Australia’s Howe Leather, part of the Schaffer Corporation, has lost its contract to supply BMW with leather for car upholstery. The 17-year agreement has been terminated by BMW effective July 1, 2005.

The company’s chairman, John Schaffer said that BMW would now source a larger proportion of its leather in South Africa where rebates of approximately 23% of the value of automotive leather products are offered to suppliers.

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