Technological Heart of Turkish Textile: Machines

The file work ‘Turkish Textile Sector: 2011-2012’ we published last month as Textil Dünyası magazine attracted great interest among the readers. We demonstrated the clearest table of the last period on issues such as the investments the sector made in the last 2 years, import-export balances, and production capacities.  In general, with the figures, the sector asses 2011 as the ‘boom’ year; and notes that 2012 is an adjustment period. The additional customs duty imposed on imports in the second half of 2011has lost its effect since 2012. Also, decreases in the incentives for investment and purchase of machinery were observed. As we published in the last issue; in the first half of 2011, a total investment of 3 billion Liras was made compared to the 1.5 billion Liras of investment in the first half of 2012. While claim for tax exemption amount on machine was $ 1.6 billion in the half of 2011, it was $ 624.3 million in 2012. That’s to say, in the Turkish textile sector, the mention of investment is expenditure on technology, machinery and lines.

As textile is a business segment that require intensive technological equipment, need for technology in this field does never end. Therefore, Turkish textile manufacturers made imports of total $ 17 billion machines between 1999 and 2011.  For Turkish manufacturers combining technology with the concept of fast fashion demanded by the European market, as well as a fast and flexible production, Europe is the main center in the purchase of machinery. European machinery manufacturers offer Turkish textile manufacturers the technologies they developed for all processes from cotton to fiber preparation, from yarn to weaving and knitting, from finishing to dyeing and printing.

Within CEMATEX, the umbrella organization of the European textile machinery manufacturers, the machinery manufacturers of French (UCMTF), Germany (VDMA), Italy (ACIMIT), Belgium (SYMATEX), Switzerland (Swissmem), United Kingdom (BTMA) describe Turkey as one of the most important markets. With a 6.5 percent share in the global textile machinery sector, French manufacturers have 8-10 percent of the Turkish market. When the purchase orders of Swiss machinery manufacturers to Turkey are compared to 2009, they reached 132 million Swiss francs with an increase of 175 percent in 2010. Standing out as the 2nd largest market of German machinery manufacturers, Turkey made imports valued at € 294 million in 2011. And Italian machinery producers increased their machinery exports to Turkey by 83 percent in 2011.

Giving importance to the Turkish market with both channels of representation and their own country offices, the European machine manufacturers always highlight that they consider the Turkish market in the top 5 largest markets. This situation continued even during the global financial crisis.

 

Textile Machinery and Equipment Imports by Countries ($ Million)
Countries	2006	2007	2008	2009
Germany	354	674	286	140
Italy	236	272	142	80
Japan	119	127	102	47
Switzerland	146	260	126	41
China	90	122	85	35
France	70	72	53	25
Belgium	146	86	120	23
South Korea	23	44	43	18
Others
TOTAL	1324	1796	1052	479

 

The Jump in Investments after the Crisis

The 4^th largest market in the world with the imports of $ 1.32 billion in 2006, Turkey was the 4^th with 1.79 billion in 2007. With the economic crisis started to be felt in 2008, machinery imports fell to $ 1.05 billion. However, the major break in imports of machinery was in 2009. 5^th largest buyer in 2008, the Turkish textile sector declined to the 7^th rank performing only $ 476 million purchase of machinery. This bottom level brought about a purchase boom in 2010. Purchasing $ 1.13 billion machine in 2010, Turkey rose to 4^th rank. In 2011, on the other hand, with the purchase of $ billion machinery, Turkey became one of the biggest 3 markets for the first time. Turkish textile manufacturers, the most important buyers of European machines, purchased $ 624.3 million machinery in the first half of 2012. As it can be seen from the general decline in investments in 2012, machinery imports are claimed to close at the end of the year with a number far more behind than the previous year; and the decline is claimed to continue in 2013.

 

Imports of Machinery by Years ($)
2006	1,32 billion
2007	1,07 billion
2008	1,050 billion
2009	476 million
2010	1 billion
2011	1,48 billion
2012 (first half)	624,3 million

 

Examined over the last 10 years, machinery imports of the Turkish textile sector are continuously increasing while machinery exports are progressing at smaller levels. Despite the small-scale progress in machinery exports, import-export scissors continue to open up. On the basis of 1996, the export figures of the Turkish textile machinery and parts manufacturers, which amounted to $ 14 million, reached $300 million in 2011.

According to the data from the International Textile Manufacturers Association (ITMF), in 2011, Turkey created a 4.4 percent volume in the orders of short-staple spindles in the global market. In the number of long-staple spindles (wool), on the other hand, captured an increase of 32,500 percent. According to ITMF, in the field of open-end, Turkey represented 6.2 percent of the global market with 32250 rotors. In the field of texturing machines for polyester filament, Turkey accounted for 2,4 percent in the global market.

In 2011, 153.750 shuttleless looms were sold with an increase of 44 percent compared to the previous year in the global market. Purchasing 83 percent of these machines, China became the biggest buyer, followed by India, Indonesia, and Korea. On the other hand, 28.900 circular knitting machines were sold with a decrease of 16 percent compared to 2010.  In the circular knitting machines market, with the purchase of 900 machines, Turkey had a 3.1 percent share in the global market. The sales of electronic flat knitting machines increased by 37 percent in the global market; and reached 70 thousand machines. In this segment, Turkey was placed near the top as 3.1 percent market, with the purchase of 2150 machines.

All Production Processes Demand Machinery

The textile and apparel machinery and equipment, which are the subject of the import figures by years indicated in the table above, are defined within the framework of Customs Tariff Statistics Position (GTIP). The technologies related to the textile and apparel sectors and import values ​​in the first half of 2012 enumerated by SITC-Standard International Trade Classification in GTIP are listed as follows.

GTIP Textile Machine and Equipment
SITC No	Product Name	First Half of 2012 ($ Million)
84.44	Manufacturing Fiber from Woven Articles, Weaving and Cutting Machines	67,8
84.45	Fiber Preparation, Yarn Manufacturing Preparing Machines	179
84.46	Weaving Looms (Machines)	143,5
84.47	Knitting, Guipure, Tulle, Lace, Netting Machines	67
84.48	Textile Auxiliary Machinery, Devices and Parts	5,5
84.49	Parts and Components of Felt, Fabric Manufacturing Machinery	63
84.51	Woven Items Washing, Drying, Coloring, Ironing Machines and Devices	60
84.52	Sewing Machines, Furniture, Needles, Parts
TOTAL

 

As it is indicated by the representatives of the sector, of a total of $15 billion of imports made by the Turkish textile manufacturers between 2002 and 2011, 25 percent belonged to yarn; 20 percent belonged to knitting and 15 percent belonged to weaving machine groups. In this table, finishing machines have a lower volume with the development of domestic machine production.

Mechanical Equipment Continuously Renewed

As Turkish textile and apparel sector grows with European-based exports, it needs to renew the technologies continuously. Both greenfield investments and modernizations at the facilities are carried out in order to meet the production demands of these markets. Considering the products one by one by years, the focus points of Turkish textile sector in technological terms are clear.