Orta Anadolu Ticaret ve Sanayi İşletmesi T.A.Ş., a 73-year-old company with deep roots in the Turkish textile and denim industry, has announced its decision to end production operations in Kayseri. According to a statement issued by the company, production activities in Kayseri were halted as of September 11, 2026, while all production facilities will be fully closed by October 12, 2026.
Founded in 1953 and supplying premium denim fabrics to some of the world’s leading fashion brands since 1986, Orta Anadolu’s decision is regarded as one of the most striking examples of the challenges facing Türkiye’s textile industry in recent years.
Global pressures bring sustainability to an end
The company cited the mounting economic pressures affecting the global textile industry in recent years as the main reason behind its decision. The statement noted that weakening demand, rising operating costs, higher financing costs, supply chain volatility and shifting trade dynamics had made its production model unsustainable.
Orta Anadolu’s management stated that numerous alternatives had been considered, including cost reduction initiatives, operational efficiency measures, and restructuring evaluations. However, it concluded that current operations was no longer sustainable under current economic conditions.
A symbolic loss for the Turkish denim industry
The decision represents more than the closure of a single factory. It also raises important questions about the global competitiveness of Türkiye’s denim industry.
Having been part of the supply chains of some of the world’s best-known denim brands for many years, Orta Anadolu was regarded as one of the industry’s benchmark companies, recognised for its sustainability investments, innovative fabric development and high-value-added production model. The Kayseri-based manufacturer had made a significant contribution to Türkiye’s international standing, particularly in the premium denim segment.
Over the past two years, industry representatives have repeatedly drawn attention to the increasing impact of shrinking demand in the European market, high energy and labour costs, and competitive pressure from the Far East and North Africa on Turkish manufacturers. Orta Anadolu’s decision is now seen as one of the clearest indications that these pressures are directly affecting even the industry’s most established, high-value-added players.
Company: All obligations will be fulfilled
Orta Anadolu emphasised that the closure process would be conducted in close cooperation with its stakeholders. The company stated that its existing commercial obligations would be fulfilled in a transparent and responsible manner.
The management also thanked the employees, customers, financial institutions and suppliers who contributed to the company’s 73-year journey, stating that it would continue to act with a sense of corporate responsibility throughout the process.
Could this signal a new era for Türkiye’s textile industry?
Orta Anadolu’s decision to withdraw from production has reignited discussions about the need for structural transformation in Türkiye’s textile and apparel industry. At a time when many companies in the sector are undergoing capacity reductions, production relocations and financial restructuring, the closure of a manufacturer of this scale highlights the depth of the crisis.
Experts say stronger policies concerning financing, energy costs, export incentives and access to new markets will become increasingly important in safeguarding the industry’s competitiveness in the period ahead.
The closure of Orta Anadolu does not merely mean bidding farewell to one of the pioneers of Türkiye’s denim industry. It also stands as one of the strongest examples of the impact that the transformation of the global textile industry is having on Turkish manufacturers.
Full text of the company’s September 11 statement titled “Closure of the Kayseri Production Facilities”:
Dear Valued Customers and Business Partners,
Founded in 1953, Orta Anadolu Ticaret ve Sanayi İşletmesi T.A.Ş. has played a pioneering role in industrial production and has been supplying high-quality denim to the world’s most iconic global brands since 1986.
In recent years, the global textile sector has faced severe headwinds, including weakening global demand, rising operational and financing costs, supply chain fluctuations, and shifting trade dynamics. Despite our comprehensive efforts—such as cost reduction initiatives, operational efficiency measures, and restructuring evaluations—unfortunately, it has been concluded that the current operational model is no longer sustainable under these economic conditions.
Consequently, our Board of Directors has made the extremely difficult decision to discontinue operations at our Kayseri facilities.
Within this framework, our production activities have been suspended as of September 11, 2026, and all our production facilities will be closed as of October 12, 2026.
We would particularly like to emphasize that throughout this process, we will work in close cooperation with all our stakeholders to fulfill our existing commercial obligations responsibly, transparently, and in alignment with our corporate values.
We extend our deepest gratitude to all our employees who have contributed to this 73-year journey, as well as to our customers, financial institutions, and suppliers for their trust, loyalty, and support.
Sincerely,
Orta Anadolu Ticaret ve Sanayi İşletmesi T.A.Ş.