The unit processing bovine hides will be running at full speed not before 2023. Yet Henan Prosper, a Chinese leather-tanning group that mostly specializes in sheep leather, are confident such investment will enable them to play a leading role in the automotive and upholstery segments, whose growth looks rather promising, especially in China. “Thanks to China’s emerging new middle class – pointed out Chief Executive Officer Michael Lu while speaking to International Leather Maker – luxury cars and top-notch furnishings sales will enjoy a considerable boost”. Quality will be a paramount factor: “Customers will not simply look at the brand – he continued –, since they are developing a taste for real quality”.
Automotive and upholstery
As we said earlier, the group’s division will be running at full speed in 2023. In the meantime, Henan Prosper are currently carrying out a few investments in a tannery located in Mengzhou: the plant will supposedly start up production by the end of the year. Its manufacturing capacity is due to reach 1,000 to 1,500 hides a day; it will expectedly go up to 3,500/4,000 in a three-year period, with regard to finished and semi-finished leather as well. The factory, announced the company, will be equipped with a number of facilities, such as plants for sewage and sludge treatment and wastewater recycling. In other words, it is going to be fully compliant with sustainability international standards. Looking at the company’s goals, home furnishings and automotive are due to account for 50% of their earnings, therefore completing revenues coming from footwear and leather goods sales.
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