South African government to protect leather industry
22/08/2006
The north west South Africa South Africa
Provincial Economic Development MEC Darkey Africa will approach the national Trade and Industry Department to find ways to boost the industries, following a meeting between the MEC and representatives of abattoirs, tanneries and the automotive leather industry in the province.
Representatives called on the government to introduce tax tariffs on the export of raw materials to limit the huge export of raw skin and hides to foreign countries.
Among other concerns raised was uncertainty regarding the Motor Industry Development Program (MIDP) and the stalling of processes in the automotive leather industry.
Neithard Graf Von Durckheim of Bader SA, an automotive leather producing company, said the lack of tax tariffs on raw material exports are set to kill the industry. He added that automotive leather production has been reduced as clients order only raw materials and that most of the company’s international customers, which have included BMW, Mercedes Benz, Volkswagen and Daimler Chrysler, have moved toChina
In a further blow to the industry, US-based automotive leather producer Eagle Ottawa LLC has also announced that it will close its South African operations at the end of the year. The move, which will affect some 150 employees, is said to be the result of changing customer demand. (See article: Eagle Ottawa to close manufacturing facilities)
Provincial Economic Development MEC Darkey Africa will approach the national Trade and Industry Department to find ways to boost the industries, following a meeting between the MEC and representatives of abattoirs, tanneries and the automotive leather industry in the province.
Representatives called on the government to introduce tax tariffs on the export of raw materials to limit the huge export of raw skin and hides to foreign countries.
Among other concerns raised was uncertainty regarding the Motor Industry Development Program (MIDP) and the stalling of processes in the automotive leather industry.
Neithard Graf Von Durckheim of Bader SA, an automotive leather producing company, said the lack of tax tariffs on raw material exports are set to kill the industry. He added that automotive leather production has been reduced as clients order only raw materials and that most of the company’s international customers, which have included BMW, Mercedes Benz, Volkswagen and Daimler Chrysler, have moved to
In a further blow to the industry, US-based automotive leather producer Eagle Ottawa LLC has also announced that it will close its South African operations at the end of the year. The move, which will affect some 150 employees, is said to be the result of changing customer demand. (See article: Eagle Ottawa to close manufacturing facilities)
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