An electro-coagulation laboratory scale system using aluminium plates electrodes was studied for the removal of organic and inorganic pollutants as a by-product from leather finishing industrial process. A fractional factorial 23 experimental design was applied in order to obtain optimal values of the system state variables. The electro-coagulation (EC) process efficiency was based on the chemical oxygen demand (COD), turbidity, total suspended solid, total fixed solid, total volatile solid, and chemical element concentration values. Analysis of variance (ANOVA) for final pH, total fixed solid (TFS), turbidity and Ca concentration have confirmed the predicted models by the experimental design within a 95% confidence level. The reactor working conditions close to real effluent pH (7.6) and electrolysis time in the range 30-45 min were enough to achieve the cost effective reduction factors of organic and inorganic pollutants' concentrations. An appreciable improvement in COD removal efficiency was obtained for electro-coagulation treatment. Finally, the technical-economical analysis results have clearly shown that the electrocoagulation method is very promising for industrial application. © IWA Publishing 2009.