While stating that the textile industry, which suffered huge losses after the earthquake, has been working with great effort since the first day for the recovery, İstanbul Textile and Raw Materials Exporters' Association (İTHİB) Chairman of the Board Ahmet Öksüz made a speech during the visits achieved to Kahramanmaraş and Hatay with İTHİB Board Members. Ahmet Öksüz, “Under the condition which has become a reality after the earthquake, 70 percent of the production was recommissioned. We continue to produce and add value to Turkey.”
İstanbul Textile and Raw Materials Exporters' Association (İTHİB) Board of Directors examined the works done in earthquake zones and the most recent circumstances of the industry on site. With the participation of İTHİB President Ahmet Öksüz and İTHİB Board Members, factory visits were achieved in Hatay and Kahramanmaraş and examinations were conducted.
70% of the Production was Commissioned with Cooperation
While pointing out that the textile industry suffered greatly from the earthquake disaster, Ahmet Öksüz said, “The center of the earthquake, Kahramanmaraş both has an important place in the exports of the textile industry and is the largest city in our country as a production power. In Kahramanmaraş, which is the main supplier of yarn and fabric to the Turkish textile and ready-to-wear sectors, our companies suffered greatly. However, we have been continuing our work since the first day to heal our wounds and to recover. Under the condition which has become a reality after the earthquake, 70 percent of the production was recommissioned with the support of our state and our industry. We continue to produce and add value to the global textile industry and Turkey. As the Turkish textile industry, we are ranked amongst the few countries in the world with our modern production infrastructure and integrated production power. We have a strong production and export network in all sub-product groups of our sector. It is of great importance to support the factories and manufacturers in the regions which affected by the earthquake. Unfortunately, we still have businesses that cannot come into operation at full capacity because they cannot provide employment in earthquake zones. In this context, not making deductions from the taxes paid by our workers in order to increase employment in the earthquake region; additional incentive mechanisms that will increase reverse migration need to be developed. We need these supports in order to maintain our position and competitive power in the world. I would like to say with a confidence that we are heading one of the most important sectors in Turkey, not only with our production power or exports, but also with our employment capacity. We will continue to contribute to our country and nation in the next period as well.”
''We Cannot Reflect On Our Costs''
While reminding that the Turkish textile industry closed the year 2022 with an export of 12.9 billion dollars, Ahmet Öksüz said, “We are the fifth largest supplier in the world on a global scale and the second largest supplier in the EU. In the first 5 months of 2023, we achieved 4.9 billion dollars exports. We aim to maintain our current level by exporting 13 billion dollars worth of exports by the end of the year. As the textile industry, our priority is not to lose our market share in international competition and to increase our share in the global market.” While undelining that they are experiencing difficulties due to the increase in production costs as a sector, Ahmet Öksüz said, “Production costs are prevailing of the issues that affect our textile sector. As a sector, we have passed on message to our ministries that energy costs have reached a level in which our companies may have to stop their production. Thanks to our state, the energy prices have reduced to relatively modest levels with successive interventions. In addition, the minimum wage increase is the prevailing of the issues that affect our sector as well. Our production costs are much higher than our competitors such as Asia, North Africa and Turkic Republics. Unfortunately, we cannot reflect these costs to our global customers as well. Because there is a contraction in demand on a global scale as a reality."
Immediate Measures Should Be Taken Against Subsidies for Imports
Ahmet Öksüz stated that during the pandemic period, China experienced huge losses, especially in the European and US markets, and continued as follows; “With the end of the pandemic, China is subsidizing its companies at very significant levels in order to maintain its share in its current markets. They act very aggressively. China's subsidies not only affect our exports, but also our production in domestic market. China also exports textile products to Turkey at a very significant level. Unfortunately, we had a foreign trade deficit of over 2 billion dollars in 2022. Moreover, our textile industry has always been a source of pride for Turkey with its foreign trade surplus; it is a sector that has brought foreign currency to Turkey. In this context, our expectation from our ministries is to take an urgent measure for imports and protect our employment and production capacity which was established with billions of dollars of investment.”
