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Textile production in Türkiye reached 70 percent of its production capacity after the earthquake
The Turkish textile sector continues to work towards recovery after the earthquakes that hit Kahramanmaraş severely shook Turkey on February 6 and affected 11 provinces. The Chairman of the Board of Directors of the Istanbul Textile and Raw Materials Exporters Association (ITHIB) Ahmet Oksuz, together with the members of the Board of Directors of ITHIB, visited Kahramanmaraş and Hatay and inspected the work done in the earthquake zones and the latest state of the industry at the site. Oksuz, who visits the factories and assesses the situation, said; “In the process that developed after the earthquake, 70 percent of production has been restarted. We continue to produce and add value to Turkey.”
The Chairman of the Board of Directors of the Istanbul Textile and Raw Materials Exporters Association (ITHIB) Ahmet Oksuz should be given incentives to return to the earthquake zone
Ahmet Oksuz emphasized that the textile sector was severely damaged by the earthquake disaster, and Kahramanmaraş, the epicenter of the earthquake, has an important place in the textile sector exports and is the largest city in Turkey in terms of production capacity. Oksuz pointed out that the companies in Kahramanmaraş, which is the main supplier of spinning and weaving for the Turkish textile and ready-to-wear sectors, suffered severe damage, and said that they have been working since day one to heal wounds and recover from them. He pointed out that the Turkish textile sector is among the leading countries in the world with modern production infrastructure and integrated production strength, and continued his words as follows:
“We have a strong production and export network in all sub-product groups in our sector. It is very important to support factories and producers in the earthquake-affected areas. Unfortunately, there are still companies in earthquake-affected areas that cannot operate at full capacity because they cannot provide employment. In this context, in order to increase employment opportunities in the earthquake-zone, no deductions should be made from the taxes paid by our workers, and additional incentive mechanisms should be developed to increase reverse migration. We need these incentives in order to maintain our position and competitiveness in the world. I would say that we are one of the most important sectors in Turkey, not only with our production strength or exports, but also with our ability to work, we will continue to contribute to our country and our nation in the future.
“We cannot reflect our costs into the product price like the textile sector.”
Ahmet Oksuz reminded that the Turkish textile industry ended 2022 with exports amounting to $12.9 billion and exported $4.9 billion in the first 5 months of 2023, and said that they aim to maintain the current level by achieving $13 billion in exports at the end of the year. Pointing out that the priority of the textile sector is not to lose its market share in international competition and to increase its share in the global market, Oksuz stressed that the sector is facing difficulties due to the increase in production costs. He said, “Production costs are one of the most important issues affecting our textile sector. As a sector, we have conveyed to our ministries that energy costs have reached a level that will stop the production of our companies. Thanks to our government, energy prices have been reduced to relatively reasonable levels with successive improvements. However, increasing the minimum wage is also one of the issues affecting our sector. Our production costs are much higher than our competitors in Asia, North Africa and Turkic Republics. Unfortunately, we cannot reflect these costs to our global customers. Because there is a contraction in demand on a global scale.”
İTHİB Chairman Ahmet Oksuz, together with the members of the Board of Directors, visited Kahramanmaraş and Hatay and inspected the recent situation of the industry on site “Urgent measures must be taken against subsidized imports”
And Ahmet Oksuz, in a statement that China suffered great damage, especially in the European and American markets during the epidemic process, indicated that China supported its companies at very important levels in order to maintain its share in its current markets with the end of the epidemic. He said, “They are acting very aggressively. China’s subsidies not only affect our exports, but also our production in the domestic market. China also exports a very important level of textile products to Turkey. In 2022, unfortunately, we had a foreign trade deficit of more than $2 billion. Moreover, our textile sector has always been a source of pride for Turkey with its foreign trade surplus; the sector that brought foreign currency to Turkey.” In this context, Oksuz explained that their expectations from the ministries are to protect employment and production capacities established with billions of dollars’ worth of investments by taking urgent action against imports.
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