Bangladesh disruption could cost leather industry $150 million

18/04/2017
The crisis of the leather industry in Bangladesh has taken a new turn. The authorities have said they will cut off energy and water supplies at the old cluster at Hazaribagh before the new site at Savar is fully connected to the utilities networks.

At a rally in Hazaribagh on April 15, leather industry leaders protested against the measures and have threatened to escalate action if their new tanneries in Savar are not connected to supplies of electricity, gas and water within 15 days.

Industry bodies have said they fear a loss in leather export earnings of around $150 million because of the disruption. One industry association president, Mohiuddin Ahmed Mahin, has told local media he fears buyers may cancel orders owing to a lack of confidence that their Bangladeshi suppliers will be able to ship product in time.