Growth in Argentine exports
From January to November 2004, the Argentine tanning industry exported finished
and crust leather to a value of US$655.4 million, which is a 15% increase
over the same period in 2003. In both periods covered, the leader is the
Sadesa company which exported US$147.2 million, approximately 19% more than
in 2003. Then follows the Yoma Group with US$98.1 million, with a 15% increase
and Fonseca with US$78.2 million, or 3% more. The tannery sector which has
developed its business from cutting and sewing to upholstery coverings,
exported US$157.7 million in this period, the same as in 2003. In the upholstery
sector itself, Eagle/Fonseca headed the rankings with US$65.7 million, meaning
a 32% increase over the same period in 2003.
Turkey
2004 was a bad year for the Turkish leather industry mainly due to the poor situation experienced by the luggage sector and the domination of China in the global market place, which is having a negative effect on the Turkish industry. Even though leather and leather goods exports recovered somewhat, they still did not reach the same levels as 2003.
End of air-cushioned footwear?
According to the EU Comissioner for the Environment, Margot Wallstrom, the EU is advancing agreements to reduce the emissions of fluoride gases that cause global warming. “The agreement is another element within the framework which we are trying to elaborate to combat climate change and develop the Kyoto Protcol”. Amongst the decisions could be an EU prohibition of air-cushioned footwear. If this agreement is adopted at the end of 2005, it could be the case that all footwear containing fluoride gases could be banned in the EU from 1st July 2006.
China
More than 91% of Mainland Chinese garment manufacturers plan to increase their production capacity when quotas are suspended in 2005. This is because forecasts indicate that orders will increase, especially in summer 2005. Most manufacturers expect these orders to originate from the European Union and the United States.
EU - USA - Canada
The European Union (EU) has started a series of initiatives against sanctions imposed by the US and Canada after the EU block decided, in 1999, to ban the entry of meat treated with hormones. Although the EU has tried to prove that theses products are harmful to health, the American countries did not accept this and maintained import duties on a series of goods coming form the European continent.
The economy of this country is a growth economy. Forecasts indicate that this year will end with a 5.2% GDP growth figure and 5.8% in 2005. One of the main motors behind this is tourism. Manpower is less costly than in Europe and this allows the export of shoe uppers to Italy. Nevertheless, its economy is being threatened by the legal and illegal imports of Chinese products. In Morocco, there are 224 shoe factories, employing 13,000 prople and 65 garment and leather goods factories, which generate 3,000 jobs. There are 60 tanneries with 2,000 workers, of which only 20% are well structured.
Hungary
Although industrial production in Hungary grew by 6.7% in September and 8.9% in the first nine months of 2004, the leather sector declined by 15.5% in September. The Central Statistics Office also stated that the equipment and machinery sector had continued to decline by 0.6%. This office considers that these results are due to new regulations imposed in May by the European Union (EU).
Poland
Polish customs authorities seized a cargo of garments and shoes pirated as Reebok, Adidas and Versace. The products were in seven trucks weighing more than 120 tonnes with a value of more than US$1 million. A customs official stated that this was one of the most important confiscacions registered on the Eastern border.
Brazil
Leather International, the most prestigious and oldest magazine for the leather industry, has announced that, in 2005, it will continue with its policy of approaching the most important world markets with editions in local languages. Just as it publishes editions in Chinese and Russian, it is preparing its “Brasil Leather” issue in Portuguese. Under the Leadership of the excellent journalist, Shelagh Davy, Leather is promising excellent material about the latest innovations in the industry. Brasil Leather will be distributed at Fimec (19th - 22nd April 2005) to the whole Brazilian leather industry. Any questions about this issue should be directed to Martin Ricker - mricker@wilmington.co.uk
Process for identifying DNA in leather
The British Leather Technology Centre (BLC) has managed to extract DNA
from leather for the first time in history, and as a result of this procedure,
species can now be identified with much more precision. The BLC works
in conjunction with an associated laboratory and they use techniques simliar
to those applied to forensic investigation. The methods designed by this
centre to identify types of leather can be applied to cattle, sheep, goats
and pigs. The new development will have important applications in terms
of commercial standards and themes related to customs.
Self-training for the leather industry
The centre of investigations of Portugal, CTIC, has prepared a kit for self-training the the leather industry, designed especially for those who work in the sector or are interested in learning about it. It is offered in five languages (Portuguese, English, German, Polish and Greeek) and includes modules on leather technology, new technologies, quality control, health and safety, environmental tecnology, production administration, maintenance, team work, marketing and international trade laws.
Donation in Turkey
Spray Tech, represented in Turkey by Demaksan, has donated a dying machine - of the latest technolgy - to the University of Ege. Mauro Golin, a company executive, explained that students are trying to learn how to work in the production of leather, but did not have access to a machine with the latest technological advances. He commented that with the new equipment, the students will be able to learn about the new technology and in this way prepare themselves for their future job opportunities.
2005: Lanxess will be independent of Bayer
Lanxess, the chemical products arm of Bayer, will commence its operations as an independent company at the beginning of 2005. It will be a completely new company with factories in 21 countries, employing around 20,000 people and with its own corporate structure. This sector has sales of €6.3 million in 2003 and became independent by virtue of a decision taken in November of the same year. The comapny is organized in four divisions and each one is reponsible for annual sales of around €1 billion. One of these areas specializes in chemicals for the processing of leather, textiles and paper. For Axel C. Heitmann, the President of Lanxess, the priorities will be Asia and China, although productive capacity will be increased in Canada and Belgium.
New manager for Stahl Europe
Stahl Europe has announced that Krzysztof Galczak was recently named as Eastern European Manager for the Leather Products Group (LPG) and he will be responible for this division in countries such as Estonia, Latvia, Lithuania and other nations of the former Soviet Union. Krzystof joined Stahl in March 2002 and since then has managed the LPG business successfully in Poland.
Personalized collection from Hartmann
Hartmann, one of the most traditional US manufacturers of luggage and leather goods has announced that it has introduced a limited edition of luggage and accessoroes “made to measure” and which will be exclusively sold via Internet. “Personalization is a concept that is growing, since people are looking for unique ways in which to express their individual style”, stated the company president David Herman.
New line of footwear
Baby Phat and Vida Shoes have signed a contract in which they will work together to produce a line of ladies footwear. Both companies had already cooperated in the launch of a collection of sports shoes called Baby Phat Diva. “With the new collection, we will have the opportunity to expand our vision of the brand”, said Solomon Dabah, Vice President of Vida Shoes.
Malkan Makina inaugurates its plant
This shoe company recently inaugurated its newly built plant in Turkey. Founded in 1971, this company attends more than 19,000 customers in 19 countries. Nowadays, it covers an area of 5,000 square meters and employs 140 permanent workers and 800 freelance.
Clariant Polymers sells its plant in Japan
The chemical giant, Clariant, has announced that it has sold its Japanese plant of liquid and powder emulsions, Clariant Polymers K.K., to the company Nippon Synthetic Chemicals Industry Co. Ltd., for a total of 2,400 million yen, or US$2.33 Million. The production facility in Ogaki and the R + D laboratories in Shizouka generated sales of about 5.000 million yen, or US$4.8 million in 2003. Its 110 employees will be transferred to the new owner.
New company for Livestar
Livestar Entertainment Group Inc signed a letter of intent to buy 51% of Las Vegas Footwear, a company that designs and manufacturers mens’, womens’ and childrens’ shoes. “We are very satisfied with this acquisition since it will add much value to our company as it continues to grow”, remarked Livestar executive Ray Hawkins.
Leather bathing costume?
Solestram has presented a new line of bathing costumes made from leather and assures its customers that these will be well acepted by sun worshippers. The company explained that the costumes will fit any type of body, and are completely washable, quick drying and offer a wide range of colours that will not fade. To obtain the properties required, the leather is tanned and a series of processess applied, using natural ingredients to dye the product and make it water-proof.
New post at Wilsons
Wilsons, The Leather Experts Inc., have named Michael Searles as Chief Executive Officer of the company, replacing Joe Waller, who had been at the firm for 28 years, but decided to resign. Searles, 55, will also be on the Board of Directors. He has more than 30 years experience in the retail business, with success both at Wilsons and at other companies.
Pony expands into boxing
Pony Internacional has signed a contract with the light-weight boxer James Toney, until 2006. “The history of Pony in the light-weight boxing ranks does not have any comparison with any other brand of footwear, and we are very keen to reestablish this link with such a special personality as is Toney”, said Killick Data, a company executive.
Nike apologises to China
The multinacional Nike has apologised to China for publishing an advertisement in this country which the government had banned. In this advertisement, the basketball star, LeBron James, was shown hitting a kung-fu master, two women and two dragons. The company declared that it was not its intention to offend anyone or show a lack of respect to this nation, but to imitate the style of kung-fu movies produced in the 1970’s in Hong Kong.
Rocky goes shopping
Rocky Shoes & Boots has signed an agreement to buy the North American company E.J. Footwear group for a total of US$87.7 million. The president of Rocky, Mike Brooks, said that this acquisition will double the company’s volume of business and underlined that “this agreement is a landmark in the history of our company”.
Furniture on-line
A new British company has started to commercialize this products on the Internet. Hide and Stitch offers a wide range of simply, but well designed leather furniture “in an ample variety of colours and aimed at any comtemporary setting”. Nevertheless, the company has stated that it will open up shops in the South East of England.
End of agreement
The manufacturer of Italian upholstery, Calia, has ended its three year agreement with the company Italian Leather Seating.
New
post at Douglas Furniture
The upholstery manufacturer, Douglas Furniture, has named John Lucas as
Vice President of sales for its Eastern division - a post created especially
for him.
SURVEY
How was your 2004?
What do you expect in 2005?
For Leather
Press the most valuable information comes from its readers, since they
are the main protagonists in the business activity which brings us together.
For this reason, and with the aim of crossing the intangible line of finishing
one year and starting another, we would like you to tell us how was your
2004 and what you expect for 2005. Please send us your comments.
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A
100% Italian fair
From 12th - 14 th January the second edition of IPlace will take place
in Florence, Italy. The organizers maintain that the next edition will
have new ideas, trends and meetings on a variety of themes, all based
around the idea of “100% Italian”. This fair attracts the
main producers of leather goods, footwear and accessories that have their
manufacturing facilities in Italy.
Brazil is expecting another successful FIMEC in 2005
The 29th edition of Fimec, the international fair for leather, chemicals,
components, accessories, equipment and machinery will take place from
19th - 22nd April 2005 in Novo Hamburgo in the South of Brazil. Fimec
is considered one of the most important fairs in the world for leather
and footwear and in its last edition, in April 2004, 1537 exhibitors from
35 countries were present. The largest group belongs to the shoe and components
sector, followed by leather, chemicals and representatives on the machinery
sector. Foreign visitors also came from 35 countries led by Argentina,
and followed by Italians and Colombians. Fimec 2005 hopes to repeat the
success of the 2004 edition, and all the available space has been reserved.
The gross exhibition area of the fair is 40,000 square meters.
Poor attendance in Lineapelle and Tanning Tech
Lineapelle and Tanning Tech were held from 26th
- 29th October. The stagnation that is affecting the world leather market
was evident, since the number of visitors was very low. Approximately
492 companies from 52 countries took part in Lineapelle where the coming
trends for Autumn-Winter were on show. In Tanning Tech where there were
235 companies from 22 countries. The exhibition was based around chemical
products and machinery.
The
Techmart leather fair in India
The
Indian Techmart fair is dedicated to small companies. In its last edition
which took place in November, it was decided to focus on specific sectors,
products and technologies. The areas chosen this time were leather and
leather goods, as well as chemicals and components. Techmart India 2004
was inaugurated in New Delhi by the Minister of Small, Rural and Agricultural
Industries, Shri Mahabir Prasad. Over 160 small companies from these sectors
took part in the fair.
Innovations
and new projects at APLF 2005
The
latest developments in materials, manufacturing and technology for the
leather industry will once again be top of the agenda when APLF (Asia
Pacific Leather Fair) re-opens its doors from 6th -9th April 2005 at the
Hong Kong Convention and Exhibition Centre. More than 90% of exhbitors
from the 2004 event have reconfirmed their participation, as well as 32
national pavilions from 19 countries and regions such as Brazil, Mainland
China, Ethiopia, France, Germany, Hong Kong, India, Italy, Japan, Korea,
Mexico, New Zealand, Pakistan, Philippines, Spain, Taiwan, Turkey and
the United States. An important innovation in the next edition will be
an educational programme called APLF Forum - Manufacturing Technology
Enhancement. Its objective is to provide information on the latest technological
developments and at the same time, improve productivity and efficiency.
Other special events will be the Best of APLF Awards and the APLF Trend
Forum, which will recognize the best exhibitions at the fair and impart
information on the latest trends in colours, styles and materials.
Upholstery
Leather Conference
AAPLF
will be the sponsor of the third edition of the Upholstery Leather Conference,
which will be organized in conjunction with sauerreport.com, Leather International
magazine and Rizzi Pellami Spa. This conference will take place on 5th
April, one day before the fair, and the situation and outlook for the
leather upholstery sector in Asia will be presented. APLF decided to sponsor
this conference since in recent years, the demand for upholstery leather
in Asia, especially in Mainland China, has growm significantly.
It is worth pointing out that in 2003, the value of furnitire porduction
in ths industry reached US$20.7 billion, a figure just behind that of
Germany and Italy. In addition, the Asian giant is the fourth largest
producer of automobiles after the US, Japan and Germany.
Ecopaint
Rino
is an Argentinean company specializing in technological solutions exclusively
focussed on the tannery sector. Rino has just launched a free test programme
for its Ecopaint product, which, according to the company is much more
than a means to save on paint usage. It is, in fact, a work station for
finishing, which as well as economizing more than any other similar system
currently on the market, measures and identifies each piece of leather
using a bar code system. It controls temperature and relative humidity
in the drying tunnels and weighs the chemical products applied to each
leather. At the same time, it stores in a data base the statistics of
each of the aforementioned processess. Rino guarantees that this system
will save up to 10% more than any other competing system and with these
savings, estimates that the return on investment will take between 1 to
3 months, depending on the value of the product used and the level of
finishing required.
www.rino.net
