Ron Sauer has left LeatherXchange Global Information Services and intends to independently publish his world hide and skin report and indexes under the name 'theSauerReport'. These were published from 1985 till 2001 as The Market News Service by the International Trade Centre UNCTAD/WTO (United Nations) and as the 'World Hide and Skin Report' from 2001until June 1, 2003, by LeatherXchange.

Industrial action by employees at the US automotive upholstery tanner, Garden State Tanning appears to be resolved.

Ninety young designers from across Europe have taken part in the 31st edition of the Lineapelle young designers competition. The theme was to interpret fashion trends for spring/summer 2004.

With the impending closure of the Skin, Hide & Leather Traders Association (SHALTA), the sale of contracts have transferred to ICHSLTA.

The Spanish Tanners' Association CEC-FECUR are to hold their next annual general meeting in the Spanish city of Salamanca.

Following the annual meeting of Assomac on June 27 the current chairman, Giuseppe Barrera will step down. According to the rules of the Italian leather and footwear machinery manufacturers association re-election is not allowed after a person has served two terms in the position. Barrera will have completed two terms on June 27.

Top Repute, organisers of the Shoes & Leather Guangzhou 2003 fair have rescheduled the fair dates. The show was due to be held June 3-6 but this event was postponed due the SARS epidemic in Asia. The new dates are November 26-29, 2003 and it will be held at the Guangzhou Jinhan Exihibition Centre.

Following the successful International Union of Leather Technologists and Chemists Societies annual conference in Cancun, Mexico the last week details have been released for the next edition.

The board of Scottish Tanning Industries have announced the appointment of Jonathan Muirhead as chairman, following the annual general meeting to be held at the end of June. This will follow the retirement of Scott Grier who has served as chairman since 1997.

The IULTCS biennial congress took place at the end of May in Cancun, a popular resort in Mexico. The Mexican hosts should be applauded for their excellent hospitality including fully inclusive accommodation, food and drinks at the Presidente Hotel, which also provided a conference room and an award winning beach.

Slovakia's Statistical Office reports that the Slovak Republic imported raw hides and skins, and leather, worth US$79.7 million in the first four months of this year, compared with US$68.6 million in the same period last year. Slovakian exports of the same types of commodities were worth US$43.2 million), compared with US$36.8 million in the first four months of last year.

Yarwood Leather has announced that its quality management system has been approved to the BS EN ISO 9001:2000 standard. The approval was received from the international certification body Lloyd's Register Quality Ltd (LRQA).

The Chairman of the Pakistan Tanners Association, S M Naseem, has asked the Ministry of Commerce & Central Board of Revenue (CBR) to impose a 25% duty on import of finished leather as tanners are not getting orders from garment manufacturers due to lack of demand because of seasonal changes as well as changes in trends/fashion. Huge quantities of garment leather are lying with tanners disturbing them due to a cash liquidity problem. Garment leather is available even at 30% reduced prices (as compared with last year) compared with raw materials for shoes, lining, upholstery, bags etc. Leather garment manufacturers are not lifting all the raw materials which are suitable for making garments. All the hides and skins suitable for garment manufacturing are purchased by garment manufacturers even at the raw and wet-blue stage.

The All Pakistan Hides and Skin Importers Association (Aphsia) has asked the government to abolish the customs department's valuation committee for the zero rated imports, as it has nothing to do as far as import duty is concerned. This request follows the official decision to allocate zero duty on imported hides and skin, and Mr Arshad alleged the valuation committee creates undue harassment for the importers, adding in an interview: 'Our consignments, which usually comprise perishable items, are delayed for up to 25 days. As a result importers not only face financial loss, but the national exchequer also has to suffer loss because most of the manufacturers fail to meet their export orders due to late release. We import at least 50 containers of hides and skin per month from Tanzania, Kenya, Sudan, Saudi Arabia, UAE, and from some countries of Europe and South America. Out of total imports of goat and sheepskin, 99% are value-added for export purpose. Similarly, 90% of total hide imports are value-added and thus our business community contributes substantial foreign exchange to the national exchequer.'

Local leather footwear makers are optimistic about the remainder of this year, with strengthening export demand despite the war in Iraq and the SARS outbreak, according to Malaysian Footwear Manufacturers Association (MFMA) president Lisa Fong. The Association represents about 500 local shoemakers and, in 2001, exports of footwear dropped by 8% to RM325 million from RM353 million in 2000. Exports were RM307 million in 1999. Fong said in an interview: 'About three quarters of shoes produced by local manufacturers are for the domestic market, the remainder are exported. The MFMA now expects footwear exports for 2003 to exceed RM350 million compared with last year's RM344 million, and that the SARS epidemic which originated in China, may have a silver lining for the local footwear industry.'

Madura Garments, the garment division of the Aditya Birla group company Indian Rayon, have entered into a licensing agreement with the Bangalore-based Atlas Medicon for manufacturing leather accessories under the Louis Phillipe, Allen Solley and Van Huesen brands.

The Pakistan government has approved a plan to establish an industrial zone for tanneries in Sialkot at a total cost of Rs90 million.

The British Footwear Association (BFA) have updated their website, with generous support from TradePartnersUK, as you will see if you go to [http://www.britfoot.com]

Sensor - SATRA's pocket-sized process control aid and transit condition monitor - is in demand at Reebok.

The second edition of MATECH CHINA, held in Dongguan, China, on 2-4 April 2003, was deemed a business success for exhibitors and visitors alike. Despite the unsettled situation prevailing at the time, the level of commitment to closing business negotiations was very high.

Organisers of Footwear UK, to be held at the NEC Birmingham, UK from 10-12 August, say that they are well ahead of targets for the August 2003 show.

The Belwest shoes manufacturer in Belarus have formed a joint-venture with Russia's Politeks that will help Belwest increase their production, according to the Belta news agency. The main aim of the venture will be to increase Belwest's sales on the Russian market. Sales on this market increased to 49% of total sales in the first four months of this year, from 41% in the same period in 2002. Belwest recorded sales worth BRB660m (US$326,000) in the January to April period this year.

At the General Assembly, held in Athens (Greece) on the May 23 2003, Antonio Brotini, president of ANCI, was elected unanimously as Chairman of the European Confederation of the Footwear Industry (CEC). In the next two years, Brotini will be responsible for the path taken by the main representative structure of the EU-footwear sector.

On May 23 the World Health Organization (WHO) removed its recommendation that people should postpone all but essential travel to Hong Kong Special Administrative Region and Guangdong Province, China.

On May 22, receivers closed the Dutch hide trading company Van Buren Huidenhandel bv. The company, based in Friesland, have been operating since 1861.

The diagnosis of BSE in a cow in northern Alberta, Canada's largest beef province, has resulted in the USA closing its border to Canadian beef. Canada's agricultural minister, Lyle Vanclief, said: 'The herd has been quarantined. The animal did not go into the food chain.'

Members attending the annual conference of the Leather and Allied Industries Federation of Zimbabwe (LAIFEZ) decided to ask the government to restrict hide export permits to recognised industry players in an attempt to keep some of the country's scarce raw materials for their own tanning industry.

Vietnam's Industry Ministry established the state-owned Vietnam Leather and Footwear Company in mid-May from the remnants of companies affiliated to the Vietnam National Leather and Footwear Corporation, according to the Vietnamese News Agency. The Corporation was recently liquidated because it was loss-making.

Vladimir Bakhanovsky, head of the light industry department of Russia's Economic Development and Trade Ministry, says that the production of footwear in Russia totalled 10.3 million pairs in the first quarter of this year, a year-on-year increase of 9.9%, according to the Interfax news agency. Bakhanovsky noted that this increase in production was due to the state taking measures to restrict leather exports from Russia. Russian footwear production could total around 43 million pairs this year, he concluded.

The Leather Link, scheduled for June 6-7, 2003, in Moscow, has been postponed until later this year or perhaps until next year. The organisers said: 'We have made this decision with considerable regret but we did not want our valued customers from east and west to travel to Moscow without the assurance that business partners sufficient in numbers and quality would be there to meet them.

Statistics New Zealand reports that New Zealand exported raw hides and skins and leather worth US$43 million in March, compared with US$44 million in the same month last year. Exports of the same types of commodities in the twelve months to the end of March this year were worth US$400 million, a year-on-year fall of 14.2%.

The Italian furniture and leather making company, Natuzzi, have acquired Castlegate 170, the parent company of Kingdom of Leather. Natuzzi SpA and venture capitalists, Barclays Private Equity acquired 100% of Castlegate 170 Ltd from London at the beginning of May. The deal includes the Kingdom of Leather, a leading UK upholstered furniture specialist with a network of 15 stores located across the UK.

Lithuanian leather processors have started recording losses following a decision by Ukraine to restrict exports of raw hides to Lithuania from March 1 this year, according to Baltic Business News. Ukraine imposed the restriction after noticing that Lithuanian leather processors were importing considerably more hides than they needed. It was suspected that most of these hides, imported from Ukraine duty-free, were being re-exported by Lithuanian leather companies to regional markets. Lithuanian raw hides imports from Ukraine in 2002 increased by 500% compared with the previous year.

Latvia's Central Statistical Bureau reports that Latvia exported raw hides and skins and leather worth US$4.82 million in the first quarter of this year, compared with US$3.04 million in the same period in 2002. Latvian imports of hides, skins and leather were worth US$4.53 million, against US$2.47 million in the first quarter of last year.

Putting and end to all the speculation, the Organisers of the Asia Pacific Leather Fair (APLF) which was to be held at the Hong Kong Convention & Exhibition Centre at the revised time of June 26-28, 2003, have decided to cancel the show.

Seeking to gain support ahead of a series of state elections, India's Hindu ruling party is campaigning to protect the cow from commercial exploitation, saying it defiles the sacred animal. Although India is largely respectful of the cow, there is a thriving underground cattle trade and, now, the Hindu nationalist Bharatiya Janata Party has tabled a bill to ban slaughter in all states.

It has been unofficially announced that the APLF fair in Hong Kong with the revised dates of June 26-28 has also been postponed.

Kolosus Holdings have removed a major threat to the group's viability by agreeing to settle a $6 million dispute with US-owned rivals, Seton Company. The uncertainty caused by the seven-year-old dispute, dating back to a joint venture operation in Ladysmith, KwaZulu-Natal in the 1990s, has adversely affected Kolosus business.

Last year the Italian tanning industry recorded a total turnover of e6.5 billion. This figure represents 66% of the entire European Union leather output and 20% of world output for finished leather. From the total production approximately 35.9% was consumed in the domestic market. Table 1 shows the top ten exporting countries.

Aletti Giovanni & Figli Srl are a very different company from five years ago. One of the main changes that have taken place is the company's decision to move away from producing their own parts in-house. Aletti, based in Varesa, north of Milan, produce between 50 to 70 machines a year, but have now found that it is more cost effective to have the parts produced by an outside company.

Specialist Italian machinery manufacturers Mosconi SpA have updated their Super Zenit splitting machine. The thickness of the cross-section of a typical hide varies in that the belly areas tend to be thinner and looser than the butt and neck areas that are closer to the backbone of the animal. The Super Zenit has been designed to curve slightly upwards from the centre (backbone) to the edges of the hide (the belly). However, this can leave a gap in the middle of each side between the backbone and the belly and cause uneven splitting.

It has taken a long time and lots of hard work for Arzignano-based machinery manufacturers Ge.ma.ta to re-establish themselves as an independent company since the commercial agreement between themselves and the Poletto Group broke up at the end of 2001. When Leather International last visited the company in March 2002, the situation regarding the company's new ownership was unresolved.

Emmezeta and sister company RotoPress will no longer be treading on each other's toes now that the two companies have recently acquired a new building behind their existing facilities in Arzignano, northern Italy.

Italian drum and automation specialists Pajusco Tecnologie are enjoying continued success with their new Inoxmill stainless steel tannery drum. The drum was remodelled in 2002 and, since the relaunch, the company have already sold 21 drums. In comparison, the company only managed to sell, in total, six of the former model. 'The quality of the drum has been vastly improved and we're seeing lots of interest', explains Olimpio Storti, sales manager. 'The drum is completely automatic and all the problems from the previous machine have been solved. And the cost is lower than one of our competitors who are producing the same drum.

Stoppani started out as producers of chrome for the chemical industry in 1908 and, over the years, the company diversified into different areas, including the leather industry. Part of the global Stoppani group, Stoppani Sud were then established to bring together all the company's leather products under one roof.

Escomar Italia Srl were established in 1973 by Dal Lago Gianni and soon the company built themselves a strong reputation as traders in second-hand machines. However, over the years, the company's focus has moved away from reconditioning old machines to manufacturing new ones.

Everywhere we turn we face trouble, strife and illness. The war is ongoing in Iraq, Asia is afflicted with atypical pneumonia which seems to be spreading slowly through to other parts of the world and the Hong Kong fair has been rescheduled with no guarantee that it will be held this year.

Following the successful installation of the SFF in Chennai, India, Unido has organised the services of a consultant, a hide and skins expert, to install SFF pilot projects and teach local butchers and flayers to work with the SFF. The first such project was realised in two Kenyan abattoirs, Limuru and Kayole.

The lowest branded prices witnessed for nearly two months at the beginning of March led to a buying frenzy among many tanners who, having refrained from buying over the previous weeks, needed to replace their inventories. However, the frenzy was short-lived and the pace fell back to a below-average level by the beginning of April.

Prices on a number of selections ended the month of March fairly well as they had begun. The typical upswing in prices prior to the APLF in Hong Kong failed to materialize even before the organizers cancelled the fair at month's end.

The Mexican tanning industry began 2003 with the usual optimism and pride which followed a generally good economic year. Despite a 25% currency devaluation since the fall of 2002, coupled with rumours of war against Iraq, the hide trade, albeit at times sluggish, has remained consistent.

Spain (15%) is the second largest producer of leather in Europe, after Italy (57%). It is also home to BASF Leather Chemicals' European headquarters on the edge of Barcelona. BASF Curtex, as it is locally known, includes their worldwide technical centre for beamhouse chemicals and the worldwide technical competence centre for wool and hair-on leathers. In recent years BASF have invested heavily in the plant and accompanying facilities.

Leather International provides a worldwide selection of raw materials prices for the leather industry. Although we update these on a regular basis, they are only intended as a guide since market fluctuations occur constantly.

Military boot makers Wellco Enterprises Inc have won a multi-million dollar deal with the Department of Defence for the production of thousands of combat boots. Wellco said they expect annual revenues of $9.2 million to $22.4 million from the contract, which carries a base of one year with four one-year options.

Have you noticed that when matters are 'news' you get huge headlines, long explanations and the most absurd details. After the story has been fully milked silence ensues and if the presumed murderer is proven innocent that news is not important unless you are a 'celebrity'. We are fed by the sensational, not truth or justice.

A new black casein binder has been introduced by Stahl Europe to produce a very natural looking deep jet black. This black casein binder, BI-22-103, is anionic but may also be used in formulations using the Stahl range of cationic finishing products. Fashion trends are demanding natural looking, highly polished and glazed leathers and BI-22-103 Jet Black completes the range of casein binder that also includes both medium and hard, highly transparent binders such as BI-13-116 and BI-13-126.

Following their philosophy of upgrading in order to keep leather's elegance, Clariant have announced their latest developments for modern leather finishing. For soft leathers with a 'natural appearance', ie leathers of lower selections which call for a stronger 'upgrading', Clariant have two products which are the outcome of intensive research and development:

Over the past 18 months BLC has succeeded in developing its strongest research programme ever. The projects secured for the next two/three years ensure that BLC continues to be the world leader in leather technology. The wide ranging programme, worth over US$1milion, has over 15 separate projects, including preservation, novel enzyme technologies for the beamhouse, tanning, dyeing, finishing, water recycling, wastewater treatment through to improved disposal of solid waste. The results of this research are available exclusively to BLC members.

Atlas Refinery Inc have expanded their line with three new leather processing products:

Leather is widely used in cars - mainly as upholstery - with smaller quantities for steering wheel covers and as decorative trims. It is often perceived as bringing an otherwise standard vehicle into the 'luxury' class.

Anyone in the leather industry who has a wish or need to identify specific lizard and snake species would do well to acquire a copy of a new book entitled: Die Reptilhaut - The Reptile Skin. In both German and English, this hardback book focuses on the use of 60 lizard and snake species relevant to the leather industry.

Please explain the current situation with regards to SARS. Our information is that it began in Guangdong, mainland China, in November. When did it reach Hong Kong?

Astudy of the Indian leather industry under the main heading of Environmental Management has been written by A Sahasranaman and sponsored and published by the Council for Leather Exports.

Success in the fashion world depends just as much on colour as on trendy design.

The doubleface season beginning in August is the signal for Turkish producers to stir. But with war in progress, the leather industry, along with everyone else, is just waiting it out. 'Nobody knows what will happen tomorrow', is a catch phrase heard everywhere.

Sheepskin processing specialists Ishim leather and fur factory (Tyumen region) are to diversify into cattle hides and the necessary equipment has already been installed. Equipment at the tannery is also suitable for pigskins and a sewage treatment system is under construction.

The Louis Schweizer tannery in Murrhardt, is closing with loss of 98 staff and seven apprentices. The 136 year old tannery specialised in the manufacture of upholstery leather, mainly for the furniture market.

The market for automotive leather in Europe is dominated by a handful of large suppliers while the market for furniture leather is more fragmented, with several smaller tanneries. The Elmo Leather Group describe themselves as the largest manufacturer of exclusive furniture leather and one of the six largest suppliers of leather to the automotive industry.

World renowned furniture manufacturers, Natuzzi saw net sales in the fourth quarter of 2002 of $202.7 million, up 2.6% on the same period a year earlier with unit sales up 5.4%. For the full year net sales were up 2.4% at $761.5 million while seats sold increased by 5.3%.

After receiving backing from the local authority, the leather sector and the support of a technical survey, Vic is now closer to the construction of an industrial park specialising in leather. There are 22 local companies including tanneries and related industries in the municipality of Vic. The town's urban demands and the need for modernisation at the companies' facilities to comply with new environmental regulations are the main influences.

As the Turkish and Greek sides of Cyprus remain divided, some promising bilateral co-operation was taking place in Istanbul. The formation of an international leather technology research and development centre in Tusla's leather zone was the subject of a two-day meeting in March.

Within Russia's light industry, the leather sector has shown the highest production growth during the first part of 2002. The output by the leather, fur and footwear industry rose to 108% in the January-August period, compared with the same period in 2001.

The Kansk Leather Factory shut down in 2002 due to the complete loss of its assets. Vladimir Gorlov, legislative assembly deputy of the Krasnoyarsk region, said that the factory was an example of poor management under private owners.

A SUBSIDIARY OF THE Ostashkov Tannery (Tver region) opened in St Petersburg on February 11, 2003. Called Interkozha, the new company will buy raw materials and trade in wet-blue and finished leather. The new venture will enable Ostashkov to increase their share in Russia's north western regional market for raw hides and leathers.

The 30th annual LGR seminar took place from March 18-20, 2003, at the Lederinstitut Gerberschule Reutlingen, Germany. Finishing was this year's theme and opening the event, LGR director Dr Heinz-Peter Germann welcomed the delegates, up 20% over four years ago when the topic was also finishing and there were around 100 participants. 'No other companies can boast such growth', said Germann.

The Irish tanning group Ronan have announced the layoff of 100 people from the company including the tannery. Staff have also been laid off from the company's Dublin distribution centre and offices.

The Italian tannery machinery manufacturers, Fratelli Carlessi, are celebrating 50 years in the business this year. The business is still family owned with the current president, Duilio Carlessi and Gianluigi Carlessi, managing director, controlling the business.

The logic behind organizing the Automotive Leather Conference in Barcelona, May 19-20, is based on the great number of unanswered questions relating to the automotive leather industry. The creator, Ron Sauer, LeatherXchange Global Information Services, said that if he knew the answers he would not need to organize a conference.

The income generated by this sector is significant to the national economies. Even more so since the leather tanning industry processes locally available raw material. Leather itself is one of the main inputs for the low investment, labour intensive, leather product industry such as shoes, garments and leathergoods. It has been established that the capital investment for creating one job in this industry is below US$1,000.

TO GO OR NOT TO GO - that was the burning question in the latter part of March when Europeans and Americans began cancelling their travel plans to Hong Kong. The news of the postponement when it came was greeted with both shock and relief.

A large number of wet-blue factories in Bangladesh are facing cash flow problems. Many had taken out loans and are unable to repay due to the high level of interest. The government imposed restrictions on the export of wet-blue in 1990 to improve exports of finished and crust leather. Prior to this wet-blue tanners had been doing excellent export business.

On April 3 Richina Pacific shareholders approved the controversial rights issue designed to raise $18 million to buy hides and skins and expand their Shanghai leather operations. They were spared from having to vote on whether to sack dissident director Ming Lu, who resigned ahead of the meeting.

Stahl International have opened a new applications laboratory and display showroom to serve tan-neries in the Sialkot area of Pakistan. Located in a new building constructed by Set Chemicals, Stahl's sub-agent in the area, the laboratory has been fitted out with a range of modern finishing machinery and equipment which is directly applicable to the needs of local customers.

The government is preparing to set up a model tannery as a pilot project to help upgrade the quality of raw materials for the leather and footwear industries. The Industry Ministry has initiated the project as part of the government's plan to make Bangkok the regional fashion hub in Asia.

Mario Levi Manufacturing SA, Uitenhage, have finally confirmed that they are to increase capacity to 2,400 hides/day with a R50 million expansion project, which is expected to be completed by January next year. The company processes from wet-blue to cut parts and the expansion applies to the entire production.

Macao

The simmering feud between Nike Inc and Foot Locker Inc, Nike's biggest retailer, has taken a new turn. Foot Locker announced in a Securities and Exchange Commission filing on May 12 that it plans to reduce Nike orders in 2003 by US$300 million to US$400 million.

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