Pig Skin Factory Delays Opening

KHMER TIMES
CHEA VANNAK

A worker processes pigs for ham in Spain. The skins will be exported. Reuters

Cambodia’s first pig skin processing factory owned by conglomerate Mong Reththy Group – which was set to kick off operations in late 2016 – has postponed its start date.

The factory has completed construction and will open before April, said Mong Reththy, president of the comany.

In March, the company said the factory was due to open later this year after obtaining legal permission to operate the business.

“Factory operations are delayed because we have not equipped the water and electrical systems yet. About five percent of the total work remains unfinished,” Mr. Reththy said.

“As far as I see, the factory will begin operating no later than Khmer New Year in April next year.”

Having started construction in late 2014, the plant is an $8 million joint venture between the Mong Reththy Group and a Chinese company that Mr. Reththy declined to name.

Located at the Mong Reththy Group’s private port in Preah Sihanouk province, the factory covers 6.6 hectares and includes a health clinic, workers’ accommodation and a canteen. Once operational, it will employ about 1,000 people.

After processing, the leather will be used in cars, on desks and to make wallets, belts, shoes, sportswear and handbags.

The factory will import pig skin as a raw material from Japan and European countries to supply the plant’s production process, he said.

“Here, pig skin is edible for Cambodians. However, in some areas of Japan and in the United States, they don’t eat pork with the skin, they remove it. So we import from them.”

Declining to reveal production levels per year once operations start, Mr. Reththy said the leather from the factory will be mostly exported to countries in Europe and Asia.

“We are continuously seeking new markets and we have distributors in Asia and in Europe,” he said.

Asked if any other companies have proposed a joint venture, Mr. Reththy said only his company and the Chinese company were running this type of operation in the kingdom.