Fund shortage causes closure of 18 tanneries in port city
Wednesday, 24 November 2010
Jasim Uddin Haroon and Nezam Uddin back from Ctg
Non-availability of fund resulted in the closure of 18 tanneries out of 20 over the past few years in the port city of Chittagong.
The tanneries could not be turned into crust and finished leather factories after the government had imposed ban on the export of wet-blue leather.
Currently, only two tanneries, Madina and Reef, with a combined production capacity of 1.6 million square feet are in operation in the port city.
"We survived until a few years back. We've limited resources to convert our plant into a full-fledged finished leather factory," said a senior official who had worked with the Hilton Tannery Ltd.
Tk 50 million is needed to set up a crust and finished leather tannery while a wet-blue needs at least Tk 5.0 million, industry people said.
They also said the tanneries were shut due to lack of experience in the business on the part of owners.
"Doing tannery business is a technical matter. So those who established tanneries without adequate knowledge, they failed to sustain," Mukhlesur Rahman, executive director of Reef Tannery at Kalurghat area in the port city told the FE.
The large tanneries which were closed down include Orient Tannery, Monti Tannery, Ali Tannery, Meghna Tannery, Dora Tannery, Karnaphuli Tannery and Rowshan Tannery.
Abu Mohammad, chairman of Madina Tannery at Oxygen area in the city said: "The port city gets huge supply of raw hides each year. But most of its tanneries now remain shut."
Mr Abu Mohammad also said it is an irony that the number of tanneries are shrinking day by day despite the fact that domestic consumption of leather has increased manifolds.
Currently, local shoe, bag and purse factories are consuming around 130 million square feet of leather. The country's total leather production is around 350 square feet annually.
Local tanners collect around 50 per cent rawhide and skin during Eid-ul-Azha.
However, around 170 tanners of the country exported semi-finished and finished leather worth $226 million in the 2009-10 fiscal while shoe manufacturers shipped footwear worth $ 204.09 million.
Non-availability of fund resulted in the closure of 18 tanneries out of 20 over the past few years in the port city of Chittagong.
The tanneries could not be turned into crust and finished leather factories after the government had imposed ban on the export of wet-blue leather.
Currently, only two tanneries, Madina and Reef, with a combined production capacity of 1.6 million square feet are in operation in the port city.
"We survived until a few years back. We've limited resources to convert our plant into a full-fledged finished leather factory," said a senior official who had worked with the Hilton Tannery Ltd.
Tk 50 million is needed to set up a crust and finished leather tannery while a wet-blue needs at least Tk 5.0 million, industry people said.
They also said the tanneries were shut due to lack of experience in the business on the part of owners.
"Doing tannery business is a technical matter. So those who established tanneries without adequate knowledge, they failed to sustain," Mukhlesur Rahman, executive director of Reef Tannery at Kalurghat area in the port city told the FE.
The large tanneries which were closed down include Orient Tannery, Monti Tannery, Ali Tannery, Meghna Tannery, Dora Tannery, Karnaphuli Tannery and Rowshan Tannery.
Abu Mohammad, chairman of Madina Tannery at Oxygen area in the city said: "The port city gets huge supply of raw hides each year. But most of its tanneries now remain shut."
Mr Abu Mohammad also said it is an irony that the number of tanneries are shrinking day by day despite the fact that domestic consumption of leather has increased manifolds.
Currently, local shoe, bag and purse factories are consuming around 130 million square feet of leather. The country's total leather production is around 350 square feet annually.
Local tanners collect around 50 per cent rawhide and skin during Eid-ul-Azha.
However, around 170 tanners of the country exported semi-finished and finished leather worth $226 million in the 2009-10 fiscal while shoe manufacturers shipped footwear worth $ 204.09 million.