According to recent statistics released by the China Leather Industry Association (CLIA), the number of companies involved in leather making or related industries is on the increase. The CLIA forecasts that by the end of 2008 there will be more than 6,500 leather-related enterprises and business will exceed 15 billion Yuan ($1.83 billion) annually.

The CLIA said that an important factor in this increase is that China is making efforts to improve the economy in the north east and is offering incentives to companies. As a result of this, many companies from eastern cities such as Wenzhou have started to invest in the area.

Northeast China was the most important base of heavy industry in the past, but in recent years economic growth in eastern areas such as Guangdong and Zhejiang outstripped that in the Northeast provinces of Liaoning, Jilin and Heilongjiang, but this is all set to change. A new leather trade mall has recently been built by a Wenzhou group in Shenyang - the provincial capital of Liaoning province – and is scheduled to open in June this year.

The mall is expected to generate annual business volumes of over 2 billion Yuan ($ 244 million).

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