Cost pressures, weakening demand, and a loss of competitiveness in the textile and ready-to-wear sectors are forcing companies to downsize. One of the latest reports of major contraction in the sector has come from TYH Tekstil, one of Turkey's significant producers.
Selçuk Mehmet Kaya, Chairman of the Board of Directors of TYH Tekstil, announced that the company had to close 7 of its 13 factories. Stating that they are in the process of a concordat, Kaya said they have gone through a serious downsizing, particularly on the ready-to-wear side.
In his statement to Ekonomim, Kaya said, "The difficulties experienced in the economy were inevitably going to affect some companies more negatively. Unfortunately, we have become one of those most heavily affected."
While the company's production network has decreased from 13 factories to 6, the number of employees has fallen from 6,900 to 1,900. Kaya said, "We had 13 factories, we reduced them to 6. We have downsized significantly, especially on the ready-to-wear side. We were producing with 6,900 people in 13 factories. We have dropped to 1,900 people. In other words, we had to say goodbye to 5,000 of our personnel."
LOSSES IN THE SECTOR ARE GROWING
The downsizing at TYH Tekstil has become a new example of the closures and employment losses experienced in the sector recently. Previously, the Orta Anadolu company, which was founded 73 years ago in Kayseri and produced denim for brands such as Diesel, Replay, Guess, Mustang, and Levi's, had also closed its factory where approximately 1,500 people worked.
Data from the Turkish Clothing Manufacturers Association (TGSD) also reveals the scale of the contraction. TGSD President Toygar Narbay stated that the textile and ready-to-wear sectors, which have a total investment size of 78.2 billion dollars, should be declared strategic areas.
According to Narbay, the two sectors provided a net surplus of 15.8 billion dollars in 2025. However, since December 2022, 362,879 registered jobs have been lost in the sector; 10,624 workplaces have also ceased operations. Narbay stated that 64 percent of the registered employment loss in the manufacturing industry has occurred in these areas.
Rising production costs against a stagnant exchange rate make competition in export markets difficult, while the weakening in domestic demand also lowers the capacity utilization of companies. Sector representatives point out that order losses and cost pressures pose a risk to the sustainability of investments.
News Source: 12punto
