Chemical Used in Leather Industry

It is estimated that almost 400 different kinds of chemicals (including enzymes)

are used in the leather industry. Almost all the chemicals are imported either by
the local agent or by 50 or more other companies like BASF, Clariant, CBS etc.
Prices of these chemicals change due to demand and quality of the chemicals.

Competitor in the field

According to the leather technologist and chemical suppliers there are almost 50
or more companies in the leather industries selling almost 400 chemicals and
enzymes to almost 200 tanneries in Hajaribagh. There are some big multi-
national companies like BASF, Clariant, Croda, CBS, Stall Chemical, Smith and
Jones, Bayer, Fulcra Chemicals, Buckman, Jax etc. According to them the market
is over crowed with competitors yet crisis of chemicals arises in the pick season
(Eid-Ul-Azha, Eid-Ul-Fitr, Shob e Barat, Shob e Kadar, Shob e Meraj etc.) also they
said there is always a demand for better quality of chemicals offering price below
the market.

Procuring Chemicals

All the chemicals that are used in leather industry are imported from various
countries like China, India, European countries. Recently, a chemical factory in
Ashugonj is supplying Ammonium Sulfate but the quality is not up to the
standard as a result the tanneries are not encouraged to buy from them.

Type of Chemicals

Use of chemicals can be segregated into two major categories. They are
transforming raw hide to preserved leather and transforming preserved leather
to leather goods. Chemicals used in second stage of the process differ due to
buyers’ requirement. For example, chemical used for the leather to make shoes
differs from the chemical used for the leather to make upholstery. But in the first
process there are some common chemicals that must be used to preserve the
leather. List of the chemicals are given below;

Name of Purpose Percentage per Price per Kg

Chemical Kg of Leather (Taka)
Salt Preservation of 48 % 4-8 taka
Raw Hide and for
batting
Soaking Agent Preservation 0.2% 25
Sodium Carbonate Washing 0.75% 18-20
Liquid Detergent Washing 0.7% 70-80
Sodium Sulphide Unhairing 4% 40-70
Calcium Hydro Liming 4% 9-10
Oxide

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Liming Auxilary Facilitate the 1% 100-140
washing process

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 Name of Purpose Percentage per Price per Kg
Chemical Kg of Leather (Taka)
Degreasing Agent To remove fat 0.8% 150-170
from the raw hide
Bactericides Make leather 0.2% 200-250
Bacteria Free
Ammonium Sulfate Deliming (Make 2.5% 20-30
leather non-alkali)
Ammonium Deliming 0.5% 18-20
Chloride
Sodium Meta Deliming 0.5% 50-60
Sulfate
Batting Agent Make the leather 0.5% 18-20
soft and flexible
Formic Acid Batting 0.5% 100-105
Sulfuric Acid Batting 1-1.2% 120-140
Hypo Batting 0.3% 30-40
Fungicide Preserve the 0.15% 850-1200
leather from
fungus
Wet Batting 5.5-8% 90-115
Blue/Chromium
Sulfate
Sodium Format Batting 0.5% 65-80
Crome Stable Fat Stabilizing the 0.3% 165-220
Leather
Magnesium Oxide Stabilizing the 0.5% 140-160
Leather
Sodium bi- Stabilizing the 0.1-0.3% 25-30
Carbonate Leather
As we said earlier, the prices of chemicals change due to demand in the industry
and the quality of the chemicals. In the next phase, chemicals that will be used
differ significantly due to buyers’ need. These chemicals are known as
“Syntans”. They are basically a mixture of chemicals and solution to treat the
chemical to meet the purpose of the buyer. The major ones are listed below;

• Crome Syntan

• Base Syntan

• Acrylic

• Neutralizing Syntan

• Vegetable Syntan

• Replacement Syntan

• Melamin Syntan

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• Di-sand Diamant Syntan

• Synthetic Fat

• Semi Synthetic Fat

• Fish Oil

• Raw Oil

• Lesithrin

• Lenolin

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Opportunities in this Industry

Recently, the Government along with International Development organizations

like UNIDO, is working to develop on this sector. Firstly by moving the tannery
industry from Hajaribagh, Zikatola to Hemayetpur, Savar secondly, as many of
these chemicals use harmful chemicals like Ammonia, they are influencing
tanneries to replace these chemicals like Ammonium Sulfate, Ammonium
Chloride, Sodium Meta Sulfate with the following;

Name of Purpose Percentage per Price per Kg

Chemical Kg of Leather (Taka)
Boric Acid Deliming 1.5% 90
Auxalic Acid Deliming 0.05 110
Citric Acid Deliming 0.5% 120
***Information provided by United Nation Industrial Development Organization (UNIDO),
Bangladesh

In the future, it is expected that the demand of these chemicals will increase as
buyers will be more concern about buying leathers that are less harmful to
environment. Also it is expected that the demand for formaldehyde free Syntan
will also Increase for same reason.

Market Size of Chemical

Important Data Source

Leather Export in Dollars 117,319,000 Export Promotion Bureau
Bangladesh Bureau of
Per Kg leather Price (Taka) 133 Statistics
Exchange Rate (Taka Per $) 69.5 Bangladesh Bank
Leather Export in Taka 8,153,670,500 Calculation
Quantity (KG) 61,305,793 Calculation

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Based on the data provided above we can calculate an estimated minimum
market size of the chemicals in leather market

Estimated
Percentag Per Kg Estimated
Market
e Needed Chemical Market
Name of Chemical demand
per KG of Price demand
2009
Leather 2009 In ton
(Taka) KG
Salt 48% 4-8 29,426,781 29,427
Soaking Agent 0.20% 25 122,612 123
Sodium Carbonate 0.75% 18-20 459,793 460
Liquid Detergent 0.70% 70-80 429,141 429
Sodium Sulphide 4% 40-70 2,452,232 2,452
Calcium Hydro Oxide 4% 9-10 2,452,232 2,452
Liming Auxilary 1% 100-140 613,058 613
Degreasing Agent 0.80% 150-170 490,446 490
Bactericides 0.20% 200-250 122,612 123
Ammonium Sulfate 2.50% 20-30 1,532,645 1,533
Ammonium Chloride 0.50% 18-20 306,529 307
Sodium Meta Sulfate 0.50% 50-60 306,529 307
Batting Agent 0.50% 18-20 306,529 307
Formic Acid 0.50% 100-105 306,529 307
Sulfuric Acid 1.20% 120-140 735,670 736
Hypo 0.30% 30-40 183,917 184
Fungicide 0.15% 850-1200 91,959 92
Wet Blue/Chromium
8.00% 90-115 4,904,463 4,904
Sulfate
Sodium Format 0.50% 65-80 306,529 307
Crome Stable Fat 0.30% 165-220 183,917 184
Magnesium Oxide 0.50% 140-160 306,529 307
Sodium bi-Carbonate 0.30% 25-30 183,917 184

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Market Value of Products

Average Estimated
Per KG Market demand Market Value
Name of Chemical Price 2009 In ton 2009 (Million
Taka Taka)
Salt 6 29,427 177
Soaking Agent 25 123 3
Sodium Carbonate 19 460 9
Liquid Detergent 75 429 32
Sodium Sulphide 55 2,452 135

Calcium Hydro Oxide 10 2,452 25

Liming Auxilary 120 613 74

Degreasing Agent 160 490 78
Bactericides 225 123 28
Ammonium Sulfate 25 1,533 38
Ammonium Chloride 19 307 6
Sodium Meta Sulfate 55 307 17
Batting Agent 19 307 6
Formic Acid 103 307 31
Sulfuric Acid 130 736 96
Hypo 35 184 6
Fungicide 1025 92 94
Wet Blue/Chromium
103 4,904 503
Sulfate
Sodium Format 73 307 22
Crome Stable Fat 193 184 35
Magnesium Oxide 150 307 46
Sodium bi-Carbonate 28 184 5

Prepared by:

Ashique-E-Elahi Chowdhury, Planning Executive

Prepared on:

September 19, 2010

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