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Earthquake Region to Recovery with Textile Investments

the Kahramanmaraş earthquake deeply affected the Southeastern Anatolia region, which is considered the heart of Turkey’s textile, garment and carpet production. In order to heal the wounds of the earthquake in the region and to recover the textile sector to its former revival, both the state, sector unions and business person have worked in cooperation from the first day. While the state gave investment incentives to textile companies in the earthquake zone, businessmen also took giant investment decisions.

TEXTILE AND READY-TO-WEAR SECTOR EMPLOYS 2.5 MILLION PEOPLE

93% of the textile companies spread across 81 provinces of Turkey export to 40 countries and more than 70% of them export to every region of the world, including Europe. According to 2022 yearend data; there are 26 thousand 62 readyto- wear clothing manufacturing companies in Turkey. The ready-to-wear sector employs 711 thousand people as of march 2023. This number rises to 1.2 million when the textile sector is included, and to 2.5 million when shopping centres, retail and other services are included.

EARTHQUAKE HIT THE SOUTHEASTERN ANATOLIA REGION,THE HEART OF TEXTILE

On 6 February, 2023, Turkey was shaken by 7.7 and 7.6 earthquakes with epicentres in Pazarcık and Elbistan districts of Kahramanmaraş, affecting 11 provinces. At least more than 50 thousand people lost their lives and more than 100 thousand people were injured in the earthquake disaster.

Thousands of houses and workplaces were destroyed and thousands of buildings were severely damaged in the earthquake zone. Kahramanmaraş, Hatay, Adıyaman, Malatya, Diyarbakır, Şanlıurfa, Gaziantep, Osmaniye, Adana, Kilis and Elazığ were declared disaster areas.

1290 TEXTILE COMPANIES OPERATING IN THE EARTHQUAKE ZONE

The Southeastern Anatolia region, where Kahramanmaraş, Gaziantep and Adıyaman, the provinces most affected by the earthquake, are located, is the heart of Turkey’s textile, garment and carpet production. According to 2022 yearend data, 1616 ready-to-wear and 1290 textile companies were operating in the 11 provinces affected by the earthquake, employing 350 thousand people. Turkey’s garment production capacity was 3.96 million tonnes by the end of 2022. Of this production, 352 thousand tonnes, or 8.9%, was produced in the earthquake zone. With over 143 thousand employees, 19.7% of total employment in the sector was in the earthquake region.

In addition, according to the figures of exporters’ associations; 1.9 billion dollars of 2.7 billion dollars of carpet exports in 2022, 3.3 billion USD of 12.9 billion USD textile exports and 541 million USD of 21.2 billion USD ready-to-wear exports were realised by 11 provinces declared as disaster zones.

NUMBER OF WORKERS IN THE REGION DECREASED BY HALF AFTER THE EARTHQUAKE

Textile companies operating in the region had to suspend their production due to damages to their buildings. Social life in the earthquake zone was restored in a short time, albeit imperfectly. Earthquake victims settled in temporary prefabricated houses and the economy started to revive along with daily life. All sectors carried out
a hum and the capacity in the industry reached 80-90% again. Textile companies, which recovered in a short time and started their production, faced the problem of finding workers due to the migration from the earthquake zone to other cities.

Estimates vary, but it is estimated that the earthquakes have more than halved the number of people employed in the region. In order to heal the wounds of the earthquake in the region and to recover the textile sector to its former vitality, both the state, sector unions and business person have worked in cooperation from the first day. While the state gave investment incentives to textile companies in the earthquake zone, business person took giant investment decisions. Sector associations and non-governmental organisations also developed projects to revive textiles in the region. Let’s take a look at those projects and investment news that will raise the earthquake zone together…

Earthquake Region to Recovery with Textile Investments

INVESTMENT INCENTIVE FOR TEXTILE COMPANIES IN EARTHQUAKE REGION

If we look at the incentivised investments in the 3 provinces that suffered the most from the earthquake; 50 investment projects in Hatay, Adıyaman and Kahramanmaraş received incentives in March and April.

if we look at the incentivised investments in the 3 provinces that suffered the most from the earthquake; 50 investment projects in Hatay, Adıyaman and Kahramanmaraş received incentives in March and April. 32 of the 50 investments are complete new investments. The others include investments such as expansion and modernisation.

32 of the 50 investments are complete new investments. The others include investments such as expansion and modernisation. In terms of investment size, the complete new fabric-fibre recovery facility to be established by Sanko Tekstil in Adıyaman with an expenditure of 591.5 million TL ranks first.

Some of the companies that received investment incentives in the earthquake zone are as follows: Maritaş Denim, Nopaş Tekstil, Ahmet Şahin Metal Tekstil, Hagem Tekstil, Dama Alkaplar Örme Kumaş, Burak Tekstil, Arıkan Mensucat.

2.5 MILLION DOLLAR SUPPORT FROM THE UNITED NATIONS FOR EMPLOYMENT IN THE EARTHQUAKE REGION

The United Nations Development Programme (UNDP) has launched a new $2.5 million initiative to fill 3,500 vacancies in the textile and related sectors in the earthquake-affected region and to integrate women and other disadvantaged groups into the labour market.

The new programme, funded by the Swedish Government with additional contributions from Korea and Finland, aims to address the acute labour shortage caused by the migration of skilled workers from southern and southeastern Turkey to other provinces following the devastating earthquakes in 2023 on 6 February. In the short term, UNDP plans to provide on-the-job training to 500 newly recruited textile workers in the earthquake zone, while providing more general life skills and psycho-social support to 3,000 textile workers and their families.

GIANT BRANDS TO SUPPORT BY PURCHASING FROM THE EARTHQUAKE REGION

Turkish Clothing Manufacturers’ Association (TGSD) invited the representatives of worldfamous brands in Turkey to Adıyaman and Kahramanmaraş and evaluated the developments in the region and the search for cooperation. In the meeting attended by İTHİB President Ahmet Öksüz and the board of directors, it was requested to increase the support of the procurement delegations to the region.

The group, which includes representatives of world-famous brands such as Ralph Lauren, Calvin Klein, Marks & Spencer, North Face, Benetton, stated that they requested support from brands to shift demand to this region to support the earthquake zone.

Stating that they support the establishment of container cities in Organised Industrial Zones, the representatives said that they are trying to convince brands to buy more and that they will continue their support for the region.

COTTON YARN FACTORY FROM ŞİRECİ TEKSTİL TO GAZİANTEP

Ahmet Şireci, Chairman of the Board of Directors of Şireci Tekstil, a businessman from Gaziantep, announced that they will build workplaces and residences in İslahiye district of Gaziantep, which suffered great damage in the earthquake disaster. The cotton yarn factory, which will be established on an area of 50 thousand m2 in Islahiye Organised Industrial Zone, will provide job opportunities for hundreds of Gaziantep residents. Ahmet Şireci stated that they will build new houses for people’s housing needs and the total cost will be around 1.5 billion liras.

Earthquake Region to Recovery with Textile Investments

20 MILLION GIANT TEXTILE INVESTMENT IN EARTHQUAKE REGION

Abuzer Yakan, a businessman from Adıyaman, decided to invest in the land where he was born after the 6 February earthquake. Yakan, who left his hometown 32 years ago and went to İstanbul, made an investment of 20 million in Inlice town of Sincik district of Adıyaman where he was born and grew up after the earthquake and provided employment for 300 people. Established on an area of 4 thousand m2, the textile factory has become a source of employment for the families of earthquake victims in the town.

The products produced in the factory are sent to all over the country, contributing both to the families of earthquake victims and to the economy of the region.

ESTEKS WILL ESTABLISH AN INTEGRATED FACILITY IN ELAZIĞ

Esteks A.Ş., which continues its activities in the field of textile in İstanbul, took action to establish an integrated facility producing fibre, yarn and fabric in Elazığ. Company official Engin Öner announced that they decided to invest in Teknova OIZ as a result of bilateral meetings with İdris Alan, Chairman of Elazığ Chamber of Commerce and Industry.

The facility, which will be built on 80 decares of land, will employ 250 people in the first stage, 500 people in the second stage and 1000 people in the third stage.

18 TEXTILE WORKSHOPS TO BE BUILT IN DIYARBAKIR FOR COMPANIES AFFECTED BY EARTHQUAKES

Within the scope of the “Regional Development Oriented Emergency Action Programme” developed by the General Directorate of Development Agencies of the Ministry of Industry and Technology in order to reduce the impact of the Kahramanmaraş-based earthquakes on industry and labour force, the “Diyarbakır OSB Workplace Project” prepared by the Diyarbakır Organised Industrial Zone (OSB) Directorate was submitted to the Karacadağ Development Agency. With the project, 18 workshops will be built on an area of 22 thousand m2, 10 of which have a closed area of 1,000 and 8 of which have a closed area of 500 m2 each, where 1050 people will be employed in Diyarbakır OIZ.

The workshops will be allocated to textile workshops that produce under buildings in the city and had to stop their activities due to the earthquake. In this way, it will be ensured that the workshops will be reactivated and the employees employed here will return to work life.

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