Country Report – Turkey - · PDF fileCountry Report Turkey The Turkish textile industry on the path to success Christian Schindler ITMF, Zurich, Switzerland ... Rieter machine works

Country Report – Turkey

Country ReportTurkey

The Turkish textile industry on the path to success

Christian Schindler ITMF,

Zurich, Switzerland

Martin Werder Rieter Machine Works Ltd.,

Winterthur, Switzerland

Joachim MaierRieter Machine Works Ltd.,

Winterthur, Switzerland

3Rieter . Country Report – Turkey

Turkey is, after Brazil, the second publication in the country series from Rieter in cooperation with the International Textile Manufacturers Fed-eration (ITMF). In the series, the most important global textile markets, in which both organiza-tions are active, are analyzed. The aim of the pub-lication is to inform the reader of the current eco-nomic situation and to continue through to the future perspectives of the countries. The pub-lication has been written by a team, which the reader can occasionally recognise by the differ-ent styles of writing.

In the second part of the country report, Rieter customers express their opinions.

The ImpoRTanCe of The TuRkIsh TexTIle IndusTRy In euRopeThe Turkish textile economy enjoys great impor-tance in the European and North American tex-tile trade. The enormous growth of the textile branch in recent years is reflected in the modern factory installations in Turkey. Textile compa-nies such as Gülle, Kipaş, MEM Textile and Sök-tas are examples of this economic development.

In 1985, Turkey ranked eighth in economic strength in a European comparison. In recent years, Turkey has done its homework and has put its economy back on the track to success.

preface

The Global ImpoRTanCe of The TuRkIsh TexTIle IndusTRyThe textile industry is a very important indus-trial sector in Turkey and simultaneously takes the largest share of the exports. Alone in 2004, the Turkish textile industry exported goods to the value of approx. 20 billion US dollars (USD) (25 % more than in 2003). The fact that Turkey is the sixth largest cotton producer in the world benefits the strong international position of the Turkish textile industry. With yarn exports, it ranks tenth and with apparel exports it occu-pies fourth place. In the European Union mar-ket, Turkey takes the sixth place for yarn exports and with apparel exports even achieves second place. Germany, the USA, England, France, the Netherlands and the Russian Federation count amongst the most important export markets. The centres of the textile industry are mainly concentrated in the cities of Istanbul and Denizli as well as in Adana, Gaziantep, Kahramanmaras and Kayseri in the east of the country.

easT anaTolIa, heaRT of The TexTIle IndusTRyThe south-east of Turkey with the central city of Adana has experienced rapid development in re-cent years. Where previously only cotton fields could be found, a major textile industry has meanwhile arisen. It has specialised in the pro-duction of quality yarn and superior fabrics and finished articles which fully meet the demands of leading fashion companies in Europe and the USA. An irrigation project in South Anatolia with 22 dams and 19 hydroelectric projects aims to double the cotton production. Although other fibers (for example, Viscose or Polyester) are also increasingly being processed and cultiva-tion of cotton has decreased in recent years, in the long run cotton will remain a very important industry for the region.

4 Rieter . Country Report – Turkey

Rieter is the leading supplier of installations for manufacturing yarns from short staple fibers. Rieter is a competent partner, dedicated to mak-ing customers’ lives easier by offering care and support from the initial investment discussions to the successful operation of a spinning mill. Rieter’s comprehensive know-how from fiber through yarn to the finished textiles provides the basis for innovative machines and consist-ent yarn quality.

Valuable sysTems Rieter is the only textile machinery manufactur-er able to supply all spinning processes and thus provide customers with competent and independ-ent advice, tailored to their individual needs. The outstanding price/performance ratio, high raw material utilization and the longevity of the products make an investment in Rieter machines extremely attractive. Since the company was es-tablished in Switzerland in 1795 Rieter has de-veloped high quality standards. All manufactur-ing facilities are ISO-9001 certified.

The Comfort of CompetenceRIETER

ConVInCInG TeChnoloGy With its comprehensive technological know-how covering all four spinning processes through to the textile end product, Rieter advises and assists customers in selecting the right spinning process. Five Spinning Centers, five textile laboratories and a modern training center in Winterthur are at the disposal of customers worldwide for spinning trials and training purposes.

suppoRTIVe paRTneRshIp Numerous sales and service centers support cus-tomers throughout the world. Customers have been able to reap the benefits of a single contact for their entire spinning operations over decades (Fig. 1).

fig. 1 Rieter - Numerous sales and service centers support customers around the globe

USASpartanburg

TURKEYIstanbul

CHINAShanghaiBeijingChangzhouUrumqiTaipei (Taiwan)

INDIAGurgaonWing, Satara Koregaon Bhima, Pune CoimbatoreChandigarh

CZECH REPUBLICÚstí nad Orlicí

SWITZERLANDWinterthur

GERMANYIngolstadt

BRAZILSão Paulo

Hong Kong

RUSSIAMoscow


The International Textile Manufacturers Federa-tion (ITMF) is an international association of global textile industries. It has set out to keep its members over the whole world continually up-dated by means of questionnaires, studies and publications as well as by the organization of an-nual conferences. Over and above this, the ITMF achieves this goal by its participation in the fur-ther development of the industry’s value added chain and by the publication of well-considered opinions on future trends and international de-velopments.

hIsToRy The International Textile Manufacturers Federa-tion is one of the oldest non-governmental or-ganizations. It was founded in Zurich in 1904 on the initiative of the British cotton spinning industry. The newly founded organization there-by adopted the name „International Federation of Master Cotton Spinners’ and Manufacturers’ Association“. It was often referred to as the „In-ternational Cotton Federation“. The organiza-tion established its headquarters in Manchester, England. For many years and throughout both world wars, it represented and promoted the in-terests of the global cotton spinning and cotton production industries. The appearance of syn-thetic fibers extended the raw material basis of the cotton industry. Simultaneously, the struc-ture of the industry was changed by the verti-cal integration of textile companies and its size thereby enlarged: meanwhile it has become a multi-fiber and multi-process industry.

International Textile manufacturers federation

ITMF

In 1963, the organization’s headquarters were transferred from Manchester in England to Zurich in Switzerland in order to facilitate international contacts and to improve the administration ser-vices as well as the communication.

Since 1960, membership of the organization has substantially increased and today comprises the greatest part of the worldwide textile pro-duction. It consequently also reflects the inter-nationalization process that has taken place in the field of textile manufacture since the end of the Second World War. So not only has the geo-graphical location of the global textile industry’s capacity drastically changed but the process of adjustment has also influenced the structure of trade associations in the industry. Their origi-nal fragmentation has gradually made way for a more strongly integrated and comprehensive form of representation.


TuRkey – an ImpoRTanT ThReshold naTIon beTween euRope and asIaAlongside the so-called BRIC countries Brazil, Rus-sia, India and China with around 80 million in-habitants and a gross domestic product (adjust-ed for purchasing power) of 1 026 billion USD (2011), Turkey is one of the largest and most strongly growing countries. In 2011, economic growth reached 8.5 %. In the past 10 years, Tur-key achieved an average economic growth of ap-prox. 5.5 %. The per-capita income in the year 2011 lay at 10 400 USD but when measured in purchasing power parity was significantly high-er by 40 %, reaching a figure of 14 600 USD (in 2011).

Already in 2001, Turkey experienced a financial crisis, which led to the Turkish government in-troducing various financial and economic policy regulations resp. taking measures to stabilize the financial system and to stimulate economic dy-namics. In the course of the accelerated growth in 2010 and 2011, the inflation rate increased and in 2011 reached an average of 10.5 %. The trade balance and also the current account defi-cit have increased in the last few years but to date could be primarily financed by long-term di-rect investments without difficulty. Summarizing, it can be said that due to the regulations in the Turkish finance and bank system taken at the be-ginning of the last century, Turkey was able to re-spond to the world financial and economic crisis of 2008/2009 comparatively well.

The Textile Industry in Turkey

What Turkey especially distinguishes is its geo-graphical situation between Europe and Asia. This location has a great geopolitical importance as Tur-key borders on many countries with political and/or economic difficulties such as Syria, Irak, Iran, Azerbaijan or Russia. As a political and economic anchor for stability in this region, Turkey therefore has an important role to play.

In previous decades, Turkey has increasingly de-veloped from a strongly agriculturally dominated national economy to a highly attractive industri-al and investment base. In the last 10 years, the service industry has also continued to develop into an important sector. Despite the increased international competition that predominantly comes from Asia, the Turkish textile and apparel industry still takes a leading role even after the expiry of the quota system in 2004 resp. after the subsequent transition period 2008/2009. Around 25 % of those employed in industry work in the textile and apparel industry. Other indus-trial fields such as the automotive, electronics or building industry have, however, increased in im-portance over recent years.

The ImpoRTanCe of The TuRkIsh TexTIle and appaRel IndusTRy foR The oVeRall eConomyThe history of textile production in Turkey goes back a long way and was already widespread and very progressive in the Ottoman Empire in the 16th and 17th century. The development of the Turkish textile industry between 1923 and 1962 was characterized by the creation of larger


production capacities. The large-scale cultivation of cotton has further increased the importance of the textile production. The 70s were distin-guished by specific planning of the further devel-opment of the textile industry, whereas the 80s were far more influenced by the opening up to foreign investors. In the 90s the Turkish textile in-dustry experienced a very strong period of growth that was marked by a rise in the textile and appar-el exports. This also turned the Turkish textile and apparel industry into a core industry with regard to production, employment and foreign exchange revenue. Even today, the textile and apparel industry is a very important sector for Turkey, which is clearly illustrated by several key figures: •Share of gross national product: 6.3 % •Share of industrial production: 14.4 %•Share of industrial employment: 25.5 %•Share of export revenue: 18.5 %

The economic weight of the Turkish textile and ap-parel industry is also visible from the investment volume of the last 20 years or so. From the total investments of approx. 567 billion USD made in the period 1990–2011, alone 105 billion US dol-lars were channelled into the area of textiles and apparel, followed by transport (91 billion USD) or other services (90 billion USD), according to the Turkish Development Ministry’s statistics.

Overall, there are 47 000 companies operating in the textile and apparel industry in Turkey, where-by this total is split up into approx. 16 000 tex-tile and 31 000 apparel companies. The number of employees, according to the Turkish Social Security, has reached an approximate figure of 827 000 whereas the total of all those employed in the textile and apparel industry is estimated at around 2 million.

7.0

6.0

5.0

4.0

3.0

2.0

1.0

0.0Pakistan Turkey Bangladesh Indonesia Vietnam Thailand Brazil Uzbekistan

Mio

- Sp

indl

es

delIVeRy of shoRT-sTaple spIndlesCumulative values 1992–2011 (without China and India)

Source: ITMF

6.4116.036

5.017

3.729

2.678

1.4491.207

1.118

0.9

0.8

0.7

0.6

0.5

0.4

0.3

0.2

0.1

0.0India Pakistan Turkey Bangladesh Indonesia Vietnam Thailand Brazil Uzbekistan

Mio

- Ro

tors

delIVeRy of oe-RoToRsCumulative values 1992–2011 (without China)

Source: ITMF

0.767

0.653

0.407

0.311

0.130 0.113 0.096 0.088 0.080

fig. 2 Investments in short staple ring spindles between 1992 and 2011

fig. 3 New investments in rotor spinning machines over the last 20 years


The pRoduCTIon CapaCITy of The TuRkIsh TexTIle IndusTRyAccording to the delivery statistics of the Interna-tional Textile Manufacturers Federation (ITMF), from 1992 to 2011 Turkey was the fourth largest investor in short-fiber spindles (Fig. 2). In total, Turkish textile industrialists invested in 6 million new short-fiber spindles during this period.

In the field of rotor spinning, Turkey was the second largest investor between 1992 and 2011 with totally 767 000 newly installed ro-tors (Fig. 3).

The pRoduCTIon Volumes and The InTeR-naTIonal CompeTITIVeness of The TuRkIsh IndusTRyA glance at the development of the fiber con-sumption of the Turkish textile industry clear-ly illustrates that up to the global financial and economic crisis 2007–2009, fiber consump-tion rose steadily to around 3 million tons. In the course of the crisis, consumption initially dropped by around 500 000 tons to a level of approx. 2.5 million tons but rose again in 2010 by around 250 000 tons to a level of approx. 2.75 million tons. The decrease in consumption was greatest with cotton where consumption

1 0

00

Ton

s

3 500

3 000

2 500

2 000

1 500

1 000

500

01995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Sources: ICAC, PCI Fibres

fIbeR ConsumpTIon In TuRkey

Total Cotton Synthetics Staple Synthetics Filament Cellulose Wool

fig. 4 Fiber consumption in the Turkish textile industry

Table 5 Fiber consumption in the textile industry and textile consumption in Turkey

1990 1995 2000 2005 2008 2009 2010 2011 2012 2013 2014 2015

Fiber processing (in 1 000 t) 1 024 1 539 2 364 2 990 2 673 2 616 2 847 2 754 2 738 2 716 2 694 2 727

Consumption Turkey (in 1 000 t) 700 915 971 1 337 933 1 118 1 323 1 305 1 332 1 365 1 381 1 452

Fiber export (in 1 000 t) 324 624 1 393 1 652 1 740 1 498 1 524 1 449 1 405 1 351 1 312 1 275

Fiber export (in % fiber processing) 32 % 41 % 59 % 55 % 65 % 57 % 54 % 53 % 51 % 50 % 49 % 47 %

Source: PCI Fibers

1 0

00

tons


fell from around 1.5 million tons in 2006 to around 1 million in 2009. In the meantime, cot-ton consumption has picked up somewhat by about 1.2 million tons but at approx. 300 000 tons still lies below the pre-crisis level (Fig. 4).

According to figures issued by PCI Fibers, the export share of the fiber production between 1990 and 2008 significantly increased from around 32 % to around 65 % and as a result of the global economic crisis has stabilized at a level of around 50 %. In other words, the Turk-ish textile industry exports around 50 % of its total production (Table 5).

In order to assess the competitiveness of the Turkish textile industry, it helps to take a look at the ITMF survey „International Production Cost Comparison (IPCC)“. In this survey, purely the production costs for different yarns (cotton and textured yarns) and fabrics (woven and knitted) in 8 different countries were analyzed at 2-year-ly intervals. A glance at the yarn production of ring and rotor yarns over a period of several years shows that the pure production costs (with and without cotton) in international comparison could be reduced since 2001, relative to several competitors, and in 2010 occupied a mid-range position (Figs. 6-8).

With this strictly cost-targeted assessment, it is naturally important to state that the produc-tion costs alone are not decisive for competitive-ness but also other aspects such as product qual-ity, service quality, innovativeness, geographical proximity to the sales markets, existence of re-gional production clusters or the supply of raw materials such as cotton and other natural fib-ers in addition to synthetic fibers (synthetic and cellulose-based fibers) play an important role.

fig. 6 Production costs of ring cotton yarn including raw fiber material

fig. 7 Production costs of rotor cotton yarn including raw fiber material

5.0

4.5

4.0

3.5

3.0

2.5

2.02001 2003 2006 2008 2010

USD

/kg

pRoduCTIon CosTs RInG yaRn (ne 30)(including cotton)

Italy USA India Brazil S. Korea China Egypt

Source: ITMF International Production Cost Comparison

Turkey

3.3

3.0

2.7

2.4

2.1

1.8

1.52001 2003 2006 2008 2010

USD

/kg

pRoduCTIon CosTs RoToR yaRn (ne 20)(including cotton)


Italy USA India Brazil S. Korea China EgyptTurkey


All these aspects carry great weight in the light of rising quality demands, increasingly shorter delivery times, high requirements concerning flexibility and additional services. An important aspect for the competitiveness of a textile coun-try is, of course, also the adequate supply of the corresponding raw materials and energy. Tur-key is an important cotton producer that is able to cover around 50 % of its own requirements of approx. 1.2 million tons. In 2011, the ITMF spin-ning committee visited the cotton-growing areas in Adana, Kharamanmaras, Urfa, Adyaman and Hatay, in which the largest part of the Turkish spinning industry is also located. The committee then observed that the Turkish cotton industry had also heavily invested in new ginning equip-ment as well as harvesting machines, in order to adequately meet the highest standards of the do-mestic cotton-processing textile industry. That Turkey is a very competitive production location not only for textiles but also for apparel is shown by the Turkish foreign trade figures.

TuRkIsh foReIGn TRade wITh TexTIles and appaRelThe Turkish textile and apparel industry produc-es for the Turkish domestic market as well as for export. At the beginning of the 80s, the export value of the Turkish textile and apparel industry amounted to approx. 777 million USD, whereby the textile industry with 671 million USD con-tributed around 85 % and the apparel industry with 106 million USD around 15 %. 30 years’ later, these values have multiplied and the ra-tio has shifted. Overall, the Turkish textile and apparel companies exported 24.9 billion USD. Currently, the apparel industry contributes with 15.6 billion USD around 63 % to the export rev-enue and the textile industry with 9.3 billion around 37 %.

1.6

1.4

1.2

1.0

0.8

0.6

0.42001 2003 2006 2008 2010

USD

/kg

pRoduCTIon CosTs RoToR yaRn (ne 20)(without cotton)

Italy USA India Brazil S. Korea China Egypt


Turkey

fig. 8 Production costs of rotor cotton yarn without raw fiber material

Table 9 Significance of the Turkish textile and apparel exports

Total export share of Turkish textile and apparel exports

Total exports

Textile exports apparel exports Total textile & apparel exports

Year Value in Billion USD

Value in Million

USD

Share of total exports

Value in Million

USD


Value in Million

USD


1980 2.91 671 23 % 106 4 % 777 26.7 %

1985 8.0 1 151 15 % 936 12 % 2 087 26.2 %

1990 13.0 1 424 11 % 2 898 22 % 4 323 33.4 %

1995 21.6 2 130 10 % 6 189 29 % 8 319 38.4 %

2000 27.8 2 845 10 % 7 251 26 % 10 096 36.3 %

2005 73.5 5 477 8 % 13 411 18 % 18 889 25.7 %

2010 113.9 7 620 7 % 14 206 13 % 21 826 19.2 %

2011 134.9 9 312 7 % 15 665 12 % 24 977 18.5 %

Source: Turkish Ministry of Economy, Statistics Office


The importance of the textile and apparel indus-try for Turkey can be clearly seen when looking more closely at exports. As already mentioned, the textile and apparel exports have increased more than thirty-fold from 1980 to 2011. They grew from a mere 777 million USD to 24.98 bil-lion USD which corresponds to an average year-ly growth rate of 11.8 %. At the same time, the share of the total exports taken by textile and apparel exports has decreased from 26.7 % to 18.5 % which indicates an enormous overall eco-nomic industrial catch-up process in Turkey over the last 30 or so years. Measured on the total ex-ports, the share of the textile and apparel indus-try reached its highest level in 1995 (Table 9).

Textile and apparel imports reached approx. 289 million USD in 1985, which corresponded to a share of the total imports of merely 2.6 %. Almost the entire imports were registered in the field of textiles, in contrast to goods of only approx. 1.5 million USD being imported in the area of apparel. With time, the nominal import value of textiles and apparel has risen to 3.47 billion USD in 2000 and further to 13.75 billion USD in 2011. The percentual share of the tex-tile and apparel imports on total imports has in-creased to 5.7. Imports of around 10.58 billion USD (= 4.4 % of all imports) were registered for textiles and around 3.17 billion USD for apparel (= 1.3 % of all imports) (Table 10).

With an export volume of around 9 billion USD resp. a share of 3.6 %, Turkey is the seventh larg-est exporter of textiles worldwide after China, the European Union (EU), India, the United States of America (USA), Rep. of Korea and Taiwan. In 2010, Turkey increased its global textile exports by 16 % over the previous year (Table 11).

Table 10 The Turkish textile and apparel imports

Table 11 The largest textile exporting countries

Total import share of Turkish textile and apparel imports

Total imports

Textile imports apparel imports Total textile & apparel imports

Year Value in Billion USD

Value in Million

USD

Share of total imports

Value in Million

USD


Value in Million

USD


1985 11.3 288 2.5 % 1 0.0 % 289 2.6 %

1990 22.3 1 049 4.7 % 18 0.1 % 1 067 4.8 %

1995 35.7 2 622 7.3 % 59 0.2 % 2 681 7.5 %

2000 54.5 3 214 5.9 % 256 0.5 % 3 470 6.4 %

2005 116.8 5 978 5.1 % 749 0.6 % 6 727 5.8 %

2010 185.5 9 260 5.0 % 2 704 1.5 % 11 965 6.4 %

2011 240.9 10 580 4.4 % 3 166 1.3 % 13 746 5.7 %

The largest global exporters of textiles 2010

Countryexport value (bilion usd)

share of worldwide exports (%)

Change (%)

China 77 30.7 29

EU (27) 67 26.8 7

India 13 5.1 41

USA 12 4.9 23

Rep. of Korea 11 4.4 20

Taiwan, China 10 3.9 24

Turkey 9 3.6 16

Pakistan 8 3.1 21

Japan 7 2.8 16

Indonesia 4 1.7 29

Thailand 4 1.5 25

Vietnam 3 1.1 32

Source: WTO, International Trade Statistics 2011



Turkey, with a volume of 13 billion USD resp. a share of around 3.6 %, is worldwide the fourth largest apparel exporter after China, the EU (27) and Bangladesh. In 2010, the exports recorded a rise of +10 % compared to the previous year (Table 12).

The mosT ImpoRTanT sales maRkeTs foR The TuRkIsh TexTIle and appaRel IndusTRy The most important export markets for the Turk-ish textile industry in 2011 were Russia (813 mil-lion USD) followed by Italy (605 million USD), Germany (377 million USD), Iran (234 million USD) and Great Britain (223 million USD). Nota-ble at this point is the fact that around 60 % of all Turkish textile exports go to the EU. Taking the other sales outlets in the region into account, for instance Russia, the Ukraine, Iran, Egypt, Moroc-co or Tunisia, then this share increases to approx. 90 % (Table 13).

For the Turkish apparel industry, Germany is the most important sales market followed by Great Britain, Spain, France, The Netherlands and It-aly. From these figures it is obvious that the EU represents the most important sales market for the Turkish apparel industry. Taking the export markets in the region into account, for instance Russia, Switzerland, Irak, Saudi Arabia, Israel or the Ukraine, then the regional share further in-creases to around 97 %.

From the figures for the most important sales markets, for textiles as well as for apparel, it is apparent that Turkey is an important supplier for the EU as well as being of central importance for many other countries in geograhical proximity (Table 14).

Table 12 The largest apparel exporting counties

Table 13 The export markets of the Turkish textile industry

The largest global exporters of apparel 2010

Country export value (bilion usd) share of worldwide exports (%) Change (%)

China 130 36.9 21

EU (27) 99 28.1 1

Bangladesh 16 4.5 25

Turkey 13 3.6 10

India 11 3.2 6

Vietnam 11 3.1 27

Indonesia 7 1.9 15

USA 5 1.3 12

Mexico 4 1.2 6

Thailand 4 1.2 15

Pakistan 4 1.1 17

Malaysia 4 1.1 24

The 20 most important export markets for the Turkish textile industry

export value (Value in milion usd)

Country 2010 2011 Change 2010/2011

Russia 813 1 004 23 %

Italy 605 779 29 %

Germany 377 458 21 %

Iran 234 294 26 %

Great Britain 223 289 29 %

Poland 234 288 23 %

Romania 269 284 6 %

USA 212 273 29 %

Bulgaria 220 238 8 %

Egypt 211 207 -2 %

Spain 164 202 23 %

France 148 176 19 %

Marocco 139 168 21 %

Tunisia 140 168 20 %

Ukraine 113 167 48 %

The Netherlands 121 151 25 %

Greece 115 146 27 %

China 113 143 27 %

Belgium 109 128 17 %

Mersin Free Zone 68 119 75 %

Total (20 countries) 4 627 5 681 23 %

Source: WTO, International Trade Statistics 2011



The TuRkIsh spInnInG IndusTRy In CompaRI-son To oTheR mId-sIzed TexTIle CounTRIes With regard to the number of inhabitants, Turkey is the smallest of the mid-sized textile countries. In comparison to the other countries, Turkey has the highest per-capita income (adjusted for pur-chasing power). When we look at Table 15, the large decline with the adjusted annual per-cap-ita income is strikingly obvious. With the mar-ket leader USA the per-capita income is 30 times greater than with the developing nation of Bang-ladesh. Turkey and Brazil reached an average income per person of far above 10 000 USD in 2011.

how modeRn The spInnInG planTs aRe In a CounTRy CompaRIson – TuRkey Takes fIRsT plaCeIn Table 15, the installed spinning machines are presented according to ring spindles and ro-tors. The comparison shows the percentage of new investments made in the last 10 years in these spinning plant capacities.

From all the countries in this comparison, Tur-key has the highest installed capacity of rotor spinning machines. In second place is Brazil and then the USA. With the installed ring spin-ning machines Pakistan leads with more than 10 million spindles, followed by a trio consist-ing of Indonesia, Bangladesh and Turkey with installed ring spinning machine capacities of 8.8, 7.3 and 6.5 million spindles respectively.

Table 14 The export markets of the Turkish apparel industry

The 20 most important export markets for the Turkish apparel industry

export value (Value in milion usd)

Country 2010 2011 Change 2010/2011

Germany 3 545 3 884 10 %

Great Britain 2 019 2 037 1 %

Spain 1 122 1 348 20 %

France 1 162 1 254 8 %

The Netherlands 705 856 22 %

Italy 700 818 17 %

Denmark 432 460 7 %

USA 415 429 4 %

Belgium 390 415 6 %

Russia 259 297 15 %

Sweden 276 286 4 %

Irak 205 269 31 %

Poland 111 165 48 %

Saudi Arabia 86 161 86 %

Romania 189 152 -20 %

Israel 130 151 16 %

Austria 139 145 4 %

Switzerland 127 139 9 %

Czech Republic 115 134 16 %

Ukraine 58 118 102 %

Total (20 länder) 12 186.84 13 518.14 11 %


Table 15 Country comparison of population and economic performance

population and economic performance

population per-capita incomeGross national product

(purchasing power-adjusted)

Country in milionspurchasing

power-adjusted usdbilion usd

Turkey 80 14 600 1 026

Brazil 206 11 600 2 282

USA 314 48 100 14 040

Indonesia 248 4 700 1 121

Pakistan 190 2 800 488

Bangladesh 161 1 700 283

Vietnam 92 3 300 299

Source: CIA World Factbook


Installed capacities and new investments 2002-2011

2010 Installed capacity (in 1 000)

Cumulative shipments 2002–2011 (in 1 000)

shipments 2011 (in 1 000)

CountryRing spindles (short-staple)

oe RotorsRing spindles (short-staple)

Ring spindles (long-staple)

oe RotorsRing spindles (short-staple)

Ring spindles (long-staple)

oe Rotors

Turkey 6 500 600 3 390 316 364 628 32 35

Brazil 4 789 359 528 23 163 114 30

USA 670 303 19 8 123 10 12

Indonesia 8 820 117 2 309 3 40 517 5

Pakistan 10 626 159 5 060 7 9 193

Bangladesh 7 276 187 4 087 0 71 639 5

Vietnam 3 657 104 2 359 11 36 329 4

Source: ITMSS Vol. 34 / 2011

Table 16 Installed spinning capacities and new investments made in the last 10 years

The cumulative ring and rotor deliveries in the years 2002–2011, when compared to the in-stalled capacities, provide a good standard of comparison. That means the comparison allows a statement to be made on how modern the spin-ning plants in a country are equipped. The mod-ernization rate is shown in Table 17.

The newest spinning plants are located in Vi-etnam. That is not remarkable, than most spin-ning plants were set up in the years 2004 to 2008. The reason is that Vietnam and the USA concluded a bilateral trade agreement in 2006 and in 2007 Vietnam acceded to the World Trade Organization (WTO).

The Turkish spinning industry occupies a top po-sition for modernization that is practically equal with Vietnam.

Equally high renewal rates can be found in Paki-stan and Bangladesh. In both markets, yarn pro-duction exhibits an above-average growth. These two countries have a spinning industry with a high proportion of installed ring spinning machines.

Table 17 Country comparison of the modernization rate

modernization rate

CountryRing spinning

machinesRotor spinning

machinesIn spindle equivalents

(ring spindles and rotors)

Turkey 52 % 61 % 60 %

Brazil 11 % 45 % 22 %

USA 3 % 41 % 33 %

Indonesia 26 % 34 % 27 %

Pakistan 48 % 6 % 45 %

Bangladesh 56 % 38 % 54 %

Vietnam 65 % 34 % 61 %

Source: Rieter Machine Works Ltd., Marketing



Source: ITMSS Volume 34 / 2011 and Rieter Machine Works Ltd., Marketing

Table 18 Degree of automation of new investments in ring spinning machines

Table 19 Degree of automation of new investments in rotor spinning machines

The lowest renewal rate is in Brazil, there is a particularly high number of ring spinning machines that are more than 10 years old. Indonesia has caught up somewhat by a high level of new investments in 2011.

However, the picture is quite different, when we analyze the investments in ring spinning plants in these countries in more detail.

RInG spInnInG maChInesThe new ring spinning machines installed between 2002 and 2011 in Vietnam were 78 % equipped without autodoffer. The full cops with these machines are removed manually. Only 22 % of the ring spinning machines in Vietnam are machines with automatic cop removal, the so-called autodoffer.

Ring spinning machine investments 2002–2011, degree of automation

with autodoffer without autodoffer

Turkey 96 % 4 %

Bangladesh 14 % 86 %

Indonesia 32 % 68 %

Pakistan 23 % 77 %

Vietnam 22 % 78 %

oe Rotors, cumulative shipments 2002–2011

in % of cumulative shipments

fully automatic

semi- automatic

manualShipments ITMF

2002-2011

Turkey 86 % 11 % 3 % 364 472

Brazil 87 % 13 % 1 % 163 020

USA 100 % 0 % 0 % 123 440

Bangladesh 21 % 71 % 9 % 70 724

Indonesia 18 % 65 % 17 % 40 256

Vietnam 21 % 75 % 4 % 35 756

Pakistan 89 % 11 % 0 % 9 040

The Turkish spinning plants have in the same period from 2002 to 2011 invested to 96 % in more modern ring spinning machines with auto-doffer.

The Turkish spinning industry thereby has not only the newest machine park in this country comparison. At the same time, it also has the most modern ring spinning machines with a high level of automation and electronic control (Table 18).

RoToR spInnInG maChInesIn the group comparison of the mid-size textile countries, Turkey has installed the most new ro-tor spinning machines in the last 10 years. Ta-ble 19 shows how the new investments from 2002 to 2011 are compiled according to the percentage of automatic, semi-automatic and manual rotor spinning machines.

Turkey, Brazil and the USA are the three coun-tries with the highest level of modernization in the field of rotors. In this area, investments are almost only made in fully automatic rotor spin-ning machines.

Primarily semi-automatic rotor spinning ma-chines are installed in Bangladesh, Indonesia and Vietnam. Pakistan, with the lowest modern-ization rate of only 6 % for OE rotors, installed numerous fully automatic second-hand ma-chines from the USA and Europe between 2002 and 2011 (Table 19).


aIR-jeT spInnInG maChInesIn the group of peer countries, the air-jet spin-ning machines newly installed between 2002 and 2011 are shown in Table 19. Turkey has the greatest number of newly installed air-jet spin-ning machines followed by Indonesia. The low-est number of air-jet spinning machines was in-stalled in Pakistan.

TuRkIsh spInnInG IndusTRy – ReGulaR Renewal of sTaTe-of-The-aRT TeChnoloGyAn exact analysis therefore proves that the Turk-ish spinning industry is the unchallenged leader with regard to state-of-the-art machine technol-ogy as well as in relation to the on going mod-ernization of the installed machine park with ring spinning, rotor spinning and air-jet spin-ning machines.

Dynamic industrialists, who are oriented to sus-tainable growth, characterize the Turkish textile and apparel industry. They skilfully exploit prox-imity to the consumer centers in the emerging Arabian markets and to the large European mar-ket and offer qualitatively high-class products.

Thanks to them, the Turkish spinning industry has developed into a strongly export-oriented branch that exports a good 50 % of its production. The most modern production facilities help the com-panies in providing customer proximity, flex-ibility and high quality with innovative textile products.

Following the conclusion of the first part of this country report, we would like to let our custom-ers express their opinions in part two.

Cumulative deliveries of air-jet spinning machines 2002–2011

Number of spinning positions

Turkey 8 100

Indonesia 6 300

USA 5 500

Vietnam 4 300

Brazil 3 300

Bangladesh 1 800

Pakistan 600


Table 20 Investments in air-jet spinning machines1992–2011


Gülle Tekstil a.Ş • Kipaş Holding • MEM Textile Industry & Trade, Inc. • Söktaş Tekstil

Top Technology for Top serviceGüLLE TEKSTIL A.Ş

TaRGeTsAs the primary target, co-owner Ismail Gülle speci-fies the will to become a respected and leading supplier of products for global brands, fulfilling the wishes and requirements of its customers. Equal-ly important is the fact of also being an important supplier who generates additional value for society and for its employees.

„Compared to Asian suppliers, we have high la-bor costs“, says Ismail Gülle. “That is why we must always be at the cutting edge of technol-ogy so that high-quality products at the best price can be marketed. To attain this, we must permanently invest in employees and technolo-gy.” In front of any commercial reasoning is the precept of being a credible supplier who only delivers perfect quality. As far as Turkish soci-ety is con cerned, the aim is to make an impor-tant contribution towards the prosperity of the textile industry and at the same time, to bear a high level of social responsibility for care of the environment. With regard to environmental pro-tection and sustainability, Gülle has taken up this cause in line with the following principles.

Turkey is counted amongst the leading suppli-ers of high-quality textiles. with a will of iron, the best production machines and great com-mitment, the fully integrated Gülle entegre Tekstil Isletmeleri a.s. has worked its way to the forefront of the Turkish textile industry. Rieter spinning machines have substantially contributed to this achievement.

Gülle Entegre Tekstil Isletmeleri A.S., locat-ed in Istanbul, was founded in 1970. Over the years, a company with a vertical structure de-veloped which is today equipped with spinning mills, knitting mills, dyeing and finishing facili-ties as well a printing plant. Yarns and circular knits from cotton as well as cotton and polyester blends are produced. Priority is first and foremost given to the latest process technologies and prod-uct quality. The target is a slim production at all levels in order to ensure a widest possible range of articles that can be rapidly sent to customers.

Parallel to this growth, the company earned itself a leading position, both in the national and the international markets, thanks to its quality and delivery reliability. Today, products from Gülle are represented in the latest fashion trends and are bought by numerous international and highly reputed labels.

fig. 21 Gülle Tekstil A.Ş - Ismail Gülle



fig. 22 The foundations for yarn quality are laid in the blowroom process


And are there also current developments that are especially successful? “Yes”, says Ismail Gülle. “That is partly thanks to our Rieter machines. We virtually “play” on the drafting arrangement with different drafts to create new types of yarns and therefore also new fabric structures. We can then use these yarns in the circular knitting plant for the production of special knitwear.”

IsmaIl GülleAs Managing Director, Ismail Gülle represents the second generation of his family. His origi-nal profession is electrical engineer, naturally with a solid textile basis in the background. And what would he describe as his personal chal-lenge in the Gülle company? “Oh, two points are important here”, he says. “Firstly, we have been in the market for 40 years and have gained a leading position in our market segment. This we want to keep. We are thereby also committed to accept the second point of the personal chal-lenge: we want to and must be the best!”

euRope as mosT ImpoRTanT sales maRkeTGülle produces approx. 1 200 tons of yarn per month, from Ne 20/1 to Ne 100/1, in addition to 750 tons of knitted goods. From this, 30 % is des-tined for export and 70 % is further processed in Turkey. The largest outlets for its products are the big European brand manufacturers. Important ex-port countries are Russia and Tunisia, as many Europeans have their apparel produced in these countries.

Ismail Gülle responded to the question concern-ing a present bestseller as follows: “We are the only company to import a special polyester/acryl yarn from Japan. It has a particular finish which gives an extremely interesting surface structure.

•Conducting environmental activities according to the national legislation and internationally accepted man-agement system standards.

•To make it possible for employees to gain environmen-tal awareness by providing them with the necessary training and helping develop a culture that promotes in-dividual responsibility.

•Monitoring of the customers’ rules pertaining to envi-ronment continuously and arranging internal opera-tions in line with these rules.

•Updating the studies about environmental awareness according to current requirements.

•In line with these principles the following will be done:• In the cleaning facility, the waste water is first treated

and then discharged to ensure its integration with the environment.

• The complete amount of waste and its effect on the environment is minimized by frequent checks.

• The paper, plastic and metal waste of the establish-ment is collected separately to minimize the resource consumption.

• All kinds of material used in production are pur-chased from companies that are internationally certi-fied for compliance with environmental standards.

• Our employees are trained to ensure that they are aware of their environmental responsibilities.

only CusTomeR pRoxImITy CounTs„Flexibility takes first place“, Ismail Gülle adds. „The cus-tomer can, in principle, buy from us what he wishes:” As an example, he names the world-famous British retailer Marks & Spencer: “Together with Marks & Spencer, we have developed new yarn and fabric qualities that are then processed to create exclusive knitwear. We are also present at the Première Vision in Paris so that our cus-tomers can quickly see the new developments.” Creativi-ty is paramount. Around 10 persons are employed in the company’s own development department to create new qualities and designs.



Furthermore, with the Rieter blending machine UNIblend, we could feed 4 different raw materials into 4 chutes which in turn led to new yarn types.”

The maChIne paRkGülle Entegre Tekstil Isletmeleri A.S. works al-most exclusively with machines from Rieter. Is-mail Gülle recounts that his company also pro-duced rotor yarns until 1996. Since this date, it has concentrated on the ring and compact spin-ning units. Fibers from cotton, silk, viscose, mod-al, polyester, wool, linen as well as blends of vari-ous fibers are processed.

Why does Gülle work with machines from Rieter? “As mentioned at the start, we need the best qual-ity. We buy our equipment not primarily accord-ing to the price but according to the best possible quality. We have absolutely no problems in the spinning plant and for this reason we also only purchase original spare parts. We just cannot af-ford poor quality.” Ismail Gülle is completely satis-fied with the Rieter machine park and his expecta-tions have to date always been 100 % fulfilled.

QualITy aT The foRefRonTAt all stages of production, the quality is very closely examined. After control of the weight, length etc., the finished knitwear is subjected to a quality examination in line with customer re-quirements according to points and international standards. The quality laboratory at Gülle is ac-credited by Next (GB) and can test the following fastness characteristics:•Dimensional stability•Wash resistance•Color fastness resp. resistance to perspiration •Abrasion resistance•Pilling resistance•Bursting resp. breaking resistance.

The Global maRkeTs„Every three years, the textile industry goes up and down”, comments Ismail Gülle. “That’s no secret. 2008 was poor, 2009 and 2010 were good years for us thanks to higher prices. 2011 was also very good and for this year we expect similarly good results. Of course, at the forefront of our efforts is the maintaining of our market po-sition.”

The Turkish textile industry is today at absolute-ly top level, Gülle believes. “In the last few years, production has been at 75 % utilization of capac-ity. With the exception of 2008, the export share has continually increased every year.”

The fuTuReTo survive, Gülle still needs the best and most ad-vanced machine park; of this Ismail Gülle is con-vinced: “Only this way can we carry out an ab-solutely top job for our customers. We must be creative and ensure that our customers stay with us. That’s why we must always stay up to date with latest technology.”

Comparing today’s textile industry with that of ear-lier times, there are outstanding differences for Is-mail Gülle: “Today, we can no longer allow delivery delays. The market conditions have further inten-sified since the crisis in 2008. At that time there were big orders; that is a thing of the past. Today one has to be flexible and also be able to deliver small amounts. Furthermore, the demand for fiber will continue to increase and the markets will con-tinue to change. These are big chances for us. Our company has very long experience in the market.”

How will Ismail Gülle maintain the previous posi-tion of his company in the 1st league? „Our image as a dependable partner is very good, that is the



most important. At the beginning of our activi-ties, we did not have the right machines but that has been corrected by extensive investments. We have been making continuous investments in new products for 10 years which has ensured us an extraordinarily high and successful market and product presence. After our investments in the machine park have been concluded for the time being, we are now increasingly investing in the further training of our personnel.”

Now the image of the textile industry in general and especially that of Turkey is in the spotlight. Why is that so important for Ismail Gülle? „In every country in the world, the textile industry has got an image problem resp. recruitment prob-lems. Our company must also make sure that we can again recruit enough young employees of the right quality.

Since the year 2000 design has become increas-ingly important. Everyone, our company too, has to more or less reinvent themselves. This is why we are investing heavily in research and develop-ment. The textile industry is comparable to a trip by bicycle: one has to make an effort and pedal continuously to reach one’s destination. This is best done when the latest technology is used. At present we have around 100 000 spindles. Every two years we invest in the latest equipment. We progress step by step and Rieter machines help us to maintain our position. Those are gratifying prospects for both partners.


fig. 23 The VARIOline blowroom with high fiber yield and efficient trash removal


at europe’s doorKIPAŞ HOLDING

VeRTICal TexTIle CompanyKipaş Holding is today a vertically oriented group with operations in spinning, weaving, dyeing and ready-to-wear apparel. The dyeing plant also has a unit for the dyeing of indigo yarns using the rope dyeing principle. Kipaş is, according to statements by M. Hanefi Öksüz, the largest integrated company in Turkey.

The spinning plant with 500 000 spindles (ro-tor and ring spinning) produces annually around 100 000 tons of yarn and 3.5 million meters of fabric are finished. Raw materials such as cot-ton, viscose, modal but also linen and polyester are processed. Yarn fineness ranges from Ne 6/1 to Ne 100/1. Approximately 50 % of the yarns are for internal requirements and the other half is sold.

whoever wants to be the best in their area of activity must be an early bird and take the right decisions. with honesty towards its staff, its customers and its suppliers, Kipaş Holding to-day counts amongst the market leaders in the Turkish textile industry. not forgotten in the process are also the inhabitants of the region.

Kipaş Holding has experienced a breathtaking rise over a good 20 year period. The company headquarters is located in the Turkish town of Kahramanmaraş. Founded by M. Hanefi Öksüz, the textile activities were followed by various other fields of operation. These are:•cement industry,•energy sector: Kipaş is co-owner of an energy

agency and owns electricity generating plants that are operated with natural gas, hydrolic power plant, geothermic and coal,

•agricultural sector,•paper industry: in this latest branch 200 million

Euro have been invested.


fig. 24 Kipaş Holding - M. Hanefi Öksüz


a bRIef hIsToRyThe owner, M. Hanefi Öksüz, is Chairman of the Board and founder of the group. He founded his company at the age of 29. His professional train-ing was made at the Technical University in Istan-bul. Everything started with the trading of cotton. Only in 1985 was a rotor spinning plant set up. His personal challenge and target he sees in con-stantly taking a step forward. Today, around 8 000 persons work for the entire group of companies.

Kipaş is an extremely innovative company that develops practically all its own products and where very great importance is attached to crea-tivity. 30 – 40 persons work in its development department. Mainly cotton is processed but poly-ester blends are also used. A specialty is the fact that fibers are also dyed and processed to special yarns. According to M. Hanefi Öksüz, the company works with its own collections and is always will-ing to produce exclusive designs for customers.

maRkeT sITuaTIonM. Hanefi Öksüz judges the current market situa-tion as positive: „Things are not going too badly but there are naturally many competitors world-wide. These are mainly in Italy and, for certain products, also in the Far East. That is why we simply have to be different than the others and supply top quality. We must do just what the market demands from us. When the quality of the products and the mentality of the people are right, then success is also assured. And Turkey is well positioned when focus is placed on the main market of Europe.“

Kipaş exports 80 % of all goods produced di-rectly or via customers also indirectly. The main buyer and most important market is, as already mentioned, Western Europe. „However, we must also be present in Asia with products that are just different than all the others“, says the com-pany owner. Even the critical financial situation does not give him too much of a headache: „We are not in a bad position. We have our own mo-ney and are not dependent on the banks. We are therefore free in our decisions and have short distances. Time in our branch is of outstanding importance.“


fig. 25 The Rieter compact spinning machine for finest Com4® compact yarns


The maChIne paRkKipaş is operating over 50 % with Rieter ma-chines. How did the cooperation with the Rieter Group in Winterthur begin? „That was in 1996“, says M. Hanefi Öksüz. What were the reasons that led to this decision? „Price, Performance and Service. These three reasons determine all our purchases”, M. Hanefi Öksüz states. „And in comparison with other brands, Rieter was de-finitely the supplier with the best price/perfor-mance ratio. At the same time Rieter satisfy the customer pleasure at the highest level with its high quality and punctual service. “

The spinning plant is the core business of Kipaş Holding. For this reason, Kipaş also invested a considerable sum in new machines in 2011. „With our orientation, we must also have the best machines available because we want to be a key player. We have 500 000 spindles. Here, 50 000 are upgraded to the latest technological standards every year, so that our machine park is always technically and technologically up-to-date. As we also operate as a customer spinner, we must be very flexible in the yarn production.“

The current commissioning of the latest Rieter machine generation has recently been comple-ted. What experience has since been made? „We have a very good relationship with Rieter and its representative in Turkey with no problem at all. To date, all our expectations have been com-pletely fulfilled. I am quite certain: with the next investment, we will definitely buy Rieter machi-nes again.“


fig. 26 State of the art quality control systems


posITIVe ouTlookWhat does M. Hanefi Öksüz expect from 2012? „Turkey is very well positioned with its strategic situation. We, and actually the whole Turkish texti-le industry, have good workloads and our compa-ny will defend its leading position. We are closer to Europe than our other competitor countries. We have the same mentality as the Europeans, under-stand the people and know the wishes of the cus-tomers that we can also 100 % fulfill.“

sTayInG aT The TopCompared with the situation several years ago, where does M. Hanefi Öksüz see the greatest dif-ferences in the requirements of his customers? „Oh, that is first of all the quality of the products that must become a great deal better. Then our customers now only accept short delivery times. And last but not least, and that is also a truism, everyone tries to get still better which means for us still lower prices.“

Kipaş is an undisputed market leader of the Tur-kish textile industry. To what does M. Hanefi Öksüz relate this fact? „We always do what the customers ask and are honest, both with our per-sonnel, the customers, and what is very impor-tant, also in our dealings with our suppliers. We have many positive ideas. And, that essentially belongs to the skills of every human being, one must deal with money carefully in order to make the right decisions resp. investments.

In addition, we take care of the people in our re-gion. We have built new schools which meant investing 20 million US dollars. We have built a hospital for heart diseases., dialysis centers, pri-mary schools, medical vocational school and 11 social facilities, especially for health services of-fered by our people in our region. We are doing well and that is why we want to share the money with the people in the region.“

Those are good prospects, not only for the com-pany but also for the region.



Gülle Tekstil a.Ş • Kipaş Holding • mem Textile Industry & Trade, Inc. • Söktaş Tekstil

only the best Technology is Good enough

MEM TExTILE INDUSTRY & TRADE, INC.

sTaRT of The spInnInG planTIn the opinion of MEM President O. Nurettin Paksu, 1997 was an important year for textile activities. „In that year, we invested in a spinning plant with 20 000 spindles. For a long period of time, cotton from Azerbaijan and Uzbekistan was processed in the search for access to the international markets. Today MEM is also active in the cultivation and trading of cotton that is purchased from various provenances. This cotton is traded over the Mersin free trade zone, both for intercompany use and for resale. „This cotton plays an important role in the Turkish cotton industry“, says O. Nurettin Paksu.

After start-up of the spinning plant in 1997, a con-tinual increase in the number of spindles from 20 000 to the present 145 000 spindles took place. 100 tons of yarn is produced daily in a fine-ness range from Ne 20/1 to Ne 50/1. „The fin-er yarn numbers are under great pressure“, says Paksu. „For this reason, we do something quite dif-ferent than the others. To complement our range, we also produce rotor yarns. A new extension is now in the pipeline: MEM will begin with the pro-duction of circular knitwear and the production of dyed fabric.“

„To be an advanced and a good company, it’s necessary to have the best equipment, because only with the best technology a place at the forefront can be secured. This says o. nurettin paksu, president of the mem Textile Industry & Trade, Inc. what he specifically means by this and which role machines from Rieter play is de-scribed in the following report.

The MEM Textile Industry & Trade, Inc. has its headquarters in southern Turkey in Kahraman- maraş. The present group of companies began their activities in the 1960s as a rice producer. Years later, the operative field was expanded to in-clude the import and export of dry food. In 1988 a further extension of the business activities fol-lowed, trading under the name of MEM Construc-tion and Foreign Trade Co. In the year 1992, MEM opened a warehouse with 20 000 m2 in the Mersin free trade zone, at the same time as entering into the cotton business. Today, the entire group com-prises numerous companies from various sectors such as the cotton trade, shipbuilding and mari-time transportation.

fig. 27 MEM Textile Industry & Trade, Inc. - O. Nurettin Paksu



be dIVeRseThe company is currently producing different yarns and blends, such as cotton with viscose, modal and also polyester. MEM produces core yarns as well as such with slub yarn and many other variations. „We must always be the famous step ahead quicker than all the others“, says O. Nurettin Paksu. „So for example, we are the first to offer yarns in blends of combed fiber material.“

What sort of person is O. Nurettin Paksu, who has successfully built up a large conglomerate of com-panies in such a short space of time? Originally, he was a mechanical engineer. Does he even have any time for the family? „Yes, of course. I’m married and have 3 children, two boys and a girl. Actually, I have always worked in trade, that’s in our fam-ily’s blood.“

The question of personal challenge in his company was answered by President Paksu as follows: „We never transport old ideas into the future. We don’t want to be the biggest but the best. Only the best make profits and thereby guarantee the continuity of the company.“

ChanGe of dIReCTIonAs the most important customer, President Paksu names the local textile industry. „We also export large amounts to Western Europe. Also in North Africa we have many customers; a great percentage of these sales are re-exported after processing.“

„The MEM company philosophy is very simple “O. Nurettin Paksu explains. „First and foremost is the quality followed by 100 % customer sat-isfaction and then employees’ participation and productivity. A priority task is to rapidly acquire new fashion trends and transform them for our customers. Because now companies want to work with innovative business partners that participate in their production, producing useful and different solutions to problems that arise and supporting their production design. The customer-oriented MEM company responds to customers’ expecta-tions and requirements very quickly. In our crea-tive department 5 persons are working exclusively for the spinning plant. In 1998 we then purchased 20 compact spinning machines from Rieter. Oth-er companies have merely bought individual ma-chines, more or less as test machines. The perfect appearance of these yarns has radically changed our philosophy towards knitwear. We have even helped the supplier to further increase the speed of the machines. “As a further consequence, MEM Textile is now on its way to becoming a fully inte-grated company.


The 100 % RIeTeR spInnInG planTSince its beginning in 1997, MEM has operat-ed its spinning plant exclusively with Rieter ma-chines. What are the prime reasons for this de-cision that also today still prevails? „The most important criteria are the perfect yarn quality and the robustness of the machines“, says Presi-dent Paksu. „Not to be forgotten is the flexibil-ity of the machines. That is of paramount impor-tance with our comprehensive product range. For us, Rieter always had the best machines. What should not be forgotten: quality is one thing but it must be possible to reproduce this quality at any time. It’s just this reproducibility that we can always depend on with Rieter machines. With the creation of the compact spinning plant, we made an exception and tested various suppliers. This meant observing and comparing the ma-chines over a longer period; only then were the differences visible. The result was the same as for the traditional ring spinning unit: Rieter was the best.“

aT The ThReshold To euRopeFor MEM, Europe is still the most important mar-ket. While around 15 % of the production was exported in 2010, in 2011 it was already approx. 25 %. Main buyers are customers in Western Eu-rope, Italy, Spain (Zara) as well as Portugal and Germany. With regard to the markets, the agile company owner is in a positive mood: „In 2008 we all had problems. Not only through the finan-cial crisis but also due to the price hikes for cot-ton that made it just a bulk commodity. This has, however, largely calmed down. From the view of our company, we are optimistic and our order books are full. Not to be underestimated is the locational advantage Turkey has: we sit at the threshold to Europe and the Turkish textile in-dustry can offer everything with cotton, from the raw cotton up to the finished garments.“

Do you have any problems? „Of course“, replies Paksu. „Everyone is battling with the extreme volatility of the markets and the currencies. We mainly sell in Euro and US dollar. We prefer the dollar as we primarily buy raw cotton in dollars.“

Top sellers in the current range are blended yarns. In addition, slub yarns are best sellers says Paksu: „In this area we have no competi-tion and with our 76 000 spindles for compact yarns we have an exceptional market presence. When someone in Turkey says compact yarns, they mean MEM“, O. Nurettin Paksu explains, not without pride.




fig. 28 Perfectly coordinated technology from fiber to sliver


The fuTuRePaksu hopes, and is also convinced, that 2012 will be better than the previous year. How does he intend to maintain his position in future as one of the market leaders? „We never think of being the biggest, but the best. Quality, efficien-cy and the satisfaction of our customers are the most important criteria for successful business activity. We take care of all the details and con-tinually search for improvements at all levels. The purpose of these efforts is to produce novel quality products with original ideas and tech-nologies in an environmentally sensitive way. In all of these stages, with our respect towards our employees and confidence in their work skills, we constantly renew ourselves. And that applies not only to the production but also to all other areas of the company.“

For O. Nurettin Paksu, everything has changed within the last 10 years or so, not only the raw material prices. „Today, we can only operate with quality, then also the prices must show the same quality. The best laboratory is the real market.“ How right he is.

QualITy and seRVICe aRe RIGhT„We are very happy that we decided from the beginning in favor of Rieter. Alongside the qual-ity of the machine park, the quality of the very good service facilities must also be mentioned. We have an excellent partnership. Whenever we see a further possibility to optimize production, Rieter is receptive, everything is discussed and flows into the improvement of the machines.“

Quality is at the forefront everywhere, also in the testing area: „When a company wants to be pro-gressive and good, the best equipment must be used. Only with the best technology is it possible to exist at the very forefront. That also applies to testing. We were the first to implement the Uster AFIS system for testing. In our laboratory we only have devices and components from Uster.“

Gülle Tekstil a.s. • Kipas Holding • mem Textile Industry & Trade, Inc.• Söktaş Tekstil


fig. 29 The combing machines guarantee unrivalled quality and first-rate raw material utilization


Gülle Tekstil a.s. • Kipas Holding • mem Textile Industry & Trade, Inc.• Söktaş Tekstil


Trust pays offSÖKTAŞ TEKSTIL

Söktaş specializes in the design and production of shirting fabrics and sees its work as an art. Through innovation and creativity Söktaş is able to supply the world brands with luxury, value added fabrics, a strong sampling service, short delivery times and an excellent customer service.

The company continued to positively develop and it was therefore clear that an additional produc-tion site must be constructed. As part of the strate-gy to enter Indian and Far Eastern markets, Söktaş opened its second plant in 2008, Şöktas India Private Ltd. in Kolhapur. The partner of Söktaş in Söktaş India is IFC (International Finance Corpora-tion-World Bank Group) with a share of 11.8 %. The fabric production capacity in India reached 7.5 million meters at the end of 2011. The know-how of the Söktaş brand has been completely transferred to the new plant.

Muharrem Kayhan explains the vision of Söktaş as “world leadership in yarn dyed shirting fab-rics” and the company’s mission is “to reach per-fection at all levels that can surpass the leaders in the market”.

how does a company that trusts its supplier to such an extent that it does not even invite com-petitors when purchasing new machines assert itself? “service is paramount”, says the owner muharrem kayhan. “you can only assert your position when you constantly improve.”

The company Söktaş Tekstil Sanayi ve Ticaret A.S., Söke, Aydın was founded in 1971. From 1973 the yarn spinning plant began operation. Over the fol-lowing years, the spinning plant developed very successfully and in1978 twisting and in 1980 yarn dyeing operations began. Based on compa-ny’s success, it was decided in 1987 to further invest in the expansion of the company: a new weaving plant commenced operation. With this, however, Söktaş was not at the end of its plans for the future. In 1994 investments were made in a finishing unit with dyeing section. This provid-ed Muharrem Kayhan with the entire production chain from one source. Today various finishing processes are supplied in this fully integrated mill.

fig. 30 Söktaş Tekstil - Muharrem Kayhan


Company phIlosophyMuharrem Kayhan responds to a question regard-ing the philosophy of the company: “Our company philosophy is built on three pillars: focusing on the product, the service and the credibility. Only with these austere principles can we run a prosperous company in the long term“. Söktaş is a so-called “Institution of Trust”.

40 yeaRs of passIon, CReaTIVITy and seRVICeSöktaş has an experienced design team and maintains a big archive of over 150 000 pat-terns. This huge archive is available to the cus-tomers as fabric samples and in the digital form. In addition to the design center in Söke, there are design centers and marketing offices in Istan-bul Pera, London and Bangalore that are creating new collections continuously.

QualITy and susTaInabIlITyQuality and a strong environmental awareness occupy first place within the company. Söktaş is determined to develop its environmental perfor-mance continuously, to prevent and reduce any possible negative effects on the environment re-sulting from its manufacturing processes, prod-ucts and services.

Since 1995 Söktaş is in possession of the “Quality Management System” certification. Furthermore, since 2000 the company has the “Environmental Management License“. Söktaş is Oeko-Tex Standard 100 tested and therefore can produce organic fab-rics; this also shows that Söktaş products do not in-clude any substances hazardous to human health.


fig. 31 As the only manufacturer worldwide Rieter offers the 4 spinning systems - ring, compact, rotor and air-jet spinning


Collection area of use

Varsity A collection for those who prefer a more sporty style and comfort in daily life.

Signature A collection produced with double twist compact yarn made of the best quality fine Egyptian cotton with sophisticated colors and patterns.

Fast forward A collection consisting of 100 % cotton made of Egyptian cotton, cotton and silk/elastane/polyamide and linen mixture fabric, organic and non-wrinkle, high quality fabric.

Noblesse A collection produced with 140/2 Ne and 240/2 Ne yarns made of fine Egyptian cotton, which has classical patterns which are presented in the NOBLESSE catalogue.

Meander 71 A collection developed especially for the 40th Anniversary. Prepared with the long staple cotton yarn which was developed with the improvement of local seeds. It comes with classical patterns and sophisticated colors. It is a unique collection with a silky touch.

Bespoke A special collection created for tailor made personalized sewing, where classical colors and textures combine with a creative approach.

ConCenTRaTIon of pRoduCTs

Although generally long staple high quality cotton is used in the collections, blends such as silk and linen are also used. Recently, linen is very much in demand as well as elastic polyamide yarns for vari-ous fabric structures. Original and unique mixtures are also used in their new collections.

Söktaş is successfully servicing the rising “be-spoke”, tailor made personalized sewing trend. To service the tailoring segment, investments and the business development work has been carried out in recent years. Not only in Turkey but also in Europe, the Far East and South America the best tailors of the world prefer Söktaş fabrics and service. Practically all designs and colors are available from stock.

Is that not a logistical problem? “No”, says Mu-harrem Kayhan, “we have a special order soft-ware that allows us to be extremely flexible and quick in reacting to orders. This also shows the importance we attach to technology.” Söktaş is also offering the smart, technologically ad-vanced, user friendly fabrics to its customers un-der the “Archichem” brand.

The company also has an R&D Center which com-menced work on March 1, 2012.

muhaRRem kayhan as an IndIVIdualUpon entering Muharrem Kayhan’s office in Söke, artifacts from long-forgotten times of the Greeks and Romans can be seen. Muharrem Kayhan is a great lover of history and, as he himself says, the only licensed collector in Turkey who is authorized to buy such artifacts: “I can indeed buy the pieces but do not own them. They effectively belong to the state.”

He graduated as a Textile Engineer from Manches-ter University and has an MBA degree from Cornell University. 1997-1998 Muharrem Kayhan served as President of TUSİAD (Turkish Industry & Busi-ness Association). Since 2005, he holds the office of Honorary President of TUSİAD.

He was awarded the Outstanding Service Award of the Turkish Parliament in 2009. Muharrem Kayhan is married and has two children.

As a personal challenge, he describes safeguard-ing the continuity in the company and that the roots are not forgotten. “The textile branch is ok”, he says, “but growth should not be achieved at all costs. We pay attention to the added value of our products.”


fig. 32 Products of Söktaş


The maRkeTs Muharrem Kayhan describes the current market situation as challenging. Despite the increased raw material prices, they produce only high qualities. He says “We are trying to reach everywhere in the world by developing different business models, with the advantage of smaller quantity and short term delivery”.

The maChIne paRkŞöktas Tekstil Sanayi ve Ticaret A.S. has been oper-ating with spinning machines from Rieter Machine Works Ltd. since starting its business activities. For Muharrem Kayhan the reasons are clear: “To date we have never been disappointed with Rieter. There were never false promises and all agreements were fulfilled. Furthermore, we pri-marily pay attention to quality with all our prod-ucts and to a lesser extent to speed.”

The experience made with Rieter has been solely positive and all expectations have been more than fulfilled. “When we need new machines for the spinning plant, we would not even approach other suppliers”, Kayhan states.

The fuTuRe For the near future, Muharrem Kayhan expects pos-itive results. In general, he sees Turkey in a very good starting position: “Europe lies at our door. Af-ter China, we are the most important supplier for Europe. Our chances steadily rise as China increas-ingly produces for the local market. However, we also sell more and more to China.”

How does he see the differences in customer re-quirements today compared to five years ago? “Previously customers came to us - today we must go to the customers. Service is paramount and people are still the most important asset in a solid company. Today everyone must be very alert. We can no longer allow mistakes to be made, then one is quickly out of the running. The customer must be happy, then we are also happy. We provide a 100 % service that depends on the interplay be-tween people and machine.”

How will he maintain his position in the market? “Oh, that’s an endless story. The position in the market is linked to a constant process of improve-ment“, Muharrem Kayhan believes. “Quality and service are the highest prerequisites for a success-ful market presence. Service and correct delivery times are at the top of the list. The demands placed on service are rising continually and satisfying them is only possible with a proactive approach.”

With regard to sustainability, clean cotton is an im-portant theme for the company.

How does he see further developments? “On the yarn and fabric production level, we have reached our limits”, comments Muharrem Kayhan. “A great deal more should be contributed from the chemical industry to increase environmental protection. The energy and process costs must be reduced. Here, every process stage is important so that the prices in future can be maintained.”

Muharrem Kayhan says “We will always be at our customers’ side with our R&D work and operation-al perfection.”


fig. 33 Rieter is technology and market leader, and above all a supplier of integrated systems

The data and illustrations in this brochure and on the corresponding data carrier refer to the date of printing. Rieter reserves the right to make any necessary changes at any time and without special notice. Rieter systems and Rieter innovations are protected by patents.

2396-v1 en 1210 Printed in CZ

www.rieter.com

Rieter machine works ltd.Klosterstrasse 20CH-8406 WinterthurT +41 52 208 7171F +41 52 208 [email protected]@rieter.com

Rieter India private ltd.Gat No 134/1, Off Pune Nagar RoadKoregaon BhimaTaluka Shirur, District PuneIN-Maharashtra 412216T +91 2137 253 071F +91 2137 253 075

Rieter Textile systems (shanghai) ltd.12/F, New Town CentreNo. 83 Loushanguan RoadCN-Shanghai 200336T +86 21 6236 8013F +86 21 6236 8012

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Country Report – Turkey - · PDF fileCountry Report Turkey The Turkish textile industry on the path to success Christian Schindler ITMF, Zurich, Switzerland ... Rieter machine works