Chinese Firm Processed Tannery Waste for Export Sales
Manufacturers are turning industrial leather trimmings into gelatin and protein powder to capture new global supply lines.
Updated on Sept. 26, 2026 in Manufacturing
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Wenzhou Yuanfei Group established two facilities in Bangladesh that converted 15,000 tonnes of tannery waste into export products since last year. This operational shift generated $1.5 million in total export revenue.
Why it matters
By transforming leather waste into pharmaceutical-grade gelatin and protein powder, operators are creating value from industrial byproducts while mitigating environmental concerns linked to waste disposal. This model leverages regional waste streams to supply the growing international gelatin market.
Wenzhou Yuanfei Group invested Tk100 crore to employ 1,000 workers across two Bangladeshi firms that processed 15,000 tonnes of annual tannery waste. The operations generated $1.5 million in exports since last year, with gelatin capacity reaching 5,000 tonnes.
The players
Wenzhou Yuanfei Group
An industrial manufacturing group based in China that specializes in expanding production capacity into international markets.
JW Animal Protein Company Limited
A Bangladesh-based manufacturer established to process tannery waste into protein products.
Yongli Biotechnology Company Limited
A biotechnology firm registered in Bangladesh focused on converting leather-based byproducts into gelatin.
The details
The facilities utilize modern machinery and Effluent Treatment Plants to convert leather trimmings and wet blue dust into industrial protein powder and pharmaceutical-grade gelatin. In April 2025, the group solidified its collection strategy by signing a memorandum of understanding with a local waste treatment plant. This process converts low-value leather scraps into high-value exports, targeting markets in China, Cambodia, and Hong Kong.
Timeline
2023: JW Animal Protein Company Limited was established.
2024: Yongli Biotechnology Company Limited was registered in Bangladesh.
April 2025: The company signed an MOU with a local waste treatment plant.
September 26, 2026: Official report confirmed the $1.5 million export milestone.
Market Landscape
This development follows the trajectory of the $4.19 billion projected global empty capsules market for 2030, where manufacturers are increasingly vertically integrating waste processing to secure inputs. It marks a shift in how leather-producing regions monetize byproduct streams rather than treating them as disposal liabilities.
Operators in the leather and pharmaceutical supply chains should monitor whether waste-to-gelatin conversion models stabilize local input costs. Managers should also evaluate if their current waste disposal methods are losing value that could be captured through similar processing partnerships.
The takeaway
Turning industrial waste into high-value exports can unlock new revenue streams in emerging manufacturing hubs. Companies should review their waste logs to determine if their scrap volumes meet the thresholds required for similar protein-processing investments.
Further reading
For broader trends in production, see our Manufacturing section.
Source note: This article includes information reported by The Business Standard.
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