LEATHER

www.eenpact.eu

EENPACT- LEATHER SECTOR REPORT

The strategy objective of this task was to have a first approach to the offer and demand sides of
Environmental services in the project areas. For performing this activity it was also necessary to
obtain the starting situation of the adopted environmental measures in support of SMEs in the
leather sector. This report provides inputs for policy makers about environmental needs in the
leather industry in the consortium countries.
As required by the call for proposal, in each project area a survey was carried out for having a
clear and wide situation with regard to the relevant Environmental support of the SMEs. In
particular the survey concerned the public schemes (funding sources and modalities, ongoing and
planned tasks, types of expertise, use of human resources, etc.) and private initiatives (actors,
Environmental Service Providers (ESPs), level of competences and expertise, capacity/work force,
service range, costs to SMEs, etc.)
Involving all the partnership, the project Coordinator (CCIA) prepared a common factsheet for
driving the activities at national and local scale, the European dimension was included in each
project area. Each partner was in charge for national and local survey.
The Environmental legislation and standards applied in the leather industry sector are included in
the countries fact sheets as well. A summary of these fact-sheets and an analysis of the results is
performed in part II - Fact sheets from countries. For what concerns the private sectors, an online
survey was carried out in the EEN-PACT partner countries and their results about the
environmental demand and offer of the leather industry sector are shown in part III EEN- PACT
survey on environmental services.

1. Fact sheets from Europe

I.

The Leather Industry in Europe

A. Definition
Leather tanning covers the treatment of raw materials; it is the conversion of raw hide or skin, a
rotten material, into leather, a stable material so that it can be used in the manufacture of a wide
range of consumer products.
The leather tanning industry uses hides and skins by products of the meat and dairy industry which would otherwise have to be disposed of by other means, such as landfills and incineration.
Leather is the tanning sector's fundamental output. It is an intermediate industrial product, with
applications in downstream sectors of the consumer goods industry. Footwear, garment, furniture,
automotive and leather goods industries are the most important outlets for EU tanners' production.
The processing of hides and skins also generates other by-products which find outlets in several
industry sectors such as pet and animal food production, fine chemicals including photography and
cosmetics, and soil conditioning and fertilisers.
B. Key Figures

The EU tanneries are generally small family businesses.

The regional concentrations are marked, and industry often plays a key role in the
local economy as the main creator of jobs and wealth.

Evolution of the leather industry In The Europe of 27

Leather/Tanning
2005
Number of enterprises
3 780
Turnover (M)
9 000
Production value (M)
9 000
Value added at factor cost (M)
1 800
Number of persons employed
54 000
C: Confidential
Source: Eurostat (2005 data are estimated)

2006
3 710
10 671
10 699
1 957
51 900

2007
C
10 343
10 365
1 975
50 800

2008
4 000
9 540
9 228
1 728
50 700

Leather goods
Number of enterprises
Turnover (m)
Production value (m)
Value added at factor cost (m)
Number of persons employed

2006
14 158
10 330
9 828
3 028
108 800

2007
13.924
12.097
11.514
3.465
108.500

2008
12.561
11.723
10.650
3.154
97.800

2005
14 507
10 000
9 000
2 800
105 000

Source: Eurostat (2005 data are estimated)

In the context of global competitiveness, particular attention is devoted to the opportunities and
risks for the European leather tanning industry in an enlarged European Union.
The integration of leather and tanning businesses of new Member States is ongoing and will
induce further structural adjustment, not least because one of the main advantages of the new
Member States - low labour costs - is bound to decrease over time.
The leather tanning industry is a global industry, and EU tanners depend highly on access to raw
materials and to export markets. Even if, in general, the share of the EU in the world markets is
tending to shrink with the development of the leather industry in other regions of the world such as
Asia and the Americas, the EU tanning industry is still the world's largest supplier of leather in the
international market place. (1)
(1) http://ec.europa.eu/enterprise/sectors/leather/index_fr.htm

Production of Leather in a word

25%

25% Europe
75% Rest of the world

75%

Europe is an important player in the international trade of leather as it represents 25% of the world
production of leather and it is also the largest and most dynamic consumer market of leather
goods. (2)
(2)

http://www.euroleather.com/french_brochure.htm

C. The single market and the European directive

Although there is no specific European directive to the tanning industry, this sector is still affected
by several environmental guidelines concerning the use of chemicals, marketing, the use of
hazardous substances and the use of animal by-products.
The single market is one of the greatest achievements of the European Union. It has a direct and
growing influence on the leather industry because citizens and businesses can benefit in various
ways: more job creations and business opportunities, more choice of goods and services, lower
prices, job mobility and international competitiveness.
There is no specific directive to the leather and tanning industry, however, several guidelines have
implications for the sector. The main environmental Directive concerning this sector is directly
Directive 96/61/EC on the prevention and integrated reduction of pollution.
Other guidelines for this industry include Directive 76/769/EEC relating to restrictions on the
placing on the market and use of certain dangerous substances and preparations and its
amendments, in particular Directive 2002/61/EC on azo dyes. Directive 2003/53/EC on the
restriction of the marketing and use of certain dangerous substances and preparations
(nonylphenol, nonylphenol ethoxylate and cement) has also implications for the treatment of
leather.
The new REACH Regulation on chemicals affects also the leather industry, which uses many
chemical preparations downstream. More information on this point are available in the Environment
section.
The raw hides and skins are materials of animal origin used outside the food chain: they are
therefore subject to Regulation (EC) No 1774/2002 laying down health rules concerning animal byproducts not intended for human consumption. To facilitate effective management of animal byproducts while maintaining the current high degree of protection against potential risks to public
health, animal health and the environment, the European Commission proposed a revision of this
regulation in 2008.
It will establish clearer rules and define a more general framework of requirements appropriate to
the risks associated with these products. The proposal has currently being discussed by the
European Parliament and the Council.
There are no specific Directives for the leather tanning sector but several Directives have
implications for the industry, in particular regarding its impact on consumer health, the environment
and animal health.
D. Directive on integrated pollution prevention and control (IPPC)

Directive 96/61/EC concerning integrated pollution prevention and control.

Codified version: Directive 2008/1/EC.
Proposal for a Directive on industrial emissions (integrated pollution prevention and
control): COM(2007) 844 final.
Directives on dangerous substances and preparations
Directive 76/769/EEC: restrictions on the marketing and use of certain dangerous
substances and preparations.
Directive 2002/61/EC: azocolourants.
Directive 2003/53/EC: nonylphenol, nonylphenol ethoxylate and cement.
Regulation on the Registration, Evaluation, Authorisation and Restriction of Chemical substances
(REACH)
Regulation (EC) No 1907/2006, amendments and implementation legislation related to
REACH
Regulation on animal by-products not intended for human consumption

Regulation (EC) No 1774/2002

Consolidated version of the animal by-products regulation and other legislation on this
issue
Water Framework Directive
E. The importance of the leather industry
European tanners are essential in the global leather industry, but the international markets confront
new challenges.
The EU is a major player in the international leather market. To ensure the competitiveness of the
leather industry, the EU is working to reduce barriers to imports of raw materials and finished
products to access foreign markets.
While, in general, the global market share of the EU tends to decrease following the development
of the leather industry in other parts of the world such as Asia and America, the European industry
Leather retains its position as world's largest producer on the international market.
The leather industry and tanning has an international dimension, and European tanners are highly
dependent on access to raw materials and export markets. However, they often encounter barriers
in these processes (or other trade barriers).
European tanners may face two types of trade barriers. First, barriers to export of finished
products, and moreover barriers preventing access to raw materials. These are specific to the
leather and tanning industries.
These trade barriers are the most troublesome because their consequences are considerable on
the competitiveness of European tanners.
Since access to raw materials has become more difficult in Europe (following a recent fall in the
rate of slaughter and beef production), it is essential to be able to access these materials outside
the EU. Many countries maintain, however, bans and restrictions on the export of raw hides and
skins. Improved conditions of market access is expected primarily in the WTO, where the
European Commission advocates a complete withdrawal of all export restrictions imposed by some
members (China, Argentina, Brazil, Indonesia, Pakistan, India, etc..).
To ensure the European industries fair access to raw materials they need, the European
Commission has developed an integrated strategy presented in its Communication on the initiative
"Raw" in November 2008.
European tanners are exposed to increasing competition from many countries, including countries
with low cost labor. In this context, a fair and reciprocal market is essential to allow European
tanners to find markets for their products.
Now, the European market is open to imports from virtually free world. European rights include
very low import rules and tariff barriers are nonexistent. However, European players still face many
trade barriers (including high import duties and tariffs or other barriers, such as excessive labeling
or certification requirements) outside the EU.

F. Segmentation in the Euro zone, Leather and Footwear (leather and leather products)

Source: Xerfi
G. Distribution of the tanning industry in the EU
As regards the sector of finished leather:
Italy is the leading country in Europe in terms of number of establishments, number of
employees, production and sales.
France, Germany and the UK, virtually the rest of the leather industry in the EU.
Other EU member states have also a leather industry dynamics, especially that of Portugal
seems particularly promising.
In 1997 Italy alone accounted for 65% of EC production and 15% of world production.
Italy has about 2,400 tanneries,
Spain about 255,
100 Portugal
Germany less than 40.
Production units in Italy are generally much smaller than in other countries.

Source : European Commission, reference document on the Best Available Techniques. Tanning
of leathers and skins.
H. The leather industry and environmental aspects
The main environmental measures on the leather industry include Directive 96/61/EC on the
prevention and reduction integrated pollution (IPPC), Directive 2000/60/EC establishing a
framework for Community action in the field of water, and REACH.
To maintain their competitiveness in the global market, European manufacturers of leather should
reach a more efficient use of their raw materials and avoid wasting collagenous material (hides and
skins) which are a valuable raw material for other industries and agriculture.
By-products should be reused / recycled or processed into new products of higher value.
Thus, European tanners are currently guiding their production towards higher quality leathers the
fashion industry is attracting their attention. Modernization of the industry also affects all
investments made by European tanners in favor of environmental protection, waste reduction,
recycling, recovery of secondary raw materials, etc
Environmental regulation has a significant impact on the leather and tanning industry, which
estimates the share of costs of environmental protection to about 5% of total operational costs.
The main environmental Directive regarding directly the leather and tanning industry is the
Directive 96/61/EC on the prevention and reduction integrated pollution (IPPC), which is subject to
tanneries with raw hides and skins having a treatment capacity exceeding 12 tons of finished
products per day. The European IPPC Bureau organizes this exchange of information and
publishes BREF documents which the Member States must take into account when determining
best available practices in general or in individual cases. BREF for the tanning of raw hides and
skins, adopted in 2003, is currently being revised following substantial changes (i.e. Chrome
sludge, gas emissions, the Directive on VOC Directive on NPE ).
Concerning plans for watershed management (Directive 2000/60/EC on a common framework for
Community action in the field of water), the industry must take steps to reduce water pollution if

effluent from a tannery wants to contribute to pollute a body of water, preventing compliance with
the criteria of "good status" of waters.
Using many chemical preparations downstream industry is also affected by the new REACH
Regulation on chemicals. The vulnerability of certain chemicals, which are sold at low volume but
whose role is essential to the production of leather, provokes specific risks to the sector, such as
potentially high costs of reformulation, a market withdrawal or delay problems of marketing.
However, REACH can also benefit companies by promoting innovation in the chemicals sector
related to leather.
I.

Evolution of the Leather Industry(1)

The leather industry and leather products represents 0.91% of total manufacturing production,
0.88% in value and 1.67% in employment (2001, EU-25).
In recent years, the number of businesses and jobs in the sector has declined, the turnover in the
leather industry has also fallen. In the leather value chain, the value of exports is increasing,
showing a movement towards market niches with higher added value.
Export volumes, however, decrease rapidly and the sector's potential is often hampered by difficult
access to important markets. Within the EU, the weight of several new Member States in terms of
employment in the field of leather and leather products is high in terms of sales or value added,
indicating clear that this is a highly labor intensive. The industry considers the quality of raw
materials to the EU as the best for specific products. Access to European raw materials becomes
more difficult (slaughter rate and beef production have dropped in recent years), access to raw
materials outside Europe is crucial.
Tanners and manufacturers of leather products in the EU are turning to a production-quality
products. However, countries with lower production costs are constantly improving their quality and
expanding their product line.
Leather producers in the EU are therefore faced with similar challenges as other industries where
competitive factors are especially research and innovation, skills and quality, design and valueadded, knowledge and expertise, and better access to third country markets.
a. Knowledge
The main technological challenge for the leather industry is to focus on higher value added and to
turn products, processes, materials and organizations eco-efficient and sustainable. A significant
effort on research and expertise is necessary to achieve these objectives in terms of business
models, new materials, better manufacturing processes, etc..
The leather industry and leather products would benefit from vocational training programs. The
major factors of competitiveness consist of research and innovation, skills and quality, design and
value-added, knowledge and know-how. The legislative proposal for origin marking is of particular
interest for the sector, which is in favor of compulsory marking of origin for imports.
b. Competition
The sector is composed of small, highly diversified in terms of products and fragmented in terms of
companies (since 1990, only two concentrations were studied by the Commission). The area is
subjected to horizontal legislation on state aid and has no specific legislation in this area.

c. Regulation
There is no specific directive to the leather sector but several horizontal directives have an impact
on the industry (especially environmental legislation concerning the sector of leather tanning).
Industry and trade unions calling for EU legislation to harmonize different labeling systems for
leather products are in force in some Member States. In this context, the Commission services
have asked the trade associations to provide examples of different national labeling and resulting
problems.
d. Environment
The impact of environmental regulations is very important in the sector. The industry estimates that
the costs of environmental protection amounted to 5% of total operational costs. To remain
competitive in the global marketplace, European leather producers must exploit more efficiently
their raw materials and avoid wasting collagenous material (skins) that are valuable raw materials
for other industries and agriculture. The loss of raw materials creates waste, which has significant
negative consequences in terms of cost and environmental protection. The products should be
either reused / recycled or converted into new higher value products.
Plans for river basin management (Water Framework Directive 2000/60/EC) oblige the leather
industry to take steps to reduce pollution of the water when the discharge of a site contributes to
pollution of water volume, which is a non-compliance with the criteria of "good status".
The main environmental Directive directly to the leather tanning industry is Directive 96/61/EC
concerning integrated prevention and reduction of pollution facilities. The European IPPC Bureau
organizes this exchange of information and produces reference documents (BREFs) which
Member States must take into account when determining best available techniques generally or in
specific cases.
The BREF for tanning hides was adopted in February 2003. Revision may be necessary due to
significant new developments (i.e. sludge containing chromium, air emissions, VOC Directive,
Directive NPE). The sector is subject to the potential impact of REACH, as it is a major
downstream user of a wide variety of chemical preparations.
Given the similarities in terms of technology, firm size, competitive pressure and heavy use of
chemicals, the industry could face risks similar to those of the textile industry regarding the
vulnerability of low-volume chemicals that are essential for production and products of leather,
adjustment costs and potentially significant problems within commercialization. The industry also
fears that the provision of REACH on "substances in articles" may create a competitive
disadvantage vis--vis non-EU companies.
e. External competitiveness increase.
The main export markets are EU emerging economies that have developed a large production
capacity of leather goods: Hong Kong (18%), Romania, China and the United States, while much
of the imported semi-processed leather (wet-blue) are from Brazil (14.5%) and U.S. (6%). Imports
of finished leather come mainly from India, Pakistan, Argentina and Brazil. The EU's trade balance
is negative in value. However, exports remain at previous levels thanks to the high quality and
product design. Many countries, however, maintain prohibitions and restrictions on exports of raw
hides, i.e. Argentina, Brazil, India, Morocco, Thailand and Nigeria (with Brazil and Nigeria, the EU
has its biggest bilateral deficit in this sector).
In addition, the increased purchasing power of Asian competitors in global markets of raw
materials affects the price and availability of raw materials to the detriment of EU tanners and
many developing countries. The main export markets of the EU for leather products are Japan
(27%) and U.S. (19.7%), while most imported leather goods originate from China (60 %) and India

(10.5%), resulting in a trade deficit since 1999. Counterfeiting and piracy are problems for the
European leather industry to face (especially from China and India).
Concerted efforts between industry and public authorities are necessary in the circumstances as
provided, for example, in the action strategy recently adopted EU-US for the application of
intellectual property rights in third countries.
The two main concerns for the industry are access to raw materials and market access. Access to
European raw materials becomes more difficult (slaughter rate and beef production have dropped
in recent years), access to raw materials outside Europe is crucial. As part of the Doha Round, and
bilateral negotiations, the European Commission supports the Global Elimination of all export taxes
in the various Member States of the WTO (China, Argentina, Indonesia, Pakistan, India).
Regarding the market access of leather and leather products, leather industry community is often
faced with high trade barriers (import tariffs and high tariff and nontariff measures such as of overly
burdensome requirements concerning labeling or certification) in third countries while the EU
markets are open for almost unlimited imports from all over the world.
China and India account for 70% of EU imports but rank as the 20th and 35th of EU markets,
which is partly explained by their tariffs on leather products in the EU. Improvements in market
access are expected and foremost the WTO. The Doha Development Agenda (DDA) is in
particular the framework for overall reductions of tariffs that should be set.
Greater attention to corporate social responsibility (CSR) in the sector could help establish a level
playing field in international trade and promote sustainable business relationships in the sector.
f.

Employment and geographical dimension

The sector is concentrated in the southern EU and the socio-economic life of certain regions
depends largely on the industry.
Italy, which employs over 30,000 people, is by far the largest producer of leather. It is followed by
Spain. Italy is also the largest producer of leather products with 34% of employment. It is followed
by France, which represents nearly 18% of employment. Together, these two countries represent
over 50% of jobs, businesses and sales of leather products sector. Spain ranks third in
employment. The new Member States must also face significant challenges in restructuring and
adjustment process that can lead to difficult situations at local and regional levels.
A European social dialogue for the leather tanning industry was started in 1999 so that the social
partners to address the common challenges of 'ethics' sector through the development of a code of
conduct based on human fundamental, the promotion of sustainable development and respect for
the environment and the identification of skills and improvement of vocational training. There is no
social dialogue committee for the sector of leather products.
(1) Source: Communauts europennes, 2006
J. Environmental developments in the leather industry
a. Cleaner water, cleaner environment
In the majority of production, the leather is tanned with chromium, the chemical used to coat other
metals with a layer of gloss finish which does not tarnish. Tan hides with chromium salts provides a
soft, supple leather that can be dyed in many colors.
By reducing the amount of these salts to exact quantities required to ensure the quality that
consumers expect from a leather product, the amount of chromium released into water used for the
process of tanning hides was reduced by more than 90 %.

b. An alternative energy waste products

Only 20% of the skin of animals are transformed into leather.
Currently, the excess of fat and tissue resulting from the tanning process are processed in biogas
plants that use a fermentation process to transform this waste into an alternative fuel.
Technologies have also been developed to convert waste of untanned skin in organic derivatives
such as gelatin, glue and other protein products.
c. Water, a precious resource
Formerly, many processes of leather tanning required large amounts of water. However, since
water has become a scarce resource in some parts of Europe, the leather industry has revised its
working methods in order to avoid waste.
In recent decades, science has helped the leather industry to reduce its water consumption by over
60% through the development of new cleaning techniques, use of batch processes in clean
technology, instead of flushing and improved water management.
d. The air quality
Unfortunately, the leather industry can affect air quality in the vicinity of tanneries. One of the
problems of the leather industry lies in the use of organic solvents during the finishing phase of the
manufacturing process.
Science has led to the leather industry to reduce emissions of organic solvents in air of 90% for
most types of leather. This reduction is due to the introduction of better systems combined with
new and more environmentally friendly finishes.
e. Hair today, tomorrow organic fertilizers
One of the first stages of tanning is to remove hair from the skin using a disintegrating agent such
as sulfur. These organic wastes accumulate in the wastewater and them could be sent to the local
sewage treatment plant.
Scientists have developed a new process that reduces waste by 50% dehairing. Instead of
dissolving the hair of the skins, they are kept intact for use as fertilizer in agriculture, which reduces
the use of synthetic fertilizers to stimulate plant growth.
K. The Network TANNET
TANNET - A network of professional leather.
In April 1998, the European leather industry has created a network called TANNET linking the
tanners representatives, suppliers and customers as well as academic and government to
coordinate research in the field of leather.
As early as February 2002, the network had over 280 members who had identified priorities for
research for the leather industry and submitted more than 20 research proposals to the leaders of
European research programs and development.

2. Fact sheets from countries

This section presents a short fact sheets summary. The information includes the quantity of
enterprises in the leather industry sector, the adoption of international standards, EEN-PACT
Public Procurement, and Public funded schemes to support SMEs.

ROMANIA
Specific Data about Leather Industry

Western Region
From an industrial point of view, the western region is structured as it follows: mining and
quarrying, steel, metallurgy and machine building, mainly in counties Caras-Severin, Hunedoara
and Nadrag town from Timis county and manufacturing industry, mainly in counties Timis and
Arad.
The mining and steel industry from Caras Severin and Hunedoara counties was badly affected
after 1989 by sector restructuring, accompanied by massive personnel layoffs. The economic
decline of these two counties has been mitigated in recent years by the development of processing
industry, mainly in lohn system, as well as construction and transport sector. Timis and Arad
counties industry is characterized by a greater diversification of industries, especially
manufacturing. After 1989 the decline took place in the food industry, chemical industry and heavy
industry. In the recent years it can be observed a reinvigoration of manufacturing industry, driven
by significant foreign investment.
Leather industry includes manufacture of wearing apparel, leather, furs, footwear and leather
goods. In 2002, the industry achieved a rate of 5.4% of turnover in regional industry, with 13.0% of
the total number of employees. Investments made in 2002 represent 4.7% of total investments
made in industry.

NORTH Eastern
I.

GENERAL INTRODUCTION TO THE SECTOR IN INVOLVED COUNTRIES (SECTOR

OVERVIEW)

Leather-footwear is a dynamic sector in the national economy with the following performances:

employ a significant workforce, mainly women;

contributes to social stability is represented in all counties;

holds a significant share in the export economy;

contribute to a positive balance of foreign trade balance of the country.
Footwear sector occupies the first place for exports made to the EU market in Central and Eastern
European countries, third place in countries outside the Community and ninth place in the world.
Exports of goods in leather in Romania1
2007
(mil euro)
Leather and footwear
120,3

2008
110,1

2009
82,3

2010
105,2

2011
111,9

Industry Statistical Bulletin No. 1 of 2008, 2009, 2010, 2011, 2012. National Institute of Statistics, Romania. www.insse.ro

Imports of goods in leather in Romania

2007
(mil euro)
Leather and footwear
128,3

2008
114,3

2009
83,0

2010
79,3

2011
103,0

In 2007 light industry (textile, clothing and leather-footwear) made the following shares in
3
Romania's macroeconomic indicators:

2.72% of GDP;

5.2% of industrial production;

18.42% of Romania's exports;

9.2% of total imports in Romania;

23.35% of employees of all employees in the industry;

in these industries operating in early 2008 over 11,500 companies in which:

about 6300 in the clothing industry;

about 2950 in the textile industry;

about 2250 in the leather industry - footwear.
In 2007, compared with 2001, exports of goods of light industry grew by 19.6% lower than the total
increase in exports, which increased 2-3 times over the same period. This increase is mainly due
to increase to 84.6% of exports of goods of textile industry, but also to increase exports of goods of
leather and footwear industry by 27.4%. Instead of exports of goods clothing industry increased by
only 3.2%.4
II. NUMBER OF COMPANIES IN THE SECTOR
2.1 Number of companies in the sector in 2011:
Number of companies
TOTAL
Large companies
Medium enterprises
Small enterprises
Micro enterprises

Leather and
footwear
2276
61
357
571
1287

Total
11563
299
1276
2376
7621

2.2 Structure of SMEs in the textile and leather industry by Romania regions (%)5

Textile
and
leather
industry
2

North
East
(1)
17,59

South
East
(2)
9,58

South
(3)
9,14

Regions
South Vest
West
(5)
(4)
5,87
10,03

North
West
(6)
18,44

Cent
re (7)

Buchar
est (8)

Total

13,91

15,44

100%

Direct Foreign Investments in Romania 2008, 2009, 2010. National Bank of Romania in cooperation with National Institute of
Statistics.
3
Textile-clothing industry and leather shoes in Romania: Present and Perspectives, March 20, 2009, General Directorate Industrial
Policy and Competitiveness, Ministry of Economy, Trade and Business.
4
Foreign investments in Romania. Annual Report, National Bank of Romania.
5
White Charter of SMEs in Romania, Chapter VI, National Council of Private Small and Medium Enterprises in
Romania. www.cnipmmr.ro

2.3 North-East Region companies from the sector.6

Number
of active
Sub-sectors
local uni
t
Tanning and dressing of
leather, manufacture of
luggage, handbags, saddle
r and harness; dressing
and dyeing of fur

Turnove
r
(million
euro)

Average
number
of
employee
s

Gross
Investment
s (million
euro)

Net
investment
s
(million
euro)

66,06

5258

5,79

3,16

208

2.4 Number of economic agents in the counties of North East Region.7

Textile and
leather
industry

Bacau
163

Iasi
261

Neamt
240

Suceava Botosani Vaslui

148
37
86

Total
935

2.5 Companies turnover, income and loss in textile and leather industry in the North East Region counties.
Million
8
Euro
Turnover

Bacau

Iasi

Neamt

Suceava

Botosani

Vaslui

Total

62.982.060

94.430.313

140.094.701

71.922.906

33.722.430

51.215.929

454.368.339

Income

4.243.378

6.151.655

9.898.176

2.000.160

8.761.293

3.128.400

34.183.061

643.078

919.563

5.160.217

932.498

234.934

445.396

8.335.686

Loss

7
8

Annual Structural Survey in Enterprises (INS), National Institute of Statistics, Romania.

The datas are issued by the Chambers of Commerce and Industry from 6 counties of North-East Region, Romania.

Annual average rate in 2011 for 1 Euro = 4,3 Lei.

III. NUMBER OF EMPLOYEES IN THE SECTOR

The three main elements (textiles, garments, leather and footwear respectively) light industry is an
important sector of national economy, both by long tradition in export activity, but also the main
employer in the industry (in 2007 the average number of light industry employees represent about
one third of the average number of employees in manufacturing industry). In Romania, light
industry is represented in almost all regions, but there is a certain concentration in four regions:
Northwest, Northeast, Center and Bucharest, which include 65% of enterprises and 58% of total
employment. By number of employees, the first 5 companies cumulated 4.4% in the clothing
industry and 7.3% in leather and footwear industry, light industry structure prevailing in micro and
small enterprises.

3.1 Number of employees in the sector in January month of 2007-2011 years.9

Thousands of employees
Sub-sectors
Manufacture of textile
Manufacture of cloths
Leather and footwear

2008
36,9
229,9
76,1

2009
30,5
194,5
60,0

2010
23,3
155,0
49,1

2011
23,5
143,0
48,0

2012
27,6
142,0
49,8

3.2 Number of employees in the North East Region by counties.

Number of Bacau
employees
Textile and leather
industry
5.752

Iasi

Neamt

7.027

5.812

Suceava Botosani

3.810

3.190

Vaslui

Total

3.745

27.591

Industry Statistical Bulletin No. 1 of 2008, 2009, 2010, 2011, 2012 years. National Institute of Statistics, Romania.

3.3 Average gross earnings in the industry at national level.

Sub-sectors
Manufacture of textile
Manufacture of cloths
Leather and footwear

2007
185,11
167,67
168,13

2008
222,79
200
208,37

2009
269,06
231,39
246,97

2010
314,41
245,34
259,53

2011
354,18
274,18
292,79

Euro
2012
362,55
291,62
309,30

IV. GOVERNMENTS INVOLVEMENT IN THE SECTOR

Proposed measures to increase the competitiveness of light industry in the context of
increasing competition in international markets by the Romania Government:

Standards of quality, environmental, social, occupational safety and eco-label by supporting

funding in 50% of the Ministry of Economy, Program in increasing the competitiveness of
industrial products according to GD 1510/2008 (which replaced the HG 1247/2005), with
direct consequence on sales volume growth in western European chain stores. During
2003 2008, 1766 projects were supported by economic operators in manufacturing which
has been granted financial support from the state budget in the Program for increasing the
competitiveness of industrial products, worth 133.8 million lei;
- Instruments to support development and improvement of the economic agents (GD
1510/2008 was increased amount of state aid fund, part of the minims threshold of 200,000
Euro).
- Promoting research and development issues specific to the sector in order to achieve high
added value products and the competitiveness of textile and apparel industry;
- Improving industrial management activities by providing research results;

Improving export promotion tools:
- Opening of offices and warehouse type consignment of export markets with high potential;
- Simplifying procedures for participation in international fairs;
- Strengthening control in Customs to stop entry into the country and selling to underpricing
of specific products light industry, in order to avoid unfair competition;
- Increasing the rigor of checks made by the authorities in collaboration with employers, in
order to eradicate illegal labor;
- Increasing the role of employers in negotiating tariffs for utilities and services in free-market
conditions, as is the practice in other EU countries;
- Increase SME access to financing through grants and loan guarantees;
- Exploring the establishment of clusters (clusters competitive) in light industry, especially in
areas with surplus labor, together with county councils and Regional Development
Agencies, professional associations and employers;
- Increase SME access to financing through subsidized guarantees and loans;

V. SPECIFIC REGULATIONS IN INVOLVED COUNTRIES

Leather sector footwear:

Directive 94/11/EC on labeling materials used in the main components of footwear for sale to
consumers.

Government Decision no. 26/2002 on establishing the conditions for labeling of materials
used in the main components of footwear for sale to consumers (published in
nr.67/30.01.2002 MO).
VI. STAKEHOLDERS IN THE SECTOR IN INVOLVED COUNTRIES
-

6.1 Ministry of Economy, Commerce and Business Environment of Romania, Directorate

General for Industrial Policy and Competitiveness.
6.2 National Research & Development Institute for Textiles and Leather.
The National Research & Development Institute for Textiles and Leather, Bucharest was
established in 1996, by the merging of the Textile Research Institute with the Leather-Footwear
Research Institute. INCDTP develops RDI activities having a fundamental and applicative
character,
small
and
short
series
micro
production,
consultancy and
technical assistance services: laboratory investigation and testing, quality management,
certification and inspection, editing and publishing of specialty literature (the magazine Textile
Industry, ISI rated , Revista de Pielarie-Incaltaminte (The Leather & Footwear Magazine),
CNCSIS rated B+, books, manuals, catalogues and dictionaries.
6.3 FEPAIUS - Federation of Textiles, Clothing and Leather participates in formation of
other entities employers, national and international organizations can join.
FEPAIUS activity:

organize, in cooperation with the Ministry of Economy, Trade and Business Environment,
Romanian Center for the Promotion of trade and FDI participation in international fairs
Romanian companies including: CPD Dusseldorf, Moscow Fashion Expo, Heimtextil, Fashion
Uk, Pret a Porter, Texworld , The Train New York, Zoom By Fatex;

organizes trade missions in Germany, Canada, France;

organize in collaboration with national fairs SC EXPOCONFINTEX SA Clothing Shoes
"CONFINTEX" in cities such as Iasi, Brasov, Focsani, Constanta, Sibiu, Oradea, Bucharest and
Constanta CCINA fairs TINIMTEX with;

presents in collaboration with the Design for Textile, Garment and Leather fashion trends
through best-known collections presentation Romanian brands on the occasion of National Fair
"TINIMTEX" mother;

influence change laws and executive decisions influenced

develop partnerships with international associations of France, Italy, Spain, Belgium, Germany;

is involved in all social dialogue committees at the ministerial level.

6.4 Chambers of Commerce and Industry of Bacau, Iasi, Suceava, Botosani, Neamt and
Vaslui counties, which have the following duties:
represents and defends the interests of the business community in relation with the Romanian
authorities and similar organizations abroad;
conclude protocols with local authorities and county and regional structures, which are
obligated to assist law, in order to achieve the purpose for which it was founded and realize
they initiate actions in favor of economic development territory;
supports its members in economic relations with official representatives of other countries,
consulates and foreign bodies, like the Chamber;
presents the authorized institutions upon request or on its own initiative, in consultation with
members, proposals for promoting draft legislation of interest;
attend meetings of committees, councils and committees or created to authorities / public
bodies and local and county along regional structures and inform members;


collaborate with state institutions, with partners from public and / or private home and abroad in
order to fulfill its duties;

elaborate studies on the economic evolution of the county / region by its own means, in
collaboration, as appropriate, with other partners in the public domain and / or private;

provides government and public authorities, on its own initiative or upon request, information
and reasoned opinions on issues concerning general interests of economy;

draw up an annual report on the county's economy;

draw up working procedures on its own activity;

realize and manage the business infrastructure of county interest: science and technology
industrial parks, business incubators and technology transfer and information technology
centers, business centers, shopping centers, exhibition centers, virtual markets, commodities
exchanges and securities houses auction;

support and conduct research and development in the interests of the business community;

organize fairs, exhibitions, shows, business forums, economic partnership actions at home and
abroad and supports the participation of traders at fairs and exhibitions abroad;

conducts information and documentation in the interest of its members and county economy;
6.5 Business Association of Light Industry Employee from Bacau with the main
adjectives as:

defending the interests of its members in relations with state and non-governmental
institutions at local, regional and national level.

partnership development between members;

support and promote members' interests.
According to the objectives mentioned above, there have been organized meetings with the
manufactures of light industry as well a number of problems have been identified:

generated by current economic and financial situation;

by legal and tax issues;

referring to labor relations;

in relations with local authorities and institutions involved in authorization and control of
economic agents activities.
6.6 Cluster: NORTH EAST ASTRICO Association
NORTH EAST ASTRICO Association is an industry group of producers of yarn and knitting in the
North-Eastern region. Currently Astrico Northeast Association executive is in charge of the North
East Cluster Astrico. The advantages of working with North East ASTRICO group can include:
technical equipment that allows a wide range of products:

specialized staff trained and experienced in working with customers on foreign markets;

ensuring the delivery times and competitive prices;

muse of certified raw material quality (ECOTEX);

can provide raw material for manufactured articles featuring the RIFIL SA,

prices for complete product (wire, labor, accessories, packaging) delivery to the buyer
(including transportation);

location in a geographical area easily accessible, close to the European road E 85;

international airports in the region: Bacau, Iasi, Suceava.
VII. SUB-SECTORS:

manufacture of textile;

manufacture of cloths;


tanning and dressing of leather, manufacture of luggage, handbags, saddler and harness;
dressing and dyeing of fur.
VIII.
TRENDS IN DEVELOPMENT:

friendly regulations on innovation;

an educational system to support industrial change;

a financial system for textile innovation adaptation;

standardization in support of innovation;

capacity for effective management of technological change and innovative.
IX. SPECIFIC PROBLEMS IN INVOLVED COUNTRIES:

low wages at the moment that would result in lower light industry attractiveness for active
processing activity;

the price of utilities such consequences in work contract (electricity, gas etc.);

appreciation against major currencies in international direct effects on the competitiveness
of export products;

lower level of implementation of the European quality standards, environmental, social,
occupational safety and decent work still to sell product to the EU, U.S., etc.

X. SPECIFIC ACTIONS IN INVOLVED COUNTRIES

Romanian Government's measures to stimulate growth economic and
economic interests of the population
- Applicable in sectors of textiles, clothing, leather, shoes

Measures to support and stimulate economic growth:
- Allocation of 10.2 billion euro investment (for value. Entire economy) representing 20% of
the budget for 2009 and 7% of GDP;
- Improving mechanisms of absorption of European funds;
- Tax-exempt reinvested profit since the quarter of 2009 (0.12% of GDP);
- Credit Guarantee Fund for SMEs to become operational;
- Budgetary provision for promotion of exports at least on par with 2008 (0.04% of GDP)<
- Changing public tariff for railway infrastructure (TUI) with reference ton / km;
- Supplementing the budget allocation for research and development at the first adjustment
budget in 2009;
- Inclusion in the general consolidated budget of the revenues of the state government
agencies and institutions;

Measures for financing the economy and increasing liquidity:
Payment of debt by central and local administrations to business operators (1.33% of
GDP);
Capitalization of CEC (0.16% of GDP);
Accelerating the process of absorption of European funds and improving public
procurement law to become more flexible;
Adoption law public-private partnership for increasing private investment in infrastructure;
Compensation VAT with other taxes payable to the state budget both in the month following
the month when he called refinancing, and after the statutory period of 45 days;

Social measures worth 1.04 billion lei (260 million euros) for the entire economy:

Different approach to technical income during unemployment (for up to 3 months) in terms

of employer and employee (0.02% of GDP);
50% support continuing professional development expenses for employees and
unemployed (0.002% of GDP);
Triggering mechanism of consultation with social partners on welfare growth in 2009 (from
April 15, 2009 Government and unions to discuss the law on salaries in the budgetary
system only);
Extension to three months of unemployment for 2009;
From March 1, 2009 sectorial committees for training institutions will gain the status of public
utilities (0.03% of GDP)
-

GREECE
1.1 General introduction
The leather and tannery industry is a traditional sector of the Greek manufacturing industry. Yet it
has been facing very serious problem during the past years. These problems are related mainly to
the following:

Small size of the majority of leather production units in Greece (family businesses) thus not
able to deal with strong competition;
Competition from products of other EU countries and (poorer quality but cheaper) of
Chinese origin;
Lack of suitable infrastructure;
Environmental impact;
Direct dependence on footwear and finished leather articles sectors, which are also in
crisis.

2.1.1 Facts and figures

1.2 Sector stakeholders

Government institutions
The relevant government bodies listed below constitute the regulatory framework and support
infrastructure for the leather industry:
General Chemical State Laboratory of Greece www.gcsl.gr/index.asp?a_id=136;
Ministry of Environment, Energy and Climate Change www.ypeka.gr ;
Ministry of Development, Competitiveness and Shipping www.ypoian.gr (Greek only)
Associations
Pan-Hellenic Federation of Leather Industries; President: I.KYRIDIS
Address: Piraeus 180 & Lamias, Tavros, 17778 Athens
Tel: 0030 210 346 3167 - Fax: 0030 210 346 1434
Associations in related sectors
Association of Greek Chemists www.eex.gr (Greek only);
Hellenic Association of Chemical Engineers;
Address: 99 Aristidou, Kallithea 17672 Attiki, Greece
Tel: 0030 210 953 0292 - Fax: 0030 210 953 6777
Hellenic Association of Chemical Industries www.haci.gr/english/index_en.htm.
1.3 Clusters
No specific sectorial clusters currently exist for the leather industry, although the transferral of
leather production units to industrial parks in Greece has assisted in concentrating this industrial
activity in specific locations.
1.4 Scientific institutions
Scientific research and studies related to the paper sector are conducted by the relevant
department of the following higher education establishment:
Department of Chemistry (Sector of Chemical Technology & Industrial Chemistry), Aristotle
University of Thessaloniki, www.chem.auth.gr/index.php
Various laboratories have been established, including one dealing with the specific issues of
Environmental Pollution Control, giving the Department the widest possible area for educational
and research activities.

School of Chemical Engineering, National

www.chemeng.ntua.gr/index.php?lang_change=en

Technical

University

of

Athens

Research activities cover the following areas: coloration, paper making, environmental pollution
control.
1.5 Workforce
The majority of leather production units in Greece are of small size. They are mostly family
businesses and are not capable of dealing with the increasing and strong competition they have
had to face over the last few years. The specific problems related to the workforce in the leather
sector in Greece are twofold. On the one hand, leather and tanning industries are experiencing
difficulties in finding skilled workers. This has an impact on the productiveness of the companies,
and in turn on their competitiveness. On the other hand, due to the economic crisis, companies
have had to restructure their operations which has meant a significant reduction in the workforce,

leading to further impact on their production levels and their competitiveness. These problems are
particularly acute in this sector since the leather industry is in overall decline in Greece.

1.6 Regulations
With the increasing emphasis being placed in recent years on EU legislation aimed at reducing the
harmful effects of industry on the environment, leather producers in Greece have to face more and
more strict regulations regarding the presence of environmentally-harmful substances in waste
effluents from their factories. The EC Directive 2002/61/EC regarding the restrictions on the
marketing and use of the dangerous substance azocolorant, notably in the leather and tanning
industry, was transposed into national legislation in 2003 by the Greek Law FEK 1045B. In
addition, the EC Directive 2003/53/EC regarding the restrictions on the marketing and use of the
dangerous substance such as heavy metals and aromatic phenol ethoxylates, notably in the
leather and tanning industry, was transposed into national legislation in 2004 by the Greek Law
FEK 910B.
1.7 Infrastructure
The leather production process requires energy, water supply and is harmful for the environment.
All the above require installations and infrastructures that exist only in a few Industrial Areas. Since
the leather sector is an energy-intensive industry, access to a cheap energy supply is of vital
importance for Greek companies in this field in order to reduce the high production costs. A cheap
fuel supply such as natural gas would be an ideal solution to this major problem, however this is
not currently accessible to Greek companies. The EU institutional framework for the operation of
tanneries is very strict (due to the environmental impact) and the Greek units are unable to meet
the relevant specifications with the existing installations and infrastructures available. In addition,
the procedure required for companies to follow in order to obtain environmental licensing
(obligatory certification related to environmental impact) is extremely time-consuming and there is
no one-stop service available in order to make this process simpler, faster and more accessible for
companies.
1.8 Training needs
It is clear that in order to develop, the leather industry needs specialized and well trained
personnel. Education in the tannery sector is almost non-existent in Greece, whether at the
secondary or the tertiary education level. Moreover, concerning training and life-long learning of
human resources, apart from a few sporadic seminars (mainly from private initiatives) that have
been carried out in the past, there is currently no infrastructure and no procedure that may ensure
the development of the human resources in this sector.
The workforce in the leather industry requires specific training in new technical needs and
improved production methods in order to meet todays requirements. The personnel also has very
specialized training needs related to industrial waste. The workers in this sector require specialised
knowledge and skills in terms of the safe handling of tanning agents containing chromium. Specific
knowledge related to water and effluent management is also very important.
1.9 Environmental impact
The single major issue faced by the leather and tanning industry that takes absolute priority in
terms of its impact on the environment relates to the disposal of heavy metal (chromium) present in
the waste effluents from the chrome tanning process. This method is an integral part of the leather
treatment procedure and as yet there are no alternative solutions available in order to avoid the
use of chrome-based products in the tanning process. The disposal of wastewater effluents from
the dyeing, finishing and pre-treatment processes used in the production of leather for a variety of
uses (clothing, footwear, furnishing, etc.) results in large amounts of chromium metals in the
industrial waste produced. Chromium is considered to a major toxic pollutant and water authorities

in all European countries impose very strict limits of the level of waste effluents from leather
production. Waste produced by the leather and tanning industry also contain significant amounts of
aliphatic organic compounds found in fat-liquors used in the finishing of leather articles. In addition,
waste water from the production of leather also includes dyes such as acid and metal complex
dyes which give rise to colour waste that needs to be treated for colour removal. Organic loads in
leather production effluents also give rise to high Biological Oxygen Demand (BOD) and Chemical
Oxygen Demand (COD) values. The activated sludge produced in waste treatment plants contains
high amounts of chromium, thus sludge disposal is also a major concern.

1.10

Specific actions

Initiatives taken
Recently some efforts have been made in Greece in order to set up modern units in Industrial
Areas with the necessary infrastructure (energy, water supply, waste treatment). However only a
few such units currently exist (representing only 10% of the domestic production) compared to the
overall number of Greek leather production and tannery units. The transferral of leather production
units to industrial parks in Greece has also assisted in concentrating this industrial activity in
specific locations. In terms of the general context of initiatives taken to boost entrepreneurship, the
following table provides a summary of the funding programmes set up in Greece:-

Actions planned
Taking into consideration the significant impact the leather and tanning industry has on the
environment, important measures need to be taken in terms of clean energy supply and
consumption, as well as waste water management. As yet no specific actions have been taken.
Best practices

Certain companies in the leather sector in Greece have invested in installing a biochemical
wastewater treatment system in their production unit in order to handle and process their waste
water effluents more effectively and thus reduce the harmful effect on the environment.
1.11

Specific regulations

Regulatory framework
The following table provides information on the general regulatory framework related to
environmental issues, particularly referring to waste management:

Changes to be made
Important and fundamental changes to the general corporate legal framework in Greece need to
be made in order to assist leather producers to face the various entrepreneurial challenges and
serious environmental issues. Laws on taxation are particularly inhibitive and need vital reviewing
in order to lighten the burden on companies. A reduction in taxation imposed on companies profits
will encourage enterprises to maintain operations in Greece and not to relocate to neighbouring
Balkan countries. In addition, a reduction in employee insurance costs would also help companies
to rechannel resources into other areas of their business, such as improved production processes.
More flexible employment laws in order to allow vital corporate restructuring and labour reallocation
according to companies needs would also provide a more favourable business context. For the
leather industry in particular, a reduction in industrial invoices for energy consumption is a major
priority for this energy-intensive sector.

1.12

Suggestions for further actions

Further measures need to be taken in order to boost the leather and tanning industry
and provide greater support to producers in Greece, as follows:
Measures to improve production capacity in order to help companies be more competitive
Measures to reduce production costs
Access to cheap clean energy source
Reduction of VAT
More rapid return of VAT owed by the State to export companies
Greater access to funding and finance tools (for example through the banking system)
Reduction of local community charges imposed on companies in municipality areas
Installation relocation in organized Industrial Zones around Greece, equipped with the
necessary infrastructure
Investments to achieve energy recuperation
Implementation of novel modern technologies for effluent treatment such as ultra filtration
methods which allow re-use of water and thus reduce the impact on the environment
Establishment of Joint Ventures, to support enterprises in dealing with increasing
competition and to create economies of scale
Use of new technologies to create new opportunities in terms of production and further
improve product quality
Establishment of education / training structures to provide knowledge on new technologies
and modern production methods, as well as on management and marketing.

LITHUANIA
1. General sector overview
Textile, knitting, leather and paper sectors in Lithuania cannot be considered as main sectors.
Despite of increase of textile and paper sectors in Lithuania in period 2008 2011, together they
created 3% of Lithuanian GDP (see Figure 1).

Figure 1. Textile, clothing and paper products sectors share in Lithuania's GDP
Source: Statistics Department of Lithuania

There was a decrease of number of enterprises in knitting sector (Figure 2). The main factor was
financial and economic crisis and increased costs for personnel as well as energy costs. Number
of companies in textile sector remains the same because part of contractors from Western Europe
moved their contracts to Lithuania from China. That was influenced of decreasing demand in their
domestic markets as well as higher flexibility by Lithuanian companies. There was a significant
decrease of leather producers because of increasing lack of specialists and more strict ecological
requirements. Most of leather producers are family owned businesses, located in rural areas and
small towns, so part of the owners switched their activities towards other businesses. Number of
paper producers remained almost the same.

Figure 2. Number of companies in textile, clothing and paper, and its product sectors.
Source: Statistics Department of Lithuania
Traditionally, knitting, textile and leather subsectors are connected into one textile sector. Its
output was 4% of total industrial output in year 2011 (Figure 3). Paper subsector is part of wood
processing and furniture sector. Separately, paper production was 1,3% of total industrial
production in Lithuania.

Figure 3. Textile, clothing and paper products sectors share in Lithuanian industry.

Source: Statistics Department of Lithuania

One of the main reasons of industrial output growth was export. Part of export increased from 75%
(2008) up to 78% (2011) in textiles, from 72% (2008) to more than 80% (2011) in knitting of
apparel (Figure 4). Leather and paper production was more domestic oriented. Despite of this fact,
there was increase in these sectors from around 43% up to 58% and 53% in a year 2011
respectively. All sectors, except knitting, have overcome output level in peak year 2008. Output of
textiles was around 320 mill EUR, paper production 257 mill. EUR, leather production 38 mill.
EUR, however knitting did not reached level of 2008.

Figure 4. Production output of textile, clothing and paper products sectors

Source: Statistics Department of Lithuania
There was 12718 persons employed in textile sector (01 01 2009), half of them were employed in
large companies, another third in medium companies (Figure 5).

Figure 5. Number of employees and the size distribution of companies in the textile sector.
Source: Statistics Department of Lithuania

There was 31063 persons employed in knitting at the same date (Figure 6), from which one third
was employed in both large and medium companies, one fifth was employed in small companies,
which had from 10 to 49 employees.

Figure 6. Number of employees and the size distribution of companies in the knitting sector.
Source: Statistics Department of Lithuania
There was 1501 person working in leather industry (Figure 7) and two thirds of them was employed
in small and medium family owned businesses, located in rural regions and small towns in
Lithuania.

Figure 7. Number of employees and the size distribution of companies in the leather sector.
Source: Statistics Department of Lithuania

At the same time, there was 3341 person occupied in paper industry (Figure 8), half of them was
employed in large companies, another half in SMEs.

Figure 8. Number of employees and the size distribution of companies in the paper sector.
Source: Statistics Department of Lithuania
Despite the crisis, favourable trends remain in the paper industry and its products in Lithuania. Its
production doubled in size from 2005 (Figure 9). Industry enjoys two new paper plants opened in
the year 2011. Grigiks group has been transformed for deeper specialization of its units.
Recovered "Kaunas paper" factory, formerly "Petrainai paper mill." For many years this plant
produced high-quality paper for encyclopaedias. Now the company produces from waste paper
and successfully exports wrapping paper. It expects to reach 30 million LTL turnover this year.
Recent projects established and functioning of secondary raw materials (waste paper) collecting
and buying company "Klaipeda Recycling." "Grigiks group, the parent company of Baltwood has
moved production of fibre board to its daughter company and began to specialize only in tissue
production. There are plans to focus in the packaging paper and board production of Baltwood
company, located in Klaipda. It is expected that after the conversion Baltwood product sales
will grow from 23.4 million LTL last year to 99 million LTL this year. All Grigiks group has
reached 308 million LTL turnover. This year the group has predicted 322 million LTL turnover and
15 million LTL profit. Klaipda cardboard and Kaunas paper plants announced their plans to
acquire new technological equipment in the near future in order to increase production. From
foreign capital and joint ventures in Lithuania the largest is Smurfit Kappa (25 million LTL turnover),
Grafobal Vilnius (28 million LTL), Stora Enso Packaging (Kaunas).

Figure 9. Textile, clothing and paper products sectors production index in comparison with 2005. (=
100) Source: Statistics Department of Lithuania

Leather and textile products in 2008 and 2011 was unchanged compared with 2005. (Figure 9).
The main reason - both textile and leather industry requires a lot of raw materials, natural
resources and labour intensive industries. E.g., in leather production raw materials accounted for
50% to 70% of production costs (2005), labour cost - from 7 to 15%, chemicals - about 10%,
energy consumption - about 3% of production costs. Currently, was slight decrease of raw
materials part, but increased labour costs and energy costs. Lithuania currently has 4 leather
processing factories. The main concentration of the industry's position iauliai city, where are 3
plants, TDL ODA, iauli stumbras, Odos gaminiai ir Ko. Natrali oda is located in Kdainiai.
Fur processing plants are much smaller and leave more modest ecological footprint. Textile
companies largest concentration is in Kaunas city, the largest of which - "Klasikin tekstil",
"Omniteksas", "Garlita", "Audimas", "Dana ir Ko", "Kauno Baltija".

Figure 10. Textile, clothing and paper products sectors production index in comparison with
previous year. Source: Statistics Department of Lithuania
Recently, growth has slowed in all sectors (Figure 10) because of continuing financial problems in
key export markets. Despite the economic factors, paper and value-added textile products
successfully increase the volume. Clothing and leather production sector development in Lithuania
is unlikely due to rising costs of workers (apparel) and requiring large investments in environmental
standards.

2. Stakeholders in Lithuania
Ministry of Economy
Textile institute of the Centre of Physical Sciences and Technology. The goal - to ensure country's
international level competence in natural sciences and technology, participate in research and
development projects, programs, collaborate with business, government and civil society
representatives, to carry out research and development of outsourced work, to provide
methodological, methodological and other support.

Lithuanian Apparel and Textile Industry Association (LATIA)

Association Lietuvos mediena (Lithuanian Forest Cluster)
Association of Leather Producers in Lithuania
Lithuanian Packagers Association
Kaunas University of Technology (KTU)

3. Specific problems and initiatives

More and more increasing problem for all sectors in Lithuania is lack of qualified engineers
and technicians. Since textile and leather sectors are less attractive that others, they face
difficulties in getting technicians and engineers with sufficient competence because of higher
salaries in other industries. This is continuing gap, which is likely to increase in the nearest future.
Despite of liberal business conditions, extremely free economy, liberalization of labour law
is still on the discussion agenda of all groups of interests within the country.
Lithuania went through the centralization process of all waste management by creating 10
regional recycling centres (Figure 11) with branch of hazardous waste recycling nearby iauliai
(North Lithuania).

Figure 11. Scheme of regional waste management centres in Lithuania.

Source: Statistics Department of Lithuania
According to financial memorandum from European Commission No. 2003/LT/16/P/PE/017
Lithuania has closed old leather recycling plant in Auktrakiai, near iauliai. Currently, activities are
undertaken by company Toksika, which is enough for current output of waste from leather
processing, since main four leather producers have their own spare utilization capacities.
There is a significant increase of social responsibility among businesses of these particular sector
by implementing modern environmental technologies, management. This is particularly visible in
bigger companies, which leave more significant ecological footprint.

ITALY
CENTRAL SOUTH ITALY
In 2011 the active enterprises in Italy are 22.178. In the 7 Consortium regions the active
enterprises are 4.402, equal to the 19,85% of the national total (source: Movimprese).
The last available statistics on the companies structure in Italy (2008), based on the sectioning per
Employees Bracket, states that Micro enterprises (0-9 employee) are the majority in terms of unit
(76,33% of the national total) and employees (26,64% of the national total), although at this data
do not correspond the major level of turnover.

Employees Bracket

0-9

N of Industries

13.124

2.553

1.149

342

25

17.193

N of Employees

40.890

34.612

33.757

30.518

13.731

153.508

Turnover

10-19

20-49

50-249

250 e pi

Total

4.630.876 4.583.234 5.564.375 7.460.966 5.294.739 27.534.190

(thousand of Euro)

(source: ISTAT)

In the 7 Consortium Regions, we have the following situation (the last column shows the
percentage compare to the national total):
% on Italy

N of Industries

3.340

19,43

N of Employees

23.355

15,21

Turnover (thousand of Euro) 3.171.370

11,52

(source: ISTAT)

With regard to the Italian foreign trade, the 2011 trade balance remain positive and performs a
considerable increase, due to a major increase of exports compared to 2010.
2010
Export

2011

13.353.028.400 15.541.178.979

Var. %
16,39

Import

7.855.234.812

8.858.941.601

12,78

Balance

5.497.793.588

6.682.237.378

21,54

(source: ISTAT-COEWEB)

In the 7 Consortium regions, the positive trade balance of 2010 its confirmed, although it has to be
noted a considerable decrease in 2011, due to a major increase of imports compared to 2010.
2010

2011

Var. %

Export

910.736.425

946.659.662

3,94

Import

764.544.234

828.609.291

8,38

Balance

146.192.191

118.050.371

-19,25

(source: ISTAT-COEWEB)

Sectors Stakeholders in the involved countries

Responsible governmental institutions
At governmental level, in Italy there are three Ministries which deal with environmental issues:
Ministry of the Environment and Territory and Sea

The Italian Ministry of Environment and Territory, as required by its institutive law (law 349/1986),
is actively engaged in the field of education for environment and sustainable development,
especially focusing on promoting public awareness. Education is considered a crucial tool to
support environmental and sustainable development policies, aiming at promoting public
consciousness of environmental matters and behaviours in harmony with the nature and human
beings.
Ministry of Health
The Ministry of Health has an important role in the environmental field because has been identified
as the competent authority at national level in the management of the REACH (European
Community Regulation on chemicals and their safe use - EC 1907/2006), which aim is to improve
the protection of human health and the environment through the better and earlier identification of
the intrinsic properties of chemical substances.
The Ministry works in consultation with the Ministry of the Environment, Land and Sea, the Ministry
of Economic Development and the Department for European Policies.
Ministry of Economic Development
The Ministry of Economic Development is responsible for a wide variety of policies, including
economic development and cohesion, energy and mineral resources, telecommunications,
internationalisation and business incentives.
Worthy of note is the ISPRA- Institute for Environmental Protection and Research- body of the
Ministry of the Environment and Territory and Sea. It carries out technical and scientific activities of
national interest, linked to the mission of protection of the environment, by means the elaboration,
assessment and promotion of programs of divulgation and training on environmental protection.
The Institute also provides technical coordination of environmental training activities to the
Regional and Provincial Agencies for the protection of the environment (ARPA).
ARPAs are the Italian environmental protection agencies, one for each region of Italy (excluding
Trentino-Alto Adige/Sdtirol, which has been split for the two Autonomous Provinces of Trento and
Bolzano). The agencies are under regional or provincial administration and their main role is the
natural environmental protection of Italy, with the task of keep under control the natural
environment and verify environmental regulations.
Other Organizations
In Italy the Chambers of Commerce have an important role in environmental issues. Infect they
provide environmental administrative and informative services (i.e. adaptation to European
regulations). In this respect very important is the role of Ecocerved - a society partner of Italian
Chambers of Commerce that works in the field of information systems for the environment.
Ecocerved develops activities to support Italian Chambers of Commerce, Regional Unions,
Associations, enterprises, etc in fulfilling the many tasks required by national and European
environmental legislation, and to this end, designs, builds and manages information systems on
behalf of the Chamber System (www.ecocerved.it).

Associations
The main associations in the sector of leather active in Italy are the following:

LEATHER
ANCI: is the National Association of Italian Footwear Manufacturers. Member of Confindustria General Confederation of Italian Industry, it aims at sustaining, promoting and developing the
footwear industry Made in Italy providing complete service. It plays a determining role in the
affirmation and consolidation of this key sector of Italian industry. A sector which has grown
exponentially in recent times, adding value to the Italian tradition in the manufacture of leather

goods. Ancis aim is to support, promote and protect the interests of the Italian shoe manufacturing
industry. Today ANCI associates are 750 members (www.ancionline.com/).
AIMPES: is the Italian Association of manufacturers of leather and leather-substitute products. It
represents all the most important manufacturers of leather and synthetic products at every level;
promotes development and professional training in the sector and it co-ordinates initiatives that
raise the profile of Italian fashion leather production (www.aimpes.it).
UNIC: is the National Union of the Tanning Industry. Represents private enterprises in the tanning
industry, regardless of company size. At national level, UNIC is part of the General Confederation
of Italian Industry (Confindustria). At European level, it is affiliated to the Confederation of National
Associations of Tanners and Dressers of the European Community (COTANCE). At international
level, UNIC is affiliated to the International Council of Tanners (ICT). Its Conciaricerca Italia service
is worthy of note; this entity carries out research into new and more modern tanning processes for
the benefit of UNICs member (www.unic.it).
AIP: is the Italian Fur Trade Federation. Member of the Italian General Confederation of
Enterprises, Professional Occupations and Self-employment (CONFCOMMERCIO), represents at
a national level the interests of breeders , importers and wholesalers of leather, tanneries, retailers
and manufacturers, craftsmen, stylists, designers and workers, agents and representatives,
companies specialized in the clearing and storage of furs and in machinery, equipment and
accessories for the fur industry (www.aip.it/AIP_-_Associazione_Italiana_Pellicceria.html).
In addition, at national level in the major employer associations there are specific profession
groups for the fashion sector in general, that involved textile, leather, and other connected sectors.
Some examples:
in the General Confederation of Italian Crafts (Confartigianato), there is Federazione
Nazionale della Moda (http://195.103.237.153/minisiti/categorie/moda/se_moda.jsp);
in the National Confederation for the Craft Sector and Small and Medium-Sized Enterprises
(CNA), there is Federmoda (www.cna.it/UNIONI/Federmoda/Chi-siamo);
in Casartigiani there is Federazione Nazionale Abbigliamento;
in the Italian General Confederation of Enterprises, Professional Occupations and Selfemployment (CONFCOMMERCIO), there is both a general group for the fashion industry
Federazione Moda Italia (www.federazionemodaitalia.com ) and a more specific sector
group that represents interests of footwear traders, Federcalzature - National Shoe Traders
Federation (www.federcalzature.it/), part of CEDDEC European Shoe trade Confederation.

Cluster/ Industrial Districts

CAMPANIA
Leather:
1) Tanning Industrial District of Solofra (Province of Avellino and Salerno);
2) Neapolitan Footwear Industrial District (Province of Naples)
APULIA
Leather:
1) Footwear District of Barletta / Nord Barese Ofantino (Province of Barletta Andria Trani);
2) Footwear District of Casarano (Province of Lecce)

Scientific institutions
As a general rule, in Italy there are two relevant research institutions with a general scientific
competence and distributed all over Italy through a network of institutes aiming at promoting a wide

diffusion of their competences throughout the national territory and at facilitating contacts and
cooperation with local firms and organizations. They are:
CNR - The National Research Council (CNR)
CNR is a public organization with a duty to carry out, promote, spread, transfer and improve
research activities in the main sectors of knowledge growth and of its applications for the scientific,
technological, economic and social development of the country. To this end, the activities of the
organization are divided into macro areas of interdisciplinary scientific and technological research,
concerning several sectors: biotechnology, medicine, materials, environment and land, information
and communications, advanced systems of production, judicial and socio-economic sciences,
classical studies and arts.
ENEA-Italian National Agency for New Technologies, Energy and Sustainable Economic
Development.
The Agencys main research issues are identified as follows: Energy Efficiency, Renewable Energy
Sources, Nuclear Energy, Climate and the Environment , Safety and Health, New Technologies,
Electric System Research. Specifically, the Agencys activities are devoted to basic, missionoriented, and industrial research exploiting wide-ranging expertise as well as experimental
facilities, specialized laboratories, advanced equipment; new technologies and advanced
applications; dissemination and transfer of research results, thus promoting their exploitation for
production purposes; provide public and private bodies with high-tech services, studies,
measurements, tests and assessments; training and information activities aimed at broadening
sector expertise and public knowledge and awareness. The Agencys multidisciplinary
competences and great expertise in managing complex research projects are put at the disposal of
the Country system.
Furthermore, in particular reference to the involved sectors, there are the Experimental Stations,
public institutes located in specific territories but competent all over Italy.
The Experimental Stations, in close collaboration with the productive sectors of reference, carry out
activities for supporting the competitiveness of enterprises. In particular these activities include
analysis and laboratory tests, the R & D, certifications, consulting and training.
Currently there are 8 Experimental Stations; 3 of them are active in the sector of leather, textile
(silk), and paper:
1. Experimental Station for the leather industry and tanning substances
(www.ssip.it/intera.htm);
2. Experimental Station of paper, paperboard and pulp for paper
(www.sperimentalecarta.it/it_pagine/ssccp/attivita.asp);
3. Experimental Station for silk (www.ssiseta.it/).
Specific action in involved countries
1. Worthy of note are the Operational Programme (POR) FESR 2007-2013 of the Regions
covered by Consortium . They have among priorities the objective to improve environmental
service standards and to protect the health and safety of citizens and enterprises.
ABRUZZO Operational Programme Abruzzo
http://ec.europa.eu/regional_policy/country/prordn/details_new.cfm?LAN=7&gv_PAY=IT&gv_reg=5
49&gv_PGM=1159&gv_PER=2&gv_defL=10
MOLISE Operational Programme Molise
http://ec.europa.eu/regional_policy/country/prordn/details_new.cfm?LAN=7&gv_PAY=IT&gv_reg=6
58&gv_PGM=1057&gv_PER=2&gv_defL=10
CAMPANIA Operational Programme Campania

http://ec.europa.eu/regional_policy/country/prordn/details_new.cfm?LAN=7&gv_PAY=IT&gv_reg=1
218&gv_PGM=1162&gv_PER=2&gv_defL=10
PUGLIA Operational Programme Puglia
http://ec.europa.eu/regional_policy/country/prordn/details_new.cfm?LAN=7&gv_PAY=IT&gv_reg=6
90&gv_PGM=1157&gv_PER=2&gv_defL=10
BASILICATA Operational Programme Basilicata
http://ec.europa.eu/regional_policy/country/prordn/details_new.cfm?LAN=7&gv_PAY=IT&gv_reg=5
62&gv_PGM=1050&gv_PER=2&gv_defL=10
CALABRIA Operational Programme Calabria
http://ec.europa.eu/regional_policy/country/prordn/details_new.cfm?LAN=7&gv_PAY=IT&gv_reg=5
72&gv_PGM=1165&gv_PER=2&gv_defL=10
SICILY - Operational Programme Sicily - Co-funded by the European Regional Development Fund
(ERDF) under the Convergence Objective
http://ec.europa.eu/regional_policy/country/prordn/details_new.cfm?LAN=7&gv_PAY=IT&gv_reg=1
224&gv_PGM=1044&gv_PER=2&gv_defL=7
2. With reference to REACH (European Community Regulation on chemicals and their safe
use - EC 1907/2006) and its role in the three involved sectors, in Italy, in addition to national
Helpdesk, created and managed by Ministry of Economic Development, there are also 8
territorial Reach helpdesk settled in 8 Enterprise Europe Network points as first contact point of
information and orientation for Small and Medium enterprises. Three of them have competence
in South of Italy.
3. Environmental rules (Source: European Commission)
http://europa.eu/youreurope/business/doing-business-responsibly/keeping-to-environmentalrules/italy/index_en.htm
LEGAL REQUIREMENTS
National policies on environmental legislation aim to reduce pollution and promote sustainable
energy. In Italy, businesses are held responsible for the environmental impact of their activities.
Environmental legislation
Legislation - Ministry of the Environment, Land and Sea
Italy has adopted the EU's environment legislation by introducing the National inventory of
emissions and their sources (INES) which groups together and publishes data on industrial
emissions polluting air and water.
'National inventory of emissions and their sources' and the 'European Pollutant Emission Register'
Two decrees implemented the Community legislation concerning industrial waste products and
the treatment of polluting substances such as arsenic, cadmium, mercury, nickel and polycyclic
aromatic hydrocarbons.
Decree on industrial waste disposal
Decree on arsenic, cadmium, mercury, nickel and polycyclic aromatic hydrocarbons in ambient air
Other decrees implemented EU legislation on the prevention of pollution and the control and
reduction of dangerous substances in electrical and electronic equipment and waste disposal.
Decree on integrated pollution prevention and control
Decree restricting the use of certain hazardous substances in electrical and electronic equipment
Environmental control

The national strategy for sustainable development determines the main objectives and actions
for the four priority areas in terms of the environment: climate; nature and biodiversity; quality of life
and the urban environment; sustainable use and management of natural resources and waste.
Environmental plan of action for sustainable development in Italy
Water
Air and noise pollution
Energy
Land
Waste management
The national waste observatory is the body responsible for supervision and control of waste,
packaging and packaging waste management.
Legal measures - National waste observatories
Waste and land reclamations - Ministry of the Environment
Chemicals
The National Centre for Chemical Substances deals with the application of the new REACH
(Registration, Evaluation, Authorisation of Chemicals) Regulation which substantially modifies the
Community legislative framework on controlling chemical risk. The first phase of the application of
the legislation consists of gathering information, by the industry, on all substances of which over 1
ton is produced or imported per year.
The activities of the National Centre for Chemical Substances include:
evaluating the danger from hazardous products/articles present in the Italian market;
coordinating the execution of analytical assessments and tests on chemical products
retailed and the problems linked with overdoses of chemical substances;
giving opinions on the degree of danger of preparations bound for commerce.
Legislation - National Centre for Chemical Substances
Chemical safety - Ministry of Health
Evaluation of the environmental risk of chemical products - Ministry of the Environment
Businesses are free to go beyond the minimum environmental legal requirements at their own
initiative.
Sustainability Italy
ADMINISTRATIVE PROCEDURES
Declaratory procedures
Italian businesses must follow a series of administrative procedures related to the environment.
The main ones are listed below.
Environmental declaration single form
This is a standardised compulsory declaration for businesses (with more than ten employees)
which produce special but non-hazardous waste. This must be submitted to the Chambers of
Commerce once a year. The environmental declaration single form (MUD - Modello Unico di
Dichiarazione Ambientale) includes the declaration on pollutant emissions into air and water to be
entered into the National inventory of emissions and their sources (INES).
MUD - Italian Chambers of Commerce
Submitting MUD online
National inventory of emissions and their sources/European Pollutant Release and Transfer
Register (INES/PRTR declaration)
Submitting online declarations - National Packaging Consortium
Waste management
Businesses which regularly transport their own non-hazardous or hazardous waste materials in
quantities not exceeding 30 kilograms or 30 litres per day must register with the National register

of environmental operators. Those exceeding this amount must be registered in higher

categories.
National register of environmental operators - Ministry of Environment
Necessary documents for registration in the National register of environmental operators
Businesses transporting waste materials by rail - Ministry of Environment
Dealing with waste - Ministry of the Environment
Permits and licences
Business owners can find information online on data transmission procedures, documents and
declarations to be submitted, and can download the necessary forms.
Forms and Software -Environment Protection and Technical Services Agency
Chemicals
Industrial plants releasing harmful substances into the environment must apply for a special permit
called an integrated environmental authorisation. The businesses must work on reducing
pollution, preventing accidents and ensuring the decontamination of the site at the end of the
activity.
List of industrial activities releasing substances harmful to the environment
Integrated environmental authorisation - Ministry of the Environment
Form - Integrated environmental authorisation
Resources
On the Ministry of the Environment, Land and Sea website, it is possible to find the list of
applicable laws for the various environmental topic areas.
Water
Air and noise pollution
Energy
Land
The Environment Protection and Technical Services Agency offers a series of services
through its website, with databases of examples of good practice and other useful information.
Environmental services.
ECOCERVED is a company which manages the IT systems of the Chambers of Commerce and
other organizations in the business sector, providing information on the compilation of the MUD
module and the online assistance service.
Help and questions - ECOCERVED

VENETO
II.
A.

The leather Industry in Italy

Foreign trade by product of Italy

Source: elaborazioni ICE su dati ISTAT

B.

Foreign trade of Italy by product group

Source: elaborazioni ICE su dati ISTAT

C.

Foreign trade: Italy - rest of the world

Source: elaborazioni ICE su dati ISTAT

D.

Italy: major destination markets and provenance

Source: elaborazioni ICE su dati ISTAT

E.

Foreign trade by region of Italy: Veneto

Source: elaborazioni ICE su dati ISTAT

F.

Foreign trade: Veneto - rest of the world

Source: elaborazioni ICE su dati ISTAT

G.

Italy: major destination markets and provenance

H.

Recommendation to the Industry

To remain competitive, the leather and footwear will take action in three priority areas: preserving
its strengths in the creation and marketing, increase its capacity for technical innovation, marketing
and service and rectify weaknesses in terms of production and training of the workforce.
Preserve assets

Building on
strengths

Fill the gap

Creation / design:
- Keep a dominant position
in terms of fashion and
aesthetics
- Offer a customizable
products (widths, sizes,
patterns ...)

Technical innovation /
R & D:
- Producing quality
products;
- Environmentally
friendly products
(organic fibre,
recycled products ...)
- Environmental
Production process
(ISO 14000 ...)
- Footwear with new
properties, intelligent
products
(health,
wellness,
athletic
performance ...)

Develop the "Made in ":

- Relying on local resources
available in specific traditional
areas
- Choosing organizational modes
with
high
flexibility
and
responsiveness
(shorter
production
time,
inventory
reduction, etc..)

Marketing / Brand
Management:
- Involve a marketing
innovation in each product
innovation (customer
positioning, specific
expectations ...)
- Develop and maintain a
very precise knowledge of
new trends: membership of
innovation networks,
participation in trade
shows ...
- Use the potential of new
technologies to stage the
product and the image
associated with the mark

Marketing:
- Thinking ahead to
the
concept
of
distribution is best
suited to the product,
brand, customer (ecommerce,
mcommerce,
traditional
shop,
etc..)

Develop training:
- Promote the transfer of knowhow of younger generations by
the most experienced

Services:
- Facilitate client
relationship:
resolving disputes,
support for returns ...
Building
on
customer
service:
home on the point of
sale,
to
order,
delivery, etc..

I.

Recommendation by country

To expand on the French, German and Italian manufacturers of leather must be innovative and
adopt a customer service performance. They will also increase their business presence on the
Internet to reach the growing population of online shoppers French and German and Italian and
strengthen local production in Italy and France.

Levers of
competitiveness
Technical
Innovation

Creation / Design

Production

FRANCE

GERMANY

ITALY

Develop a range of
environmentally
friendly products
(raw material,
manufacturing
process eco ...)
Designing products
with good value for
money, aesthetics
within extended
ranges

Offer products of
quality (durability,
ease of
maintenance) that
are environmentally
friendly
The marketing of
new products
should be
synonymous with
good value for
money and provide
aesthetic pleasure

develop a range of
environmentally friendly
products

develop products
made in France on
high-end niches

Marketing /
Branding

Marketing

Services

Increase the
presence on the
Internet (ecommerce, mcommerce ...)
Ensure a good
service after sales

integrate a range of
locally manufactured
Offer well-known
brands (quality,
aesthetics, price) to
win consumer
confidence
Increase the
presence on the
Internet (ecommerce, mcommerce ...)
Establish an
efficient after-sales
service

Increase the presence

on the Internet (ecommerce, mcommerce ...)
Inform consumers about
product quality (quality
label, label ...) Ensure
good customer service

To address the markets of UK, U.S. and Japan, manufacturers will create original products and
introduce a service performance. The brand image is crucial to the Anglo-Saxon and technical
innovation for the Japanese.

Levers of
competitiveness
Technical
Innovation

Creation / Design

UNITED KINGDOM

Offer products fun and

easy to use (pleasure to
eat) and quality
(sustainability)

Production

USA

Design products a good

value for money that
provide aesthetic pleasure
Integrate a range of locally
manufactured

Marketing /
Branding

Develop brands that

convey an image high
quality source of
confidence for the
consumer

Market brands that enjoy

strong image, associate the
brand with a celebrity
(movies, sports, music ...)

Marketing

Increase the presence on

the Internet (ecommerce, m-commerce
...)

Increase the presence on

the Internet (e-commerce,
m-commerce ...)

Services

Establish an efficient
after-sales service

Offer comprehensive
services to the customer
before and after the sale:
custom-made, home on the
point of sale, delivery, ease
of payment and return of
goods and others.

III.
A.

JAPAN
Favour a range of
innovative products
in terms of
technology (smart
clothes ...) and
ecological (organic
fibres ...)
Develop products
that are easy to
use and aesthetic
Price
competitiveness of
products to be
strong
Develop brands
that convey an
image innovation,
aesthetics,
practicality strong
to win consumer
confidence
Increase the
presence on the
Internet (ecommerce, mcommerce ...)
Establish an
efficient after-sales
service

European Union Support Programmes for SMEs, An overview of the main funding
opportunities available to European SMEs
Funding opportunities

LIFE
This programme is divided into three strands:
Nature and Biodiversity
Environment Policy and Governance
Information and Communication
The budget foreseen for LIFE+ is 2.1 billion for the period 2007-2013. SMEs may be able to
access LIFE+ funds, both from the part managed centrally by the European Commission.
Further information:
http://ec.europa.eu/environment/life/funding/lifeplus.htm

Competitiveness and Innovation Framework Programme (CIP)

The Competitiveness and Innovation Framework Programme (CIP) is a coherent and integrated
response to the objectives of the renewed Lisbon strategy for growth and jobs. Running from 2007
to 2013, it has a budget of approximately 3.6 billion. As regards environment and energy
concerns, the CIP comprises:
a)an Entrepreneurship and Innovation Programme (EIP) with an eco-innovation part, to which
approximately 430 million has been allocated. The aim is to tap the full potential of
environmental technologies to protect the environment, while contributing to
competitiveness and economic growth;
b)an Intelligent Energy Europe Programme (IEE) to which approximately 727 million has been
allocated. The Intelligent Energy-Europe Programme includes actions to increase the
uptake and demand for energy efficiency, to promote renewable energy sources and
energy diversification, and to stimulate the diversification of fuels and energy efficiency in
transport;
C) an Information and Communication Technologies Policy Support Programme (ICT-PSP), with a
budget of approximately 730 million. Funding goes mainly to pilot actions, involving both public
and private organizations. These aim to stimulate innovation and competitiveness through the
wider uptake and best use of ICT also regarding energy efficiency and smart mobility.
Further information:
http://ec.europa.eu/cip/index_en.htm
Marco Polo II (2007-2013)
The Marco Polo Programme aims to reduce road congestion, to improve the environmental
performance of the freight transport system within the Community and to enhance intermodality,
thereby contributing to an efficient and sustainable transport system. To achieve this objective, the
Programme support actions in freight transport, logistics and other relevant markets, including
motorways of the sea and traffic avoidance measures. The programme has a budget of 450
million for the period 2007-2013.
Further information:
http://ec.europa.eu/transport/marcopolo/index_en.htm

B.
Innovation and Research
The Seventh Framework Programme for Research and Technological Development (20072013)
The 7th Framework Programme for research and technological development (FP7) pays special
attention to the SMEs through its different programmes: Co-operation (circa 32.3 billion), Ideas
(circa 7.5 billion), People (circa 4.7 billion) and Capacities (circa 4 billion).

Further information:
http://cordis.europa.eu/fp7/home_en.html
For more information on European Research and Development policy, please consult the web site
of the Research and Development Directorate-General:
http://ec.europa.eu/research/index_en.cfm
Community Research and Development Information Service, CORDIS:
http://cordis.europa.eu
SME Techweb is the European Commission research portal for SMEs, providing information and
resources for technology-oriented SMEs wanting to apply for research funding through the
European Unions 7th Research Framework Programme: http://ec.europa.eu/research/smetechweb/index_en.cfm.
The Research and Development Directorate-Generals
http://ec.europa.eu/research/index.cfm?pg=enquiries

research

enquiry

service:

A list of SME National Contact Points (NCPs) for FP7 is available. The European Commission
supports this network to provide practical information, assistance and training to potential
participants and contractors.
Further information:
http://ec.europa.eu/research/sme-techweb/index_en.cfm?pg=support
Competitiveness and Innovation Framework Programme (CIP)
The Competitiveness and Innovation Framework Programme (CIP) is a coherent and integrated
response to the objectives of the renewed Lisbon strategy for growth and jobs. Running from 2007

to 2013, it has a budget of approximately 3.6 billion.

As regards innovation and information technologies, the CIP comprises two main strands:
a) the Entrepreneurship and Innovation Programme (EIP) aims to improve the conditions for
innovation, such as exchanges of best practices between Member States and actions to
improve, encourage and promote innovation in enterprises. It supports actions fostering
sector- specific innovation, clusters, public-private innovation partnerships and the
application of innovation management;
b) the ICT Policy Support Programme to which approximately 728 million has been allocated.
The ICT programme aims to stimulate the new converging markets for electronic networks
and services, media content and digital technologies.
It also supports the modernisation of public sector services that will raise productivity and
improve services.

Further information:
http://ec.europa.eu/cip/index_en.htm
For information on other programmes and initiatives contributing to the development of the
Information Society, please consult the web site of the Directorate-General for the Information
Society: http://ec.europa.eu./information_society/index_en.htm
EUREKA A Network for market oriented R&D
Eureka is a pan-European network for market-oriented, industrial R&D organisations, which
supports the competitiveness of European companies by creating links and networks of innovation
throughout 36 countries. EUREKA offers project partners rapid access to a wealth of knowledge,
skills and expertise across Europe and facilitates access to national public and private funding
schemes.
Further information:
http://www.eurekanetwork.org/
In addition to this, EUREKA's Eurostars Joint Programme provides finance tailored to the needs of
small firms, supporting their participation in international projects in the fields of research and
innovation.
Further information:
http://www.eurostars-eureka.eu/home.do
C.
Structural Funds
Structural Funds are designed to help reduce disparities in the development of regions, and to
promote economic and social cohesion within the European Union. The European Commission
therefore co-finances regional projects in the Member States. Nevertheless, it is important to stress
the fact that direct aid to SMEs to co-finance their investments is only possible in the economically
less developed regions (the co-called convergence regions). In other regions, priority has been
given to actions having a high leverage effect (e.g. entrepreneurship training, support services,
business incubators, technology transfer mechanisms, networking, etc.), as opposed to direct aid
to individual SMEs.
Please note that the programmes are managed and the projects selected at national and/or
regional level.
For the period 2007-2013 the strategy and resources of cohesion policy (European Regional
Development Fund [ERDF], European Social Fund [ESF] and European Cohesion Fund) are
grouped into three priority objectives, with a total allocation of 347.41 billion: - Convergence: to

speed up the economic convergence of the less developed regions (81.54% of the budget);
- Regional competitiveness and employment: to strengthen regional competitiveness and
attractiveness and help workers and companies to adapt themselves to economic changes
(15.94% of the budget);
- European territorial co-operation: to strengthen cross-border, transnational and interregional cooperation (2.52% of the budget).
European Regional Development Fund
The ERDF is the largest Community financial instrument benefiting SMEs. Its aim is to reduce
disparities in the development of regions and to support social and economic cohesion within the
European Union. In order to strengthen the creation and competitiveness of SMEs, the ERDF cofinances activities in a broad range of areas:
1. entrepreneurship, innovation and competitiveness of SME (for example entrepreneurial
mentoring, innovative technologies and management systems in SMEs, eco-innovation,
better use of ICT);
2. improving the regional and local environment for SMEs (for example access to capital for
SMEs in the start-up and growth phase, business infrastructure an support services for
SMEs, regional and local RTD and innovation capacities, business co-operation and
innovation capacities);
3. interregional and cross-border co-operation of SMEs;
4. investment in human resources (along with funding from the European Social Fund).
Unlike many other EU funding sources, ERDF programmes are not directly managed by the
Commission but by national and regional authorities. These are also contact points for funding
applications and project selection.
Further information:
http://ec.europa.eu/regional_policy/funds/feder/index_en.htm
The web site of the Directorate-General for Regional Policy provides information on the European
Union's action in support of regional development:
http://ec.europa.eu/regional_policy/index_en.htm
This includes:
- a list of the managing authorities of structural funds in every
http://ec.europa.eu/regional_policy/manage/authority/authority_en.cfm
- a
summary
of
the
programmes
available
in
every
http://ec.europa.eu/regional_policy/country/prordn/index_en.cfm
European Social Fund

region:
region:

For the period 2007-2013, the European Social Fund provides support for anticipating and
managing economic and social change, with a number of opportunities for supporting SMEs. The
four key areas for action under the Regional competitiveness and employment objective are:
1. increasing adaptability of workers and enterprises;
2. enhancing access to employment and participation in the labour market;
3. reinforcing social inclusion by combating discrimination and facilitating access to the labour
market for disadvantaged people;
4. promoting partnership for reform in the fields of employment and inclusion.
In the least prosperous regions, the Fund concentrates on promoting structural adjustment, growth
and job creation. To this end, under the Convergence objective, the ESF also supports:
1. efforts to expand and improve investment in human capital, in particular by improving
education and training systems;
2. actions aimed at developing institutional capacity and the efficiency of public administrations,

at national, regional and local level.

Further information:
http://ec.europa.eu/employment_social/esf
Rural Development Fund
The Rural Development Fund for the period 2007-2013 focuses on three thematic axes: improving
competitiveness for farming and forestry; environment and countryside; improving quality of life
and diversification of the rural economy. A fourth axis also introduces possibilities for locally based
bottom-up approaches to rural development.
For each set of priorities, Member States prepare national rural development strategies on the
basis of the following six community strategic guidelines:
1.
improving the competitiveness of the agricultural and forestry sectors;
2.
improving the environment and the countryside;
3.
improving the quality of life in rural areas and encouraging diversification;
4.
building Local Capacity for Employment and Diversification;
5.
translating priorities into programmes;
6.
complementarity between Community Instruments.
Further information:
http://ec.europa.eu/agriculture/rurdev/index_en.htm

D.
Financial instruments
Note that these schemes do not provide direct funding to SMEs, but are usually processed
through financial intermediaries such as banks, credit institutions or investment funds.
They are intended to increase the volume of credit available to SMEs and to encourage
these intermediaries to develop their SME lending capacity.
Competitiveness and Innovation Framework Programme (CIP)
Under the Competitiveness and Innovation Framework Programme (CIP), 1130 million has been
allocated for financial instruments for the period 2007-2013. These are organised under three
schemes, which are managed on behalf of the European Commission by the European Investment
Fund (EIF):
1. The High Growth and Innovative SME Facility (GIF) aims to increase the supply of equity for
innovative SMEs both in their early stages (GIF1) and in the expansion phase (GIF2).
GIF shares risk and reward with private equity investors, providing important leverage for
the supply of equity to innovative companies.
2. The SME Guarantee Facility provides additional guarantees to guarantee schemes, in order
to increase the supply of debt finance to SMEs. It concentrates on addressing market
failures in four areas:
(i)
access to loans (or loan substitutes such as leasing) by SMEs with growth potential;
(ii) provision of microcredit; (iii) access to equity or quasi-equity;
(iii) securitisation.
3. A Capacity Building Scheme supports the capacity of financial intermediaries in some Member
States.
Further information:
http://ec.europa.eu/cip/index_en.htm
http://ec.europa.eu/enterprise/policies/finance/cip-financial-instruments/index_en.htm
http://eif.europa.eu/

To know if an SME is eligible to apply for a loan, or to look for a source of CIP loan finance in your
country: http://access2finance.eu
Joint European Resources for Micro and Medium Enterprises (JEREMIE)
JEREMIE is a joint initiative of the European Commission and the European Investment Fund with
the European Investment Bank. It aims to improve access to finance for micro to medium- sized
enterprises and in particular the supply of micro-credit, venture capital finance or guarantees and
other forms of innovative financing. Special emphasis is given to supporting start-ups, technology
transfer, technology and innovation funds and micro-credit. JEREMIE is managed as an integral
part of the European Regional Development Fund, and projects are selected at the relevant
national and regional level.
Further information:
http://eif.europa.eu/jeremie/ http://ec.europa.eu/regional_policy/funds/2007/jjj/jeremie_en.htm
To access financing, locate national/regional managing authorities who can inform you about how
to obtain financing in your country or region via the JEREMIE facility:
http://ec.europa.eu/regional_policy/manage/authority/authority_en.cfm
Joint Action to Support Micro-finance Institutions in Europe JASMINE
JASMINE is a joint initiative of the European Commission and the European Investment Fund
together with the European Investment Bank, and complements the JEREMIE initiative. It aims to
develop the supply of micro-credit in Europe by means of two main actions: by providing technical
assistance to micro-finance institutions in order to help them to be credible financial intermediaries
and to obtain capital more easily; and by financing the activities of non-bank financial institutions to
enable them to make a higher number of loans. The aim of the programme is to improve the
access to finance of small businesses, unemployed people, or people not currently in employment
who would like to become self-employed but who are unable to access traditional banking
services. This programme was launched in 2008 with a three-year pilot phase, with an initial capital
of 50 million.
Further information:
http://ec.europa.eu/regional_policy/funds/2007/jjj/micro_en.htm
http://www.eif.org/what_we_do/microfinance/JASMINE/index.htm
European Investment Fund (EIF) own investments
The EIFs activity is based on two instruments:
- EIFs venture capital instruments consist of capital investments in venture capital funds
and business incubators that support SMEs, particularly those that are newly created and
technology-oriented.
- EIFs guarantee instruments consist of providing guarantees to financial institutions that
cover credits to SMEs.
Further information:
http://www.eif.europa.eu/
http://www.eif.org/EIF_for/sme_finance/index.htm
European Investment Bank (EIB) loans
These loans will be delivered via intermediaries such as commercial banks. They are targeted at
tangible or intangible investments by SMEs. EIB loans may also help to provide a stable working
capital base to SMEs, i.e. loans granted to finance liabilities associated with the SME's trading
cycle and reflecting the SME long-term funding needs in that respect may also be eligible for EIB
financing.The duration of the loans will be between 2 and 12 years, with a maximum amount of
12.5 million per loan.

Further information:
http://eib.europa.eu
http://eib.europa.eu/projects/topics/sme/index.htm
http://eib.europa.eu/projects/topics/sme/intermediaries/index.htm
For a list of the financial intermediaries in the EU:
http://www.eib.org/projects/topics/sme/intermediaries/europe.htm
For a list of the financial intermediaries outside the EU:
http://eib.europa.eu/projects/topics/sme/outside-eu/index.htm?lang=en
EPMF - The PROGRESS Microfinance Facility for Employment and Social Inclusion
The EU has set up a new European Progress Microfinance Facility providing microcredit to small
businesses and to people who have lost their jobs and want to start their own small businesses. An
initial budget of 200 million is expected to leverage 500 million of credit in cooperation with
international financial institutions such as the European Investment Bank (EIB) Group. The Facility
will be expressly designed to fit with existing instruments, in particular the European Social Fund
(ESF).
Further information:
http://ec.europa.eu/social/main.jsp?langId=en&catId=836
http://www.eif.org/what_we_do/microfinance/progress/index.htm
You can find out if there is already a selected microcredit provider for the Progress Microfinance in
your country:
http://ec.europa.eu/social/main.jsp?catId=983&langId=en.
IV.

Useful link

International Council of Tanners:

http://www.tannerscouncilict.org/carehandling.htm
Comit interprofessionnel de dveloppement des industries du cuir
http://www.ctc-services.org/taxe-subventions-13-1.html
Financement dentreprise:
http://ec.europa.eu/enterprise/newsroom/cf/_getdocument.cfm?doc_id=7274
European Commission Environnement:
http://ec.europa.eu/environment/sme/toolkits/index_en.htm
http://ec.europa.eu/enterprise/sectors/leather/external-dimension/index_en.htm
http://ec.europa.eu/environment/resources_en.htm
http://www.enterprise-europe-network.ec.europa.eu/events/events
http://www.symanteccloud.com/fr/be/support/
http://ec.europa.eu/small-business/policy-statistics/facts/index_fr.htm
(http://ec.europa.eu/enterprise/sectors/leather/documents/index_en.htm)
http://www.euroleather.com/index.php?option=com_content&view=article&id=95:tannet&catid=39:r
ad-projects&Itemid=66

3. Summary report
The information provided by the fact sheets shows that the environmental measures in
support of SMEs are unequally distributed. The reports results demonstrate that although
enterprises need support in the environmental issues, they are more interested in specific solutions
than in international standards. A solution for this lack of interest might be the proposal of simplified
management systems or structures focalised on internal application rather than in certification. The
use of limited elements in a first phase would help SMEs to obtain the desired results and to
internalise the mechanisms of these standards. In a second phase the application could be
extended in order to acquire the certification.