Chinese Firms Transformed Tannery Waste Into Exports
Factories in Bangladesh processed leather byproducts into protein and gelatin for global markets.
Updated on Sept. 26, 2026 in Manufacturing
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Chinese-backed firms in Bangladesh have successfully converted tannery waste into industrial protein powder and pharmaceutical-grade gelatin. The operations, which started in 2023, have generated $1.5 million in export revenue since last year.
Why it matters
These manufacturing efforts turn environmental liabilities into high-value exports while reducing pollution from open dumping. The initiative leverages local leather waste to feed the growing international demand for protein and capsule materials.
The Wenzhou Yuanfei Group invested Tk100 crore in facilities that collect 15,000 tonnes of tannery waste annually. The factories maintain an annual production capacity of 5,000 tonnes of gelatin.
The players
Wenzhou Yuanfei Group
This Chinese firm invested Tk100 crore into Bangladeshi manufacturing facilities to process industrial leather waste.
JW Animal Protein Company Limited
Established in 2023, this company processes tannery byproducts into protein and gelatin products.
Yongli Biotechnology Company Limited
This company was registered in 2024 to assist in the conversion of industrial waste into exportable goods.
The details
Using modern machinery and Effluent Treatment Plants, these companies process leather trimmings and wet blue dust collected at the Savar Tannery Industrial Estate. The group plans to expand exports to the US and Turkey, capitalizing on a global empty capsules market projected to reach $4.19 billion by 2030.
Timeline
JW Animal Protein Company Limited was established in 2023.
Yongli Biotechnology Company Limited was registered in Bangladesh in 2024.
The companies signed a waste collection MOU in April 2025.
The $1.5 million export milestone was reported on September 26, 2026.
Market Landscape
These operations represent a broader move to integrate Bangladesh into the high-value pharmaceutical and industrial supply chain. This manufacturing strategy positions the companies to capture market share in the projected $4.19 billion global empty capsules sector by 2030.
While these operations focus on industrial exports, the reduction of tannery waste in the Savar region improves local environmental conditions. Consumers may eventually see these materials used in pharmaceutical and health products globally.
The takeaway
Turning industrial waste into valuable raw materials serves as a model for sustainable manufacturing in emerging economies. This approach effectively offsets environmental damage while building a competitive advantage in the international protein market.
Further reading
Learn more about the latest developments in the Manufacturing sector.
Source note: This article includes information reported by The Business Standard.
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