Five raw leather supplying and processing companies – Morsa, Crystal, Bale, Mesako and Sun Industrial – state that the foreign factories’ dominance has driven them out of the market. The leather companies claim that the problem doesn’t reside in the presence of the companies, but rather the fact that they are involved in the early stages of processing – the collection of raw leather is the main issue.
According to the companies, as soon as the foreigners got involved in the business, the price of raw leather escalated from 70 to 110Br. The Industry Minister argues that the companies are out of business because they fail to meet the standards to compete, adding that closing down foreign companies would cause a significant amount of damage to the productivity of the industry.
The Ministry also acknowledges that the 2003 directive prohibits local companies from being involved in the level one leather manufacturing process, which has 40pc value added on the raw material, but currently have the potential to process 359 million square feet of leather.
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