
Indian leather fair was in full swing in 2nd day too as it was in 1st day and great attraction from Indian leather producer to the world’s leather trader.
The second day of the India International Leather Fair (IILF) held in Chennai, India was just as busy as the first day on February 2. Crowds flocked to a hot and sultry Chennai Trade Centre to visit companies supplying the tanning and finished leather products industries.
Following a fall in growth in 2009 the Council for Leather Exports (CLE) have announced the market started to grow again from October 2009. 'Though exports increased towards the end of 2009 we expect the export turnover to reduce by 10% for 2009', said Habib Hussain, chairman, CLE.
Despite the fall, if the IILF is anything to go by, then the Indian leather industry should recover in 2010 and everyone Leather International spoke at the show was positive about the event and the general condition of the market. 'In recent times we have taken market share from China and a lot of business from Turkey', says Dr Zackeria Sait, regional chairman - south, CLE.
Indian tanneries produce around 2 billion square feet of leather per annum (10% of the world total) with major tanning clusters in Chennai, Ambur, Ranipet, Kolkata, Kanpur and Jalandhar. India is home to 2091 tanneries (45% in Tamil Nadu, 26% in West Bengal and 18% in Uttar Pradesh.
The final day of the IILF is due to take place on Februar
Overall slaughter decreases
Although in the month of Eid-Ul-Adha rate slaughtering rapidly increases in Islamic country but in world wide it over all does not.
Federally Inspected Slaughter in the four week period ended October 31, 2009, amounted to an average weekly kill of 640,750 (651,250 in our previous report). Last year the average for the month was 639,250.
Overall, slaughter was down 4.3% on last year. Cattle and calves on feed for slaughter at feedlots with a capacity of 1,000/plus head totalled 10.5 million head on October 1. The inventory was 1% above the previous year and included 6.42 million steers.
Export sales of raw hides
during the period under review showed China once more in their regular top position but with markedly fewer hides. China purchased 775,100 (713,300 in an earlier report and 1,074,300 previously). With Hong Kong in fifth place taking 55,500 (16,900), the region accounted for a combined total of 830,600 (730,200).
Korea was again in second place with 375,700 (266,400) followed by Taiwan with 125,300 (66,200). Next came Mexico with 62,900 (74,500).
In sixth place Vietnam came in for 36,700 (70,500); Japan 28,100 (12,900); Italy 26,500 (52,500); Canada 24,800 (14,400); Thailand 19,700 (14,800); and Brazil 6,000.
India purchased 4,500 (10,900); Tunisia 3,000; Egypt 900; and Croatia 800.
During this period Hong Kong took 2,800 kip; China 1,900 calf and Mexico 1,400 kip.
Sales of wet-blue for export during the period under review showed China back in first place with 214,400 (69,600 previously and 214,000 the period before that).
Italy took second slot with 160,000 (52,500); then Mexico with 69,800 (135,900); Taiwan 57,600 (53,800); Vietnam 48,000 (25,700); the Dominican Republic 16,000 (16,100); Korea 14,300 (18,000); Indonesia 3,600; and Japan 1,400 (9,100).