US tannery Salz Leathers is to wind down its operation after 145 years in the leather industry. The news was announced to customers and suppliers in a letter signed by CEO Geoff Eisenberg.

Chairman of the company Norman Lezin said that Salz had faced up to the reality that the leather industry was gravitating to China where labour is cheaper and environmental laws less restrictive. The average wage at the plant was $17 compared with $1 in China. "The future is not bright for a small tannery in California. It simply costs us too much more to produce leather here." Eisenberg said.

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