The Texon Group have initiated a corporate reorganisation that will strengthen their financial stability. The reorganisation, subject to likely approval on August 22, 2003, will include the sale of United Texon (the main holding company of the Texon Group) to MatlinPatterson Global Opportunities Partners, a New York-based private equity firm with assets under management of $2.2 billion. MatlinPatterson hold major stakes in Huntsman, NRG and MCI.

The Stoppani Group, Italy, have announced their new plant for basic chrome sulfate in Russia. With this new production facility, the company are putting their major efforts into offering the Salcromo brand to their customers around the world with better and faster organization on a global basis. Stoppani have basic chrome facilities in the following countries: Italy, Brazil, Uruguay, Russia.

Footwear lining specialists Camtex have landed a major contract to supply the German footwear insoles producer, Jomo. The contract sees the UK-based company supplying Cambrelle Conduct footwear lining for use with electrically conductive Jomo insoles.

LYCRA, the miracle fabric invented by Dupont in 1949 which can be stretched but always returns to its original shape, is part of the Dupont textiles division, currently up for sale for $5 billion. It can be mixed with leather and other materials and has had great success in the fashion business. Allied to leather, it has been the subject of several law suits as Dupont proved their absolute right to the patented product.

The Ukrainian government reports that Ukraine produced leather and leather products worth US$70 million) in the first half of this year, a year-on-year increase of 9.6%, according to the Interfax news agency. The increase in production was attributed to an increase in supplies of raw materials available to leather processors.

Statistics South Africa reports that South Africa produced 2,333 tonnes of wet-blue hides in May, compared with 2,053 tonnes in April and 2,277 tonnes in May last year. Production of semi-processed skins in May totalled 985 tonnes against 853 tonnes in April.

Hungary's Central Statistical Office reports that Hungary exported leather and leather products worth US$55.1 million in the first half of this year, a year-on-year increase of 33.1%. Hungarian imports of the same types of commodities were 8.1% higher year-on-year at US$175 million.

Estonia's Statistical Office reports that Estonia exported leather and leather products worth US$2.32 million in June, compared with US$3.26 million in May.

Basf

Texon International report that business within Asia is continuing to thrive. During the last ten years the company have opened two manufacturing plants in Foshan, China, where they produce their own well-known brands of footwear materials.

Crispin Dynamics(tm), the UK-based developer of CAD/CAM systems for shoemaking, have recorded a further expansion of their business activities within Far Eastern territories and particularly within China. This trend of continued growth prompted a recent visit to China by their agency sales manager, Graham Vollans.

Clariant plan to sell off several of their businesses to ease their balance sheet after a worse than expected first half in 2003. They decided against raising cash through a rights issue and this was welcomed by investors.

BASF have increased their capacity for tanning and dispersing agents in Shanghai with the consequent creation of new jobs. The move is in response to an increasing demand for powder products.

Slovakia's State Statistical Office reports that the Slovak Republic exported leather and leather products worth US$64 million in the first half of this year, a year-on-year rise of 13.4%. Slovakian leather imports were 10.2% higher year-on-year at US$115 million.

Representatives of the Chambers of Commerce from the Italian cities of Messina, Florence and Trieste, met with their counterparts from Belgrade and Vojvodina in the Serbian capital in late July, according to the Tanjug news agency. The meeting discussed concrete projects in the leather industry and the provision of funding to Serbian companies under an Italian programme aimed at stimulating the economies of the Balkan countries.

An extraordinary general meeting of shareholders in the Domino leather processor has been called for the end of September to discuss the company's future, according to the CTK news agency's Business News. Company shareholders have asked Domino's board of directors to search for a strategic partner. Domino recorded a loss worth US$286,000 in 2002 and has had to contend with falling sales this year.

Thomas Thompson, president of Tannin Corporation, headquartered in Peabody, MA, USA, has announced the appointment of Robert J Masker as senior technical sales representative. In his new assignment, 'Bob' will be responsible for sales and service to select accounts within the US leather industry and, in addition, targeted global markets and accounts within China, South Korea and other regions.

Türkye's leading leather fair, International Leather Days (ILD), is gearing up for its 13th edition next January. The forthcoming edition is set to take place at the Tüyap Beylikdüzü Fair Centre, Istanbul, between January 8-10 2004.

Croatia's National Statistics Office reports that Croatia exported leather and leather products worth US$97.8 million in the first half of this year, a year-on-year increase of 3.%. Croatian leather and leather products imports were 28% higher at US$134 million.

The Indian government has reported that China is to reduce duties on imports of Indian leather and leather products, following India's decision to reduce duties on imports of some types of commodities from China, according to the Interfax news agency. The duty reductions are provided for under the Bangkok Agreement signed in 1975, under which members countries of the Economic and Social Commission for Asia and the Pacific (ESCAP) are encouraged to expand trade by means of import duty reductions.

Assomac, the organisers of the Tanning Tech exhibition, say that the chemicals sector ( Hall 34) has sold out as is customary, with some names standing by. However, the edition in Bologna from October 28-31 is being awaited with some 'apprehension but also the hope that it will lead to concretely positive indications for the tanning sector.'

The polyethylene wax plant is celebrating its 50th anniversary this year and BASF, one of the world's leading suppliers of polyethylene waxes (Luwax), can look back over 75 years of experience of manufacturing waxes - in the beginning with montanic waxes. The production of polyethylene waxes has profited from the integrated high-pressure facilities that are available at the Ludwigshafen site.

Uzbekistan's Ministry of Agriculture reports that the number of cattle on farms in Uzbekistan is currently 5.44 million, an increase of approximately 20% compared with the base year of 1990, according to UzReport.

Tajikistan's Veterinary Administration has reported that it has imposed a ban on the movement of livestock into and out of the Darvoz District in the country's Gorno Badakshan region, according to the Asia-Plus Information Agency. The ban has been introduced because of the high risk of the spread of foot-and-mouth disease from neighbouring Afghanistan. Vaccination of cattle against the disease is currently under way in four districts in Gorno Badakhshan.

The Tabriz Leather Institute was inaugurated in Tabriz in Iran's East Azerbaijan province on July 20, according to the IRNA news agency. The Institute will train personnel in all aspects of the leather industry and aim to improve the standard of leather and leather products produced in Iran. East Azerbaijan province is one of the centres of Iranian leather production, accounting for 30% of national leather output.

Kazakhstan's State Statistics Agency reports that leather and leather products worth US$8.40 million were produced in Kazakhstan in the first half of this year, a year-on-year increase of 25.3%. In comparison, the increase in industrial output as a whole in Kazakhstan was 9.6% year-on-year, according to the Interfax news agency.

Azerbaijan's State Statistics Committee reports that Azeri livestock farms had a total average of 2.19 million head of cattle in the first half of this year, a year-on-year increase of 4.2%, according to the Interfax news agency.

Clariants' Business Unit Leather have launched their new shade card illustrating the latest fashion trends for shoe, and garment leather with accessoires. The colours are for the autumn/winter 2004/05 season.

Bahrain has lifted restrictions on the importation of Irish beef, which had been in place since January 2001 due to BSE and FMD concerns. The trade was reopened following a seminar on food safety in the beef sector held in Dublin last October, attended by delegates from Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and UAE, and a recent visit to Ireland by the Bahraini Minister for Health.

Turkey's State Statistics Institute reports that the production of leather and leather products in Turkey in May was 38.3% lower than in the same month last year. In comparison, manufacturing sector output in Turkey in May was 5.1% higher year-on-year.

TFL, the worldwide leather chemical company, have produced their new forecast of fashion colours for leather for the spring/summer 2005 season, in association with the Italian Designers Carmen Rimoldi and Sergio Belloni. The main advantage of this forecast for TFL's customers is the fact that it is published 21 months in advance of the retail season.

Statistics South Africa reports that manufacturers' sales of leather and leather products in South Africa in May were worth US$34.6 million), compared with US$37.4 million in the same month last year.

Statistics Norway reports that Norway exported raw hides and skins worth US$40.1 million in the first half of this year, a year-on-year fall of 20.9%..

Lituanica footwear producers in Lithuania say they are selling a factory in central Kaunas and move their production to a new factory outside of the city, according to the LETA news agency. The company say that this will help reduce their real estate costs and enable them to launch a new production unit.

Latvia's Central Statistical Bureau reports that Latvia exported raw livestock hides and skins, and leather, worth US$10.2 million, in the first five months of this year, compared with US$6.16 million in the same period last year.

Kazakhstan's National Statistics Agency reports that the number of cattle on farms in Kazakhstan as of July 1 this year was 5.63 million, an increase of 6.9% compared with the same date last year.

Hungary's Central Statistical Office reports that the production of leather and leather products in Hungary in the first five months of this year was 21.5% lower than in the same period last year. Total leather sales by manufacturers during the January to May period were 22.5% lower year-on-year, including a 22.9% fall in sales on the domestic Hungarian market and a 22.4% fall on export markets.

Hungary's Central Statistical Office reports that Hungary exported leather and leather products worth US$45.4 million in the first five months of this year, a year-on-year increase of 36.5%. Hungarian imports of the same types of commodities were 6.4% higher year-on-year at USS144.4 million.

SATRA have appointed an experienced technologist to enhance their footwear testing business. Lynne Brent rejoins SATRA having spent 24 years in the footwear industry - encompassing laboratory testing, production and quality management.

The Czech Statistical Office reports that the production of leather and leather products in the Czech Republic in the first five months of this year was 31.2% lower than in the same period in 2002. Production in May was 23.6% lower year-on-year.

Final figures for 2002 released by Croatia's Statistics Bureau reveal that Croatia exported leather and leather products worth US$189 million during the year, a decrease of 0.5% compared with exports in 2001. Leather imports in 2002 were 6.5% higher at US$216 million.

The next edition of CEMCA, the leather and allied materials fair is to take place in Buenos Aires, August 10-12. The show will be held simultaneously with the EFICA shoe fair in the Centro Costa Salguero, five minutes from the centre of Buenos Aires.

Both Bolivia and Paraguay have reported outbreaks of foot and mouth disease (FMD). In Bolivia, four cases of the disease have so far been confirmed, while 1,004 cattle and 2,500 pigs are being closely monitored. The country has already destroyed the affected animals and has set up quarantine zones and movement controls and is also screening animals. It is believed that Bolivia is soon to embark on a vaccination program.

Ron Sauer has left LeatherXchange Global Information Services in order to independently publish his world hide and skin report and indexes under the name 'theSauerReport'. The first report was published on June 16.

Inconsistencies in legislation across world markets has very real implications for brands selling leather products. Laws dictate the use of restricted substances but legislation varies from one marketplace to another. BLC leather Technology Centre has the expertise to enable brands to keep abreast of all relevant worldwide developments. In addition, testing will protect brand image against potentially damaging legal claims.

Albert Wong Tuck Choon, Stahl Singapore, won this year's Leather International prize for the most promising overseas student at the British School of Leather Technology, undertaking the Leathersellers Certificate in Leather Studies.

The prices quoted in your UK/Ireland market report are misleading. It seems that your correspondent is writing from some part of the Emerald Isle and, whilst the prices may reflect the situation there, they are misleading with regard to the UK. For some time there has been a differential of up to £0.10-0.12 per kg between UK and Irish hides and also a similar differential between secondary UK marks and premium machine pulled supplies.

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

Livestock hide values have fallen by up to A$20 each in the past two months and this trend is expected to continue in the short term, as exporters are battling a rising Aussie dollar and the SARS epidemic which are severely affecting two major buyers of Australian hides and skins, Europe and China.

Doom, gloom and depression permeates the hide and skin business these days. Bankruptcies and closures are still happening and there is no reason to believe that the trend will not continue.

The US market was far from quiet during the month of May. Prices generally declined until BSE was discovered in western Canada and the market very temporarily reacted accordingly. Federally inspected slaughter rose to record levels. In addition, export sales were large, Canadian slaughter dropped from 60,000/week to 30,000 and the market ended up at the beginning of June about where it was, on most selections, three weeks earlier.

In the June issue of Limeblast (page 14), Sam Setter wrote about the subject of fair trade for Africa. In it, he discussed how raw materials from Kenya are often under-invoiced and generate hardly any income for the country. In one case, a container of raw materials leaving Mombasa was said to contain rejects, but the customs authorities discovered that the container was full of hides and skins of a normal tannery run quality. The following is a public notice that has recently been issued by the Kenya Revenue Authority:

The week ending June 8 broke a more than twenty year old record for the highest number of cattle slaughtered in a single week. According to figures from federally inspected slaughter, 791,000 head were culled.

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.

S B Foot are putting their wet-blue plant in Texas up for sale. Prior to closing the Cactus plant, they operated two blue plants - the Texas plant and Twin City Tanning Company in St Paul, Minnesota. The latter plant is a partnership between Twin City Hide Company and S B Foot Tanning Company and is located only 45 miles from Foot's finishing plant in Red Wing, Minnesota.

Horween Leather Company have begun a unique collaboration with Canada's oldest tannery, Dominion Tanners of Winnipeg. The two companies recently completed an agreement which will allow Horween Leather to produce Dominion's full line of shoe, boot and speciality leathers. The transfer of technology began this spring and, with the help of Dominion staff, Horween Leather have begun to run initial trials of Dominion leathers.

In an earlier Limeblast, I have tried to explain how the poor Africans subsidise the poor Americans by buying secondhand shoes and clothes. As a matter of fact, some African countries prohibit the import of secondhand shoes or leather products in general, whereas others accept this unfortunate trade. Unfortunate because it undercuts the development of the leather industry in Africa where such a development is most needed.

Yarwood Leather have received approval for their quality management system to the BS EN ISO 9001:2000 standard. The approval came from the international certification body Lloyd's Register Quality Assurance Ltd.

German leather chemical manufacturers, Dr Eberle GmbH & Cie, have become another casualty of the global slowdown in the leather industry. The company has become insolvent. It is still owned by Dr Reinhard Eberle, the fourth generation of the family connected with the business.

Sepiciler Caybasi Deri San Tic AS are planning a new research and development laboratory at their tannery near Izmir. Sepiciler are a shoe leather and sole maker and shrewd corporate tactics have made them a market leader.

Two Turkish footwear leather producers have come up with the idea of selling finished leathers off the shelf. At Yona Derecilik, a 70 year old Istanbul company, the phone rings constantly with short-order customer requests.

The next edition of Pielespaña International will be held from January 30 to February 2, 2004. The fair will be held in hall 1 of Fira de Barcelona's Montjuïc exhibition centre in Barcelona. Exhibitors at the show include manufacturers of nappa, doubleface, nubuck and suede garment leathers as well as a small number of tannery supplier companies.

Ileri Deri have built a new 11,000 sq m tannery on a single floor in the Corlu tannery zone. Goat and sheep were tanned at another factory but the Corlu unit will focus on cow and steer hides, with a capacity of about 20 tons daily.

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

Over its 136 year history Leather magazine has always led from the front. We were the first international publication to be translated into Spanish, Mandarin and now, Russian.

A new private joint-stock company has been created in Turkmenistan that will hold a monopoly on leather exports from the country, according to the Interfax news agency. Turkmenderi has been established by Turkmenistan's Textiles Ministry and the national association of livestock organisations.

So much industrial and export growth has been spearheaded by the US that the economic downturn being experienced there is being felt by global producers, including Türkiye.

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.

Ezgi Ajans, who organise International Leather Days (ILD) in Istanbul, quoted their stand prices in euros but as the euro rises, some exhibitors, who had booked stands for the next edition, January 8-10, 2004, expressed alarm at escalating prices.

Organik Kimya San ve Ticaret AS, Istanbul, recently adjusted some corporate policies which will result in a smaller proportion of chemicals supplied direct to tanneries. Like other chemical companies, they service a variety of industrial groups. The core business is polymer emulsions and half of their 40,000 metric ton capacity is exported, mainly to European customers. Leather finishing and wet-end chemicals comprised about 8-10% of their $75 million turnover.

There is a great deal of valuable research currently being undertaken in the leather industry and it is of critical importance that it be allowed to continue. As the tanning industry in the developing world shrinks, there is less money being made available to fund necessary research into areas of interest or concern.

NovoCor AX is an exciting new enzyme product that can be used to increase area and softness during post tanning operations without compromising quality. The product, developed and patented by BLC Leathersellers Research Centre Ltd and Novozymes A/S, is a groundbreaking enzyme product for use on chrome tanned leather to give typical area increases of 3% within commercial production, although the original development work did indicate that the potential gains may be higher. Other benefits include improvements in softness, with no associated grain damage or looseness. The enzyme is effective on chrome tanned substrates and the technology is particularly beneficial for the softer leather types, including upholstery, wool-on and clothing leather production¹.

Summary

The second phase of their plan came to fruition in June 2003 with the opening of their new European research and development facility at Mantes in France. The purchase of the surface protection and fluoroadditives business assets of Atofina from TotalFina-Elf gave them more than 40 new products under the Forafac and Foraperle brands to run alongside their own ranges and a manufacturing facility at the Villers-Saint Paul site, north east of Paris, also came as part of the deal. The Mantes site is located conveniently nearby.

3M Company have been selling Scotchgard protective treatments to the global leather industry for more than 40 years but, in the late 1990s, 3M discovered that a breakdown product of the original chemistry was found to be widespread in the environment. Due to their principles of responsible environmental management, they decided to phase-out this chemistry.

Howe Leather have laid off 65 workers after the company lost a contract with local vehicle manufacturers Mitsubishi. Last September Holden switched their leather business to South Africa, where automotive leather production attracts government subsidies.

The Ho Chi Minh City authorities have told a number of tanneries to move their operations out of the city this year because they are polluting the environment, according to the Vietnamese News Agency. Most of the tanneries are found in Tan Binh and Binh Thanh districts.

Stahl India Private Limited have recently been presented with a certificate by BVQI, the international inspection authority, confirming that the company conform fully to ISO 14001:1996 standards in respect of their environmental management systems. Environmental concerns were taken into serious consideration both by Stahl International and the Indian authorities during the planning stages for the factory and within three years of the opening it has been shown independently to conform with these standards.

The All China Leather Exhibition (ACLE), scheduled for September 3-5, 2003, will take place as planned at the Shanghai New International Expo Centre (SNIEC), Pudong Shanghai.

The problem

Problems due to changes in the colour of leather when exposed to light present themselves on a fairly regular basis and occur across a wide spectrum of leather articles. Most commonly poor lightfastness results in a fading of the colour intensity from dark to pale.