Brazilian finished leather exports up 24% in April 2001
The Brazilian tanning industry association CICB (Centro das Industrias de Curtumes do Brasil) reports that exports of finished leather increased by 24% in volume during April 2001, reflecting the growing influence of last December’s 9% export duty on wet blue.
During the month, the country exported 176,000 units – a 39% increase in US$ value terms on April 2000’s figure. The association has also played down the impact of the ongoing Brazilian energy crisis, saying that the location of most of the larger players in the south of the country would spare them from the worst of the power cuts.
CICB predicts Brazilian tanneries will invest US$160mil in 2001. Of the larger CICB member companies, Arthur Lange, based at Turucu, Rio Grande do Sul state, has predicted a 30% increase on sales to R$69 million, mainly to the furniture and automotive sectors, with around 75% of production going to export. The company also reports that it is to invest US$500,000 in new finished leather production facilities, allowing production to be increased from 2,000 to 3,000 units per day.
D. Tem, from Novo Hamburgo, Rio Grande do Sul state is also planning to expand production, primarily to cater for the burgeoning export market for shoe leather. Meanwhile, Braspelco, based at Uberlandia, Minas Gerais state, has invested US$500,000 to acquire power generating equipment to soften the effects of the scheduled black outs, and to satisfy the mandatory energy saving measures introduced by the government at the beginning of June. The company is also to complete a US$5mil expansion investment .
