Shifting of tanneries: Owners want more time

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Shah Alam Nur :
Tannery owners want more time to relocate their industrial units from Hazaribagh area in the capital to Savar Tannery Estate, saying it is not possible to move tanneries within a short time.
Meanwhile, the government has served legal notices to the tannery owners who are yet to start work to move their factories to the designated industrial park at Savar.
The companies, including Kadar Leather Complex, Dhaka Tannery, Yousuf Leather Corporation, Ibrahim leather, Chandpur Tannery, City Leather Tannery, Capital Tannery, International Tannery, Bhuiyan Tannery, Ruby Leather Complex, Hussein Brothers Tannery, Yousuf Tannery, Chowdhury Leather and Co., Helena Enterprise, Alyea Tannery, Shahi Tannery, Nazrul Tannery, Rosani Complex, Orange Tannery, Zindabad Tannery, Pioneer Tannery, Aziz Tannery, Mukti Tannery, Leather Industries of Bangladesh, Delta Leather Complex, Golden Leather and HS Tannery, got legal notices of the government.
Of them, a number of tannery owners have already replied where they called for allowing more time for setting up their industrial units at Savar.
“We have received government legal notices and also replied to them. We have mentioned that it is not possible on our part to relocate tanneries from Hazaribagh area to Savar within a short time. We need more time to relocate our industrial units,” Bangladesh Tanners` Association (BTA) President Shaheen Ahmed told The New Nation on Monday.
The construction of the Central Effluent Treatment Plant (CETP) is still underway at Savar Tannery Estate, he mentioned.
Shaheen said that the government could close our tanneries at Hazaribagh but before that it should complete constriction work of CETP at Savar Tannery Estate.
Owner of the Ibrahim Tannery said they that would like to move their factories to Savar but no environment of relocating tanneries is created there yet.
He said he got a plot at Savar where constriction work is going on. But in the time the government served notice which he claimed is taking toll on business reputation.
“We need soft loan for relocation as tanners are going through liquidity crisis,” he said.
Bangladesh Finished Leather, Leather goods and Footwear Exporters’ Association (BFLLFEA) President Mohammad Abu Taher said, “We are trying our best to shift our factories to Savar but money is a big constraint.”
He alleged that some of the banks are not showing any interest to give loans to tanners despite the central bank’s directive.
“Some tannery owners contacted the banks but they showed negative attitude,” he said.
The Industries Ministry has allocated plots on the 200-acre leather estate to 155 tannery owners through BSCIC, a wing of the ministry that is implementing the project.
In 2014-15, Bangladesh exported leather and leather goods worth $1.13 billion, against $1.12 billion in the previous fiscal year, making it the second highest contributor to national exports after apparel.
Bangladesh has some 3,800 micro, small and medium enterprises and 110 large firms in the sector, employing about 70 lakh people.
About 95 per cent of leather and leather products made in Bangladesh are sold abroad.
Of total exports from the leather sector, 60 per cent go to European markets, 30 per cent to Japan and 10 per cent to the rest of the world, according to industry insiders.
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