Hermès buys d'Annonay tannery to protect supplies

FRANCE: Hermès buys d'Annonay tannery to protect supplies

By Stuart Todd | 11 January 2013

Hermès Cuirs Précieux, the tannery division of Hermès International, has taken control of its long-standing supplier, the Tannerie d'Annonay.

The value of the transaction has not been disclosed.

The French luxury brand said the acquisition was "part of a strategy to preserve and develop sources of supply and the expertise which they represent."

Located in Annonay in south-east France, the Tannerie d'Annonay has an 8,000 square metre manufacturing site and employs 80 staff. Best known for its Grison brand, more than 70% of the company's turnover is accounted for by exports.

Hermès' tannery division generated a turnover of EUR63m (US$84m) in 2011, an increase of 47% on the previous year.

It purchases, tans, dyes and finishes exotic skins and hides used in a multitude of products including leather goods, shoes, belts and clothing.

Sectors: Fibres & fabrics, Footwear, Manufacturing, Sourcing