TODAY’S – Adana feeling the pain from business closures

Adana feeling the pain from business closuresAs industrial production shows a decline in Turkey, major firms in the province of Adana are halting production, including the Beyteks textile firm, which was previously 128th on a list of Turkeyand#39s 500 largest industrial firms drawn up by the Istanbul Chamber of Industry (ISO).Official statistics released earlier this week indicated that industrial production dropped by 22 percent in January year-on-yearReports from Adana have indicated that the halting of production in the firmand#39s 22 factories, which employed 5,000 people, has resulted in worker demonstrations.

The firm, which primarily produces thread and yarn products, has been hit hard by the weakening of the Turkish lira against an increasingly robust US dollar Beyteks mainly purchases American cotton and sells its products on the domestic market, meaning it pays for its imports in dollars and sells in liras. The dollarand#39s rise to more than 26 liras has created major headaches for such a model.

Meanwhile, the Adana-based GI Metal firm, which was 170th on ISOand#39s list of the second 500 largest firms in Turkey, filed for bankruptcy protection late last month, and several other firms in various sectors have closed their doors in Adana in recent months.The decline in industrial production is a troubling sign for the general wellbeing of the Turkish economy, which heavily relies on the construction sectorWhile Deputy Prime Minister Ali Babacan — who is responsible for the economy –recommended last year that Turkey focus more on boosting its industrial sector and turn its sights away from construction, President Recep Tayyip ErdoIan swiftly rejected the idea, saying that scaling back on the construction sector is out of the question.

SOURCE: Today’s Zaman