ALLPI Quarterly Newsletter

Swiss tanning machinery manufacturer Zünd has announced that it will introduce a new, full-hide cutting system at the Tanning Tech exhibition in Milan in February. The Zünd D3 cutter, a new dual-beam system for leather cutting, is at the core of the new solution.

The D3 cutter has a modular projection system and has MindCut Studio CAD-CAM software from Mind. Increased efficiency and flexibility in whole-hide processing are the main developments the Swiss technology provider has pointed to, claiming that tanners can “nearly double” throughput with the D3, mainly thanks to the dual-beam system. In a single production workflow, two beams with up to three different modules can simultaneously cut and punch a hide independently of each other.

Source: http://leatherbiz.com/fullitem.aspx?id=140562

Austrian tanner Wollsdorf Leder has won the right to call itself a carbon-neutral producer of leather after it made considerable reductions to the carbon footprint of its facility in southern Austria and then bought officially recognised climate certificates in support of rainforest projects in Central America to offset the remainder of its emissions.

Chief executive, Andreas Kindermann, told World Leather at Tanning Tech in Milan that he was very pleased with the accolade and was proud to be able to declare Wollsdorf Leder a carbon-neutral company.

Wollsdorf Leder, the global winner of the fourth Tannery of the Year programme, said in a statement that it had worked hard to lower its carbon footprint by reducing its use of resources such as water, energy and other raw materials. It said its water and energy consumption are now "significantly below the benchmark of the leather industry".

Energy consumption reduction measures, including using energy from renewable resources such as wind and hydro, have resulted in a total annual saving of nearly 1 gigawatt hour of electricity.

It went on to say that new planned projects over the next few years will save a further 3.5 gigawatt hours per year (amounting to 10% of the tannery's current energy needs).

Source: http://leatherbiz.com/fullitem.aspx?id=140888

Technavio’s latest consumer and retail industry report covers the present scenario and growth prospects of the global leather goods industry 2015-2019.

Global leather goods industry estimated to reach close to USD 247 billion by 2019.

In this report, Technavio’s retail goods and services research experts announce their key market highlights for the global synthetic latex polymers market. Their findings include:
Global leather goods industry estimated to reach close to USD 247 billion by 2019.

According to the report, the global leather goods industry was valued at over USD 200 billion in 2014 and is estimated to reach close to USD 247 billion by 2019. The growing demand for leather goods is likely to have a positive growth trend during the forecast period. With several product launches by both local and large players, manufacturers are inducing customers to buy the products.

With the improving economies and rising purchasing power among individuals in developing countries, customers are buying more luxury leather goods in countries like India and China. The trend of purchasing products online is also pushing manufacturers to change their retail strategy. For instance, Fendi, one of LVMH’s brands, built its own e-commerce site in 2015.

“One of the major factors driving the growth of the global leather goods industry is the growing demand for eco-friendly or organic leather products as conventional leather tanning has a disastrous effect on human health and leads to ecological imbalance,” says Brijesh Kumar Choubey, a lead retail goods and services analyst at Technavio.

The report further states that organic leather is raised and organically tanned. The USDA National Organic Program ensures animals are raised organically and leather is tanned in a certified organic tannery. Eco leather is tanned organically and the tanning process includes using plant tannins, vegetable tannins, and smoke for the process. There are some manufacturers like Valentino and the Gucci Group which have started using eco-friendly and organic leather for their products.

Footwear segment: largest product segment for leather goods industry with 59% market share.

The global leather goods industry is segmented on the basis of product, including footwear, luggage, and bags, wallets, and purses. As of 2014, the footwear segment dominated the market with 59% market share. The women’s autumn-winter collection in 2014 featured nods and other Hermès designs.

“By holding close to 24% of the revenue share, the bags, wallets, and purses segment comprise the second largest segment in the market. With the demand for leather products spread across segments, this segment is expected to see a positive trend during the forecast period. From local labels to top brands, several manufacturers launched products in 2014,” says Brijesh.

The luggage segment in the global leather products comprises close to 17% of the market share. The tourism and travel industry acts a catalyst in driving the demand for the overall market. In 2014, Prada’s sales revenue of leather goods had decreased by 1.4%, mainly due to decrease in tourist footfall in the main shopping destinations of Europe and Asia.
The Americas stands as the largest market for leather goods.

The global leather goods industry is well diversified between the Americas, APAC, Europe, and MEA. In 2014, the Americas was the largest region for leather goods with a revenue share of more than 38%. Product innovation and advances in technology are the major growth drivers of this market. The US market stands as the largest market followed by Canada and Mexico. Some of the top players in this region include J.C. Penney, Ebags, Sears Holding Corporation, etc.

“In the Latin American market, Brazil stands as one of the key players in the region and has become the major target market for leather and fashion goods worldwide. Brazil is also one of the major leather producers and exporters of leather worldwide,” says Brijesh.

Source: http://www.businesswire.com/news/home/20160212005230/en/Technavio-Releases-Report-Global-Leather-Goods-Industry

The Indian government is considering a series of tax incentives to help the leather sector boost manufacturing and exports under the 'Make in India' initiative. As previously reported by ILM, the Government is aiming to increase exports to from US$6 billion to US$15 billion by 2020, and the leather and leather goods sectors are being considered as focus areas under the Make in India programme. The Ministry of Commerce and Industry is said to have submitted several recommendations for the fiscal 2017 budget, including the elimination of customs duty on imported leather machinery as well as duty reduction for all leather and non-leather goods. Rafeeq Ahmed, Chairman of the Council for Leather Exports (CLE) outlined the importance of these tax incentives to the leather sector. "The sector has big expansion plans and nearly 95% of the machinery used in tanning and footwear is imported", he said. Currently, an excise duty of 12.5% is given on footwear. India's merchandise exports contracted for the 13th consecutive time in December 2015, dropping 14.75% to US$22.2 billion. India's Finance Minister, Arun Jaitley, is to unveil the budget on February 29, 2016.

Source : http://internationalleathermaker.com/news/fullstory.php/aid/2511/Tax_incentives_for_the_leather_sector.html

The list of finalists for the fifth Tannery of the Year competition is now complete.
They will compete for the coveted title of Global Tannery of the Year 2015/2016 at an awards dinner in Hong Kong on March 30.
On the first day of the All China Leather Exhibition, each tannery will make a presentation to an independent panel of judges, who will also use the information in the report published in World Leather to select the winners for the regions. They will also choose a winner in the Innovation of the Year category.
The finalists, in alphabetical order, are:

• Atlantic Leather, Saudarkrokur, Iceland
• Couro do Norte, Brazil
• Kings International, India
• Tärnsjö Garveri, Sweden
• Wickett & Craig of America, US
• White Nile, Sudan
• Xinji Meihua, China
• Zhejiang Dazhong Leather, China

This year, we have one finalist for Africa and one for Asia (excluding China). We have been in close contact with a number of other excellent tanneries in these regions and will carry in-depth reports on their work in future programmes.
Individual tickets or tables of 10 can be purchased via the Leatherbiz Shop. The world's leading tanners will be joined by their suppliers, partners and customers as they wait to see who has succeeded Wollsdorf Leder as the global winner of Tannery of the Year.
A sumptuous four-course meal will be accompanied by fine wines and champagnes. The dinner will be held in the Bauhinia Room at the Hong Kong Convention and Exhibition Centre, starting with a champagne reception at 19.30.
We wish all the finalists good luck!

Source: http://leatherbiz.com/fullitem.aspx?id=141001

In Summary

• Local leather industry has a capacity to contribute up to $630million (Sh5.5 billion) to the Growth Domestic Product
• Those appointed to the taskforce include Bata Shoe Company CEO Alberto Errico
• By Nation Reporter
• Industrialisation Cabinet Secretary Adan Mohamed has named a task force to spearhead recovery of the local leather industry.
• Mr Mohamed said Friday the local leather industry has a capacity to contribute up to $630 million (Sh5.5 billion) to the Gross Domestic Product (GDP).
• “This Taskforce has been appointed with a clear brief to share their wealth of experience on how the leather sector can be sustainably developed to create jobs and facilitate development of the leather sector in Kenya," Mr Mohamed said
• “Despite a heavy demand of up to 28million units of leather, the demand is still served by imported supplies due to an existing deficit of more than 24 Million units against the current local supply of less than 4million units annually,” he added.
• The Leather Development Taskforce will serve a one-year term.
• IDEAL PRODUCTION ZONES
• Those appointed to the task force include Bata Shoe Company CEO Alberto Errico, Dr Samuel Kiruthu (a director at Leather Technologies and Fashions Limited), Sambasiva Rao (managing director at Alpharama Limited) and John Muriuki, the Acting Secretary and CEO at the Kenya Leather Development Council.
• Other members are Erastus Kimuri, Robert Njoka, Yassin Awale, Ms Nalina Rupani and Ms Mumtaz Mughal.
• Mr Mohamed said Kenya’s semi-arid areas are ideal production zones for quality leather and deserve to be tapped for growth and development.
• He said the government would spare no effort to revive and strengthen the local leather industry for domestic consumption and export.
• “With the global leather demand now estimated at more than US$60 billion, we must work hard to grab a share of the cake,” he said.
• The Leather Development Taskforce will map out avenues to ensure the efficient delivery and supply of leather products required by public sector consumers such as the Kenya Defence Forces and the National Police Service.
• The task force will also evaluate viable models to engage county governments to establish modern slaughterhouses and regional tanneries.

Source: http://www.nation.co.ke/business/CS-Adan-Mohamed-unveils-team-revive-leather-industry/-/996/2379916/-/1y1xg1z/-/index.html

Industrialisation Cabinet Secretary Adan Mohamed during the launch of the second edition of the SME Handbook at the Laico Regency on October 26, 2015. The government on Friday announced plans to carry out a feasibility study on how the leather industry can be enhanced through value addition ventures.

In Summary

• In an announcement in the Daily Nation on Friday, the Kenya Leather Development Council said it urgently requires a comprehensive analysis on the entire state of the leather subsector within the next five months ahead of the planned launch of a Sh17 billion leather industrial park at Kinanie area in Machakos County. The park is currently under development.
• On Friday, the council tasked with revitalising the processing and control of trade in raw hides and promotion of manufacturing of leather products across the country said it requires a consultant to carry out the feasibility study.
• This, the council said would enable them understand leather-rich regions as well as location of industries that are currently being supported by several tanneries in Kenya.
• The government on Friday announced plans to carry out a feasibility study on how the leather industry can be enhanced through value addition ventures.
• In an announcement in the Daily Nation on Friday, the Kenya Leather Development Council said it urgently requires a comprehensive analysis on the entire state of the leather subsector within the next five months ahead of the planned launch of a Sh17 billion leather industrial park at Kinanie area in Machakos County. The park is currently under development.
• On Friday, the council tasked with revitalising the processing and control of trade in raw hides and promotion of manufacturing of leather products across the country said it requires a consultant to carry out the feasibility study.
• This, the council said would enable them understand leather-rich regions as well as location of industries that are currently being supported by several tanneries in Kenya.
• Currently, Kenya exports half-treated leather known as wet blue after the government banned the exportation of raw hides citing deprivation of raw material to the nascent industry that currently receives a paltry 4 million leather units compared to a demand of 20 million units.
• The government’s pledge to revive the subsector has seen it promote training of leather artisans at youth polytechnics while taking deliberate measures to spur local and foreign markets for finished leather products like shoes, bags, belts and hats.
• According to Kenya National Bureau of Statistics, the leather subsector has capacity to contribute Sh5.5 billion to the country’s wealth through creation of jobs.

Source: http://www.nation.co.ke/business/State-steps-up-bid-to-add-value-to-leather-products/-/996/3123360/-/sm2wg6z/-/index.html

Leather chemicals manufacturer Stahl has announced a new partnership with Proviera, a provider of biotech-based products for soaking, degreasing, wetting back, dyeing and finishing hides.

US-based life sciences company SCD Probiotics began to present Proviera as a new spin-off division in 2014. It said tanners that were early adopters of its products, which are based on the action of beneficial microbes, reported considerable savings in the amount of water and chemicals they need to use to make leather, as well as reduced chemical oxygen demand (COD) and biological oxygen demand (BOD) in their wastewater treatment plants. Some even reported improvements in the quality of their finished leather.

Now Stahl has obtained the rights to distribute Proviera’s Probiotics for Leather range and has described the products as “a unique biotech alternative to existing chemicals and processing techniques used in the leather industry” that will enable tanners to produce high-quality leather while simultaneously reducing the effluent load significantly.

On making the announcement Stahl chief executive, Huub van Beijeren, mentioned that one of his company’s main reasons for setting up the new partnership is that sustainability is “a major challenge” for the industry. The company’s director for wet end, Harald Bauer, said the arrangement will help Stahl strengthen its portfolio in beamhouse technology, describing this as the “next milestone in our sustainability journey after the introduction of our Stahl EasyWhite Tan system”.

For his part, Proviera’s vice-president for technology, Juan Carlos Castell, said his company and Stahl “share the same vision of improving the environment and creating a better future using probiotics technology”.

Proviera leather biochemicals are metabolites derived from a proprietary fermentation and formulation technology, using probiotic cultures and natural raw ingredients. To use 100% natural products instead of tradition leather chemicals in the beamhouse will help tanners’ environmental performance, Proviera has argued because nearly 70% of the wastewater of leather production processes comes from the beamhouse.

Source: http://leatherbiz.com/fullitem.aspx?id=140921

The 2016 edition of the Tanning Tech exhibition closed in Milan on February 25 after three intense days.

In spite of ongoing concerns about the raw materials market and, especially, demand for leather among finished product manufacturers and fashion brands, exhibitors made it clear they had been able to conduct meaningful conversations with senior figures in major tanning groups from different parts of the world.

Initial estimates from organizer, Assomac, suggested an increase in visitor numbers of around 30% in the early part of the exhibition. The latter part of the event was quieter, but tanning machinery and technology providers still said they were happy with the level of the discussions they had about investments tanners seem ready to make in new technology.

Principal motivations for tanners are to find technology that will help them improve their Senior management representatives of tanning groups including Heinen, the Scottish Leather Group, Wollsdorf Leder, Henan Prosper, JBS Couros, Nakara and Gruppo Dani were among the visitors.

World Leather will publish in the April-May 2016 issue of the magazine an extensive set of articles on some of the innovations that technology companies had on show at the event. Around 20 companies will feature

Source: http://leatherbiz.com/fullitem.aspx?id=140897