Tannery exports expected to hit $1bn

Tannery exports expected to hit $1bn

Exports of tannery products are expected to increase by 5% this year to US$1 billion compared with 10% growth in 2013 due to unfavourable major export markets, say executives.

To stay competitive, tanneries need to upgrade their labour and technology, says Ms Pranee.

While the months-long political impasse has yet to have a major impact on the industry, the Thai Tanning Industry Association (TTIA) said the cost of raw leather has surged, pushing up the cost for tannery production. Thailand currently imports 70% of leather for local production mainly from the US, Australia, Brazil and Argentina.

“With the rising costs, the tanning industry has adjusted by removing unskilled labour and using technology to maximise production,” said TTIA president Pranee Kuruvelukorn.

Faced with low-cost imported items, the industry sees the need to stay competitive in the global market by upgrading its products with high-skilled labour. Thailand operates 180 tanning facilities nationwide with combined capacity of 15,000 tonnes per year, ranking 14th globally.

However, a lack of high-skilled labour provides challenges for the industry. At present, there are about 30,000 people working in the industry with 25% shortage of headcount.

“We provide training for workers and entrepreneurs in the industry to increase their skills including craftsmanship training, as well as small and medium-sized entrepreneurs to prepare their staff for the upcoming Asean Economic Community (AEC),” Ms Pranee said.

Meanwhile, the Industrial Promotion Department is collaborating with the TTIA and Samut Prakan Technical College to develop high-skilled workers for the AEC.

“Competition in the tanning industry continues to grow in Asean as many countries increasingly integrate knowledge and technology in production process whereas SMEs in Thailand still need to improve production technology and designs,’’ said department director-general Atchaka Sibunruang. "As a result, it is important that the public and private sectors team up and increase high-skilled labour in the industry."

Samut Prakan Technical College is one of the few educational institutions that train students for the tanning industry.

It has welcomed students in this major for seven years and produces 20-30 graduates a year.

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