ANKARA: The textile sector of the country known as major player of the export has began to feel the affects of the crisis due to the competition against China regarding high taxes and high valued YTL, sources said here on February 27.
The sector representatives are going to meet the PM of the country on 28th Feb to seek solution against problem erupted due to closure or movement of factories abroad. Nearly eleven factories were closed in Gaziantep while Akkok Group halted the production in its factory in Yalova further showing huge affects on big companies in the country.
The owner of Yesim Textile Company announced that he may also have to lay off 15,000 employees. Further Abdulkadir Konukoglu, owner of Gaziantep centered Sanko Holding, gave leave without pay to its employees. Also Izmir Fabric Industry and Izmir Cotton Textiles halted their production, displaying the severity of the crisis. The factory of Ren Holding, which belongs to Giraud Family, was one of the oldest factories of Turkey.
Ready wear constitutes 18 pct of total textile export of the country which stands at $73,400 million. Further Ready Wear and Confection realized $13,095 million export in 2004 and this number reached $13,700 million in 2005 increasing by 4.68 percent.
The comparison of the statistics of last year and two years ago reveals the stagnation the sector is suffering from as textile and raw material export was $4,500 million two years and further reached $4.8 billion showing increase of 6.5 pct.
Textile and raw materials realised a 24.88 pct increase whereas Ready wear and Confection sector had realised a 14.01 increases in 2004 as this negative picture results in the companies?moving their investments abroad. Nearly twenty companies preferred to make their investments abroad in the 2003-2006 periods.
The manufacturers in the main industry began to move their investments abroad effecting 50 pct decrease in endorsements is the reason of slow down in the increase of the export rate intensified the worries of the textile and ready wear sector about the crisis.
