Stylish Italians Asked to Lend Expertise in Making Thailand a Fashion Hub.

Byline: Chatrudee Theparat

Dec. 6--Another initiative to help make Thailand a regional fashion hub has been launched, with two world-class Italian companies invited to help develop the country's industry.

The invitation was made by Industry Minister Somsak Thepsuthin who spent last week in Italy studying the local leather industry, visiting distribution outlets and design houses in Milan.

Two major companies were invited to build a full-cycle tannery, from raw hides to finished leather, in Thailand. They are Conceria Beschin Gino S.P.A., one of Italy's most successful tanning companies, and the Salvatore Ferragamo fashion apparel group.

Mr Somsak said the local leather goods industry was hampered by the poor quality of raw materials, especially leather processed from raw hides. It is hoped that tie-ups with Italian tanners could turn this situation around.

As it stands, prohibitive investment costs mean few in the Thai leather industry can build factories themselves. But should Italian firms be reluctant to invest, then the government would step in to build tanneries, said Mr Somsak.

The Thai Leather Manufacturers' Association has lobbied the government to help improve the domestic industry. Its members have complained of losing trade to China, where many foreign companies have relocated to take advantage of lower production costs.