Elmo Leather, one of the world’s ten largest manufacturers of exclusive leather for international furniture and automotive industries, have decided to concentrate production at the company’s factories in Sweden and Denmark. Production in the US will be discontinued and the company’s American subsidiary restructured as a sales and marketing organisation serving the north American market.
Elmo’s board has also decided to cease production of all leather products in north America that lack global market potential. The objective is to strengthen Elmo’s brand name in the international marketplace so that customers clearly associate the company with the most exclusive leather products.
‘This is a wide decision, both industrially and commercially’, says Nalle Johansson, president and ceo of Elmo Leather in Svenljunga, Sweden. ‘We will concentrate production and intensify our focus on exclusive furniture and automotive leather, which is the most profitable niche. We will underpin Elmo’s position as a dominating global player in this market.’
Johansson adds, however, that the closure of the production plant in the US does not mean that the company will reduce their activities there. ‘We will purposefully continue to support the north American market through a forceful sales and marketing organisation in the US under Stefan Brunander’s leadership’, she said. The American subsidiary currently employs about 110 people, the majority of which will be made redundant once production is discontinued.
Elmo believe that it is more advantageous for them to concentrate production in Scandinavia. Raw hides are primarily bought in northern Europe where Elmo believe the cool climate and good animal care practices ensure exceptional hide quality and the distance between supplier and manufacturer is consequently reduced.
