Adil Nalbant: ‘’We support the OTM Exhibition organized by Tüyap & Teknik Fuarcılık Partnership as TEMSAD, the Turkish Textile Machinery and Accessories Manufacturers and Dealers. The exhibition partner of TEMSAD is Tüyap; we also take part in the Middle East Textile Machinery Exhibition because of Tüyap. We will go to Gaziantep if Tüyap has deemed it suitable. We recommend our friends to participate in OTM.’’
Turkish textile machinery export has exceeded 300 million dollars which we have not been able to exceed for 5 years and it has reached a value higher than 325 million dollars. This was a very gratifying progress for us. 7 % increase was recorded in a period when our general exports did not increase at all, and we experienced 11-12 % increase in textile machinery exports. It is very important. The year 2013 was very efficient for us in terms of textile and textile machinery. However, the undesirable political incidents at the end of 2013 and the increase in foreign currencies and interests caused us to revise our plans about 2014. I hope we will see the same increase, hard work and success also in 2014 thinking it is temporary.
We had a very good ITM Texpo Eurasia Exhibition in 2013. ITM’s attract great interest as exhibitions where international participants and visitors take part intensively, foreign purchase committees come and newest technologies are exhibited. We have our Texpo Eurasia exhibition which will be organized by us for the 31st time together with Tüyap, as TEMSAD. As you know, the Texpo Eurasia Exhibition is organized every year and we have been supporting this exhibition since the day we were founded because of our aggreement with Tüyap as TEMSAD.
Machinery exhibitions are difficult organizations. In the machinery sector, fashion, designs and collections don’t change every year like in the other branches of textile. Technologies change in machinery in a longer time. The year 2015 is inevitabley the year of ITMA, I don’t think that much innovation will be exhibited at exhibitions before. Because of this reason, I think that brand new technologies will not be exhibited at the fairs in 2014, there will be the machines exhibited last year. Moreover, I think that 3 seperate textile machinery exhibitions in 1 year are superfluous. Local sector exhibitions attracted great interest at the end of 90s and in the beginning of 2000s in regions such as Gaziantep, Denizli and Bursa, interest for these exhibitions has increased again. Tüyap, which is our fair organization partner as TEMSAD, organizes the OTM Exhibition together with Teknik Fuarcılık in Gaziantep, and we are working for it. Our Exhibitions Committee under the presidency of Mr. Hüseyin Birben remarked that successive exhibitions in different cities are not right and they decided that to we should support the OTM 2014 Exhibition organized by Tüyap & Teknik Fuarcılık partnership.
Turkey should have a voice especially in textile which is the strongest industry of Turkey. In other words, ready wear makes 500 billion dollars, yarn and fabrics we label as textile raw materials make the 250 billion dollars and technical textile make 250 billion dollars in world textile industry trade of 1 trillion dollars. The value we take in this pie chart of exports is 27 billion dollars. In other words, our share is 2,6 %. I wish these figures were above with the present textile capacity of Turkey, its investments in textile, its equipment pool, its educated labor force and its advantages in the region. We can actualize it only if we think that İstanbul should be a fashion, brand and technology center in textile. Then we will take shares such as 5 % or 10 %, not 2,5 % in the world textile. It provides the more efficient use of both the share of 70 billion dollars within the export target of 500 billion dollars and the people and energy of our country. I want to say this: in other words, I dream that Istanbul will be a textile and fashion center just like Paris, New York and Milano. Accordingly, I find the exhibitions organized in İstanbul very necessary, especially the ITM exhibitions. This year, it was decided to organize a fair in Gaziantep because of the intensive investments in the region. We also support the OTM Exhibition organized by Tüyap & Teknik Fuarcılık partnership, as TEMSAD – Turkish Textile Machinery and Accessories Manufacturers and Dealers. TEMSAD’s exhibition partner is Tüyap; we will also take part in the Middle East Textile Machinery Exhibition because of Tüyap. We will go to Gaziantep if Tüyap has deemed it suitable. We recommend our friends to participate in the OTM. However, there should be no great expectations because this exhibition will be organized for the first time.
Gaziantep is a shining star of the region, in other words the Southeastern Anatolia, as a city. It has a magnificent industrial set. There are very hardworking people and they are also very successful. Today, as textile manufacturers, we are proud of the people of Gaziantep and the textile machinery manufacturers there. Our friends who are machinery manufacturers there produce very special machines and they sell them to all of the world. All of our domestic machinery manufacturers produce world class textile machinery, they even produce above the world quality standards, and they can sell them to all of the world. At the same time, as you know, Gaziantep is the capital of carpets in the world. There was carpet export of 2 billion dollars according to the export figures of 2013. It is something to be proud of. Technical textiles make most of them. Almost every kind of textile exists there. There are investments and production about every topic except home textiles. The supports of the Chamber of Industry and Chamber of Commerce and other institutions in Gaziantep are things really to be appreciated.
We had a good market, good friendships and we were doing nice businesses before the afflictive incident in Syria. A textile machinery exhibition which we participated every year was organized in Aleppo, Syria. Now, the OTM 2014 Exhibition is likely to fill that gap. Increase in the trade with Iraq, the environment’s becoming suitable for business and the open-endedness for more makes that region lively. Abolishment of the economical embargos with Iran also makes a great potential and opprtunity for Gaziantep and our region. The name of this exhibition is very suitable because it will appeal to Lebanon, Jordan, Egypt and even Saudi Arabia (there is a wonderful potential for velvet and they invest in jacquard) just below the region, in other words, it will embrace the Middle East: MIDDLE EAST TEXTILE MACHINERY EXHIBITION… I say good luck with it. I wish they will receive a recompense for their work. We don’t want to be divided and disintegrated as an industry. Some personal ambitions affecting the industry and us disturb me and our machinery manufacturer friends. We experienced it before; we don’t want to experience the same. I hope everything falls into place and nature will take its course.
The reason of our increase in machinery exports is the recovery of the world economy after the 2008-2009 crisis, it also affected our business. The countries we have exported are Germany, the USA, the UK, Russia, Iraq, France, Italy and Romania. The countries who are our competitors pass through the same process with us As we will always say, Turkey is a textile country. We have always existed in textile, and we will exist in it in the future. Certain economical and political nuisances unavoidably make people worry about investment but my personal view is the present investments will continue even if they slacken a little in 2014. Turkish textile industry proceeded on its way even in 2008-2009 when there was global economical crisis; the industrialists of our country involved in textile will always continue. When I look at the countries which are our competitors, I think that similar nuisances will be experienced there in terms of economics, if not interms of politics. Developing countries have almost the same problems. We could receive very cheap loans when the dollar was abundant. Investments were easier. However, now, with the reduction of the amount of dollars the USA gives to the free market, the costs of the investments will increase because cheap loans will not be possible. This siutation will be effective not only for Turkey but also for India, Pakistan, China etc. Stopping of the growth speed in China and the increase in the prices there are unavoidably the reasons of our textile industry’s being more relaxed in the last 3-4 years. The most imprtant reason of the return of the great orders and textile purchases going from Europe to the Far East and the countries of the region is our capacity and quality’s being really good. Because of this reason, we are an indispensable partner. Our greatest disadvantage this year is this year’s being an election year. Elections and political nuisances make us somewhat worried. However, except these, a businessman is interested in his business and he makes the investment if he will make it in the end. Thus, we will be affected as much as the other countries. We have no problems with our competitors. Here, we can change a part which looks like a disadvantage into an advantage. If we can make investments with very suitable conditions and work more effectively, we can be more successful in 2014 and future years, as the textile industry.
We have import inputs as textile manufacturers and we are affected by the fluctiations in the exchange rate of dollar. Dollar’s abnormal increase is good for nobody. Because our economy has a structure depending on imports. We have to buy the technology, raw materials and some technical support of everything we produce with dollar. Here, it is obvious that, if we had a machinery industy and source for raw materials and materials enough for us, these crises would not affect us so much. However, wrong guidances and decisions until now made our industrialists used to laziness. No machinery manufacturer says: ‘’I will produce my machinery myself or I will collaborate more with the friends who produce the machinery in terms of technology or trade, I will improve my own industry and technology.’’ Our textile manufacturers thought making the building and buying the machinery from abroad, manufacturing and selling it. If we go on this way, the point to be reached is the point we are on at the moment. We buy textile machinery of 2 billion dollars from abroad every year, as Turkey and we export machinery of 300 million dollars. This situation is affected with the smallest fluctuation of exchange rates. Because we depend on abroad. There was no effort for manufacturing that machine in our country.
Meanwhile, I thank to the manufacturers who support us and use home product machinery and open their factories and offer all their means to us. What I say should not be misunderstood. Today, our textile machinery industry exists thanks to our textile manufacturers. Our textile manufactuers have led us but we wish there were more of this kind of people. In other words, we wish like our friends who produce a weaving loom, a complete yarn plant or knitting machines or ready wear machines were supported and these machines were produced in our country. At the moment, works for production of machinery types in our country should have been started. Because we are a good market. The world textile machinery market has a volume of 24 billion dollars; 2 billion dollars of it is bought by Turkey. Our share is 8 % in the machinery imports and it is 2,5 % in imports, in the world. We are the 4th greatest textile machinery importers in the world, but I wish we were the 4th greatest textile machinery exporters. Yet, we are the 15th in the export grading in the world.
China sells textile machinery of 5,5 billion dollars and buys machinery of 3,5 billion dollars. Germany sells textile machinery of 5 billion dollars and it buys textile machinery of 1 billion dollars. China is fast and furious in machinery manufacture. The more dominant influence of China will be felt in the markets not only in textile machinery but also in the manufacture of many machines, and the automotive industry after 5-10 years. Chinese companies take the companies which are Western textile machinery manufacturers of 100 or 150 years with their histories, projects, brands and technologies to China. At the moment, China is in a position to be the greatest actor of the machinery industry as it is its greatest buyer. It has a large market in itself. However, there can be nothing negative coming from China to us. China’s being effective in the textile industry disturbs the Westerners, not us. We are both a far market and we have never been damaged by the Chinese throughout our history and we have always found a middle ground.
Long-established industries in Turkey were not founded by the Westerners. For example, Russians founded the iron steel and textile industries in the early years of the Republic of Turkey. The industrialization in Nazilli, Malatya and Kayseri was made by the Russians in 1938. In one of my trips, the Russian Minister of Light Industry said: ‘’We founded the textile industry in 1930s. Then, we were processing 1,5 million tons of cotton. You couldn’t produce and process 300 million tons. You were selling the cotton you produced as raw material. But, at the moment we are processing 300 thousand tons of cotton and you are processing 1,5 million tons. Today, we take you as a model in textile.’’ As you know, our greatest textile buyer is Russia.
We have friends who do very good jobs with our accumulated knowledge about textile and machinery technology but they aren’t appreciated. I can exemplify: There is a technology which can be manufactured in 5-6 countries in the world; carbon fiber technology. Our company Aksa K in Yalova actualized it successfully. They produced their own technologies, production lines, machinery, furnaces etc. themselves while they were producing the most developed and the most promising carbon fiber in the world as a result an R & D work lasted 8-10 years. Because nobody wants to give this technology to anybody. In fact, it is an important example for success. Then, as I keep abreast of it from the press, Dow Chemical, the greatest chemistry company in the world became the partner of Aksa K and the company took the name Dow Aksa. However, we couldn’t protect this company which should be the apple of our eye, which has a very strategical product and which we should support in every way.
Dow Aksa can’t buy energy from the energy company within Aksa at cost, because of its partnership, it can buy it at market price. It makes a challenge in the international competition because the costs increase. Because of this reason, it can carry its production to the USA. Now, what are we talking about? Think it: you have formed the technology to produce carbon fiber which is the hardest process of the world, you have installed the machinery and all the systems for it, you have started the process and everybody in the world watches you with a great interest, world’s giant companies become your partners but you can’t protect it because of very simple reasons. As for manufacturing textile machinery, the other textile machinery we will manufacture are much simpler technologies than those machinery in which carbon fiber is manufactured. We have the ability to make the processing line with such an advanced technology. What is important is to reveal the abilities. According to me, it should be the first duty of the government. Its second duty is to protect them like the apple of its eye; to protect not only the textile and machinery industries but also the industry and production…
The share of the real economy within the total economy decreased from 25 % to 16 %. Service and finance corporations multiply. One of our ministers makes a statement for newspapers as a shattering piece of news and he states that 2 banks from China and the USA are coming to our country. The greatest industrial giant of China or USA doesn’t come and invest here. The point which mostly distressed me was this: While our economy was losing blood 12 % in 2009, our banks earned money 20 %. Our banks still state record profits. What kind of economy is it, I can’t understand it. We can do everything. Today, we have a potential to produce everything from home product airplanes to subway. However, they don’t permit us to do these, there is a contrast but I can’t understand it. If you are an entrepreneur, you struggle under such challenging conditions that, the eyes of the Ministry of Fiscal Affairs, the Ministry of Labor and the Ministry of Economy are on you. Nor is this all, the municipalities, the departments in the local authorities are on your back, too. Nor is this all, occupational health and safety and risk analysis make another burden for us. Everyone is striving against the producer, despite respect, protection and support for the producers are necessary. Someone from China, the USA or Germany won’t come and found the machinery industry in this counry, we must do it if someone must do. 2014 will be very difficult for machinery manufacturers. However, I think that the capacities and investments of our textile manufacturer friends will continue. Textile is indispensable for this country, it is a must. It will always exist. It is not so difficult. If we can increase our share at the level of 25 billion dollars to 60-70 billion dollars, it will be much better.
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