Production and labour are cut down. Difficult times for the Chinese tanning where some companies have decided to reduce their production. Rising raw material prices and especially stringent new environmental constraints are the cause of the difficulties.
According to the Shangdong Leather Association, which gathers the tanneries from the oriental coast province of China together, the price of leathers will be increasing further on, driven by the continuous growth in the cost of raw materials.
Tanneries have reduced their purchasing and the trend is expected to worsen.
On the Southern province of Guangdong, in the opinion of the Guangzhou Leather Association, the 90% of tanneries have reduced their production levels and many companies which counted up to 1000 employees have more than halved the workforce, reducing it to only 300 units.