President Khurelsukh to Launch "White Gold" National Campaign to Boost Light Industry
Ulaanbaatar, April 5, 2024 /MONTSAME/. President of Mongolia Khurelsukh Ukhnaa worked at "Best Shoes" LLC and "MON-IREEDUI" LLC on April 4, 2024.
The two factories form a cluster and manufacture final products with leather and raw materials of animal origin. President Khurelsukh Ukhnaa is set to launch the "White Gold" National Campaign to revitalize the light industry, aiming at stimulating the economic circulation of animal-originated raw materials, creating new jobs in the light industry sector, increasing the production of value-added goods, boosting herders' incomes, and improving their livelihoods. The "White Gold" National Campaign will give a strong impetus to enhancing legal, investment, financing, tax environments, and raw material processing systems, improving the utilization of the factories' current production capacity, modernizing technologies and equipment, and increasing the share of the light industry in the domestic and international market.
With a successful implementation of the National Campaign, sales revenue of the cashmere industry is estimated to rise 4-5 times, while sales revenue of leather, hide, and sheepskin could see a 2-3-fold increase. Officials of companies and professional associations identified the preconditions for achieving goals as improving raw material quality, establishing an animal registration system, strengthening partnerships between herders and manufactories, creating an integrated system for raw material management (preparation, supply, processing, and production), and implementing personnel training programs.
The "Food Supply and Security" National Campaign enabled enterprises that received loans for leather and hide preparation and production to procure raw materials and auxiliary materials exceeding MNT 14 billion in 2022. The enterprises also invested over MNT 1.2 billion in fixed assets and paid taxes totaling more than MNT 2 billion. Furthermore, newly acquired equipment for processing food and agricultural raw materials, to be registered as fixed assets of the factories, has been granted a 100 percent customs duty exemption until January 1, 2027. This tax exemption applies to 426 types of equipment.
In Mongolia, approximately 44 thousand people are employed in over 3,200 enterprises and factories in industries including wool, cashmere, leather, wood, wooden furniture, clothing, printing, packaging, recycling, cosmetics, and household chemicals.
“Best Shoes” LLC
The “Best Shoes” LLC was founded in 2001 and manufactures, repairs, and sells shoes, bags, and other leather goods. Now employing over 100 people, it has become a leading company in the Mongolian footwear industry. In 2024, the company introduced the country's first automatic Shoe Sole Injection Molding Machine.
“MON-IREEDUI” LLC
“MON-IREEDUI” LLC processes hides and skins into semi-finished goods. The Company also produces various types of leather, including soft leather and inner shoe leather from small cattle, shoe upper leathers, and leather and hides for bags from large cattle. First in the industry, "MON-IREEDUI" LLC implemented the ISO 9001 International Quality Management System standard in 2020, advancing the development of Mongolia's leather industry.
