Thursday, January 4 2024 11:53

ArmInfo. Armenia's Cabinet has  extended the ban on the export of raw leather once again.   As noted in the explanation to the document, currently local  industrial companies engaged in leather processing in Armenia have a  demand for leather raw materials, and the capabilities of the raw  material base are still not fully used.

Armenian leather processing enterprises (about 50%) currently mainly  carry out the first stage of leather processing and export it in the  form of a semi-finished product (wet blue). "Ultimately, this  decision will allow Armenia to transform from a country exporting raw  materials into a country exporting processed products," note the  authors of the initiative.

Most of the products of the Yerevan and Gyumri tanneries are sold in  Armenia, and a significant part of the products of the Masis factory  (65% of all products according to the manufacturer) is exported  abroad.

The Gyumri fur and leather workshop has been operating since April  2022 and specializes in processing sheepskin. Raw materials are  entirely purchased in Armenia, and 5 employees are involved in the  production process. The company plans to expand production from 2023.  As a result, the company will be able to double its production  capacity and process about 350 thousand square meters of sheepskin  monthly.  The company is currently negotiating to export its products to  Pakistan and Israel. The expansion of production capacity, according  to the company's estimates, will make it possible to process more  than 30% of all sheep skins slaughtered in Armenia (starting from  2024, the company plans to process about 6,000- 7,000 pieces of sheep  skins monthly). Along with expanding operations, it is also planned  to double the number of employees.

In the local value chain, footwear manufacturers have increased the  use of locally processed leather.  Providing local raw materials  allowed companies to expand production volumes and almost completely  sell local raw materials.

The decision comes into force on January 22, 2024 and is valid until  July 22, 2024.