Tanzania’s KLIL to boost its leather production capacity with $24.1 mln deal

Tanzanian leather maker Karanga Leather Industry Ltd. (KLIL) plans to boost its production capacity of leather products after it entered a 56 billion Tanzanian shilling ($24.1 million) deal with two Italian leather makers, TMC and Italprogetti, to set up four more plants.

The deal will increase the production capacity of footwear from 150 to 4,000 pairs per day, while sole manufacturing will increase from 800,000 to 1.2 million per year as well as more than 3,000 new jobs.

Further, the expansion project will enable KLIL to start a tannery plant capable of processing 13 million square foot of hides and make other leather articles amounting to 184,000 yearly.

KLIL, a joint venture between Public Service Social Security Fund and the Prison Department, said that the construction will start soon after the deals are signed and take 16 months to close.