Increase of input and rising raw material prices in the textile industry, shortages in supply accelerated textile investments, especially yarn. According to official gazette data, it was seen that investment incentive certificates were awarded in the first quarter of 2021 in the yarn segment of 3 billion 500 million TL. With the success of the investments, the production capacity, which was 5 million tons, will increase by 16.6 percent to 5 million 830 thousand tons. Speaking to Dünya Newspaper, sector representatives stated that they expect this trend to accelerate.
What did the industry representatives say?
2,700 machines were ordered
Knitters, the upsetting industry branch, suffered the most from raw material price increases and supply shortages. Fikri Kurt, President of the Knitting Industrialists Association, reminded that they suffered most from raw materials up until March.
Expressing that many exporters could not meet foreign market demand in prices, especially due to the increasing prices, Kurt said that many companies having difficulty in accessing raw materials in this period press the button for investment. Kurt said, “Almost 60 companies shown an interest to install yarn facilities. . In the knitting sector, as a consequence of workload and traffic, 2 thousand 700 knitting machinery orders finalized. Amongst, one thousand 700 of them were delivered.’’
An investment of 50 million Euros from Kipaş
Ahmet Öksüz, Chairman of the Istanbul Textile and Raw Materials Exporters' Association (İTHİB), underlined that the Turkish textile sector, which has a yarn production capacity of approximately 5 million tons, has put into use large-scale yarn investments in the last six months. Öksüz emphasized that many companies have entered into investments with the effect of the increasing demand for yarn. One of these companies is Kipaş.
Ahmet Öksüz, who is also the Vice Chairman of the Board of Directors of Kipaş Holding said, “We also embarked on a great investment. We are in an investment stage to bring in 50 million Euros to supply for 150 tons of cotton yarn daily production. Our investments in Kahramanmaraş will be active next year.’’
China's hegemony will be challenged
Hayati Ertuğrul, President of the Aegean Clothing Industrialists Association, is another name who said that the problems in the field brought along investments. Drawing attention to the fact that raw material prices in Turkey have increased well above the world, Hayati Ertuğrul said, “For this reason, very large companies have drawn into investment bargain. This will significantly reduce foreign dependency in raw materials. It will also challenge Chinese hegemony."
