Prime Tanning of the US and the Pou Chen Group of Taiwan announced today (February 1, 2002) that Pou Chen had purchased Prime’s 50% interest in Prime Asia Leather Corporation. Prime Asia was a 50-50 joint venture between Prime Tanning and Pou Chen, formed in 1996 to supply leather for the US and European footwear brands as they moved their production to Asia.

Built with state-of-the-art tanneries in Taiwan and Guangdong, China, Prime Asia has a combined capacity of 10 million square feet per month.

Ken Purdy, President of Prime Tanning stated, "I have been privileged to be part of the process that went from a vision to the largest, most successful tannery operation in Asia. Leading the Prime Asia team and working with David Tsai and the Pou Chen Group is the highlight of the 43 years I have enjoyed in the leather industry."

David Tsai, president of Pou Chen, thanked Mr Purdy for the good working relationship the two companies enjoyed, and pledged that Prime Asia would continue in the same vein. "I have immensely enjoyed working with Prime Tanning – and Prime Asia, under the Pou Chen ownership, will operate as an independent unit and the Prime culture that has helped make this company so successful will be protected and preserved."

While Prime Asia will continue to serve its footwear customer base, the company aims to expand into the furniture and automobile leather markets. Ron Mudd, current General Manager of Prime Asia, will become President of Prime Asia. Prime Tanning will continue to produce leather in the US and Mexico.