Lithuanian tannery to produce finished leather31 May 2004
The Odos Gaminai ir Ko (OGK) tannery in Siauliai in Lithuania has decided to switch from the production of semi-finished products to finished leather, according to Baltic Business News. OGK are investing US$1.38 million in technology for the production of finished products, which will create more added value than the types of products manufactured currently. This will increase OGK's profit margins by 3-5% to 10%. OGK have for the past ten years been a supplier of semi-finished leather, with 80% of production exported to Italy, Spain and Poland. However, the company are planning to increasingly orientate their sales to domestic customers producing footwear and bags. They plan to increase product quality but do not intend to increase production volumes. OGK currently employ 58 people and plan to create 15 new jobs by the end of this year. Statistics Lithuania reports that Lithuania exported raw hides and skins, and leather, worth US$3.16 million in the first two months of this year. Imports of these types of commodities were worth US$3.64 million.