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One more Turkish textile enterprise shifts operations
Oct '09
The trend of Turkish textile manufacturers, starting or shifting operations to the African continent, particularly to Ethiopia is gathering pace. One of the biggest textile producers and exporters in Turkey is finalizing plans to relocate its factory to Ethiopia.

Saygin Dima Textile S.C., which is one of the biggest textile companies and exporter in Turkey, is firming up on plans to shift base to Ethiopia.

A few years ago, AYKA Textiles, another Turkish textiles company, shifted its garment production units to Ethiopia to take advantage of the relatively cheap labour in Ethiopia and the attractive incentives the government provides for foreign investment in the sector.

The biggest investment to come from Turkey was from AYKA and it still enjoys the status along with receiving full from the government. It had revealed plans to take advantage of the African Growth and Opportunity Act (AGOA), which provides duty free access to the US.

Saygin Dima Textile is setting up the plant on a 17 hectare plot in the town of Sebeta and has entered in to a joint venture with Ethiopian Government, which will be a minority stake holder in the venture.

In August, a group of Turkish investors announced plans to build an industrial zone in Legetafo locality with a total investment capital for USD 10 billion and five more Turkish textile companies are in the pipeline to shift their factories to Ethiopia.

Fibre2fashion News Desk - India

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