The most significant area of production in Safranbolu was leather and leather goods. There is no records as to when leather production actually began in Safranbolu. It can be assumed however that the valley of the Tabakhane stream has been used for leather-tannig, being extremely suitable from many aspects: the topography both conceals the unattractive sight of the tannery and prevents the unpleasent odours from reaching the mean settlement areas while the stream provides a natural recipient for contaminated water. The Ottomans were at a considerably advenced level in leater manufacturing until the end of the 18th century.
Mordtmann notes that leather manufacturing had an economic value for Safranbolu in 1852 and 84 tanneries are listed in 1890. Considering that the population was around 7500 during the same period, leather tanning appears to be a very intensive area of manufacture. Being somewhat protected from external influences along with the delayed impact of industrialization on leather manufacturing this line of production continued to prosper in Safranbolu up to the middle of the 20th century. Although the guilds were abolished by law in 1910 it was quite some time before their influence within the traditions died out.
Later the export of partly treated leather to Europe became profitable and many a rich merchant emerged from amongst those in this trade. According to the booklet published by the Safranbolu Chamber of Commerce and Industry, 415 workers were employed in a hundred tanneries. 430 people worked as shoe-makers, slipper-makers and in leather tailoring. Semi-manufactured leather of various kinds, graded from very fine to coarse leather worth 84.600 Ottoman liras were exported while 17.900 Ottoman liras worth of glazed and patent leather was imported from Europe. Hides of cows, bulls, goats and sheep worth 56.000 Ottoman liras were purchased from the area. There were 16 merchants dealing in leather goods in general and 5 merchants dealing specifically in footwear.
During the same years the Safranbolu Tanners Company was about to complete a leather factory which unfortunately functioned for only a very short period. The change of fashion in footwear and the mass production of less costly rubber shoes for the villagers decreased the importance of shoe making. The semi-manufactured leather products products could not compete with the products of the factories established in various places in Anatolia. Finally, the establishment of the nearby Iron and Steel Factory nearly brought an end leather manufacturing.
The Tannery: It is situated within a valley along a stream, the Tabakhane which means tannery. It has its own mosque and coffee-house . The chemical content of the water springing from beneath the mosque is suitable for tanning. The hides left in natural or man-made pits alongside the valley mature within a certain period of time. Tanning is a time consuming and wearying job. Those working in this field were organised within the guild system.
The best raw hides gathered from the area were transformed into leather of the finest quality after being treated. Traditional methods were employed in leather treatement. Today there are two workshops using the traditional methods which operate from time to time along with two others utilizing machinery. The leather treated in the tanneries was purchased by the shoemakers, saddlers and manufacturers of leather goods.