According to Hidenet.com, a Chinese firm have purchased a warehouse in Holland with the intention of dealing and exporting cattle hides. The company go by the name of European Hides Company or ‘EUHICO’. They have purchased the former warehouse of Van Buren Hides of Leeuwarden in Friesland, which recently went bankrupt.
Apparently, the ownership is an affiliate of a tannery outside of Shanghai, China. It is assumed that a share of the hides collected in the Leeuwarden facility will supply a portion of the needs of the parent tannery in China. However, it seems that the commercial interest will be readily expanded into supplying other Chinese tanners with goods also.
The potential of such a venture is anyone’s guess. A Chinese presence in the rawhide sector of the European warehousing market creates a whole new set of questions for the trade of cattle hides and skins. Can it work? Will it expand? And will it have far reaching implications on the shift of industry control to Asia? After all, China is already dominating the tanning and manufacturing end of the business.
EUHICO are currently revamping the old Van Buren hide warehouse. They are also seeking a permit from officials to be able to take in fresh hides and skins. At the present time, the company are only allowed to bring in salted material. There are rumours that the company have already made several such purchases. Construction at the site is scheduled for completion by the end of February or March. Sources feel that it is only a matter of time before they will also have a permit for fresh hides.
There is little doubt that, for the new player to buy entry into the European arena, they will need to entice producers to sell to them instead of established accounts. This aspect could have an impact on the local market on certain items in the local area. However, it is still too early to know what the magnitude of the entire operation will be.
