Six plants in Jiangxi oppose unfair closure

23 September 2010



According to the Chinese state program on the elimination of outdated production capacities, tanners with a production less than 100,000 pieces equivalent to cow hide should be closed by the end of September 2010 say local government authorities in Jiangxi province. This has led to six leather industry related businesses being forced to close by the end of month according the CLIA’s official website.


However, the six companies in Gaoan city, Jiangxi province which are on the list published on the website of the Jiangxi government have expressed sadness and disappointment at the decision.
Huanqiu Industrial Co one of companies named on list say ‘we came to the Gaoan Industrial Park in 2003 and we contribute the taxation of 1.5 to 2 million yuan ($100,000) each year, further more our main business are exportation on products such as leather sofa’s and shoes. Our monthly output value has reached 10 million yuan ($670,000). We would suffer as much as 10 million yuan if our business were forcibly closed.’
The situation for another three companies is similar to Huanqiu Industrial. Following inclusion on the website list the businesses suffered a significant reduction in orders. ‘Many of our clients learned the news and ended any business ties with us. Furthermore, no banks are willing to provide loans to the companies that have been enforced to close.’ said one of those affected.
Xinglin Leather Chemical Plant is also listed among the plants to be closed which are related to the leather sector. ‘This is totally wrong and unfair because we make leather chemicals’ said a spokesperson.
Another of those forced to close said; ‘we start leather production from finishing to final leather products and that generates less pollution than beamhouse operations. In addition, our pollution treatment meets the local discharge standards.’

These companies said there must be something wrong with announced list, they some of them are some of the larger companies in the business park. So far nobody representing the official local government departments has given an explanation to the leather companies complaints.

Source: chinaleather.org



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