Our news

today's current events
Please subscribe to our newsletter to keep abreast of the latest news from our company

© All Right Reserved. UAB «TERMO PARTNERS»
e-mail us: info.termo.partners@gmail.com
Social network: Facebook | Linkedin | Youtube
Termo Partners news

Turkish textile sector showing resilience after the earthquake.

Turkey had its share of bad news when two devastating earthquakes shook parts of the country to their foundations in February. Besides killing more than 46,000 people it left a million homeless. Its textile sector is recovering faster than anticipated.

The Turkish textile sector also suffered badly. Its entrepreneurs say that this time will soon pass. Their worry is that in this testing time, about 10 percent of its textile and apparel exports would be redirected to the countries because of disruptions to production. In Kahramanmaras, a major spinning and dyeing hub there are 25 facilities and employing 6,500 people. The devastation has been so great that most of the factories there are unlikely to restart before June or even a year in some cases.

Besides Kahramanmaras there are 11 cities that surround the tremors’ epicenters, with more than 1,600 companies and nearly 1,300 textile mills, accounting for 15 percent of Turkey’s garment and textile industry.

More than half of businesses in the affected regions have been dealt some level of damage, but the bigger issue is the 350,000 workers, comprising one-third of the entire sector’s workforce. Some lost their lives or lost their loved ones and have still not recovered from the shock.

Sheltering survivors whose homes were destroyed is perhaps the bigger hurdle to resuming production. Because the number of tents and container homes is limited and they take time to build, people are leaving the cities and moving to other cities where they have families.

A leading textile miller said its buildings were pummeled by the earthquakes, none collapsed. The company’s machinery took some hits, too, but nothing critical. Damage was comparatively mild compared with others but more than 40 of its employees were killed when the earthquakes struck.

The mill is restarting some of its spinning and weaving facilities to churn out the tent fabrics that are currently in short supply. Sponsors expect roughly 70 percent of Kipas Textiles’ spinning capacity will be recovered by the end of March. Its denim production wasn’t “seriously affected and may resume full capacity production by April. A lot hinges on the workers, of course. While it’s down to 50 percent of its workforce, it’s hopeful that it can coax more to return when more housing is in place.

This particular mill showed a resilience that surprised its buyers; it anticipates a 10 to 20 percent drop in its turnover rate this year, equivalent $100 million. In February alone, it lost $40 million.

Exactly how much the disaster will cost Turkey’s entire garment and textile industry is still something that’s difficult to say at this point. A preliminary assessment by the World Bank estimates that the earthquakes cost the entire nation $34.2 billion in physical damage or around 4 percent of its 2021 gross domestic product.

Even if a manufacturer isn’t situated in the impact zones, it could have a supplier there. Logistics, too, have also been curtailed. After it was badly battered by the seismic activity, Iskenderun port, a major destination for cargo, is still in shambles. But the broader fashion industry will be fine—it has plenty of options.

The representatives from Adidas, Asos, H&M Group and Mango said they didn’t anticipate any production hiccups. A spokesperson from C&A, which sources 8 to 12 percent of its annual demand from Turkey, said that the impact has been more from a “people and capacity” perspective.

Some brands are also offering suppliers expedited payments on any outstanding invoices, and supporting them by obtaining any required raw materials from their global supply network until they can reestablish their own.

Turkey is a tentpole of many companies’ nearshoring strategies. The nation produces 12 percent of the European Union’s clothing, a market share that has stayed stable over the past decade; thanks to its geographic proximity, duty-free access, and relatively complete supply chain.

Many EU companies treat Turkey as an alternative to sourcing from Asia. Apparel items sourced from Turkey were typically priced higher than those made in Bangladesh and lower than those made in China. In other words, as ‘made in China’ became more expensive, Turkey was regarded as one alternative.

Serhat Karaduman, CEO of Calik Denim, says what the sector needs most to recover is continued “sensitivity and support” from all stakeholders. It, too, has lost employees. Because its integrated production facility in Malatya, one of the worst-hit provinces, suffered no major damage. With “great support and understanding” from its global partners, Calik Denim was able to begin dispatching shipments on Feb. 17. By March 1, it was back on track.

Entrepreneurs say philanthropy is desperately needed but it’s also a short-term fix. They need business from their global partners for the sustainable well-being of people.
Please leave your comments on this news