Elmo announces closure of New Jersey tannery
In a further body blow to the confidence of the US tanning sector, Elmo Leather, one of the world's ten largest furniture and automotive leather producers, has said it is to close its New Jersey tannery.
The US market will be served by the company’s Swedish and Danish tanneries, with the North American subsidiary being restructured as a sales and marketing organisation under the leadership of US President, Stefan Brunander.
The company says the decision is consistent with its policy of concentrating on high quality leather sourced from Northern Europe, and also ending the manufacture of leather "lacking global market potential and sold solely to US customers." It also cites the strong dollar, and the greater price competition from overseas suppliers that this has brought about in the US. The closure does not imply any reduction in the company’s commitment to the US market, Elmo says.
Elmo exports to the US market began at the end of the 1970s, when the company was also expanding its presence in Europe and Australia. In 1988, the company acquired what was then American Leather Inc. and its New Jersey production sites. The American subsidiary currently employs about 110 people, the majority of whom will be made redundant once production has been discontinued.
Based in Svenljunga, Sweden, the Elmo Leather Group is active in around 30 markets worldwide. Approximately 90% of the Group’s sales are generated in markets outside Sweden, with around 55% of sales to the automotive industry and 45% to the furniture industry.
