Mongolia: Industry upgrades could create 24,000 new jobs
Reports from Mongolia say the government is in the process of setting up a leather factory complex in Darkhan-Uul Province and upgrading the industry with technology from Europe with the intention of turning it into a $700,000 a year sector.
The UB Post reported the Minister of Industry and Agriculture of Mongolia, Kh.Battulga, as saying: “Our country is capable of introducing technology from Italy, Spain and Turkey, the countries that are leading in the technology sector, by 2016 and producing leather products domestically.”
He said 80% of raw material should be produced as end product and the remaining 20% exported as semi-processed leather, creating a possible 24,700 jobs.
Currently, only a quarter of raw hides (10.3 million) are processed domestically with the remainder exported to China. Nationwide, there are 35 tanneries and 170 leather product manufacturing factories.
Domestic
manufacturers face the challenges of insufficient profits and limited
distribution networks, which means they have to halt production for six
months a year as they struggle to store raw material.
