Textile factories shutting down 1-2 per month, capacity slumps to 60%

Turkey's textile and apparel sector is reeling from closures of one to two factories each month, driven by high production costs and shrinking demand. Ahmet Öksüz, Deputy Chairman of the Turkish Exporters Council (TIM), warned that factory closures have become routine news.

According to Öksüz, industry's share of gross domestic product has fallen to 15%, marking the lowest level Turkey has recorded in the past decade. Emphasizing that existing facilities are operating with 40% idle capacity, Öksüz said the sector is struggling to stay afloat with 60% capacity utilization. "Lost facilities never come back; people say 'I might as well shut down while I can' and leave," he said.

This situation threatens not just textiles but Turkey's entire manufacturing backbone. Öksüz pointed out that the deteriorating investment climate is blocking new investments that could fill the gap left by closed facilities: as demand for ready-made garments contracts in the domestic market and export pressure mounts, current capacity is being eroded.

According to assessments, Öksüz argues that the government should shift its priority from new incentives to keeping existing factories operational. A similar capacity erosion was seen during the 2009 crisis, the sector's most severe period in the past decade; at that time, short-time working allowances introduced by the government had limited factory closures. Currently, no similar measure is on the agenda.