Tannery cuts over 1000 jobs
28/05/2008
A Brazilian tanner, Curtume Vitapelli, based in the town of Presidente Prudente, in the state of São Paulo, is to dismiss at least 1,000 of its 3,500 employees in the next few weeks. Six hundred lost their jobs last Thursday and another 150 have been taken an enforced holiday.
The financial climate has led the tannery to cut the night-shift, which has reduced production by 50%. Until last week, daily production was 15,000 hides but has now gone down to just 6,000.
The overvaluation of the Real and the delay in receiving export credit refunds from the Inland Revenue Department are the reasons pointed out by the company. In 2007, Vitapelli turned over $180 million from exports to the USA, Italy, China and South Korea, to name just a few countries that regularly buy leather from this tannery.
Since its foundation in 2000, Vitapelli has ranked among the world's largest leather producers. With 120 sq. mt. of built area, Vitapelli has two distinct production units. One of them produces wet-blue and crust leather; the second unit makes finished leather. The company processes 3.5 million hides which are sold to the footwear, leathergoods and furniture and automotive upholstery industries.
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