Doubts over Turkey's special zones
15/01/2009
Industry commentators in Turkey are predicting that next year could be a landmark year for the leather sector there.
Special 'Organized Zones' for the leather industry were set up at Tuzla, near Istanbul and Menemen, near Izmir about 20 years ago, but they have failed so far to help Turkey establish an enduring prominent position in the global market.
The special zone at Tuzla started with 120 tanneries 16 years ago. There were modern facilities, machinery, technology and common waste treatment systems.
During the golden years of the Turkish leather industry (1992-1998) this zone played a great role in the increase of leather exports, mainly to Russia and allied countries.
With the economic crises of 1998 and 2001, the active number of tanneries decreased, so land and buildings were sold to different industries and the majority replaced by shipbuilders manufacturing yachts.
But reports from the area make it clear that the most recent global economic downturn is also hitting these yacht-builder companies, some of which have already closed down.
Today, about 30 tanneries remain in the zone, the majority producing shoe-upper leathers.
The Organized Zone at Menemen has suffered a similar fate. It started 15 years ago with about 80 tanneries, the majority producing double-face and garment-nappa leathers, but today only 15 tanneries are still active there.
The view in Turkey now is that the two zones have failed to keep the early momentum going because of the rapid development over the last 10 years of the tanning sector in China, India and Pakistan, because of insufficient attention to improving quality, and because of the high labour, energy and chemical costs.
If the two special zones are to continue to play a role in the Turkish and global leather industries, the suggestion is that the companies operating there will have to survive and improve their performances during the difficult year ahead, and that further closures this year could signal the end of the experiment in 2010.
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