Business as usual at Zenda Leather5 October 2009
Following the purchase of 51% ($49.5 million) of Zenda Leather by large Brazilian beef processor, Marfrig, in September more detail has emerged as how the company will operate. For customers of Zenda Leather, which has tanneries in Uruguay, South Africa and Argentina, they should see little or no difference in the senior management or day to day operations a source told Leather International.
However, over time, Zenda will aim to use its influence with Marfrig to improve flaying techniques, animal husbandry and raw material quality directly at Marfrig’s meat processing plants, particularly in rural areas. They hope to use their experience in the tanning business to improve hide quality/traceability and remove or reduce damaging practices such as fire branding. Ultimately, to improve the overall finished leather quality from the tanneries by using higher quality raw material.
Marfrig, the world’s fourth largest meat processor, own four meat plants in Uruguay and a further five in Argentina as well as their Brazilian operations.
Marfrig approached Zenda Leather to buy a stake in the business, as they wanted to move into leather processing. Zenda Leather, headquartered in Montevideo, have a strong reputation as a leading international tanning group specialising in upholstery leather, founded and owned by the Branaa family.
Zenda have no plans to expand their tannery operations in the foreseeable future said the source.