Turkey's Textile Industry is back on track
Source: CCPIT TEX Date: 2007-01-18
After dramatically suffering from the 2005 surge in EU's imports from China, Turkey's textile industry finally recovered, thanks to a stronger euro and also due to EU quotas on Chinese products. Exports even surged in the last months of 2006, from the low levels experienced by the end of 2005. Textile and apparel production are also recovering although relocation to low-cost countries continued in the past year.
Saved! Last year threatened by a surge in China's clothing exports to the European Union, Turkey's textile industry looked much healthier by the end of 2006.
Official statistics indicate a rebound in production, after exports also recovered, at least in value terms.
In December 2006, fiber and textile exports surged 25.15% to US$526 million.
Thanks to quotas
This is partly due to a rise in the euro against the new Turkish lira that boosted demand from Eurozone.
If carpet exports only rose 5.53% in December, according to Turkish Exporters' Union, clothing exports were up 16.7%.
This is in sharp contrast with the strong declines still experienced a few months ago.
As a result, textile and clothing exports were finally up 5.61% over 2006, far from the decrease that was widely expected a year earlier.
EU's decision to reimpose quotas on imports from China obviously protected Turkish textile interests.
The increasing quality of Turkish production shifting to a higher end of the market is also behind the rebound.
According to latest official data, woven apparel exports were up 20.45% in November while knitted apparel exports even surged 26%.
Textile exports experienced a strong growth in selected HS chapters, such as man-made filament textiles or cotton textiles.
Surging imports
Textile and apparel imports continued also surging, however, with woven apparel up 34% over the January-November period. Knitted apparel imports only rose 3% at the same time.
Turkey will continue imposing quotas on imports from China in 2007 in order to protect its textile and apparel producers.
Textile production clearly recovered in the second half of 2006 with monthly output rising 7% in December from the same month last year.
Apparel production continued decreasing as relocation of capacities was not interrupted. Turkey is heavily investing in Egypt, for instance, were exporters located in QIZs (Qualifying Industrial Zones) are enjoying a duty-free access on the US market.
After falling in the July-October period, clothing production however increased in December, from the low level of 2005.
