Benetton no longer running sheepskin operation

17/01/2011
Local media in Patagonia have reported that a tannery set up two years ago in the town of Trelew by fashion firm Benetton is no longer in operation.

The facility, set up to process local sheepskin for use in Benetton products, employed 60 people at the start and Benetton is reported to have invested $13.5 million in the project, including substantial sums on tanning machinery imported from Italy.

At the moment, only four people are working there, but for other companies, the workers themselves have said. One person involved in the project claimed that the tannery, run by a subsidiary that took the name
Compañía de Tierras Sud Argentino, worked well at first and that the tanned sheepskins were of good quality.

He said that Benetton had been disappointed with the results but had not given up completely on Trelew and may either invest again or sell the site to another operator. Observers on the ground said the tanning machinery that Benetton brought in from Italy was no longer there.