Tasman installed a $1.8 million chromium extraction plant in 2018, but it has had teething problems.
The company was making a further investment of nearly $1.5m to extend its treatment plant to capture not only chromium but other waste such as fat and sulphides much more thoroughly, Dyer said.
Its chromium output should also be reduced by a new contract to process 1.8 million sheepskins from Silver Fern Farms meatworks in Takapau and Waitotara. Most of them will be semi-processed for export rather than tanned, and tanning them will not require chromium.
The new contract is not an expansion of the plant. Instead it replaces another contract.
The council's wastewater limits were not providing the only pressure on the company. Tasman Tanning was working toward international acceditation with the international Leather Working Group. It wanted to achieve silver medal status, and had to reduce its environmental impact to achieve that.
Its new dyehouse equipment was costing $2m, and would reduce water use and waste by about 15 per cent, Dyer said.
Tasman's Timaru plant, bought in December 2019, is also to construct a new waste treatment system.