Textile and garment manufacturers, who are trying to balance the domestic market shrinkage by strengthening the exports, are developing their existing structures with investment. In 2019, the sector will obtain significant gains with investments.
Despite the fluctuations in foreign exchange, it became clear that the textile and garment industries exports would grow in 2018. The net export figures of the sectors will be announced in mid-January. However, the data for the first 11 months of 2018 confirm the growth. In January-November period of 2018, the textile industry realized exports of 9.7 billion dollars while the garment and apparel industry exported for 16.3 billion dollars. For a yearly forecast, a total export of 30 billion dollars seems very likely. The textile industry closed 2017 with 10.1 billion dollars of exports and the garment industry with 17 billion dollars of exports.
Despite the increase in costs, the fluctuation in the exchange rates and the shrinkage in the domestic market; textile and garment manufacturers continue their investments for export-oriented manufacturing. A news article confirming this development was published in Ekonomist. According to the news prepared by Ayşegül Sakarya Pehlivan 28 companies in the textile and garment industry plan to make a new investment of 100 million dollars in 2019. The report says that with this investment; companies will increase their capacity by 10 to 30% and aim to create nearly 5,000 new jobs.
The investment of these companies is mentioned in this research completed in conjunction with Turkey Clothing Manufacturers’ Association (TGSD); Blok Moda, Çalık Denim, Dinateks, Emirali Tekstil, Era Denim, Ercem Tekstil, ETS Ezgi Tekstil, Işıksoy Tekstil, Inka Tekstil, Karahan Textile, Kiğılı, Koton, Mavi, Modateks, Müptela Tekstil, NGSTYLE, Orka Holding, Sarar, SMM Tekstil, Suglobal AS, Sun Holding, Taha Giyim, Telateks Tela, Texim, Tütüncüler Tekstil, THY Tekstil and Yeşim Tekstil.
Textile manufacturers create thousands of new job with million dollar investment
Çalık Denim stated in the list aims to increase its capacity by 30% with an investment of 8.4 million dollars in 2019; and to create employment for 342 people. Bursa-based Emirali Tekstil plans to create employment of 150 people with an investment of 8 million euros. Era Denim has an investment of 6 million euros in Çorlu OSB; İnka Tekstil 4 million TL in İstanbul Esenyurt and Genç Tekstil 1 million Euro investment in Yalova in their agendas.
There are serious investments in garment and retail industry. Brands that have stores in Turkey and worldwide draw the attention here. Kiğılı has allocated a budget of 10 million TL to open new stores in Turkey and abroad. Koton is also focused on opening new stores abroad. Pehlivan’s news points out that Mavi brand will invest up to 5% of their turnover in 2019. Orka Holding, which branches worldwide with its Damat, Tween and D’S brands, plans to create additional employment of 500 people with an investment of 80 million TL. Taha Giyim, owner of LC Waikiki brand; will provide additional employment to 550 people with an investment of 32.2 million TL in Malatya. Yeşim Tekstil, which manufactures for many important fashion brands; has set an investment budget of 12.7 million dollars for the five-year period of 2018-2022.
Giant Petkim investment
In addition to retail investments in the textile and garment industry; there are also significant investments in the raw material sector. Petkim, one of Turkey’s most important industrial powers, has commissioned a new investment last year. An investment of 50 million dollars was made in the PTA plant; which provides raw materials for textile and PET packaging. With this investment, the annual capacity of the factory increased from 70 million tons to 105 thousand tons. The feasibility study for the second petrochemical plant in Petkim’s Aliağa campus is expected to be completed in April 2019 and work is expected to begin in June.
Sanko Holding, which has invested 80 million for textile in 2018; announced that these investments in the scope of renewal and modernization will be operational in 2019. Tay Group, which has production facilities in Egypt and Algeria; announced that their 35 million Euro investment in Serbia will be operational in April 2019.
Investor interest in Turkey’s first and only Textile Specialized Organized Industrial Zone in Diyarbakır; which will be in operation this year, is said to be intense. Diyarbakır OSB will create employment for 10 thousand people.