Orta Anadolu Ticaret ve Sanayi İşletmesi T.A.Ş., a textile producer that has operated in Kayseri, Türkiye, since 1953, has reached the final day of its announced plan to shut down its facilities for good. According to a 12 October report by Dünya Gazetesi, the company halted production on 11 September, and its plants are expected to close and employment contracts to end as of 12 October.
Since 1986 the company had supplied denim fabric to international apparel brands, which made it one of Türkiye’s notable fabric mills. Management’s statement dated 11 September 2026 made clear that this is not a temporary stoppage or a capacity cut, but a permanent end to production in Kayseri.
Why the mill is closing
Management did not point to a single cost item. Its statement lists several pressures that reinforce one another:
- Weakening global demand for textiles
- Rising operating and financing costs
- Volatility in supply chains
- Tougher international competition
The company said it had looked at cutting costs, improving efficiency and restructuring, but could not make its existing production model sustainable.
What happens for employees
Under the written notice given to staff, severance and notice pay, unused annual leave and other statutory entitlements are scheduled to be paid in a single lump sum by 7 November 2026 at the latest. Calculations will include service up to and including 12 October, and each employee is to receive a breakdown showing deductions and the net amount.
The company has also announced a separate social support package, in cash and in kind, which it says will not replace its legal obligations. The size and timing of that package have not yet been finalised.
What it means for the sector
Dünya Gazetesi describes the closure as one of the clearest examples of the cost and competitive pressure facing textiles, one of Türkiye’s traditional industries. When a long-established mill that supplied denim to brands for decades leaves the market, sourcing plans come back onto the agenda for brands and garment manufacturers that rely heavily on denim.
Two dates now stand out: 12 October, when employment contracts are expected to end, and 7 November, the announced deadline for settling employee entitlements.
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This article was summarised and commented on by the LTS Frekans editorial team, drawing on the source article.
