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Now, tanneries can stretch outside industrial area

06
Jul '07
In an attempt to boost investment of garment and leather manufacturers in upstream processes, the Industry Ministry has decided to allow setting up of dyeing and tanning plants outside industrial estates.

According to current rules, an operator can set up or expand his tannery only within the boundaries of an industrial zone to cut down its harmful effects on the environment.

But this rule came in the way of manufacturers expanding their production in upstream processes because it was not financially feasible for them to do so while being located outside industrial estates.

Industry Deputy Minister Piyabutr Cholvijarn said the country's shortage of upstream plants meant increased production costs for manufacturers as they sent their goods for dyeing and tanning in other countries.

With the proposed revision, manufacturers' costing will be cut thereby giving them a competitive edge over Vietnam and China, Cholvijarn added. The new regulation will also allow operators to enlarge an upstream plant in their present plant's area without seeking approval.


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