AFYONKARAHİSAR / DENİZLİ – Turkish textile giant Baltalı Grup has announced the closure of two of its factories located in Hocalar (Afyonkarahisar) and Çal (Denizli), citing economic challenges and declining orders as the primary reasons behind the decision.
The announcement comes at a time when Türkiye is witnessing a sharp increase in company bankruptcies and concordat declarations. In the first five months of 2024, the number of companies filing for concordat surged by 97% compared to the same period last year, reaching 967. The textile sector topped the list with 71 cases, making it the most at-risk industry.
Two Major Facilities to Be Closed
Deniz Tekstil, one of Türkiye’s largest textile firms operating under the Baltalı Grup umbrella, has taken the decision to shut down its two production facilities amid deepening financial difficulties. According to a report by İbrahim Alayont of DRT TV, the closures are part of a broader contraction within the textile industry.
“We May Reopen if Orders Increase”
Derya Baltalı, Chairman of Baltalı Grup, confirmed that the closures are a result of shrinking demand and worsening economic conditions, particularly in export markets.
“The factories in Hocalar and Çal are being closed due to a significant drop in orders. If demand rises again, we will reopen these facilities,” said Baltalı. “The decision to close the Çal plant, which we opened in 2018, has no political or local administrative basis whatsoever.”
“We’ve Lost Competitiveness Due to Economic Policies”
Baltalı pointed to high interest rates and restricted access to financing as the primary challenges facing industrial producers in Türkiye.
“The high cost of borrowing and limited access to financial resources have created a serious burden on manufacturers,” he noted. “Credit institutions now see the textile sector as high-risk, which makes funding even more difficult. Unfortunately, textile and apparel are now textbook examples of this issue.”
Baltalı also explained that the Hocalar facility had previously been closed temporarily for five months in 2023 due to reduced demand. Though it reopened in January 2025, the demand further collapsed, forcing a more permanent closure.
“There are solutions, of course, but the ability to compete should have been fostered much earlier. We’ve lost that edge due to economic programs. Ultimately, we’ve been defeated by inflation, weak consumer demand, and exchange rate instability,” he added. “Unless the exchange rate increases at the same pace as inflation, this situation will persist.”
“Around 3,000 Factories for Sale Across Türkiye”
Offering a stark picture of the ongoing industrial crisis, Baltalı highlighted that approximately 3,000 factories are currently for sale in Türkiye, with a similar number available for lease.
“We must ask ourselves what led to such a dramatic situation. Let’s not forget that without industry, there is no working class—there isn’t even a middle class,” he warned. “I firmly believe that revitalizing investor confidence and promoting production and exports will greatly benefit our cities and our country.”
Baltalı concluded by affirming that if economic conditions improve, the first facilities they would reopen would be the ones in Hocalar and Çal.
Source: Patronlar Dünyası/ Prepared by: İlayda Gök