Denim makers look to seize opportunity
Güncelleme Tarihi:
Anatolia News Agency
Oluşturulma Tarihi: Mart 30, 2009 00:00
GAZİANTEP - Turkish denim producers said they see a window of opportunity in global markets as inventory costs rise for Europe’s big denim companies.
Denim giants in Western Europe have shifted their orders to Turkey from China as their inventory costs increase due to the crisis, according to Nedim Özbek, president of the Association of Denim Industrialists and Businessmen of Turkey, or DENİMDER.
"Big denim companies in Europe were producing on a massive scale in China and countries in the Far East," Özbek told the Anatolia news agency. "As inventory costs rise, they decided to exit China, Bangladesh and Pakistan. Orders are shifting to Turkey. We are delivering what they order in three weeks, at most."
Many Turkish denim companies downsized or shutdown as they could not compete with Asia, Özbek said. "But now, capacities will reach normal levels as soon as six months."
Turkish denim producers continue to produce despite not making profits, but they wish to preserve customers and not lay off workers, he said. "As orders come back, the government also has to prepare incentives for the sector," Özbek said. "The ready-wear sector in Turkey has become a formidable force in the world. We are producing at the best quality and the best price. The private consumption tax has decreased, and cars are selling like hot cakes, but three months later, the market will lose steam again. If radical measures are taken, the wheels of the economy will turn again."
Özbek requested that the government decrease the social security premium burden from the current 42 percent to 20 percent and help decrease input costs.
Last year, Turkey’s denim-wear exports totalled $4 billion, Özbek said, forecasting that the figure may rise 10 to 15 percent this year. Turkey is the most preferred country for denim production and ranks third in exports, behind Italy and Spain, Özbek said.
"Big denim companies in Europe were producing on a massive scale in China and countries in the Far East," Özbek told the Anatolia news agency. "As inventory costs rise, they decided to exit China, Bangladesh and Pakistan. Orders are shifting to Turkey. We are delivering what they order in three weeks, at most."
Many Turkish denim companies downsized or shutdown as they could not compete with Asia, Özbek said. "But now, capacities will reach normal levels as soon as six months."
Turkish denim producers continue to produce despite not making profits, but they wish to preserve customers and not lay off workers, he said. "As orders come back, the government also has to prepare incentives for the sector," Özbek said. "The ready-wear sector in Turkey has become a formidable force in the world. We are producing at the best quality and the best price. The private consumption tax has decreased, and cars are selling like hot cakes, but three months later, the market will lose steam again. If radical measures are taken, the wheels of the economy will turn again."
Özbek requested that the government decrease the social security premium burden from the current 42 percent to 20 percent and help decrease input costs.
Last year, Turkey’s denim-wear exports totalled $4 billion, Özbek said, forecasting that the figure may rise 10 to 15 percent this year. Turkey is the most preferred country for denim production and ranks third in exports, behind Italy and Spain, Özbek said.