New Wave Leather to close

Citing a rising Australian dollar, tough economic times and increases in direct processing costs, New Wave Leather will close its tannery operations on February 8. They process raw hides through to wet-blue.

The 38 fulltime and 15 casual employees were told of the closure last Thursday at the Hermitage Rd premises.

New Wave Leather is a subsidiary of Nippon Meat Packers Australia and is Australia's leading wet-blue tanner and a major supplier of wet-blue hides to the international market.

New Wave Leather, General Manager, Shu Toda said the closure was 'regrettable'.

'This decision is regrettable, however, the economic impact on the business is unsustainable,' he said.

New Wave Leather processed about 20,000 hides a week, producing a wide range of hide selections for the national and international markets.

He said the company was working with the 53 affected employees to help them find alternative employment.

'New Wave leather wishes to publicly thank various stakeholders, customers, suppliers and in particular our employees for their support over many years.'

Toowoomba Chamber of Commerce President, Geoff McDonald said the closure highlighted the competitive nature of the manufacturing industry not only in Australia, but worldwide.

'The manufacturing industry has taken a battering due to the high Australian dollar, McDonald said.

'Our competitiveness across the world has certainly being tested,' he said.

'This decision is regrettable, however, the economic impact on the business is unsustainable'M.

Source: The Chronicle (Australia)

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