Brief information on Turkish Textile and Ready Wear Industry including industry profile, Turkey's position, supply, foreign trade, major companies and market outlook

1. Foreign Market Consulting Ltd. Sti
Istanbul
June 2014
Textile and Ready-Wear Industry in Turkey
Foreign Market Consulting Ltd. Şti. • Dede Yusuf Sok. No:11, 34453 Büyükdere Sarıyer İstanbul - Turkey
Tel: +90-212-3638 052 • Fax: +90-212-3638 517 • www.fmconsulting.com • info@fmconsulting.com

2. Contents
© 2014 Foreign Market Consulting Ltd. Sti.
A Overview Page 03
B Supply Page 05
C Foreign Trade Page 06
D Main Companies Page 11
E Market Outlook Page 12

3. 3
• Nearly 58 thousand active companies and 1 mn people (2 mn including
unregistered) employed in the textile, ready wear and leather industry. (Source: Social
Security Institution, 2014)
A. Overview
Industry Profile
Manufacturing Production
Value
(USD bn) 2012
Number of
Companies
2012
Share of SMEs
in
Total Number
of Companies,
2012
Number of
Foreign
Companies
2013
Number of
Employees
2012
Number of
Employees
(incl.
unregistered
employees),
2012
Manufacturing of
Textile
26,5 17.313 98.0% 493 430.213 450,000
Manufacturing of
Ready Wear
19,5 33.977 99.5% 130 454.754 1,500,000
Manufacturing of
Leather Products
2,6 6.425 99.9% 107 60.591 NA
Total 48,6 57.715 99.1% 730 945.558 NA
Source: Ministry of Science Industry and Technology, Social Security Institution, Ministry of Economy, 2013

4. 4
A. Overview
Turkey’s Position
Turkey’s Position in the World and EU
Category World Rank EU Rank
Thread manufacturing* 3 1
Knit fabric manufacturing* 2 1
Woven fabric manufacturing* 5 2
Textile exports to World/EU** 7 2
Clothing exports to World/EU*** 7 3
Cotton manufacturing*** 8 NA
Cotton consumption*** 4 NA
Organic cotton manufacturing*** 3 NA
Knitted clothing exports*** 5 NA
Woven clothing exports*** 9 NA
Hosiery manufacturing*** 2 NA
Raw cotton imports**** 3 NA
*Source: Istanbul Chamber of Industry, 2014
Source: Ministry of Economy (2014), Ministry of Science. Industry and Technology, (2013)
***Source: Ministry of Economy, 2014
****Source: Ministry of Science. Industry and Technology, 2013

5. 5
• Production capacity of cotton, silk and wool thread (as of Sep. 2013): 958 thousand
tons. (Source: Istanbul Chamber of Industry, 2014)
• Production capacity of textile fabric (as of Sep. 2013): 1.56 bn sqm. (Source: Istanbul
Chamber of Industry, 2014)
• Production capacity of knit fabric (as of Sep. 2013): 1.2-1.5 mn tons. (Source: Istanbul
Chamber of Industry, 2014)
• Production of knit fabric (2012): 650-700 thousand tons. (Source: Istanbul Chamber of Industry,
2014)
Turkey’s Production Capacities
Category Capacity in 2011 Capacity in 2012 Share in the World
in 2012
Rank in the World
in 2012
Short Fiber Yarn Spinner
Capacity
6,500,000 6,941,328 2.7% 5.
Long Fiber Yarn Spinner
Capacity
775,364 835,696 5.6% 4.
Open-End Rotor Capacity 600,000 617,516 7.4% 4.
Drawtexture False Twist
Spinner Capacity
NA 59,076 1.5% 5.
Source: ITMF (International Textile Machinery Shipment Statistics) and ITKIB (The General Secretariat of Istanbul Textile and Apparel
Exporter Associations ), 2013
B. Supply
Production Capacity

6. 6
C. Foreign Trade
Exports and Imports
• 65% of the clothing production is exported. (Source: Ministry of Economy, 2014)
• 80% of the clothing exported is cotton clothing. (Source: Ministry of Economy, 2014)
• Turkey is a net exporter of ready-wear products but a net importer of textiles.
• Textile, ready-wear and leather products together constitute the largest share in the
total exports of Turkey among all the sectors: 18.2% in 2013 (Source: Turkish Exporters Assembly,
2014)
• The majority (62%) of ready wear exports is composed of knitted clothing whereas
the majority (66%) of ready wear imports is composed of woven clothing. (Source: Ministry
of Economy, 2014)
• Exports of textile products and raw materials annually grew by 12% btw. 2009-2013,
whereas imports have increased by 10% each year. (Source: ITKIB [The General Secretariat of Istanbul
Textile and Apparel Exporter Associations], 2014)

7. 7
C. Foreign Trade
Ready Wear Exports and Imports
Source: Ministry of Economy, 2014
8,385,636 8,418,618
9,250,925
5,124,460 5,431,268 5,715,592
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
2011 2012 2013
Exports of Ready Wear
Knitted or Crocheted Clothing
Woven Clothing
USD '000
1,084,866
843,388
941,223
1,874,030
1,497,894
1,862,913
0
500,000
1,000,000
1,500,000
2,000,000
2011 2012 2013
Imports of Ready Wear
Knitted or Crocheted Clothing
Woven Clothing
USD '000

8. 8
C. Foreign Trade
Textile Exports and Imports
Source: ITKIB (The General Secretariat of Istanbul Textile and Apparel Exporter Associations ), 2014
5374.1
6352.8
7709.4 7749.2
8370.8
6301.2
9079.1
10386.8
8674.5
9301.6
0
2000
4000
6000
8000
10000
12000
2009 2010 2011 2012 2013
Foreign Trade of Textile Products and Raw Materials
Exports Imports
USD mn

9. 9
C. Foreign Trade
Textile Foreign Trade By Type of Goods
*Jan.-Nov.
Source: ITKIB (The General Secretariat of Istanbul Textile and Apparel Exporter Associations), 2014
660.2
1,640.9
2,599.0
1,580.1
355.4
1,003.7
644.6
1,741.6
2,832.7
1,685.8
399.2
1,087.5
0.0
500.0
1,000.0
1,500.0
2,000.0
2,500.0
3,000.0
Fiber Yarn Woven Fabric Knit Fabric Spun Lace (Non-
woven)
Other Textile
Products
Exports of Textile Products and Raw Materials
2012 2013
USD mn
2,483.1
2,736.7
1,717.3
328.3 259.6
2,737.0 2,750.3
1,772.1
412.7 292.4
0.0
500.0
1,000.0
1,500.0
2,000.0
2,500.0
3,000.0
Fiber Yarn Woven Fabric Knit Fabric Spun Lace (Non-woven)
Imports of Textile Products and Raw Materials
2012* 2013*
USD mn

10. 10
C. Foreign Trade
Main Countries in Foreign Trade of Turkey
Main Destinations of Exports and Main Sources of Imports, 2013, USD mn
Textile Products and Raw Materials Exports Textile Products and Raw Materials Imports
Russia 1,016.1 China 1,744.1
Italy 837.7 USA 950.3
Germany 445.5 India 696.9
Romania 329.8 Indonesia 669.6
UK 321.2 Italy 582.6
Ready-Wear Exports Ready-Wear Imports
Germany 3,118.1 China 829.6
UK 2,056.1 Bangladesh 780.2
Spain 1,453.5 Italy 145.9
France 918.2 Egypt 140.3
Netherlands 788.8 India 101.1
Source: Ministry of Economy (2014), ITKIB (The General Secretariat of Istanbul Textile and Apparel Exporter Associations , 2014)

11. 11
D. Main Companies
Largest Manufacturers
Rank* Company Name Production Based Net Sales, TRY mn,
2012**
55 Sanko Tekstil Isletmeleri 1,230.0
94 Gulsan Sentetik Dokuma 776.3
118 Korteks Mensucat 601.6
130 Beyteks Tekstil 557.5
132 Kordsa Global Endustriyel Iplik ve Kord Bezi 544.5
164 Merinos Hali 477.5
172 Zorluteks Tekstil 466.5
185 Orta Anadolu Ticaret 424.5
217 Menderes Tekstil 379.7
236 Bossa Ticaret ve Sanayi Isletmeleri 352.5
*Rank among top 500 manufacturing enterprises in Turkey with respect to production based net sales in 2012.
**EUR 1 = TRY 2.31 in 2012
Source: Istanbul Chamber of Industry, 2013

12. 12
E. Market Outlook
Targets and Expectations
• Main threat: Low priced imports from China
• Main strategy: Concentration on high value added products and branding
• 2023 targets:
• Ready-wear exports of USD 52 bn
• Textile exports of USD 20 bn
• Leather product exports of USD 4.5 bn

13. Confidentiality
Foreign Market Consulting Ltd Sti handles all data and information confidentially and also asks all
information to be handled confidentially, especially regarding the sources used.
Liability
FMConsulting receives information and data from third parties and presents the gathered data to its
customers. Thus, FMConsulting does not take any responsibility for the accuracy of any declaration or
precision of any gathered data.
Foreign Market Consulting Ltd. Şti. • Dede Yusuf Sok. No:11, 34453 Büyükdere Sarıyer İstanbul - Turkey
Tel: +90-212-3638 052 • Fax: +90-212-3638 517 • www.fmconsulting.info • info@fmconsulting.com