China'S Leather Industry Will Be Reshuffled Again

The new environmental protection act, which came into effect in January 1, 2015, is regarded as a "heavy punch" to deal with the current severe environmental situation in our country. It is even called "the most stringent environmental protection law in history" by many media.

According to US media reports, the tightening of environmental protection regulations and the decline of global market demand will cause an internal attack on China's leather industry, which will lead to a reshuffle of the industry.

In Xinji, Hebei, large and small leather factories spread all over the place.

Zhao Jingchuan, general manager of Kimcheon tannery Co., sits in a pile of leather products, and his office is also a production workshop.

Outside the workshop, there are piles of unprocessed animal skins.

"Business is bad," Zhao Jingchuan said in an interview. "The whole economy and industry are depressed."

According to official data, in 2012, the city named "leather capital" has 1148 leather enterprises and employs more than 80 thousand people. It is the largest sheep clothing production base in the country and the largest sheepskin in Asia.

Base.

at home and abroad

The decline in demand has greatly affected the sheepskin industry in Xinji. At the same time, various policies have been tightened since the introduction of the new environmental protection law. A number of inefficient and highly polluting enterprises will be eliminated and the industry will be reshuffled.

Zhao Jingchuan's products are mainly exported to Russia, but the Russian market has shrunk sharply due to the recent decline in rubles and the price of imported lambs.

Meanwhile, the US and Europe imported agricultural products to Russia last year.

After that, more Russian customers began to switch to their own leather materials.

In addition, Zhao Jingchuan believes that the decline in the volume of real estate market will also lead to the decline in demand for cortical furniture.

The new environmental protection act, which came into effect in January 1, 2015, is regarded as a "heavy blow" to deal with the severe environmental situation in our country. It is even called "the most stringent environmental protection law in history" by many media.

Zhao Jingchuan estimates that the environmental protection law and governance standards will increase the illegal cost of leather processing enterprises by punishing, sealing up, limiting production and shutting down production, which will shrink the whole industry by 20%.

After some of the leather factories in Hebei stopped production due to pollution control, Henan became the main force of leather production.

However, the situation is also not optimistic. In Henan, the manager of a leather factory named Mei told the media that the sheepskins sold to Guangdong shoe factories in their factories last year decreased by 50% to 60%, which is also indirectly due to the decline in Russian demand.

"Russia is the largest export market for footwear products."

He said.

Last year, although the demand for leather products increased by the electricity supplier channel, it still could not offset the impact of the reduction of orders in Guangdong shoe factories.