Fifty years ago, on April 18, 1955 Wil Levenbach and Frans Bernards announced the formation of Stahl Chemische Industrieën nv in Waalwijk, Holland. This was the firm that was eventually to grow into Stahl Europe bv, an important part of the Stahl Group.

South Africa has agreed to help develop coal mines in Niger to provide cheap cooking fuel for local people and to promote exports of beef and cattle hides. It has also agreed to study the possibility of establishing a new air link between Niamey and Europe to improve transport links between this remote landlocked country and the outside world.

Effective April 15, 2005, LANXESS Deutschland GmbH will increase prices worldwide for the active ingredient TCMTB 80% by 0.70 euros per kilogram. This increase is necessary owing to the rise in cost for raw materials and auxiliaries. TCMTB ([2-benzothiazolyl-thio]methyl thiocyanate) is used mainly in the leather industry as a preservative, and also in sawn timber and paper applications.

When business is bad the trade generally approaches exhibitions with great pessimism and this latest event of APLF was no exception. However, APLF still managed to put on a good show despite predictions of gloom and doom. There may have been fewer exhibitors and visitors but there were still more than enough to make this an important show, the aisles were busy and many stands could be seen writing business.

Research and development at Clariant never stop. Just in time for the European Coatings Show 2005, the Division Pigments & Additives announces additional pigments and pigment preparations for special applications. Colorants for leather finishes, coloured pencils, and school and artist colours have to fulfill high requirements - in addition to high opacity, they have to be resistant to migration and heat. Because of their exposure to all sorts of environments, leather finishes also require colorants with high lightfastness even at high temperatures.

The 3rd Upholstery Leather Conference concluded successfully on April 5 with participants from major tanneries and top manufacturers taking part. The conference was timed to precede the APLF fair in Hong Kong to take advantage of visitors to the region and they were able to hear the views of leather business realities in China and the Asia Pacific region from figures such as Dennis Thams, ceo Shanghai Richina, and Jay Shane, president Cosie Leather Products. Delegates also had the benefit of cocktails, lunch and a gala dinner by courtesy of BASF and Fenice, who were sponsors of the conference along with APLF Ltd.

Leading British leather manufacturer Pittards have worked for many years in close co-operation with suppliers of raw material throughout the African continent, most significantly in Ethiopia. As a result of further discussion with key suppliers, the company have this week signed a Memorandum of Understanding with Ethiopia Tannery Share Company with a view to forming a joint venture operation with a significant share holding in Ethiopia.

Despite growing exports, leading leather company Pittard experienced little recovery in the second half of 2004. In their annual results, out March 18, the company say the benefits from transferring to AIM plus the benefits from ongoing cost savings and efficiency improvements have been offset by a general lack of recovery in the international market for leather and the continuing weakness of the US dollar.

The Hau Duong Leather Tanning Factory was put into operation in the Hiep Phuoc Industrial Zone in Ho Chi Minh City's Nha Be District in mid-March, according to the Vietnamese News Agency. The 5,200 square metre facility will produce 40 tonnes of tanned leather each day for export to Taiwan.

The Lanxess Group Leather Business Unit have expanded their applications development department in São Leopoldo, near Porto Alegre, in Brazil with a view to being able to offer better support and a wider range of services to their customers in the important and rapidly growing South American market.

Statistics Netherlands reports that the Netherlands imported leather and leather products worth 760 million euros in 2004, compared with 785 million euros the previous year.

The Vilniaus Kailiai leather clothing manufacturer in Lithuania recorded a net profit worth US$337,090 on a turnover worth US$2.72 million in 2004, according to Baltic Business News. The sales figure was around 25% higher than in 2003. Last year's profit will be used to cover losses from previous years.

This weekend, the Leather International team are off to Hong Kong for the 3rd Upholstery Leather Conference which takes place of April 5, followed by the Asia Pacific Leather Fair, April 6-9, at the Hong Kong Convention and Exhibition Centre. The conference, which is organised by Leather International, theSauerReport and Rizzi Pellami is sponsored by BASF and Fenice. It kicks off with cocktails on the evening of April 4, and finishes with a gala dinner the following night at the Park Lane Hotel. There is a full day programme on April 5 which will bring together speakers and leading industry figures and gives plenty of opportunity for delegates to socialise with the major players in the leather upholstery sector.

Israel's Central Statistics Bureau reports that Israel exported raw hides and skins, leather and leather products, worth US$2.6 million in the first two months of this year, compared with US$1.8 million in the same period last year. Israeli imports of the same types of commodities in January and February were worth US$14.1 million, as against US$11.3 million in the same period in 2004.

UK footwear manufacturer Clarks International have revised their strategy by setting up their own operations across the Asia Pacific region, as part of their plan to become the market leader in premium leather footwear. Prayoot Boonmasuvaran, the general manager of Clarks International, said that the company had recently set up seven representative offices in Malaysia, Indonesia, Singapore, China, Taiwan, South Korea and Thailand to boost sales of leather footwear.

From April 26-28, 2005, the ECS 2005 European Coatings Show plus Adhesives, Sealants, Construction Chemicals, will be held at the Messezentrum Nürnberg in Nuremberg, Germany. Together with the wax emulsion specialist Dick Peters, a full subsidiary of Clariant, three divisions of Clariant will be exhibiting in Hall 4, Stand 4-321: Pigments & Additives, Functional Chemicals, and Life Science Chemicals. Numerous innovations for the production of coatings, paints, sealants, construction chemicals, and adhesives will be on display. As every year, starting April 25 congresses and other events will be held in conjunction with the trade fair. Clariant specialists will be presenting the latest developments.

Capel Manor College, near Enfield, UK, will be the site of the first festival of leather. The weekend of events, conceived by Paul Bryant, will run from Friday to Sunday July 15-17 and take place in the college's 30-acre gardens. The programme will celebrate all things leather and is designed to support the UK leather industry. Activities will include fashion shows featuring leather clothing, shoes and accessories, as well as a variety of stalls selling leathergoods, and informative exhibitions by the ancient leather guilds on the manufacture and usage of leather through the ages.

Following the recent formation of Stahl Coatings and Fine Chemicals (Suzhou) Co Ltd, Stahl have commenced construction work on their Chinese manufacturing facility in Suzhou, a 2,500 year old city in the southern part of the Jiangsu province, located between Nanjing and Shanghai.

The 14th edition of Sipiel, organised by IFEMA, will take place from April 1-3. Both the total number of exhibitors and exhibition area have increased on last year. International participation is up 18% on last year high with 184 companies represented, with Portuguese and Italian companies featuring prominently. International Leather Week comprises two international fairs, Modacalzado for the footwear sector, and Iberpiel Marroquineria for the leathergoods sector. Both will showcase collections for autumn/ winter 2005/6.

Vietnam's Trade Ministry reports that Vietnam exported leather and leather products worth US$114 million to Japan last year, giving Vietnam a 3.43% share of the Japanese leather and leather products market, according to the Vietnamese News Agency. Vietnamese exports of leather and leather products to Japan in 2001 were worth US$79.7 million, giving Vietnamese products a 2.28% Japanese market share. The Ministry said that Vietnam is now the third largest exporter of leather and leather products to Japan after China and Italy.

Ukraine's State Statistics Committee reports that the production of leather and leather products in Ukraine in the first two months of this year was 3.3% lower than in the same period in 2004. In comparison, the annual increase in industrial output in Ukraine in January and February was 7.3%.

Uganda currently produces 1.1 million bovine hides and skins annually and more than 95% in the raw, gaining the country $11 million but losing it an extra $139 million if the hides were to be processed and value added.

Pakistan's Federal Bureau of Statistics reports that Pakistan produced 8.02 million square metres of leather uppers n the second half of 2004, a year-on-year fall of 16%. Overall industrial output in Pakistan was 18.2% higher year-on-year.

Mongolia's National Statistical Office reports that Mongolian exports of raw and processed hides and skins in 2004 fell by a substantial US$32.3 million compared with the previous year.

The annual general meeting and annual luncheon of the Leather & Hide Trades' Benevolent Institution will be held at 12 noon at the Leathersellers' Hall, 15 St Helen's Place, London on Thursday, May 19, 2005. The chairman would appreciate as much support at this event as possible. This is a very good opportunity for everyone still involved in the UK leather trade to meet each other.

Irving Tanning Co filed for Chapter 11 bankruptcy a week ago. Four years ago, Irving also filed for protection under the Chapter 11 bankruptcy code. Dick Larochelle, the company's executive senior vice president, said that Irving is still operating at full capacity for now. 'We're down but not under', Larochelle said. 'We're operating. There has been talk of new investors becoming involved in the company to bolster its capital base.' The company said that their 250 employees are still working.

Croatia's Central Bureau of Statistics reports that the production of leather and leather products in Croatia in February was 7.4% lower than in the same month last year. In comparison, industrial output in Croatia in February was 1.6% lower year-on-year.

The Netherlands' minister for development cooperation, Mrs Agnes van Ardenne, along with the Netherlands' ambassador, Marcel Kunpershoek and other members of her delegation, paid a visit to the combined effluent treatment plant (CEPT) for Korangi tanneries in Karachi to see its progress. She expressed satisfaction over the progress in its construction. The government of the Netherlands, through Royal Netherlands Embassy, Islamabad, is contributing about 8% in the capital cost of the CETP for the Korangi tanneries. It is expected that the plant will be commissioned by June 2005.

Animal byproduct regulations and rising disposal costs have led Scottish tannery W J & W Langs to install a Mono Muncher at their plant in Paisley to reduce bulk waste and improve the efficiency of composting as an alternative to landfill. Each month the tannery produces approximately 500 tonnes of fleshings, a bulky waste product stripped from the hides prior to tanning. More stringent restrictions on disposal led the tannery management to look for a better way of dealing with the waste, and so they turned to Mono's Scottish distributor, Clyde Associated Engineers, who had previously helped this customer to improve their waste handling on site.

The 2005 programme of short courses Tutored by Valerie Michael & Neil MacGregor build upon the techniques described in 'The Leatherworking Handbook' by Valerie Michael. Courses take place in their Tetbury workshop. The maximum number of students is five, so everyone receives individual tuition. All tools are provided and a range of leathers, hand tools and other materials are available to buy. (Starter Kits' cost £110, details on request). If you would like to attend any of the following courses contact the organisers for a booking form. Deposits can be paid by credit/debit cards or cheque.

During the March 2005 Congress in Florence, Italy, the IULTCS executive committe decided to create the IULTCS Merit Award for Excellence in the Leather Industry. It will be given biennially by the IULTCS executive to an individual whose past or current endeavors have had an extraordinary impact on our industry and provide an example for others to follow. The executive committee will make its selection by normal vote and will announce its decision to the regions and on its website at least six months prior to the next IULTCS Congress. The first IULTCS Merit Award will be made at the USA Congress in 2007.

Marc Folachier will takeover as the new president of IULTCS, the International Union of Leather Technologists and Chemists Societies, from January 1, 2006, for a period of two years. This follows his election as a vice-president during the Mexico-Cancun congress in May 2003. Folachier, the CEO of CTC, France, was elected during the 28th congress in Firenze, Italy, which was held from March 9-12.

On March 14, Bloomberg and other media outlets ran a story stating that DuPont will be 'replacing PFOA' used to make Teflon coatings and other products. This story is a misinterpretation of the information we shared with Bloomberg regarding new technology to reduce residual amounts of PFOA in flouropolymer dispersions. We have contacted Bloomberg and other media to clarify our plans, as well as to distinguish between fluoropolymers and fluorotelomers, the product you purchase from DuPont.

The Slovak Statistical Office reports that Slovakia exported raw hides and skins, and leather, worth US$132 million in 2004, a year-on-year fall of 16.8%. Slovakia's imports of the same types of commodities were 0.5% higher year-on-year at US$299 million).

Russia's State Statistics Committee reports that Russia imported 400,000 pairs of leather footwear worth US$6.4 million in January, according to the Interfax news agency. Nearly all of these imports were from countries outside the Commonwealth of Independent States.

Romania's National Statistics Institute reports that the average gross monthly wage in the Romanian leather industry in January was US$203, an increase of 3.9% compared with December. In comparison, the average gross monthly wage in Romania in January was US$354.

Statistics Norway reports that Norway exported raw hides and skins worth US$9.84 million in February, compared with exports worth US$9.18 million in the same month last year.

Latvia's Central Statistics Bureau reports that Latvia exported raw hides and skins, and leather and leather products, worth USS1.63 million in January, accounting for 0.5% of Latvian exports during the month. Latvian imports of the same types of commodities in January were worth US$1.47 million, accounting for 0.3% of total Latvian imports.

Kyrgyzstan's National Statistics Committee reports that Kyrgyzstan produced leather and leather products, including leather shoes, worth US$1.83 million in 2004, a year-on-year fall of 9.6%, according to the Interfax news agency. Leather and leather products accounted for only around 0.1% of total Kyrgyz industrial output in value terms last year.

SIPIEL, Feria de Madrid, say there are excellent prospects for the next event and that the presence of foreign exhibitors is already 18% higher than in March 2004. The net exhibition area measures some 36,870 square metres, 4.7% more than in last year's edition. According to the provisional figures of the fourteenth edition of SIPIEL, International Leather Week, that will take place from April 1-3, record figures are forecast due to its excellent participating figures. By early March around 771 companies had already confirmed their attendance to the two shows that make up this fair: Modacalzado, the International Footwear Trade Fair, and Iberpiel-Marroquineria, International Leather Goods Trade Fair.

Le Cuir A Paris say that there was a good business atmosphere at their latest edition, held from March 9-10 at Paris Expo - Porte de Versailles. At the end of two days of exhibition, around 2,700 visitors had registered - a slight decrease (-3%) in comparison to April 2004. This drop is due to the strikes that blocked all transports on March 10 (the second day of the fair). However, an increase of 6% was noted on the first day.

Ireland's Central Statistics Office reports that the combined turnover of leather industry companies in Ireland in January was 44.2% lower than in the same month last year. Production volumes in the leather industry in January were 36.4% lower year-on-year.

Bosnia and Herzegovina's Federal Office of Statistics reports that Bosnia and Herzegovina exported leather and leather products worth US$4.86 million in January, a year-on-year fall of 6.8%. Bosnia-Herzegovina's imports of the same types of commodities in January were 0.3 per cent lower year-on-year at US$4.67 million.

Turkey's State Statistics Institute reports that the production of leather and leather products in Turkey in 2004 was 11.7% higher than in the previous year. In comparison, the annual increase in manufacturing industry output in Turkey last year was 10.4%.

Twenty seven BSLT students from ten countries attended the course which commenced with a presentation from Peter Jessop covering all the basics of modern finishing technology. For most of the week the students were divided into five groups, each of which was given finishing formulations to work with using predetermined samples of automotive, upholstery, garment, split, shoe and leathergoods leathers. In addition there was a hotly contested colour matching competition with a prize for the winner.

Slovakia's State Statistical Office reports that the production of leather and leather products in the Slovak Republic in January was 19.9% higher than in the same month last year. In comparison, overall industrial output in Slovakia in January was 5.5% higher year-on-year.

Statistics New Zealand reports that New Zealand exported raw hides and skins, and leather, worth NZ$509 million (US$373 million) in the twelve months to the end of January this year. The export figure was 12.9% lower year-on-year.

Leverkusen - German chemicals company Lanxess AG will publish preliminary sales and earnings figures for fiscal 2004 at 7:30 am CET (6:30 am GMT) on March 15, 2005. It is planned to announce Group data, ie without a breakdown by segment. A conference call with analysts is scheduled for 3:00 pm CET (2:00 pm GMT) that afternoon. This will be broadcast on the Lanxess Investor Relations website.

Hungary's Central Statistical Office reports that Hungary exported leather and leather products worth US$101 million in 2004, a year-on-year fall of 4.7%. Hungarian imports of the same types of commodities were 3.6% higher year-on-year at US$350 million.

The Czech Statistical Office reports that the production of leather and leather products in the Czech Republic in January was 7.1% lower than in the same month last year. In comparison, the annual increase in overall industrial output in the Czech Republic in January was 7.2%.

Argentina's National Statistics Institute reports that Argentina exported leather and leather products worth US$944 million in 2004, a year-on-year increase of 18.9%. Argentine imports of the same types of commodities were 73.2% higher year-on-year at US$71.6 million.

Nike Vietnam have become the second biggest manufacturing base for Nike shoes after Nike in China. The company reported that their ten subcontractors in Vietnam had a total export revenue of US$750 million, US$100 million higher than in 2003. Seven factories in Dong Nai Province accounted for 70% of the revenue. The subcontractors employ 130,000 workers.

Yarwood Leather have received approval for their laboratories and leather testing facilities at their Leeds headquarters from the United Kingdom Accreditation Service. UKAS are the sole national accreditation body recognised by the UK government to assess organisations that provide certification against internationally agreed standards, testing, inspection and calibration services. Yarwood say they are the first UK leather industry company to achieve this.

In our December issue (page 30) we stated that Desa Deri had completed the 51% purchase of one of Slovenia's best-known tanneries, IUV.

The 24th edition of Pielespaña took place from January 21-24 at the Montjuic trade fair centre. The show which highlighted suede, nappa and doubleface garments, leathergoods and accessories, welcomed 102 exhibitors and participants represented 55 countries. The show was considerably reduced in size compared to last year, reflecting the current state of the leather industry in Spain as in the rest of the world.

DyStar, the world's premier textile dyes company with headquarters in Frankfurt, Germany, have acquired the business activities of the Rotta Group effective from the end of 2004. Financial details of the deal are not to be disclosed.

There are plans to relocate the raw hide market from downtown Kanpur to the raw material bank area at the Leather Technology Park, Banthar, Unnao. The plans were announced at the end of January by Mohammad Ishaq, chairman, export promotion and infrastructure development panel of U P Leather Industries Associations (UPLIA), Kanpur. He said that UPLIA, Utter Pradesh State Industrial Development Corporation (UPSIDC) and Infrastructure Development Limited (IL & FS) have decided to jointly promote a Special Purpose Vehicle (SPV) in the name of Infrastructure Services Limited. This SPV will be instrumental in developing a Raw Material Bank, or rawhide market to be located near the Leather Technology Park, Banthar, Unnao.

Young designers from four institutions across Europe had the opportunity to present their work at Pielespaña in a dedicated fashion show. The event, organised in collaboration with the Spanish Tanners' association CEC-FECUR, was aimed at promoting the use of leather and highlighting its versatility. Students from ESDI Barcelona, EDA Mallorca, Northampton University, UK, and the London College of Fashion, UK, presented a range of 48 creations in leather for the autumn/winter 2005-2006 for men and women in the group fashion show.

Spanish machinery company Olcina have launched a new advertising campaign which is centred around the concepts of environment, flexibility and profit. Olcina believe that these concepts are key to a successful future and the company's range of drums and paddles, automation systems, engineering and environment solutions make these ingredients accessible to the tanner.

In our October edition, we published a piece on a new method of synthesising bromochloromethane as an intermediate for fungicides, developed by the Central Leather Research Institute and the National Chemical Laboratory. We have been asked by Dr Lakshmi Muthusubramanian to point out that the article was a summary of a paper by him and Rajat B Mitra of the National Chemical Laboratory, Pune. Dr Muthusubramanian works at the CLRI.

The UAB Naturali Oda leather producer in Kedainiai, Lithuania, say they plan to invest around US$5.66 million in a new leather processing plant in Kedainiai's suburbs, according to Baltic Business News. The company will transfer production from an existing facility in the town centre. Naturali Oda hope to receive US$2.30 million for the project from the European Union in the form of structural funds. Construction of the new plant is expected to take 15 months.

East Hides Tanzania Ltd plan to open more branches in order to supply enough raw materials to match the manufacturing capacity of the tannery in Morogoro. Production at the Morogoro Tannery is likely to commence in April when the factory starts to be fully operational. The Mwanza Tannery will also be revived.

The government is not doing enough to promote the local leather industry, a Unido official said last week. Ms Aurelia Calabro-Bellamoli said: 'Ethiopia is doing better than Kenya. The Ethiopian government has selected leather as a key sector and gives incentives to hides exporters.' Ethiopia is working on ways to increase the supply of hides and skins to local leathergoods producers and is supporting programmes to promote good livestock farming. She said poor animal husbandry in Kenya has resulted in low quality leather, citing cuts on animals, damage from ill-placed branding, and lack of a proper grading system for leather products as some of the factors. 'It is important to have a grading system based on the quality of the leather and not prices', she said. Dr Sam Kiruthu, who is the secretary of the Eastern and Southern Africa Leather Industries Association, said the industry's growth has been undermined by lack of access to credit and entrepreneurial skills. The sector has been on a downward trend for the last decade. According to Unido, between 1990-95, around 95% of the hides and skins were processed for export in crust and finished leather but now 15% is exported in semi or finished form while 85% is exported in raw.

The IULTCS Congress will kick off with an open meeting of the joint IUC/IUE/IUF/IUP Commissions. The purpose is to update any members who wish to attend on the progress of the work of the IU Commissions. Members should find this very interesting as it will help them to understand the importance of the work performed by the Commissions in protecting the interests of the leather industry worldwide.

An economic delegation of the German Near and Middle East Business Association (NuMov) recently visited Siddiq Leather Works (Pvt) Ltd while visiting Pakistan to explore investment opportunities in the country. The chairman of the delegation, Heinrich O E Birr of Metro Group, Monika Stienecker of the Federal Ministry of Economy and Labour (for South Asian countries) and other officials were shown the eco friendly system and production facilities at Siddiq.

Poland's Central Statistics Office reports that Poland imported raw hides and skins worth US$18.8 million in the first half of 2004. The highest imports worth US$2.56 million came from the UK, followed by imports worth US$2.28 million from Germany and US$1.82 million from Australia.

BASF recently helped train Unido employees in innovative textile and leather processing at a workshop in Casablanca (Morocco). The purpose of the event was to train staff from the United Nations Industrial Development Organization in 'efficiency for the company and for the environment.' The aim of the project was to show attendees how to manufacture and finish textiles and leather articles both economically and ecologically.

Clariant's Business Unit Leather and Tannin Corporation have announced a close technical co-operation aimed to improve their services in producing selected finishing chemicals.

Bosnia and Herzegovina

The year 2005 opened at a time when tanners are not particularly keen to buy at what they see as unprofitable prices. In the third week of January, fewer hides were sold than had been produced.

After a month of sagging skin prices strong demand for Australian skins during early January, especially shorn lambs, has pushed prices back up. Hide prices on the contrary came down, especially on heavy weights.

Cattle Kills in Ireland finished with a bang in December and started with a whimper in January, very much in line with expectations.

New Zealand

Hide prices continued to move in a relatively narrow trading range which can best be exemplified by prices of heavy Texas steers which have shown a marked lack of fluctuation but provide the benchmark upon which other steer selections are based. Even outside factors such as the announcement of another cow infected with BSE in Canada in the second week of January did not appear to have any direct effect on the market. However, the possibility of the previously announced USDA decision to allow Canadian cattle less than 30 months to enter the US again, could now be in jeopardy with a potentially negative impact on US slaughter.

On December 10, 2004, more than 100 people representing a group of 50 tanneries joined in the technical seminar organised by Smit & Zoon in cooperation with their agent Behn Meyer Thailand. After the opening by the managing director of Behn Meyer, Mr Prasonk, Egbert Dikkers spoke about global trends. Pim Wilgenburg gave a presentation on wet-white in which he highlighted the differences with normal wet-blue as well as some specific technical recommendations based on S&Z experiences. In the Thai market, some tanneries are already producing wet-white (automotive) upholstery leather and several others are expected to follow suit. For both applications S&Z have solutions which they will be pleased to share with customers.

Introduction

SUMMARY