SECTOR ANALYSIS Turkey: Textile Sector in Turkey 15-November-2010 Sector: Furniture, Clothing & Design Prepared by of Denmark, Istanbul Keywords: Turkey, Tyrkiet, of Denmark, Istanbul, Eksportrådet i Istanbul, Furniture, Clothing & Design, Møbler, tøj og design, Textile Sector, tekstilsektoren. Abstract: Textile sector is one of the most important sectors of the Turkish economy and foreign trade. The annual production value of the sector is 30 billion USD. Turkey remains among the leading importers of textile and clothing machinery, spare parts and chemical agents. Average import of those items exceeds 1.5 billion USD per year accounting for 1% of total imports.
Why Turkey? Population of more than 72 million with an average age of 29. A fast growing emerging market. Member of the Customs Union with the EU since 1995, possible future member of EU. Real growth rates of 6 % in GDP and above expected in the following years. The inflation dropped from +70 to single digits, backed up by political and structural reforms in 2000s. EU countries as the biggest trading partner. Regarding the textile sector, Turkey can offer variety, quality, fine workmanship, working with minimum stock, flexibility with the order sizes, product development, consistent quality, logistic advantageous, efficient delivery and constant cooperation to world markets. Turkey remains among the leading importers of textile and clothing machinery, spare parts and chemical agents. Average import of those items exceeds 1.5 billion USD per year accounting for 1% of total imports. Textile commodities such as fibres, yarns and fabrics are also being imported. There are opportunities for Danish companies engaged in those areas. The Textile Sector in Turkey Textile sector is one of the most important sectors of the Turkish economy and foreign trade. The annual production value of the sector is 30 billion USD. There are more than 35.000 textile and clothing companies in Turkey, 66 of which were among 500 largest companies in Turkey in 2007. Turkish textile sector with a share of 3.7% is the 5th largest supplier in the world and 2nd largest supplier to EU., Embassy of Denmark, [Mission] Page 2 of 5
In 2009 the value of the export was almost 6 billion USD accounting for 5.3 % of the total export. Textile and clothing supply sector also started to show significant development lately serving both the domestic and world markets. However, this sector still needs further development. Why the Textile Sector in Turkey Rich in raw materials - i.e. Turkey is 7th biggest cotton producer in the world Qualified and educated human resources - Well-educated young population - Abundant and skilled labour force which is an important advantage for the labour textile sector - Both government and NGOs support technical education to keep the level of education as high as possible Geographical proximity to main markets - Strategic geographical location between Asia, Europe and Africa - Location and good transport infrastructure results in short lead times - Since Turkey is surrounded by Black Sea, Mediterranean Sea and Aegean Sea cheap sea transportation is available Advanced sub-industry for textile sector Product diversification - Since the sector consists mostly of SME companies product diversification is easy to manage for the Turkish textile manufacturers - Many items from haute-couture to technical textiles can be produced in Turkey Advanced textile finishing industry - With around 320 companies, Turkey has a remarkable textile finishing capacity in Europe., Embassy of Denmark, [Mission] Page 3 of 5
- Dyeing and printing companies total more than 210 - Modern equipment and technologies are being used in the finishing companies. Creativity - Young designers are supported by NGOs. Compliance with EU s technical regulation Sensitivity about quality, environment and health - Most of the companies in the sector have ISO 9001 or ISO 9002 certificate Quality control - Turkey has modern, well-equipped and advanced testing facilities Customs Union with EU and Free Trade Agreements with many countries Free Zones and Organized Industrial Zones Liberal trade policies Our Services As TCD Istanbul we can help you and your company in the Turkish market. We are specialized in market, partner and supplier search as well as company establishment in Turkey. What TCD Istanbul can offer you is not limited with those services. Please do not hesitate to contact us for further information about our services., Embassy of Denmark, [Mission] Page 4 of 5
is a part of the Ministry of Foreign Affairs and is the official export and investment promotion agency of Denmark. benefits from around ninety Danish Embassies, Consulates General and Trade Commissions abroad. advises and assists Danish companies in their export activities and internationalisation process according to the vision: Creating Value All the Way. The work in the Trade Council follows specific procedures and quality guidelines. In this way our customers are secured the best possible quality under the varying working and market conditions at any given point of time. Ministry of Foreign Affairs of Denmark, Embassy of Denmark, Istanbul Meygede Sokak 2 TR-34342 Bebek, Istanbul Turkey Phone no: +90 212 359 19 00 Fax: +90 212 359 19 01 E-mail: isthkt@um.dk www.gkistanbul.um.dk