A joint venture between Brazilian footwear firm Reichert Calcados and Italian Conceria Mastrotto is to go ahead with a plan to build a wet blue leather plant in Brazil. The association has been granted a R$19.8 million ($8.47 million) loan by the BNDES (Banco Nacional de Desenvolvimento Economico e Social) for the new facility, which will cost R$77.7 million to build in total.

Production targets for the facility are for exports worth R$57 million in 2002, R$113 million in 2003 and R$168 million in 2004, when the plant reaches its full capacity, of 1.44 million hides per year. Around 80% of production is destined for Mastrotto in Italy, where it will be used in the footwear, furniture and vehicle industries.