Reasons behind the project

The tanning industry is one of the most important industries in Mongolia, however it is still based on traditional practices, old facilities, equipment and technologies, leading to a small volume of yak hides suitable for entering the value chain. Based on that, the related sector in Mongolia is in a major need for increased attention to environmentally-friendly, green technologies and circularity of products.

The project will address some of the main problems/constraints of the yak leather sector in Mongolia in terms of: antiquated technology for processing leather; non-compliant products with international quality standards; out-dated infrastructure for waste treatment; and lack of skilled human resources, in order to enable the Vegetable Tanned Yak Leather Cluster to catch-up-with and keep abreast of the latest consumer demands and environmental imperatives.

 It will also foster the transition from the current linear business model towards a circular one, compliant with the global market requirements, in terms of environmental, cultural, and social sustainability, thus also contributing to the achievement of the objectives/priorities/goals of the “Green Development Policy of Mongolia and its Action Plan”, “Mongolia’s Trade and Investment Roadmap of Mongolia” (2019-2023) and the “Mongol Export Program”