Investments in 2012 Dropped By 50%

As a result of the countervailing duties imposed on the imports of textile products such as yarn and fabric in the second half of 2011, domestic textile manufacturers managed to fill the capacity with the demand having increased in a short time. They headed for new investments in the production of yarn and fabric with the increase in the amount of capacity. Official figures show that the amount of investments of textile manufacturers in 2011 and the cost of tax exemption for the machines in the investment decelerated later.

According to TSI (Turkey Statistics Institute), in the first half of 2011 (January-June) textile investments valued at total 3 billion TL were made and in these investments, requested tax exemption amount for the purchase of machinery was USD 1,600 million. This investment boom seems to have fallen by 50 percent in the first half of 2012. In the first 6 months of 2012, investment valued at 1519 million TL was made and requested tax exemption for the purchase of machinery amounted to USD 668 million dollars. On a monthly basis, compared to last year, significant stable reductions in investment every month are worth noting. Specialists argue that there was a boom in investments in 2011 due to the delayed demands and in 2012 they returned to the normal market levels. On the other hand, despite a 50 percent decline in total investment amount, around 60 per cent decrease in the tax exemption amount for the machine draws attention.

Considering the number of firms applying for investment incentive certificate, there is not a radical change in the first halves of 2011 and 2012. While total 316 companies applied in the period of January-June 2011, 303 companies applied in the first half of 2012. As there was very little change in the number of company applications, around 50 per cent decrease in the value of the investment is interpreted as the divergence of the sector from investment.

On provincial basis, Istanbul is found to have been clearly ahead with 109 companies in 2011. However, Gaziantep, increasing the second place with 88 companies, approached Istanbul at the point of investment in the first half of 2012. In the number of firms entering the investment process, Istanbul is followed by Bursa, Adana, Maraş and Tekirdağ. Appearing to have no textile investment in 2011, Batman got an incentive certificate with 4 companies in the first half of 2012, which can be considered as the surprise of the first half.

2 Billion Dollars Worth Machines Bought

300 Million Dollars Worth Machines Sold

The power of Turkish Textile Sector to be formed by machine parks. With a volume of 24 Billion Dollars in global textile machinary sector , Turkey is the 14th biggest machine exporter in the world. Our domestic sector is the the most important customer for European based machine manufacturer. In 2011, Turkish textile sector imported 2 billion Dollars worth machine, however they exported only 300 million Dollars worth machine and accessories. Turkey has seen the deep point in machine import in 2009 with 450 million Dollars. Turkish machinery sector demonstrated successful work in the field of painting machines and spare parts, but unfortunately it wouldn’t be fair to say for the spinning, weaving, knitting and spinning machines. Domestic machine manufacturers export target is 350 million dollars in 2012.