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Competition forces Abalioglu Yarn Co to move out of the country
13 Apr '06
1 min read
One of Turkey's leading textile firms, Abalioglu Yarn Company, has decided to say 'quits,' and is mulling operations to cheaper pastures like India and China.
Owner, Mr Abalioglu who has been active in the textile business since 1940, said, “In recent years, I heard a lot about textile industry of China and India. Eventually, I went there and saw the working conditions with my own eyes. For example; in India, one worker is paid around US $ 800 annually. Electricity and other inputs are alos very economical as compared to rates in Turkey. How could we compete in this situation? We are already into manufacturing intermediate goods, so we can't create added value for our products.”
Established on Denizli industrial zone in 1997, Abalioglu Yarn Company was set up at a total investment of 28 million Swiss Franc.
Company which produced 15 tons of yarn per day was reportedly exporting US $ 5 million worth yarns per year.
Recently, Abalioglu sold this plant to Super Spinning Mill, which is one of India's largest yarn company.
In a deal worth US $7 million for the Indian entity, entails plant and machinery be shifted to India, soon.
Owner, Mr Abalioglu who has been active in the textile business since 1940, said, “In recent years, I heard a lot about textile industry of China and India. Eventually, I went there and saw the working conditions with my own eyes. For example; in India, one worker is paid around US $ 800 annually. Electricity and other inputs are alos very economical as compared to rates in Turkey. How could we compete in this situation? We are already into manufacturing intermediate goods, so we can't create added value for our products.”
Established on Denizli industrial zone in 1997, Abalioglu Yarn Company was set up at a total investment of 28 million Swiss Franc.
Company which produced 15 tons of yarn per day was reportedly exporting US $ 5 million worth yarns per year.
Recently, Abalioglu sold this plant to Super Spinning Mill, which is one of India's largest yarn company.
In a deal worth US $7 million for the Indian entity, entails plant and machinery be shifted to India, soon.
Fibre2fashion News Desk - Turkey
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