Tannin supplier shuts down for six weeks

29/07/2009

Media in Argentina have reported that the Unitan tanning chemicals factory in Formosa in northeast Argentina is to close for six weeks as a result of a drop in sales.

The factory supplies vegetable tanning agents to tanneries in 50 countries around the world, with most of the products in its range containing extracts from the heartwood of the Schinopsis balansae, a hardwood tree that grows extensively in that part of the South American country.

Local newspapers said the company had insisted that none of its workers would be laid off and that, during the temporary shut-down, they would receive 75% of their salaries, plus bags of groceries.

At the end of the six-week period, Unitan expects to return to work as normal.