The Leather Works is a workshop which produces leather items out of tanned hides, made at the tanner's shop. These items include armor, backpacks, waterskins, and quivers for military dwarves, as well as clothes and bags for civilian use. Leather armor is typically less protective than metal armor, but is lighter and thus better for initial armor wearing training or for squads that require speed over defensive ability.
Decorating finished goods with leather is also done at this workshop.
Crafts made from leather are made at the Craftsdwarf's workshop, and not at the Leather works.
 See also