Taking environment and welfare seriously

History Founded in 1911, Krumenauer are one of the oldest tanneries in Brazil. From the very beginning, the company have specialised in vegetable tanning. In the early years, strong ties with the municipality of Portão and the footwear manufacturing region of Sinos Valley were key to the company's progression. A long tradition of producing quality leathers and their credibility among clients has helped confirm their place as Brazil's largest manufacturer of vegetable tanned leather. Production is divided between two separate installations which employ 200 people and have a capacity of 2,000 hides per day. All beamhouse processing is carried out in the subsidiary using mimosa. Here, staff work with three types of raw materials, pickled, wet-salted and green hides. Raw materials used by Krumenauer are mainly sourced in Brazil. Traditionally, all Krumenauer leather was vegetable tanned and sold semi-finished. In recent years, the third and fourth generations of the family have moved the company forward. Eight years ago, they invested heavily, increasing the size of their main production facility as well as investing in the machinery park creating a drying and retanning section in the main tannery. This allowed them to begin work with chrome and, therefore, diversify the product range. 10% of production is now chrome tanned, with these leathers sold mainly for footwear. The main facility houses a percentage of chrome tanning, taking the veg tanned materials from the daughter tannery and turning them into semi-chrome leathers. Today Krumenauer produce leathers for a variety of purposes. Their vegetable tanned leather is mostly used in leathergoods, a total of 80% of which is exported. A company speciality is heavy leathers for belts and safety harnesses. 60% of total production is exported to Asia with key markets including China, Taiwan, Korea and Hong Kong. A further 20% is exported to the USA and Europe. To support this high proportion of exports, Krumenauer exhibit at five international fairs: Chennai, APLF, Lineapelle, Shanghai and Fimec. According to director Joel Krumenauer, the Brazilian market has been noticeably gaining strength over the last 3-4 years and the tannery has seen production grow by an average of 10% per year. He believes that Krumenauer are able to maintain their leading status due to their niche in the production of vegetable tanned leathers, which are becoming increasingly sought after by the international market. He estimates that just 10% of Brasilian tanneries offer chrome free leathers. He believes that flexibility and readiness to produce new products for the fashion market is key. This is another advantage offered by Krumenauer as the industry in Brazil has traditionally focused on the mass market and, therefore, produced conventional colours such as brown and black as these are guaranteed to sell. According to Krumenauer, early 2005 has not been easy for the sector, mainly due to the continued decline of the dollar against the real. However, he has noted signs of improvement for the second semester of the year, mainly due to the rising demand for chrome free leathers. Environment Krumenauer also pride themselves on their environmental standards. Every effort is made to minimise impact on their surroundings. Both facilities have a complete treatment system and the company were awarded a prize for best tannery effluent treatment at Fimec 2004. As part of the veg-tan process, based in the daughter tannery, the highest proportion possible of waste is recycled. For example, the byproduct from the initial fleshing process is used in soap production and trimmings from hides go to make gelatin. Other waste such as shavings from the vegetable tanning process is used as compost in agricultural soil as all materials used in the process are organic and, therefore, biodegradable. In comparison, shavings from the chrome tanned process must be disposed of very carefully. Solid waste from the tannery is used as compost by flower growers. A proportion of the liquid waste is taken to the treatment plant, while the rest is sold to farmers for correction of soil or used in the acacia plantation. Ash generated by the furnaces is used for compost. Liquid wastes from the main tannery, where chrome is used, are taken to the treatment station. Part of the effluent is reused and part is discharged. This effluent has to adhere to limits permitted by FEPAM (Fundação Estadual de Proteção Ambiental or State Foundation for the protection of the environment.) Solid waste is sent to UTRESA common effluent treatment plant in Estância Velha which serves approximately 120 companies in the region. As the chrome tan process is carried out in a separate location to the vegetable tanning, wastewaters can be kept separate, minimising contamination. Acacia is used in the tanning process and waste from the process is then used as fertiliser in the acacia plantations. Social responsibility Social responsibility is a key concern of employers in Brazil but special pride is taken by Krumenauer in their attention to the wellbeing of their staff. There are twenty low cost houses on site for employees and their families as well as a sports centre available to all employees and function rooms for parties. The on-site cafeteria provides 100 lunches per day for tannery employees. Future plans In the future Krumenauer will be concentrating on Asian markets and plans are underway to open a private sales office in China to provide clients in the Far East with improved levels of service. They will also be focusing on India, continuing to participate in the Chennai fair as well as visiting producers. The company have plans to further expand the tanneries, and would like to expand operations to allow them to finish 100% of their leather.