Leather producers in Kazakhstan have earned about US$2.4 million in exports during the first five months of 2021, up 73.3% compared to the same period last year, according to the press service of Kazakh Ministry of Industry and Infrastructure Development.
“The volume of production of leather for the first six months of 2021 amounted to 54 million square decimeters of leather, which is 15.2 percent higher than the same period last year. In the local market, domestic leather is purchased in small quantities by domestic manufacturers of footwear products (mainly for military and special shoes) and leather goods (bags, belts), the rest is exported,” the ministry informed.
According to the ministry's data, the countries that purchase processed leather from Kazakh companies most often are China, India, Italy, Turkey, Ukraine and Spain.
Overall, leather tanning and processing enterprises are located in 11 regions of Kazakhstan, according to the QazIndustry National company. The majority of them (7 enterprises) are located in Shymkent. The rest are in Almaty, Kostanai, Zhambyl, Aktobe, Kyzylorda, Pavlodar, North Kazakhstan and East Kazakhstan regions, as well as in the cities of Nur-Sultan and Almaty.
Tanning and dressing of leather in the Eurasian country is currently being carried out by 1 medium-sized enterprise (Almaty Tannery LLP) and 27 small businesses (KazItalKozha LLP, Semey Tannery LLP KazakhLiderMech LLP, Petropavlovsk Tannery LLP, LLP Taraz Tannery, Turan Skin LLP, Kamshat-Asel LLP, etc.).
Last year, the situation was far from promising, In Business reported. In 2019, the government had restricted the export of raw hides aimed at the development of deep processing and the export of goods with high added value. This had the opposite effect as raw materials fell in price by about five times without the option to sell abroad.
This year, the situation has stabilized, Astana Times reported. In 2019 Kazakhstan only had about 1,000 companies active in light industrial activities such as textiles, clothing and leather goods.