Leather cloth is cloth not made from wool or cotton like Cloth but from the leather from animals.
Leather cloth is used to fulfill the clothing need of your Pig's.
Leather cloth is made by the Tanner.
It takes one unit of Leather to make one unit of Leathercloth.
Leathercloth is important as a clothing need for your population but also as a resource needed to recruit: Snout, Eagle Warrior, Pitsotl, Axepig and Bowpig. These units are all found during the stone to copper age. and having a stach of leathercloth ready to recruit an army will never hurt in turbulent times.