Decline in the Textile Sector: Employment Losses and the Future

Textile Sector in Crisis: Decline in Employment and Exports

The Chairman of Sun Textiles, Elvan Ünlütürk, made important statements on the Üst Düzey program aired on Bloomberg HT. Ünlütürk emphasized that the textile and ready-to-wear sector has shrunk in the last three years, exports have declined, and employment has rapidly decreased.

Sector's Share in Exports Decreased to 9.8%

Ünlütürk stated that the sector's total export share has experienced a significant decline, stating, “In the last three years, our sector is shrinking, our exports are falling. The textile and ready-to-wear sector’s share in total exports was around 12.4%, but it has now decreased to 9.8%. In the face of problems, employment has also dropped to 900,000 people. Last month, 10,000 people lost their jobs.”

Rising Costs Threaten Profitability

Pointing out that Sun Textiles' sales have increased but that rising costs threaten profitability, Ünlütürk stated, “In the first six months of 2025, our sales volume decreased by 12% in Euro terms, but our EBITDA increased by 22%. While the sales increase is significant, the main goal is to maintain profitability.”

Competition with Egypt and Producer Identity

Ünlütürk expressed that Turkey is struggling in clothing production due to high labor costs, stating, “In ready-to-wear, 40% of the cost is labor. Despite the agreements with Egypt, we must not lose Turkey's producer identity.”

Dominance of the Far East in the European Market

Ünlütürk pointed out that the European Union’s imports of ready-made clothing have increased, but Turkey has not been able to gain any share from this market. “Europe is purchasing from the Far East and Bangladesh. The sector needs government support,” he said.

Sun Textiles' Investment and Technology Vision

Ünlütürk announced that they have made an investment of 1.6 billion TL with the resources obtained from the public offering, emphasizing that these investments focus on energy, water, and artificial intelligence sectors.

Declining Purchasing Power in the Domestic Market

Ünlütürk recorded that costs could not be fully reflected in retail prices and that purchasing power has decreased. “In 2024, costs were reflected at the inflation rate, but this was not possible in 2025,” he said.