Leather firms form cluster
Due to a dramatic drop in domestic sales, leather operators are establishing a cluster to reduce production costs and boost competitiveness in the international markets.
Pramode Vidtayasuk, director-general of the Department of Industrial Promotion, said that although the Bangkok Fashion City project would be shelved, the department would continue to help leather manufacturers. Clusters will allow manufacturers in the same industry to share their problems and benefit from cooperation, he said. The department has a budget of Bt30 million for developing clusters this year. Many industries such as food, automotive, ceramics, textiles and rubber have already set up clusters, Pramode added. Tanakorn Chearngow, managing director of shoe manufacturer and exporter Tetee Industry, said a cluster would help to reduce its production costs by around 10 to 15 per cent because operators could negotiate for cheaper raw materials. He said it was difficult for small and medium-sized operators to penetrate overseas markets by themselves, but a cluster had more chance to export its products. Chalida Ekvitthayavechnukul The Nation
|
