On a completely off-topic note, thanks to all the advertising links, I just found out that
Vexx is a platformer videogame for PS2, XBox and Gamecube.
It doesn't make sense to skin an animal while it's alive. Like others have pointed out, you are far more likely to damage the fur while the animal is alive and struggling. Now, the Chinese do cook some animals while its still alive, because it'd taste fresher that way, but that's an entirely different story. Similarly, Japanese sushi chefs fillet eels and other fish while they're still alive, to retain freshness.
It's the same kind of "cruelty", but for different reasons. That said, this particular tanner would probably need to be investigated further. Anything to do with meat or fur is likely to involve some cruelty. It's a matter of how much you can avoid.