Chanel Will Buy French Leather Factory To Strengthen Control Over Supply Chain.

The French luxury brand Chanel (Chanel) will acquire Degermann from the French tannery.
Degermann is a tannery specializing in the production of French calf leather. It was founded in 1832 and is located at Barr, 35 kilometers south of Strasbourg. It is one of the few and still active tanneries in Alsace, France. Half of its business comes from exports. The main exporters include Italy, Germany, the United States, China and Switzerland.
At the Lineapelle Trade Fair held in Milan in from October 2nd to 4th, Degermann revealed that the negotiations between the two sides are proceeding smoothly and it is expected that the deal will be finalized by the end of 2019.
Through this acquisition, Chanel will further strengthen its supply chain. Chanel has already undertaken a series of measures in this regard, including the full acquisition or partial acquisition of controlling shares of local manufacturers, and the construction of its own leather workshop. In September 18th, Chanel (Chanel) was held in Paris's Verneuil-en-Halatte leather workshop, laying the foundation for the expansion project. (see "ornate ambition" previously reported: Chanel expansion of leather workshop in northern Paris, will be completed by the end of 2020)
Since August 2018, Chanel has acquired the French company Haas and Spanish Company Colomer Leather from Spain. In July last year, it acquired the majority stake in its printing and embossing leather supplier, the tannery Conceria Samanta in Tuscany, Italy. In order to integrate expertise within the group's supply chain, Chanel also invested in acquiring a minority stake in Swiss watch specialist Kenissi and Sulapac, a biodegradable material producer in Finland.