The Coronavirus emergency is gradually subsiding: in the meantime, Chinese tanneries are about to open again. Yet the situation is not that good of course, and it could not be otherwise. On the one hand, factories still cannot run at full speed, in terms of manufacturing; on the other hand, several companies are going to deal with cash problems.
Tanneries are about to open again
As reported by The Sauer Report, Chinese tanneries’ operating capacity currently accounts for 50 to 70%. Many of them, especially the ones that specialize in the production of finished leather for the shoe industry, are going to face a few cash flow difficulties. Since their clients, for the time being, are not working at full speed yet, they are not able to pay off debts. Somehow, tanneries playing in the leather goods industry are dealing with the same problem, to some extent. Things will go back to normal as soon as China’s finished product market enjoys recovery.
Picture taken from the YouTube channel of PrimeAsia Leather