The relocation of the tannery from Hazaribagh to Savar has brought about urgent problems and various environmental requirements, which has led to a decline in the export revenue of the Bangladesh leather industry and missed the opportunities brought about by the US-China trade war. Leather processing and export industry insiders said that the biggest problem facing the leather industry in Bangladesh is that the environment is not up to standard, and environmental problems have prevented the world's top buyers from purchasing Bangladeshi leather. On the other hand, the construction of some tanneries has not yet been completed, reducing production capacity.
The tannery is moving from Hazari Bagh in Dhaka to Savar, which is still affecting the tannery, as the central sewage treatment plant (CETP) in the Savar tanning area will take six months to complete. Buyers do not want to place orders in the supply chain of countries that do not meet environmental standards.
In order to ensure the safety standards and environmental requirements of the leather industry, the government took the initiative to establish the Savar Leather Industry Park, all of which met the world leather industry standards. Due to the continued delays in the construction of the central sewage treatment plant in the Savard tanning area, corporate emissions are not fully compliant. As a result, the export revenue of leather and leather products, which is the second largest source of export revenue, has shown a downward trend.
However, the Ministry of Industry denied the above statement and pointed out that there may be other reasons for the decline in export earnings. The government has established an industrial park for the leather industry to meet environmental requirements. The central sewage treatment plant in the Savar tanning area is expected to be completed by the end of June 2019.