Three leather chemicals firms win preferred supplier status in Ethiopia

20/06/2012
The government of Ethiopia has selected three international firms as preferred suppliers of leather chemicals to the local tanning industry. The three companies are Tancuir from Spain, Repico from Italy and C&E from India. Each will now set up new distribution facilities in Ethiopia.

These new distribution centres will have bonded warehouse status, meaning the manufacturers can ship leather chemicals to the African country tax free.

According to the government-run Leather Industries Development Institute (LIDI), the new set-up will make it easier for tanneries in Ethiopia to have access to the chemicals they need and to buy them in more manageable quantities in terms of cash-flow and onsite storage capacity.

Previously, tanners in Ethiopia have had to order and pay for large quantities of leather chemicals and, frequently, arrange to have them imported into the country themselves. Ethiopia is a land-locked country and most shipments arrive at the port of Djibouti and are transported by road from there. In general terms, only lime, caustic soda, sulfuric acid, aluminium sulfate, and salt have been readily available from local suppliers.

LIDI made a technical evaluation of a number of suppliers and passed the names of three to the ministry of industry, recommending them for preferred supplier status.