Yes, it is permissible to use items made from
pigskin. Only eating pork is prohibited.
We know that the meat of a dead animal is prohibited. Once
the Prophet (sws) saw a dead goat rotting at a place. He expressed his wonder
and remarked that eating such an animal is definitely prohibited, but using it
for some other purpose like tanning its hide for use is perfectly allowed:
A goat was given in charity to Maymūnah’s maid. The goat
died. [It so happened that] the Prophet (sws) passed by. [Seeing the dead goat],
he said: Would that you had taken its hide, tanned it and then made use of it.
People said: It is a dead animal. At this the Prophet declared: Only eating it
is forbidden. (Muslim, Kitābu’l-Hayd)
The Prophet’ wife Sawdah reports:
One of our goats died. We tanned its hide. Then we used it
for storing nabīdh in it until it
became a [hard] drinking vessel. (Bukhārī, Kitābu’l-Imān)