Dull market stops textile units in Iran
Baku, Azerbaijan, Aug. 1
By Fatih Karimov - Trend: Some of textile units in Iran have stopped production due to recession and accumulation of products in the market, said Ahad Kermani, member of the Iranian textile association.
"Each year, textile units used to stop production for a week or two, but this year some factories have been shutting down for over one months," Iran's ISNA news agency quoted Kermani as saying on August 1.
Irregular imports of textile products from China, Turkey, and India, as well as low demands in the domestic market are the main reasons of the recession, he added.
A thread production unit, for example, needs around 80 billion rials (about$2.5 million) in operating capital, he noted.
Mehdi Yekta, the secretary of the Iranian textile producers and exporters union, said in Jan. that importing textile products from Turkey based on preferential rates will harm the domestic textile industry.
Yekta went on to say that imports meet 80 percent of the Iranian market's textile needs. China and Turkey respectively account for about 60 percent and 40 percent of textiles exports to Iran, he added.