Tannin Corporation embrace globalisation

Over the past few years, in an effort to address the changing conditions of the worldwide leather industry, Tannin Corporation based in Peabody, Massachusetts, USA, have expanded both the products they market, and the geographical area in which they attempt to operate. The growth of the offshore leather tanning business has been explosive over the past 15 years, particularly in China and Mexico and has forced Tannin Corporation to look beyond the US borders. Tannin Corp have made a substantial investment in a facility to manufacture oxidised bisulfited fatliquors in the US. The increased manufacturing capacity of the fatliquors have led to an increase in sales, particularly in Mexico, the Caribbean and the Far East and to the establishment of two subsidiary companies closer to major tanning regions. Over the past decade the tanning sector in the US has declined dramatically and many tanners have closed or moved offshore to Mexico or Asia. In order, to maintain sales a number of North American tannery supply companies such as Tannin Corp have diversified their business setting up strategic alliances and joint ventures along the way. US strategic alliances Tannin have signed a number of agreements with several well known leather chemical companies such as Trumpler, Avellis & Huster and Unitan to act as sales agents in North America. Tannin Corp are now one of the largest suppliers of beamhouse and wet-end leather chemicals in the US. In an effort to maintain and even improve their position in these areas they have an agreement with Trumpler, the German beamhouse and wet-end specialist and they act as the exclusive agents to enable US tanners easy access to the latest beamhouse technology. The beamhouse segment has not shrunk since the US is the largest producer of hides in the world. For dyestuffs, Tannin Corp have formed a partnership with Avellis & Huster, also headquartered in Germany. Avellis & Huster are one of the largest suppliers of dyestuffs for the leather industry and this relationship, which began in 1993, has emerged as a sales leader in the US market. In a continuing effort to expand their efforts in the leather industry, Avellis & Huster and Tannin Corporation have recently constructed two dye laboratories in Peabody, Massachusetts and Leon in Mexico. Foreign partnerships and ventures Tannin Corporation are primarily involved in supplying chemicals to the leather tanning industry. The worldwide consumption of leather products has continued to increase. Although in the United States, tanneries have continued to lose market share during the past several years, there has been a considerable expansion of the leather tanning industry in several parts of the world during this period, particularly in the Far East and Mexico. Tannin Corporation identified Mexico as a major market as there are over 800 tanneries in Leon area alone. In June, 2000, Tannin Mexico SA de CV was formed to supply the domestic market. Following the establishment of a subsidiary company in Mexico the major shareholder and president of Tannin Corporation, Thomas Thompson turned his attention to China and the enormous footwear leather sector. Earlier this year a joint venture company between Tannin Corporation and Ernst H Hagen called the Leather Technology Group Ltd was established ('LTG'). The aim of the new company is to sell American leather chemicals directly to the Chinese and other Far Eastern tanners from a base in the region. LTG will be located in Hong Kong and run by Hagen who has many years' experience running tannery operations in the US and China, including the Shanghai Richina tannery. Company history Tannin Corporation, then called Leon E Monnier Inc, started business in 1944. From that time until 1979, when Thomas W Thompson, the current president, acquired the business from the Monnier family. In 1979, the corporation was a regional producer in North America and distributor of tanning chemicals and extracts. The product line was expanded significantly to include a broad line of heavy chemicals. In 1979, the decision was taken to expand the geographical area served by the company and, in 1980, the name was changed to Tannin Corporation. The Tannin Corp continued to grow and in 1984, the assets of Tac Tannins & Chemicals, Inc. ('Tac Tannins') were acquired from the Southland Corporation. Tac Tannins was a major importer and distributor of vegetable tanning extracts, primarily from France, South Africa and Argentina, and it marketed products throughout North America. Even though the Tac Tannins name was retained and Tac Tannins was operated as a separate corporate entity, Tac Tannins was merged operationally with Tannin, operating out of the same office and with the same employees, but with separate books and records. In 1984, Thomas W Thompson made a decision to make an effort to become a significant supplier to the top thirty tanneries in North America. Tannin has emerged as one of the largest suppliers of beamhouse and wet-end chemicals in North America. In 1994, Thompson and others were able to purchase all of the stock of both Tannin and Tac Tannins and are now the sole owners of the company.