PT.DAEHWA LEATHER LESTARI Jun 2002 PT. Daehwa

Contents: Company Profile Location Map Capacity and Main Items Wet Blue(Raw material) Process Flow Chart Technical Center The goal of our company References Jun 2002 PT. Daehwa

1. PT.DAEHWA is the tannery producing finished leather mainly suede split and PU coated leather from imported wet blue, and supplies the leather to shoes factory 2. We can deliver to most of the shoes factory in Jakarta or nearby within 2 hours owing to it’s location in Bekasi 3. We are and always have been trying to keep quality as well as price competitiveness by avoiding the loss in production and proper management to support the shoes industry. Jun 2002 PT. Daehwa

Company Profile : Establishment : 1994 (Start production Jul 1994) Main Items : Suede Split and PU Coating Leather Prod Capacity : Total 2,000,000ft2 per month Land : 15,000 m2 Building : 8,000 m2 Factory Location : Lippo Cikarang Industrial Estate Bekasi, Indonesia(40 mins from Jakarta) Employee : Total 195 ( including 5 expatriate) Contact : PT.Daehwa Leather Lestari Phone (62-21) 897-2008 (Hunting) Fax# (62-21) 897-2011 E-mail daehwa@cbn.net.id Jun 2002 PT. Daehwa

Bekasi International Industrial Estate Block C-10 No. 6, Lippo City Lemahabang, Bekasi 17550 Location Jun 2002 PT. Daehwa

Capacity and main Items 1. Suede Split: 1,000,000 SF / month SSP : Silky & soft touch(Double dyeing process) DH-Strongbuck : Short nap based on SSP from Croupon Wax Top : Special oil treated suede split 2. PU Coating Leather: 1,500,000 SF / month G-3 series : Very Soft, smooth touch and no orange peel Nubuck type : Laminate with ready-made PU film (wet process) HWP : Waterproof action leather Jun 2002 PT. Daehwa

Capacity (1 Shift) Machine No SF/8hrs Remarks 1.Drum Wood 4 30,000 700kg/dm Stainless 2 32,000 1600kg/dm Pilot 10 2.Shaving 1800mm 2 35,000 600mm 1 5,000 Small size 3.Buffing 1800mm 4 60,000 4.Drying Vacuum 1 20,000 3 tables Hot Plate 9 30,000 2x5m Toggle 2 50,000 5.Laminate 2000mm 1 40,000 5m/min Jun 2002 PT. Daehwa

Wet Blue as our raw material To meet constant quality and good fiber structure, we are very careful in choosing and selection of our raw material. 2. We trim the shoulder and the belly part off to make Croupon(D+E) which is the best part of the hide before starting the process, as shown on the right picture. Jun 2002 PT. Daehwa

Our Resources of Wet Blue USA Argentina China S Africa Jun 2002 PT. Daehwa

Process Flow Chart Splitting Shaving Wet Blue General Dyeing Drying Buffing Laminating 2nd Dyeing Ageing PU Coated Leather Suede Split Nubuck Drying Inspection Inspection Jun 2002 PT. Daehwa Measuring Measuring

Technical Center A. Laboratory B. R & D Works C. Sample Works Jun 2002 PT. Daehwa

A). Laboratory Works 2. Chemical comparison test - For better quality 1. Testing of the leather - Physical - Chemical 2. Chemical comparison test - For better quality - To achieve price-competitiveness. 3. Check the Qualities in Process - pH, temperature - Color & Touch - Thickness - etc. 4. Data file Jun 2002 PT. Daehwa

5. Testing works in Laboratory Tensile Strength Crocking fastness Waterproof Light fastness Flexibility of the grain Fat content analysis Bursting Strength Abrasion Softness Thickness Other chemical properties of leather Chemical test Water pollution test Jun 2002 PT. Daehwa

B). R & D Works 1. Development of new articles Technical Center B). R & D Works 1. Development of new articles - With the help from the chemical - Chrome free leather. - Water Transfer System for PU lamination - Development of Indonesian hide - Others & etc. 2. Pre-trial before main prod. -Color matching & quality test prior to main application 3. Sample works - Quick delivery : 3-5days - Equipment : Sample drum 10 Finishing for sample 4. Sample swatch book room Jun 2002 PT. Daehwa

The goal we are going : 1. Supply the reliable and confident quality 2. Delivery on time 3. Continuous communication with the shoes factories for better and quick after-service. 4. Well organized R&D system to meet new fashion and demand 5. Integrated QA system to keep the consistent quality and on time delivery Jun 2002 PT. Daehwa

References 1. What is tanning? 2. Glossary 3. Hide Part Jun 2002 PT. Daehwa

What is ‘Tanning’ ? Term of ‘tanning’ is from the tannic acid of vegetable extracts. The purpose of tanning: - Resistant to heat and putrefaction - Fullness of the leather by filling effect of tanning materials Kind of tanning : - Mineral Tanning ; Salts of Chromium, Aluminum and Zirconium - Vegetable Tanning ; Mimosa, Chestnut - Aldehyde Tanning ; Glutaraldehyde, Formaldehyde - Oil Tanning ; Fish Oil Chrome free Tanning: Tanning by using tanning material other than chrome salt. We are trying it continuously with the help of chemical company to develop the chrome free leather. Chrome free leather tested in our Lab. Jun 2002 PT. Daehwa

Glossary (1) Raw Hide : Usually salted or dried condition Wet Blue : Chrome tanned state Crust : Leather which has been tanned, fatliquored and dried but not finished Finished Leather: Finished and ready for use Grain : The upper side of the hide with grain(Hair side) Split : The Lower side of the hide with flesh Full Grain : This leather possesses the genuine original grain of the animal Corrected Grain:The outside skin is sanded or abraded to minimize faults and defects of the hide Nubuck : Very slightly buffed on the grain side to get a soft and velvet feel Jun 2002 PT. Daehwa

Glossary (2) Suede Split :Leathers that are usually dyed and finished by buffing the split leather. Suede : Leather that are finished by buffing the flesh side (opposite the grain side ) Chamois : Oil tanned leather Hide and Skin : Hide is big animal, whereas, skin is small animal Aniline : The name given to the particular transparent dye used to color dyed leather Drum dyed : The application of dye stuffs to leather by the immersion of the leather in a drum that is tumbled Naked Leather : A leather with no surface treatment of finish other than dye matter which might mask or alter the natural state of the leather Jun 2002 PT. Daehwa

Hide Part Head A Shoulder B + C Belly F or G Bend (Butt) D or E Side A+B+D+F or A+C+E+G Back B+D or C+E Croupon D + E Crop A+B+D or A+C+E Cullata D+E+F+G Jun 2002 PT. Daehwa

Characteristic Part of Hide Head and Shoulder : Loose, showing growth mark thick Belly : Loose structure, thin Croupon : The best part of the hide in respect to tightness and firmness of the leather. Relatively uniform in structure and quality. Split suede is usually made out of Croupon. The area percentage of the part - Head & Shoulder ; about 20-25% - Belly ; about 20-25% - Croupon(Butt) ; about 45-55% Jun 2002 PT. Daehwa

We work together : For the consistent and improving Quality. For the confident products. For the increased productivity For the welfare of the peoples Jun 2002 PT. Daehwa

Thank you The faith of our company The manufacture of leather with a deservedly high reputation does not depend on secret formulae - so highly prized by our forefather - but on balanced and integrated staff working based on a high degree of mutual confidence Thank you PT.DAEHWA Jun 2002 PT. Daehwa