Overview of Operations

Overview of operations

The company processes sheep and goat skins from the raw, pickled and wet blue condition to the finished state for gloving and shoe upper leathers. The operations are managed on two sites, both located within residential areas of Yogyakarta, a city of approximately one million people.
Manufacture from the raw to crust state takes place at the major site where manufacture commenced in 1976. This site has expanded to about three times its original size, and supplies the finishing department that is located 1.5 kilometres away. The input to the tannery is about 150,000 skins per month with an average mix of 50-50 sheep and goat skins.
Approximately 60% of the leathers produced are for footwear manufacture, and 40% for glove leathers. The glove leathers demand the smaller skins due to their higher tensile strength at lower substances, with a mix of about 70% sheep, 30% goat skins. There are considerable variations in raw material availability because of surges in slaughter at times of Muslim religious feasts. The tannery uses raw skins from within Indonesia provided by dealers via long established collection chains of supply mainly from small butchers operating under licenced slaughter. Other sources are in the pickled and wet blue state from Saudi Arabia, Yemen, Iraq, and Syria.

Because of the small area of each skin the operations are labour-intensive. The company prides itself on managing a production that is technical, but retains a high element of craft skills. About 250 people are employed in these operations, and about 20% are women.