Due to the financial crisis, the tannery suspended the night shift and halved production. Until late May, daily output stood at 15,000 pieces of leather, but is now thought to be 6,000.
According to management, the decline of the dollar and the government’s delay in reimbursing export credits are the causes of the difficulties. Vitapelli is the second largest leather exporter in Brazil, shipping US$180 million worth of leather to USA, Italy, China, South Korea and other destinations last year.
Vitapelli slashes production
Around 600 employees have been made redundant by Brazilian tannery Vitapelli, based in Presidente Prudente, Sao Paulo state. The lay offs began in late May. Of a total of 3,500 employees, it is thought that at least 1,000 will go. A black flag was flying from the tannery’s patio in protest at the redundancies.