Leather factory owners are fearing the loss of export orders following the shutdown of Hazaribagh tanneries over their failure to relocate to Savar Tannery Estate.
The tanners who have already shifted their units to the Savar estate are also facing the same threat as they are yet to install their crust and finished leather sections as the gas connection is still not available there.
Talking to Dhaka Tribune, a good number of factory owners expressed their apprehension of losing orders and buyers while some claimed they had already lost some of their export orders.
“Our factory had a work order of $15 million from a Malaysian buyer. But, the order has been canceled and shifted to India and Pakistan,” FM Rafikul Islam, director (technical) of Dhaka Hide and Skins told the Dhaka Tribune.
“We are also fearing huge losses as there are pending work orders worth around $30 million, which have to be completed within the next three months,” said Islam.
Delay in shipment may erode buyers confidence, which would ultimately hurt the country’s second largest foreign currency earning sector, he added.
“The manufacturers of leather footwear might have to import processed leather as the tanning is being hampered due to the relocation of tanneries,” said M Abu Taher, former chairman of Bangladesh Finished Leather, Leather Goods, and Footwear Exporters Association.
In a press briefing on April 2, Bangladesh Tanners Association (BTA) claimed that the leather industry might suffer a loss of over Tk1,000cr export orders after the closure of the Hazaribagh tanneries.
In the fiscal year 2015-16, Bangladesh exported leather and leather products worth $1.16.
After court order, the government disconnected gas, electricity and water connections to Hazaribagh tanneries.
Thursday, April 25, 2024
