Amid ongoing economic turmoil, Turkish textile companies are increasingly relocating to Egypt to avoid bankruptcy. As the industry grapples with financial instability, several manufacturers are seeking refuge abroad.
Öz-İplik İş Union General President Rafi Ay revealed that 130 companies that once produced in Turkey have now moved their operations to Egypt, leading to the departure of 90,000 workers from the Turkish textile industry. Ay emphasized that this significant shift occurred within the past year.
The Turkish textile sector, once a symbol of economic growth, is now experiencing a sharp decline, with long-established companies closing down. The famous French women’s clothing brand Naf Naf, which was acquired by the Turkish Group SY International in 2020, could not withstand the financial strain and declared bankruptcy last year. The court’s decision resulted in the closure of over 215 branches and left approximately 1,200 employees jobless.
Sateks Tekstil, founded in 1984 in Bursa, is another casualty of the crisis. The company declared bankruptcy and was granted a 3-month temporary respite by the court starting on April 16, which was later extended by two months. Sateks Tekstil, with a monthly production capacity of 600 tons, contributes 4,800 tons annually to the Turkish economy through the production of various textiles, including polyester, cotton, and nylon.
Additionally, Zümrüt Tekstil, a leading fabric manufacturer based in İzmir, was given a one-year definitive grace period by the court starting on June 26.
The crisis is also affecting Gaziantep, a key hub in Turkey’s textile sector. Karaca Tekstil and Vizyoner Tekstil, prominent companies in the carpet industry, are both facing bankruptcy. The court granted a one-year definitive term to both companies on April 25. Karaca Tekstil was previously ranked among the top 100 exporters in the 2006 report by the Southeastern Anatolia Exporters’ Association, while Vizyoner Tekstil exports a diverse range of carpet products.
It is distressing to note that textile industry is struggling in major textile producing countries like Turkey. Bangladesh is also an overturned apple cart.