Business / Companies
Bata to outsource hides from neighbouring countries
18 Feb 2013 at 00:51hrs | Views
LEADING shoe manufacturer, Bata Shoe Company, intends to source raw hides from neighbouring countries due to a shortage on the local market which has been affecting production at its Gweru factory.
In an interview, Bata managing director Mr Luis Pinto said Bata would engage reliable foreign suppliers to ease local demand.
"The situation has not improved since raw hide shortages are still affecting production levels at the Gweru factory.
"We have not been able to reach a mutually beneficial agreement with the Hide Collectors Association to reduce prices of raw hides," said Mr Pinto .
He said Bata was in the process of evaluating the future of its tannery as they could not sacrifice the viability of their leather factory.
"The final decision on whether or not to close operations at our tannery will be based on whether a reliable supplier will be engaged or whether the local situation will improve in the coming months," he said.
Mr Pinto said relevant stakeholders should be pro-active in looking into the increased illegal export of raw hides since the situation was threatening the viability of the local leather industry.
"It is difficult to make proper suggestions on how to curb illegal exports because we are not 100 percent sure as to how many hides are being exported or how the illegal process is being conducted.
"We feel it is within the jurisdiction of the responsible authorities and relevant stakeholders to step in and curb the situation as it is drastically damaging the local leather industry, which generates employment for many people," he said.
In January raw hide suppliers increased the price of hides by 20 percent from $1 per kilogramme to $1,20 per kilogramme which threatened the viability of the shoe manufacturing company .
Mr Pinto said the price of raw hides procured locally remains a very challenging issue, as the price was not sustainable compared to getting finished leather externally.
"In the past, the leather industry was very viable and could generate employment as it was highly intensive in leather production since hides were available in abundance.
"The prevailing raw hide shortages are seriously affecting the local leather industry, hence the industry is near-collapse," he said.
Mr Pinto said despite raw hide shortages, Bata had registered a slight growth in production and anticipated an increase in business if the management could come up with solutions to challenges plaguing the company.
In an interview, Bata managing director Mr Luis Pinto said Bata would engage reliable foreign suppliers to ease local demand.
"The situation has not improved since raw hide shortages are still affecting production levels at the Gweru factory.
"We have not been able to reach a mutually beneficial agreement with the Hide Collectors Association to reduce prices of raw hides," said Mr Pinto .
He said Bata was in the process of evaluating the future of its tannery as they could not sacrifice the viability of their leather factory.
"The final decision on whether or not to close operations at our tannery will be based on whether a reliable supplier will be engaged or whether the local situation will improve in the coming months," he said.
Mr Pinto said relevant stakeholders should be pro-active in looking into the increased illegal export of raw hides since the situation was threatening the viability of the local leather industry.
"It is difficult to make proper suggestions on how to curb illegal exports because we are not 100 percent sure as to how many hides are being exported or how the illegal process is being conducted.
"We feel it is within the jurisdiction of the responsible authorities and relevant stakeholders to step in and curb the situation as it is drastically damaging the local leather industry, which generates employment for many people," he said.
In January raw hide suppliers increased the price of hides by 20 percent from $1 per kilogramme to $1,20 per kilogramme which threatened the viability of the shoe manufacturing company .
Mr Pinto said the price of raw hides procured locally remains a very challenging issue, as the price was not sustainable compared to getting finished leather externally.
"In the past, the leather industry was very viable and could generate employment as it was highly intensive in leather production since hides were available in abundance.
"The prevailing raw hide shortages are seriously affecting the local leather industry, hence the industry is near-collapse," he said.
Mr Pinto said despite raw hide shortages, Bata had registered a slight growth in production and anticipated an increase in business if the management could come up with solutions to challenges plaguing the company.
Source - TC
