New Zealand's largest deerskin tanner, New Zealand Light Leathers (NZLL), is expanding its existing factory at a cost of $3 million so it can tackle an influx of deerskins and cow hides from meat processor Silver Fern Farms (SFF).

The Washdyke-based tannery will also upgrade machinery to allow it to process large quantities of cattle hides, which it has only done on a small scale in recent years. NZLL expects to add an additional 20-25 factory staff and create new management positions to cope with the changes.

The tannery will process approximately 220,000 cattle hides and 100,000 deerskins for SFF each year. A substantial portion of this leather will be used in high-end collections from luxury brands including Louis Vuitton, Gucci, Prada and Hermes, and in automotive interiors for companies such as Toyota Lexus.

Cattle hides will be processed as chrome-tanned wet blue, which will be exported to SFF customers for use in finished products. Deerskins will be processed in pickled form.

NZLL will continue to process its own deerskins and will use these to produce finished goods such as shoes and bags.

SFF chief executive Keith Cooper told www.stuff.co.nz: "We can now process all hides and skins in the South Island, thereby decreasing the environmental impact of trucking hides to the North Island, and NZLL has the opportunity to increase their output and expand their business, which is good for the South Canterbury community."

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