CLIA says restructuring is the key to industry’s future
05/09/2013
“Small and medium-sized companies will be bought by the key players in the industry,” he said at a press conference at the All China Leather Exhibition in Shanghai at the start of September. “The total number of companies and factories will reduce, however, those that survive will be stronger and more powerful.”
He said there is possibility that some Chinese tanneries might move part of their operations to elsewhere in South East Asia to lower costs, but he expects most will remain, due to the infrastructure, proximity to market and access to raw materials that China offers.
“Some tanneries may move part of their production – from raw hides to wet blue – to South East Asia, but generally speaking the major production will remain in China, especially for processing from wet blue to finished leather. This is because China has very good production lines – it is very easy to buy the chemicals and accessories they need in the Chinese market,” he said.
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