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Leather Industry News

Bader: Business is hard to find

Published: 22nd May 2020
Author: Robert OConnell
Pretoria, Gauteng, SA - Unfortunately orders on the automotive side are nonexistent, and with Brazilian TR1s being offered at 0.35US$/ft², even export orders on wet blues are hard to come by and to compete with.
 
The majority of the wet blue plants were wet salting during the lockdown phase with the prospect of being able to process the hides at a later stage.

Fusion Leather/African Gameskin: Extraordinary ideas and opportunities

Published: 22nd May 2020
Author: Denzil Spolander; Fusion Leather MD

Cape Town, W Cape, SA - Lockdown has in some crazy way been a hugely inspirational period for the Fusion Leather and African Gameskin team.

The challenge of new and unknown, sparks energy in my team and leads to extraordinary thinking. 
We are in regular contact with our customers, carving a path for the near future, along with an 18 month strategy. Many of our customers are champing at the bit to get going with new ideas and markets in the online space.
Exports from African Gameskin has been promising over the past 2 weeks and an interesting opportunity with a prominent international brand for Fusion.
Suddenly R18.50 = $1 allows for South African competitiveness.
Fusion has an interesting product offering ex Durban Warehouse in August/September, while African Gameskin launch an Eco Leather range in June.
In the words of Warren Buffet...When the masses are fearful, be greedy and when the masses are greedy, be fearful. My wish is for our industry to find the opportunities that will present in the coming months and pounce.

UNIDO offers free online leather-related courses

Published: 22nd May 2020
Vienna, Austria - The United Nations Industrial Development Organisation (UNIDO), through its ITC SME Trade Academy, is offering 2 free online courses.
In a circular, industrial development officer Ivan Kral wrote:
 
As in many countries social life and productive activities are on very low level, I would like to draw your attention to online courses available organized by ITC Academy. There are many courses which could be useful for users.
Among others are e.g.:
1. Standards and Technical Requirements for the Leather Industry
2. Fashion Design for International Markets
Courses are free and fully on-line, so very convenient for this challenging time
 
Standards and technical requirements for the leather industry
 
Course description
Aimed at senior managers and technical representatives working for leather and leather product producers, this course is designed to showcase the essential standards and technical requirements for export into the major leather world markets. 
Beginning with a description of the importance of standards in the international leather business, it moves on to discuss the demands of major standards and technical requirements, including REACH and ZDHL. Finally, it concludes by presenting guidelines, control measures and testing procedures necessary to comply with these standards, thus helping leather and leather product producers prepare for certification. 
NOTE: We recommend using the latest version of the Chrome or Safari browsers to ensure an optimal experience viewing the lectures.
After completing this course, participants will be able to:
* Establish a consensus around the need to meet international leather production standards;
* Understand the relevant standards and link their requirements to the leather production process; and
* Determine actions to implement quality control measures to comply with standards and technical requirements such as REACH and ZDHL.
 
Course certification
Participants who meet the course requirements will receive a Certificate of Completion issued in electronic format.
 
Course structure
Lecture 1: The Importance of Standards in the International Leather Business
Lecture 2: Standards and Leather Production Methods
Lecture 3: The Leather Certification Process
Time required: 4 hours over 2 weeks
Next start date: 27, Jul 2020
Course access: Open for enrolment
Course fee: Free of charge
 
Fashion design for international markets
 
Course description
This course explores the fundamentals of product and collection design within the context of the global fashion and textile industry, with a view to helping business owners, production managers and product designers consider these aspects in their product and collection planning for international markets. It explores the uses of colour, texture, and patterns within the context of individual pieces, as well as a collection as a whole in order to guide participants to develop the basic skills required for successful fashion design. 
After completing this course, participants will be able to:
* Articulate the elements involved in creating a strong design vision;
* Apply colour and surface texture design principles; and
* Identify the key steps in product and collection planning.
 
NOTE: We recommend using the latest version of the Chrome or Safari browsers to ensure an optimal experience viewing the lectures.
Course certification
Participants who meet the course requirements will receive a Certificate of Completion issued in electronic format.
 
Course structure
Lecture 1: Design Fundamentals for Business
Lecture 2: Colour and Surface Texture in Design
Lecture 3: Product Development Planning
Time required: 4 hours over 2 weeks
Next start date: 03, Aug 2020
Course access: Open for enrolment
 
Course fee: Free of charge
 
Tags: UNIDO

Buckman board elects 3 new directors

Published: 18th May 2020
Memphis, Tenn., USA (May 18, 2020) – Bulab Holdings, Inc., in its 75th year of business, has announced that 3 new members have been elected by its shareholders to join its board of directors: Robert Buckman (Memphis), Jacqueline Welch (Washington, D.C. Metro) and Gregg Sutherland (Denver). James Shepherd of Vancouver, Canada retired from the board after 12 years. 
 
Robert “Bob” Buckman’s career at Buckman spanned nearly 50 years including a previous tenure on the board. The son of the company’s founder, Stanley Buckman, Bob has held many positions at the company including CEO (1978-2000), director and chairman of the board. He is not only well known as an accomplished leader in the specialty chemical industry but also as a true pioneer in the field of “knowledge management” also known as “knowledge sharing”. He is the author of Building a Knowledge-Driven Organization and has been a long-term board member of the American Productivity & Quality Center (APQC). He is also on the board of trustees at Christian Brothers University. In 1989, Bob launched a knowledge network for Buckman that used computers to widely and quickly transfer knowledge and expertise between global associates. This was enhanced in 1995 when K’Netix was created to further foster a culture of knowledge sharing that continues to this day. Buckman is a graduate of Purdue University and the University of Chicago.
Jacqueline Welch is the chief human resource officer (CHRO) and chief diversity officer (CDO) at Freddie Mac, and the first CHRO and CDO to sit on the Buckman Board. She has more than 20 years of experience in HR, inclusion and diversity strategy and execution both as a consultant with Accenture and Willis Towers Watson (formerly Towers Perrin) and as a corporate executive at companies such as Turner Broadcasting System and Rock-Tenn Company. Jacqueline has been recognized nationally with awards including a “CHRO of the Year” by HRO Today, “Diversity Leader of the Year” and “Women Worth Watching” by the Profiles in Diversity Journal, and the “Breakaway Leadership Award” by Evanta, a Gartner Company. She is a graduate of Syracuse University and the Milano Graduate School.
Gregg Sutherland is a recently retired strategy consulting partner with the global advisory firm Ernst & Young. During his 17 years with E&Y, Gregg assisted clients with the development of growth strategies and the design of operating models to support those strategies. His consulting work encompassed the chemical industry, including extensive work at Dow Chemical, and pulp and paper companies including Kimberly-Clark and International Paper. Gregg has also served in executive roles for product development and strategy, including senior vice president of strategy at Qwest Communications.  Gregg has served as a board member for Colorado Communications and Technology Professionals and Colorado Audubon Society. He is a graduate of the University of Denver and earned his MBA at the Wharton School of Business at the University of Pennsylvania.
"We are pleased to welcome each of these individuals to our board of directors," said Phil Shannon, chairman of the board of Bulab Holdings. "Bob, Jacqueline and Gregg each bring to the board unique experiences, skill sets and careers but more importantly they possess the energy, desire and commitment to help Buckman achieve its ambitious goals. Their backgrounds and track records of delivering exceptional results will be invaluable to Buckman’s future successes.” 
Buckman operates regional manufacturing centers in six countries to support its offerings of specialty chemical-digital solutions along with technical services through 95 countries primarily to the pulp and paper, leather, water treatment and process chemical industries.
The three new directors will join the current directors: Junai Maharaj (Memphis), Kathy Buckman Gibson (Memphis), Phil Shannon (Memphis), Otto Heissenberger (Cincinnati), Larry Shutzberg (Memphis), Edith Kelly-Green (Memphis) and Robert O’Brien (Fort Myers, FL).
 

Robert Buckman

Jacqueline Welch

Gregg Sutherland

Limited restart for footwear manufacturing and retail, no word yet on leather goods, more leeway for tanning industry

Published: 1st May 2020
Author: Tony Dickson - S&V Editor

From today, the leather and footwear sectors, and their suppliers, may resume limited business, from manufacturing to retail, subject to various safety measures. Subject to clarification, it appears that ANY closed footwear qualifies. So far, no mention has been made of leather goods.
       In Government Notices No 43258, April 29 [https://www.gov.za/sites/default/files/gcis_document/202004/43258rg11098gon480.pdf], issued by the Department of Co-Operative Governance & Traditional Affairs, on page 24, Part C: Manufacturing, it states: "Manufacture of winter clothing, footwear, bedding and heaters (and all inputs required, including textiles) permitted, commencing at 25% and scaling up to 50% employment and subject to strict health protocols."
       On page 25, Part E: Wholesale and retail trade, covering stores, spaza shops, e-Commerce and informal traders, point 15, it states: "Winter clothing, footwear, bedding and heaters and the components and fabrics required to manufacture these."

The semi-processing of leather has fallen under regulations for agriculture, according to Ernest Heunis, chairman of the Skin, Hide & Leather Council (SHALC). He said the entire red meat value chain, including ostrich and crocodile, had been working with full workforces throughout, including the processing of hides and skins to wet blue, to prevent waste.
       What changes now is that automotive leather finishing tanneries, which fall under regulations governing the automotive sector, may start work with 30% of their workforces, building up to 50%.
       All other tanneries, including exotic leather tanneries, processing from wet blue to crust and finished leather, may start work with 30% of their workforces, under regulations governing 'other manufacturers'. Mossop Leather has been working throughout, with a small staff, producing leather for contract and tender footwear.

Reacting to the regulations, SAFLIA executive director Jirka Vymetal said: "We're a little disappointed in that they only gave us half of what we asked for."
       National Clothing Retail Federation executive director Michael Lawrence said: "In terms of retail, as far as footwear is concerned, we categorised any closed shoe as winter footwear, but we're waiting on clarification."
       He said the NCRF had included belts in its submission for winter clothing, but not handbags. "We thought about bags," he said, "but we thought they might be a bridge too far. The problem will be enforcement - if we were just dealing with the DTI, it would be simple, but there needs to be a list for the police to follow."

In the document Risk Adjusted Strategy Regulations 29 April 2020, issued by the Department of Cooperative Governance, on page 7, point 4 reads: "Every business premises, including, but not limited to, a supermarket, shop, grocery store, retail store, wholesale produce market or pharmacy shall a) determine their area of floor space in square metres; b) based [on that], determine the number of customers and employees that may be inside the premises at any time with adequate space available; c) take steps to ensure that persons queuing inside or outside the premises are able to maintain a distance of one and a half metres from each other; d) provide hand sanitisers for use by the public and employees at the entrance to the premises; and e) assign, in writing, a employee...who must ensure the compliance with the measures provided for in paragraphs a) and d), and that all directions in respect of hygienic conditions and limitation of exposure to persons with Covid-19 are adhered to."

Dr. Jay Irkhede on behalf of the dtic thanked all sector associations, export councils, cluster, individual manufacturers, organized labour and sector media "S&V" for patience, resilience, very active communication and feed back to the dtic. He said that after the recent publication and dissemination of the Risk Adjusted Strategy Regulation 29th April 2020 (Govt. Notice from COGTA on Alert Level 4) we have received various question for clarity and the following is our responsible response to the inquiries:
1. We may insist that as a "Good Practice" the manufacturers may have internal "COVID-19 company representative" delegated with "development of strict health protocol" and "to monitor and mitigate the risk of virus spread". However, this is not a mandatory requirement.
2. We insist that we adhere to "General Measures to Contain COVID-19" as stipulated on page 9 of the regulation.
3. All manufacturers are required to develop a "Work Place Plan" as per ANNEXUR E on page 38 of the regulation (Item 1, 2, 3, 4, 5a to 5h & 6).
However, we confirm that the Work Place Plan developed does not need any Govt. approval.
4. Table 1 on Alert Level 4 on page no 24:
a. Please demonstrate that all persons who can work from home are doing so.
This will also improve your "on site employment complement" within the scope of Level 4 restriction.
b. Part C: Manufacturing; Item 5: Manufacturing of winter footwear permitted commencing from 25% and scaling up to 50% employment subject to strict health protocol.
You may develop a stricter health protocol while phasing employment up to 50%.
Use "Full Scale Prevention Strategy recommended guidelines for footwear industry developed by Footwear Leather Industry National Cluster (FLIC)".
While manufacturing of "winter footwear" under this provision the manufacturers should demonstrate the manufacturing of appropriate winter articles and that production was strictly meant for "the current winter season" and support such activity traced back to "winter order books".
c. Part C: Manufacturing: Item 9: All other manufacturing, scaling up to 30% employment subject to strict health protocol.
All of the six sub-sectors in Leather, Leather Goods and Footwear manufacturing value chain producing fashion/non-fashion goods will fall under this provision.
d. The manufacturing of essential goods will be allowed phasing in up to 100% employment.
Against confirmed commitments/tenders the manufacturing of products such as face masks, gloves and service footwear by our sectors will require CIPC permit to operate within Level 4 alert.
e. For hides and skins, ostrich, crocodile and taxidermy industry, the regulation Part C: Manufacturing: Item 9: All other manufacturing, scaling up to 30% employment subject to strict health protocol, will normally apply.
However, as part of upstream Agriculture Value chain the provisions of 100% employment under Part A (1) Agriculture, Hunting, Forestry and Fishing should be reviewed.
However, the dtic, is not in a position to officially interpreter these provisions and we recommend that the SHALC, SAOBC, SACIA, SATTA & ELSA to verify such provision on processing of agriculture waste & bi-products during Alert Level 4 through the DEA and DAFF.
During the Alert Level 5, in case of SAPS enforcement on CPC/AHT, we through the dtic Chief Director: Agro Processing had supported the position that "The hides are an end product of animal production more important a bi-product of animal production hence in terms of regulation falls within food industry mainly part of meat value chain".
We acknowledge mails received from these sub-sectors and recommend the following:
(i) Keep a scale of employment phased in to maximum of 30% on the processes further to preservation and storage such as tanning, crusting and finishing, till provisions to operate with 100% employment are reviewed from the DEA and DAFF.
(ii) Obtain a new permit from CIPC to operate to at 100% employment with shift work to process Agriculture waste / bi-product to avoid decay during Alert Level 4.
5. Currently for the sub-sectors without existing shift work system we recommend not to perform manufacturing in shifts since you will be seen as constructing an arrangement to exploit Alert Level 4 regulations.
6. There is absence of clarity on overtime work during Alert Level 4 and the dtic's view is that overtime defeats the purpose of relaxation provided during Alert Level 4.
7. Yesterday during the evening telecast Hon. Minister Patel indicated "rotation".
We would expect that during Alert Level 4 the manufactures rotate employee in phases with an objective to achieve "close to equal distribution of remuneration".
8. For the movement of shift employee particularly for operations with contentious processes the tanneries and taxidermists may seek assistance from Provincial Authorities.
We could not comprehend which agency will offer such permissions to avoid violation of the curfew conditions during Alert Level 4.

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