Circulair Textiles Turkey 2021

DEFINING CIRCULARITY OF TEXTILE
INDUSTRY IN TURKEY
Commissioned by the Netherlands Enterprise Agency
COVER
DEFINING
CIRCULARITY OF
TEXTILE
INDUSTRY
IN TURKEY
COLLABORATION OPPORTUNITIES BETWEEN TURKISH AND

DUTCH MARKETS
About:
This report has been commissioned by the Embassy of the Kingdom of the
Netherlands in Ankara and Netherlands Enterprise Agency, RVO.
April 2021
Table of Contents
1 PREFACE 1
2 EXECUTIVE SUMMARY 2
2.1 From Linear Inefficiencies to Circular Opportunities 2
2.2 About Textile & Clothing Sector in Turkey 3
2.3 Highlights of prioritised opportunities: 6

2.3.1 Recycling and Sorting Services: 6
2.3.2 Circular Design Capability Build-up: 7
2.3.3 Circular Production Capability Build-up: 7
2.3.4 Sustainable Sourcing & Labelling: 7
2.3.5 Renewable Energy Capacity Mechanisms: 7
2.3.6 Platforms for Collaboration and Reporting: 7
2.4 Closing Remarks: What is the Role for Parties to Achieve Circular Textile Value? 8
2.5 Guiding Remarks 8
3 METHODOLOGY 9
4 CIRCULARITY ANALYSIS OF THE VALUE CHAIN 11
4.1 Results 11
4.2 Circular Business Models 14

4.2.1 Survey Results 14
4.2.2 Local production capabilities 15
4.2.3 Production on demand 15
4.2.4 Digitalisation & online platforms (marketplace solutions) 15
4.2.5 Digital tracing (blockchain) 16
4.2.6 Repair services / Reuse platforms / Renting services / Collection schemes (sorting) 16
4.2.7 Repair Services 16
4.2.8 Collection schemes (sorting) 17
4.3 Eco Design 18

4.3.1 Survey Results: 19
4.3.2 Design for longevity 19
4.3.3 Designing with nature (Biomimicry) 19
4.3.4 Compliance with eco design guidelines 20
4.3.5 Digital Design Capabilities 20
4.4 Sustainable Fibre Production 20

4.4.2 Recycled fibre use 22
4.4.3 Regenerative fibre use (biodegradable or compostable) 22
4.4.4 Sustainable sourcing labelling 22
4.4.5 R&D Facilities 22
4.5 Sustainable Production 23

4.5.2 Resource efficient production 24
4.5.3 Fair work conditions 24
4.5.4 Digital Monitoring (IoT) 24
4.5.5 Use of Renewable Energy 25
4.6 Safe & Clean Materials 26

4.6.1 Phasing out of from chemicals of concern 26
4.7 Collaborative networks 27

4.7.2 Social Impact Networks & Platform- based Economic Models 28
4.7.3 EU Green Deal – Harmonisation Beyond Carbon Tax 28
4.7.4 Customs Union between EU & TR 28
5 MACRO-ECONOMIC ANALYSIS OF TURKISH TEXTILE: STYLISED FACTS & CHALLENGES & POLICY
RECOMMENDATIONS 29
5.1 Turkey Is a Significant Player of Internationalised Sectors 29
5.2 Negative Contributions to Foreign Trade Balance for Textile Fibres 30
5.3 High Employment Capacity Within the Manufacturing Sector 30
5.4 Regional Development 30
5.5 Recent Figures Indicate that Some Re-shoring Might Be Taking Place 31
5.6 Textile and Clothing Sector Objectives and Strategic Roadmaps 31
5.7 Challenges 31
5.8 Policy Recommendations 32
5.9 Summary of Macro-economic Analysis 33
6 COLLABORATIVE VALUE DEFINITION FOR CIRCULAR TEXTILE 34
6.1 Opportunity Definitions & Recommendation 36

6.1.1 Recycling & Sorting Services 36
6.1.2 Circular Production Capability Build-up 41
6.1.3 Use of Digital Technologies 43
6.1.4 Circular Design Capability Build-up 44
6.1.5 Renewable Energy Use 44
6.1.6 Collaboration & Reporting 45
6.2 Conclusion 47
REFERENCES 50
APPENDIX 53
A List of Companies Consulted 53
B Collaboration Opportunities 55
C Glossary of Abbreviations 56
D 11th Development Plan of 2019-2023 56
TEAM 58
1 PREFACE
extile consumption covers a wide variety of end products ranging from hi-tech synthetic yarns to wool
T fabrics, cotton bed linen to industrial filters, or medical masks to high fashion. This diversity of end products
corresponds to a complex number of industrial processes, structures, and markets in the supply chain. The
retail brands and B2B sector is essential for all textile and clothing products sold to the consumers.
The Netherlands has set the goal to have a circular economy by 2050. The government has launched a policy
programme which aims to use at least 30% recycled material in new clothing by 2030 and have halved the
environmental footprint of the textile sector by 2035.
The Turkey - Netherlands Joint Economic and Trade Commission (hereinafter referred to as JETCO), which was
established with “the Declaration Establishment of JETCO” signed in Ankara on June 3, 2014, held its third
meeting in a virtual environment on September 28, 2020. The agreement on ‘Collaboration in the transition to
a circular economy would bring strategic economic advantages and contribute to a more efficient use of limited
natural resources and their commitments to the global sustainability (in reference to UN SDGs commitments)
was reinforced and both Sides took note with satisfaction the progress made in the bilateral cooperation
supporting the transition towards a circular economy’. More in particular they took note of the successful textile
and food circularity collaborations between the respective Turkish and Netherlands businesses, knowledge
institutes, NGOs, and government bodies.
As the fifth largest consumer goods market for Turkish goods, initiatives in the area of circular textiles will not
only make consumption and production more ‘responsible’ for both parties (SDG12) but also help to strengthen
Turkish textiles in EU while creating opportunities for the Dutch and Turkish trade relations.
To serve the purpose, our research commissioned by the Embassy of the Kingdom of the Netherlands in Ankara
and Netherlands Enterprise Agency, RVO, intends to understand the level of progress towards circularity on
textiles in Turkey and hence define the collaborative opportunity areas between the Dutch and the Turkish
parties. In order to progress the efforts, further verification and strategic planning are necessary as this study
serves to give a high-level indication and awareness on the related circular textile topics.
We would like to thank the textile and circular economy experts, brand leaders, producers, business platforms
and entrepreneurs we have spoken to, who devoted quality time to reflect on their experiences. We hope the
findings are opening the way towards circular textile efforts while creating tangible benefits to all parties
participating. We will be happy to serve further and be part of this exciting transformation.
Gulin Yucel
Partner
Brika Sustainability
1
2 EXECUTIVE SUMMARY
espite all evidence of transgressing the planetary boundaries, no crises could demonstrate better than
D COVID-19 that our economic models are not resilient. Nothing is more evident than the fact that transition
to the circular economy is urgent, requiring systemic change and asking for collaboration.
The textile value chain is one of the most critical intervention points in this fundamental transformation due to
its size and economic benefits it offers; despite ripping off environmental and social integrity.
On the other hand, problems of the existing system are opportunities for the future for those who can look into
the problems from a systems-thinking perspective, understanding gaps and bringing forward innovative
approaches in fast and structured ways.
This report intends to define gaps in the Turkish Textile Market and define collaborative opportunity areas for
Dutch and Turkish companies for the circular textile transition. For pragmatic purposes, only the highlights of
findings and opportunity definitions are presented in this Report (while the extended Report might be available
upon request).
2.1 From Linear Inefficiencies to Circular Opportunities

In a market with no definition and boundaries, inefficiencies or inexistence of structures are the potential
opportunities. Current inefficiencies cost so much for both the Dutch (or European) Consumer and the Turkish
Production markets that it is worthwhile to dig further in order to convert problems into financially feasible (as
well as environmentally and socially responsible) business cases. Some of these inefficiencies, as might be found
in detail in the report, might be summarised as below:
Despite material costs are high, recycling is so low for both EU, the Netherlands and Turkey:
➢ The cost of raw materials (fibre or yarn) is about 66% of the total cost in garment making; however, only
10% of the raw materials in Europe can be recycled and 9 % can be reused. [4]
➢ For Turkey’s production in textile and clothes, material costs are 33% and 47%, respectively while Turkey is
a net Importer for Textile Fibres. [5]
Inefficiencies are not only in internal (within EU) use. The externalities also matter:
➢ Clothing purchased by EU-28 households in 2017 used an estimated 1.3 tonnes of primary raw materials
and 104 m3 of water per person.
➢ Some 85 % of these primary materials and 92 % of the water were used in other regions of the world,
which is highest of all consumption domains. [6]
These inefficiencies have burdens on the Dutch, EU and Turkish economies:
➢ The textile waste in the Netherlands is 2.3% of the Gross Domestic Product (GDP) with over 5.9 kg/person
waste each year [7]
2
➢ It is estimated that every additional kilo tonne of recycled textiles might create an additional six to seven
jobs, making textiles the most job-intensive recycling sector in the Netherlands [8].
➢ The EU textile sector, predominantly composed of SMEs, produces 60% of value elsewhere (EU Green Deal
document) with impact for forgone profit as well as in environmental footprint. The EU imported clothes
worth €154 billion in 2019, just over half of which came from non-EU Member States (52%, or €80 billion)
[9]
➢ Production capacity of Turkish Textile and Clothing is lagging behind manufacturing sector average; textile
and clothing having a share of 4.8% within Turkey’s GDP (Gross Domestic Product) with indirect impact from
sectors providing raw materials and induced impact from consumption of sectoral employment [3].
Therefore, any technological capacity regarding improvement in production efficiency and decreasing
dependency on raw materials is valuable for Turkish Textile & Clothing.
These indicate that existing consumption and production patterns in need of generating value, where circular
textile can be a remedy.
2.2 About Textile & Clothing Sector in Turkey

Major strengths of Turkish Textile & Clothing Sector, which are critical for circular textile transformation, can
be summarised as below:
• Industrial Experience and Geographical Advantage:
• Turkey is the seventh biggest exporter in the world with USD 9.8bn and 3% share and in
clothing, one of the top manufacturers along with China, Bangladesh, Vietnam, India, UK, and
Indonesia. Both textile and clothing have positive contributions to foreign trade balance. In
2019, Turkey’s textile and clothing exports to the Netherlands are 25%; 4th biggest market for
Turkish textiles & clothing (after Germany, Spain and the UK).
• Turkey’s location is within 3000 kilometres for major locations in the Netherlands. Also, there
has been positive re-shoring taking place during the Covid-19 pandemic; demonstrating Turkish
Textile and Clothing Sector’s nearshoring potential exists for Europe.
• Diverse and Flexible Manufacturing:

• Turkey has a robust manufacturing capability with strong infrastructure with continuous
energy, technologically advanced machinery, skilled labour force as well as established
complementary industries.
• There is vertical integration on a country base and production from fibre to fabrics and
garments on regional / country basis can take place within three production clusters, which is
important for circular textile set-up.
• There is EU fashion understanding based on strong relations with major European brands and
producers.
• Existing R&D and Production Capacity (despite currently used for fast-fashion) is flexible
enough to produce on demand.
• Recycling expertise exists with established recycling production sites for fibre.
3
• Socio-economic Contribution and Fair Labour Practices
• Regarding social aspects, Turkish Textile and Clothing is contributing positively with highest
employment capacities within the manufacturing sector (approximately one million people,
constituting 7% of registered employees in the social security system and 65% or the registered
employment) where 41% are female registered workers (vs 31% of Turkey’s female worker
ratio). In theory, attempts to increase trade with textile and clothing in Turkey is helping to
improve social indicators, which is important for responsible consumption.
• Existence of social welfare indicators and strict compliance to them is a relative strength area
for Turkish Textile and Clothing; which is stated during interviews with the Dutch parties as
critical for the Dutch consumers
• Entrepreneurial Leadership
• Turkish Textile and Clothing Sector is a highly entrepreneurial set up, which is critical for such
an investment-intense industry. For circular textile transitioning, this leadership and
commitment can be very influential; bringing in the speed and flexibility needed for the success.
• These leaders also have strong ties within Europe and with Turkish Government, which is
important when setting up new structures and market definitions around circular textile.
How far are the players from ‘ideal state textile’?
In order to assess where the consumption and production

patterns for textile & clothing are, a circular framework was used
during the interviews with the Dutch and Turkish parties.
This Circular Textile Framework includes six different pillars;

embracing circular economy principles to provide a clear picture
of the ‘ideal state textile’. Aim is to make all players to realise that
circularity indicators work together.
Findings show a clear linear ‘take, make, waste’ model and there
is little sign for a circular pattern in processes and flows as
discussed in detail in Chapter 6.1.
High interest for collaboration exists around the circular textile initiatives
Despite the existing state is a linear textile pattern, both the Turkish and the Dutch parties stated a high level
of interest for circular textile initiatives they would like to collaborate. Responses are discussed in detail in
Chapter 4.7 and summarised are as below:
4
Defining Circularity Of Textile Industry In Turkey Collaboration Opportunities Between
NL TR
Turkish And Dutch Markets , Brika Sustainability, 2020
Use of recycled fibers
Design for longetivity
Complies with eco design guidelines
Design out waste
Digitalisation & online platforms
Collection schemes (sorting)
Social impact networks
Design for reuse
Digital tracing (blockchain)
R&D facilities
Digital design capabilities
Resourse efficient production
Production on demand
Sustainable sourcing labeling
Integration with academia and students
Reuse platforms
Regenerative fiber use
Vertical production
Designing with nature
Sustainability reporting & communications
Platform based economic models
Phasing out of from chemicals of concern
Quality and Safety
Customs Unionisation between EU & TR
Renting services
Local production capabilities
Use of renewable energy
EU Green Deal Readiness
Repair services
Fair work conditions
Digital monitoring (IoT)
Energy effiicient hardware
0 25 50 75
5
In general, there is a high level of interest for collaboration from all parties involved. Circular textile necessities
are accepted, despite challenges from transitioning from ‘fast fashion’; and opportunities are clearly foreseen
for the short and medium term.
Below is the summary of the ‘opportunity definitions’, which are stated interest areas consolidated under two
higher ranking and four medium ranking topics:
2.3 Highlights of prioritised opportunities
Use of Digital Technologies

Circular Design Capability Build-Up
Renewable Energy Use
Collaboration & Reporting
v Recycling & Sorting
Services
v Circular Production
Capability Build-Up
Medium Ranking
Opportunities
Higher Ranking
Lower Ranking Opportunities
Opportunities
Others
2.3.1 Recycling and Sorting Services:
This is one of the top opportunity areas discussed under this Report. In order to increase recycling rate of textile
waste and to reduce the final disposal waste volumes, a recycling process might not be enough as it implies a
linear process in itself.
A recycling strategy is needed to include type of fibres, design principles for technical recyclability and a
systemic solution on how to bring consumption patterns and sorting into the picture.
Sorting services need to be in place in order to trace goods in their life cycle journey and make use of their value
at all stages. Where raw materials are very precious and major cost input (besides energy), there should be
utilisation at every possible destination. Further sorting services offer a distinct market definition, non-existent
but very promising, for all parties involved.
Some initiatives that can be sited and further discussed in this research are;
- Establishment of regional hubs for sorting and recycling (like ReHub Initiative by Eurotex [10] in order
to leverage Turkey’s geographical advantage for post-consumer sorting and recycling
- Reciprocal trade deals with ownership redefined (like medical clothing and masks)
- Extension of mechanical sorting capability to Turkey (like Fibersort or similar technology to be installed
in Turkey)
- Development of chemical recycling (by involvement of innovative circles and academia), which is an
untapped potential (with 1.6 Mt CO2 reduction is projected for 2030).
-
6
2.3.2 Circular Design Capability Build-up:
In order for recycling & sorting to be effective, circular design principles and standards need to be established
and accepted among parties (brands, suppliers / producers, other complementary partners). The ecosystem for
circular design and consultancy exists strongly among the Dutch parties, as listed in Appendix A and beyond.
Some initiatives discussed in this research are;
➢ Design for re-use; Nature-driven design

➢ Farm-to-closet mind set in R&D
➢ Use of cross-industry frameworks, such as gaming and VR
➢ Recyclable zippers & accessories
2.3.3 Circular Production Capability Build-up:

Production capability minimising and finally eliminating input (materials and water) waste, using renewable
energy, and terminating use of chemicals of concern (beyond addressed in standards like REACH and ZDHC) are
the primary goals underlying the opportunities of this section.
• Technologies for termination of chemicals of concern in denim and other fabric production (like no-
dye fibres or harmless dye)
• Technologies for denim washing (that is free of sodium hypochlorite, potassium permanganate and
pumice stone and reducing water discharge)
• Natural chemicals from farming and forestry ecosystems
• Monitoring capability (IoT) for minimising input and energy use
are among the highly demanded capabilities from the producers.
2.3.4 Sustainable Sourcing & Labelling:
In order for circular flows to be established, tracing and labelling of materials must be a prerequisite.
Digitalisation offers immense opportunities for the systems-functioning for all the criteria mentioned in this
study.
2.3.5 Renewable Energy Capacity Mechanisms:
This is significant as possible impact of an EU carbon-border adjustment mechanism might produce a total tax
burden of €120 – 196 million, corresponding to 1.4% of textile exports to the EU. ‘Inclusive finance mechanism
and mobilisation of both EU and international funds for supporting the Green Deal globally’ , as stated under
JETCO, will be critical during this transition. Any financial and technical involvement at this stage is a strong
initiative for the Dutch Parties.
2.3.6 Platforms for Collaboration and Reporting:
Becoming part of social impact networks and further integration for sustainability communication (including
reporting) are also among high-interest collaboration areas from the parties. Regarding Dutch business, the
opportunities might be cited as;
7
➢ ‘Accelerator Role’ by established consultancy services
➢ Development of impact measurement methods and standards
➢ Services for measuring the total environmental and social impact of an operation (business model or
industry)
2.4 What is the Role for Parties to Achieve Circular Textile Value?
There is a role for both the Dutch and the Turkish Parties as transitioning to circular textile is a complex task,
requiring multiple stakeholders working together.
In this journey, there are significant advantages for both the Dutch and the Turkish Parties.
The Dutch Parties can bring cutting technology, design, innovation capabilities based on experience and
established institutions. The Dutch business culture and industry platforms for collaboration might be
extended for circular textile. Amsterdam might continue to serve as a global denim centre – for design,
products and services that serve circular textile only.
Turkish Textile & Clothing is a strong ally for Dutch Parties with its established textile capabilities, dedicated
investments and strong infrastructure. Due to strong relationships with European businesses and consumer
understanding, combined with the nearshoring advantage critical for close-loop material flows, Turkey is a
sound partner for circular business in Europe. High engagement of the textile leaders, as also reinforced with
this Research, is a key driver to start immediately.
Last but not least, circular textile is a challenging but doable. Engagement of all Parties, guided by necessary
approaches for transition, will be critical here. The journey must start now.
2.5 Guiding Remarks

In order to define existing status in relation to opportunities for circular textile, the approach in this report is as
follows:
➢ ‘Circularity Analysis of the Value Chain’ (Chapter 4) looks to see where the Dutch and Turkish parties are
with regard to ‘Circular Textile’ by use of the circularity framework covering 6 topic discussions and 33
indicators.
➢ ‘Macro-Economic Analysis of Turkish Textile’ (Chapter 5) introduces stylised facts, challenges, and policy
recommendations.
➢ ‘Collaborative Value Definition for Circular Textile’ (Chapter 6) explains and materialises all defined
opportunities as well as brings recommendations and insight to the discussion.
8
3 METHODOLOGY
his research attempts to give a high-level picture on existing challenges and macro level economic indicators
T on Turkish textile, develop awareness on circular textile agenda, and define opportunity areas where
further work is required. The efforts do not directly intend to prescribe solutions for circular textile supply
chain as further verification and strategic planning are necessary to achieve that.
The study consists of two parts:
1. Field research: This includes consultations with selected parties from the Netherlands and Turkey (as
detailed below); all in regard to their involvement and experiences with circular textile. The consultations
took play as online interviews, conducted between October 7- December 17, 2020 and took over 110+
hours.
2. Desk research in two different ways:
a. Macro-economic analysis of the Turkish Textile and clothing sectors; high level analysis of the textile
players and technology & innovation players in Turkey and abroad; all in regard to circular textile
indicators
b. High level technical environmental analysis indicating externalities and systemic weaknesses of textile
production; perspectives on EU Green Deal
Detailed analysis and comments for both types of research are included for respective parts while a significant
portion of the research is presented in the ‘longer version’ of the Report, which is to be reviewed upon request
to the Commissioners.
For field research, the target audience included both the Dutch and the Turkish parties; all invited to participate
through e-mail invitations. Acceptance rate was at 95%; Fully
Type of Production
high coverage based on previous relationships with the vertical
parties as well as the appeal of the research content, 7%
Fibre
which indicated the aim of ‘collaboration around 13%
opportunities on circular textile’. This level of interest
indicated that the timing of the research was also ripe. Fabric
43%
The consultations aimed for high level of representation
in specific business content and reliable expert opinion
from critical stakeholders. Hence, the consulted parties
were among the board members or majority
shareholders, C-level executives, and top management / Fully vertical Garment
Fibre 37%
Garment
Fabric Defining Circularity Of Textile Industry In
Turkey Collaboration Opportunities
Between Turkish And Dutch Markets,
Brika Sustainability, 2020
9
head of respective line of business of textile companies and
NL-Number of Participants
brands, civil society members, subject matter experts, and
Consultancy
government representatives and academicians. and Services
Government
5%
40%
Turkish Textile producers were invited based on their size
and extent of their production capability – with no Brand
30%
intention to be exclusive – to reflect a high- level picture on
circular textile value chain. The total exports of these
producers represented approximately 11% of total
Turkish exports. These producers have either direct
relationships with major Dutch brands and/or other Business
Platform
major European brands. The type of production they 25%
represent are 13% fibre, 43% fabric (including denim), 37% Brand
garment, and 7% fully integrated. Business Platform
Consultancy and Services
Government
The Dutch participants represented major brands (30%),
Defining Circularity Of Textile Industry In Turkey
consultancy & services companies (40%), business Collaboration Opportunities Between Turkish And Dutch
Markets, Brika Sustainability, 2020
platforms (25%) and government bodies (5%) (The
TR-Number of Participants Defining Circularity
Netherlands Consulate in Istanbul). Of Textile Industry
In Turkey
Academia
Collaboration
The Turkish participants represented companies / Consultancy 4% Opportunities
producers (70%), consultancy services (7%), business 7% Between Turkish
And Dutch
platforms (19%) and academia (4%). Markets, Brika
Business Sustainability, 2020
Platform /
All respondents, whether from the Dutch side or the non-profit
Turkish side, were consulted through the same set of 19%
questions, which were on maturity levels of consumption

and production patterns as well as circularity indicators.
Maturity level ratings were based in five type of answers; Company
70%
ranked between 1-5. Circularity ratings were consisted of
six topics and 33 indicators for discussion. Relative scoring Company
was measured on all indicators in form of ‘none; little; to Business Platform / non-profit
Consultancy
some extent; to a great extent; no opinion’’ in order to Academia
eliminate prior preparation and collect response based on
sectoral experience and understanding of the respondents.
There is a large inventory of facts and findings based on this research. It should be noted that although the
attempt was to define a large scope, for alignment of feedback received from the consultations, verification
and further studies are necessary.
Feedback received at the end of the consultations was very positive; consulted parties indicated high levels of
satisfaction for pursuing a strategic level of discussion and developing awareness on versatile circular textile
topics.
10
4 CIRCULARITY ANALYSIS OF THE VALUE CHAIN
This section intends to analyse the baseline of the value chain and challenges regarding circular textile
indicators, developed for the purposes of this study. There is a resemblance to the framework developed by
European Environmental Agency and European Topic Centre on Waste and Materials in Green Economy [11]
with the intention to pursue on established efforts and further extend them for good purposes. The framework
of this study attempted to pull on social and digital capabilities while putting all the chosen indicators
dedicatedly to textile production context.
s described in detail in the ‘Methodology’ section, circularity is questioned by the use of 6 pillars and 33
A indicators, all submitted for review below. Also, challenges are addressed in detail for each pillar and
indicator used.
The circular business model capabilities of Turkish Textile are questioned in three ways:
1. To the Dutch parties, regarding current experiences with Turkish Textile producers.
2. To the consulted Turkish Producers, on their view of Turkish Textile in general (TR1) as shown in averages.
3. To the consulted Turkish Producers, on their assessment of their own capability (TR2) as shown in averages.
The variations in results between TR1 and TR2 might be explained as below:
❖ The consulted parties represent the segment with high value production capability and capacity and hence
perform better on the selected indicators.
❖ There is some over-estimation in self-assessment.
For the purposes of the research, both result sets are presented.
4.1 Results
As a pretext to the circularity indicator discussion, both the Dutch and the Turkish parties were asked to respond
regarding the maturity levels in buying and production patterns. The topics were asked regarding materials,
recycling, re-use/long-term use, eco design and ecological footprint perspectives in below questioning patterns:
❖ Please rate to what extent the buying decisions are based on type of materials / recycled content use /
designed for re-use & long-term use / ecological footprint (CO2, water, chemicals)
❖ Please rate to what extent the production patterns consider type of materials / recycled content use /
designed for re-use & long-term use / ecological footprint (CO2, water, chemicals)
11
This discussion is relevant as for the aim of Dutch Consumer Market Defining Circularity Of Textile Industry In Turkey
Collaboration Opportunities Between Turkish And
circular textile, both consumption and Dutch Markets, Brika Sustainability, 2020
production patterns matter. No supply
Maturity
chain is going to produce for more circular 5
unless demand exists. 4
Ecological
The results indicate that there is alignment Footprint 3 Materials
in maturity levels for consumption and 2
production, despite minor variances: 1
❖ Both parties believe that eco-design is a

weak buying-criteria in the Dutch Eco -
Recycle
Design
consumption market.
❖ Re-use & long-term use is commonly
associated with quality and not quite Reuse -
0 - Not Enough Insight Long Term
grasping the circular use. Use TR
1 - None
2 - Little NL
The Turkish parties are slightly overrating 3 - To Some Extent
the maturity in materials and recycle. This 4 - To a Large Extent
might be due to that fact that they are
assessing the procurer, who might be more Turkish Production Market Maturity
mature when compared to the end users
Materials NL TR
that the Dutch parties were assessing. 5
In the Netherlands, an average consumer 4
buys 46 new clothing items per year. This 3
Ecological
results in approximately 173 items in a Recycle
Footprint 2
person’s closet, on average 30 percent is 1
never worn and 40 items per year are
thrown away. Further, 3 garments per
person are discarded in the supply chain.
Reuse - Long
[12] Eco - Design
Term Use
This level of impact obliges consumption 0 - Not Enough Insight
1 - None
preferences and patterns become more 2 - Little Defining Circularity Of Textile Industry In Turkey
responsible, considering environmental and 3 - To Some Extent Dutch Markets, Brika Sustainability, 2020
4 - To a Large Extent
social aspects in buying.
❖ Both parties agree on the ecological

footprint, recycling are to some extent in production patterns.
❖ There is slight overestimation from the Dutch parties on materials and eco-design compared to the
producers, whereas the opposite holds true for re-use & long-term use.
The analysis deepens into assessment of circularity by use of 6 topic discussions and 33 indicators. It should be
noted that within the ultimate aim of circular textile, these indicators work together. For example, it is not
possible to produce in clusters unless there is collaboration among the players. Likewise, there can be limited
room for efficiency in production unless materials are designed with longevity.
Below are the circularity indicators used for the assessment:
12
13
4.2 Circular Business Models
The Turkish textile and clothing industry covers the entire textile
value chain and therefore a wide range of activities from the
processing of natural or synthetic fibres into yarns, the
production of woven, knitted, or non-woven fabrics, the
treatment of textile materials (finishing, dyeing, coating) up to
the production of a great variety of end-products such as high-
performance technical textiles for a lot of industrial applications
as well as home textiles and clothing.
The diverse production capability is delivered in an extensive

supply chain, most of which works with the major producers
consulted for this research and beyond.
Transforming for circular textile necessitates collaboration

among the supply chain beyond traditional. Mehmet Kaya from TYH puts it as ‘we need a partner chain, not a
supply chain’.
Business models are significant in order to reach for a true circular textile. In order to grasp the current situation
and look for opportunities to improve, business model discussion is run under six topics and findings are
detailed below.
4.2.1 Survey Results
❖ There is a general consensus from the Dutch Turkish Textile Capabilities | Circular Defining Circularity Of
Textile Industry In
and Turkish parties that local production and Business Models Turkey Collaboration
Opportunities Between
production on demand capabilities exist Turkish And Dutch
Markets, Brika
strongly for Turkish Textile. Local Sustainability, 2020
❖ The level of digitalisation perceived by the production
capabilities
Dutch parties is less than what Turkish parties 4
state they have. This might indicate two Collection Production
3
schemes on demand
things: 2
➢ There is an expectation gap, and the
1
Dutch customers might be willing for Digitalisatio
Renting
0 n & online
further digitalisation in their business services
platforms
transactions.
➢ The level of digitalisation might not be Digital
Reuse
visible to the Dutch parties while leaving tracing
platforms
(blockchain)
room for further communications or
Repair
alignment. services
❖ Collecting schemes, renting services, re-use
0 - Not Enough Insight
platforms, repair services are very limited
1 - None NL
capability areas. These indicators, being very 2 - Little TR | Stated Industry Average
critical for circularity, might be considered as 3 - To Some Extent TR | Stated Company Specific Average
‘out of scope’ discussions from the
production perspective.
❖ Detailed discussions on circular business models are submitted and analysed as below:
14
4.2.2 Local production capabilities
Circular economy demands working in clusters in order to realise efficiencies and design out waste. The cluster
definition used is based on a geographical unit defined in a peripheral unit of approximately 320 kilometres
(200 miles). The interactions needed to produce within the cluster are essential and hence looked for.
Defining Circularity Of Textile Industry In Turkey

Dutch Markets, Brika Sustainability, 2020
Turkey’s textile production chain extends into three defined clusters based on the employment numbers [13].
This does not mean that there is no textile production in other geographical locations; for the purposes of
defining the clusters, the ones with smaller employment are neglected.
Despite Turkey’s textile production is clustered in three geographical locations, the extent that these clusters
function as ‘close-loops’ has its potential to be re-organised as different functionality might be and is served
with some of the producers consulted from the other clusters. As an example, fibre production is dominated by
the eastern cluster and carried into, especially the northern cluster. Likewise, supplementary production is
dispersed. Denim as a form of fabric and home textile production is better clustered compared to fabric
production.
4.2.3 Production on demand

This is regarded as highly met since almost all the producers were producing for built-to-order. However, this
assessment is primarily for buyer-to-producer framework and does not take into consideration the end user
consumption side, as addressed under Industry 4.0 concept. The negative outcome of this lack of understanding
is that about one thirds of the textile products becoming waste before placed on the retail shelves [14]. Hence,
there is room for integration of the consumer into the production cycles.
There is also a mention that production on demand, with current production methods, is a tendency to increase
waste. This might be another area that needs further verification.
4.2.4 Digitalisation & online platforms (marketplace solutions)

Despite digitalisation of the marketplace is a growing concept of Industry 4.0, there is a tendency to pursue
with traditional bi-lateral relationships, which seem to be very strong among the consulted parties. When
transitioning to a circular economy while maintaining the proactive business development capability, traditional
might not be adequate and more digital marketplace approaches will be needed. The pandemic has escalated
the need for marketplace solutions, as addressed by the consulted parties.
15
A collaborative project coordinated by the Turkish Ministry of Industry & Technology and led by IHKIB is
regarding digital transformation of the garment industry. The project, aiming to develop capacity around
digitalisation, will be kicked-off by January 2021 [15].
4.2.5 Digital tracing (blockchain)

Digital tracing is an important development opportunity. From tracing of the inputs until post-consumer to re-
cycling, digital tracing can be used to bring all environmental under close loop. Inputs can be from various
sources; organic cotton claim, BCI content claim, rPET claim, etc. Hence, the trace and the transparency are
important to differentiate the source in inputs. Also, this tracing can be used for transparency in labour practices
and social impact.
Blockchain based solutions, which enable a strong capability in tracing the whole production chain via cradle-
to-cradle, very limited among use the producers and the consumption chain. The opportunities seem to be
untapped here, leaving space to digital tracing to integration via ERPs (enterprise resource planning systems)
and other web- enabled bilateral-working applications.
Few projects are in the R&D phase with some producers.

A more mature example comes from Cross Jeans with their digital loading project, which is run with their
collaborative partners DHL, Schneider Electric.
This type of technology, not only limited with blockchain, has the potential to bring in intelligence to almost all
circularity indicators mentioned in this study.
4.2.6 Repair services / Reuse platforms / Renting services / Collection schemes (sorting)
Textile consumption covers a wide variety of end products ranging from hi-tech synthetic yarns to wool fabrics,
cotton bed linen to industrial filters, or nappies to high fashion. This diversity of end products corresponds to a
multitude of industrial processes, enterprises, and market structures in the supply chain. The retail & B2B sector
is also an important part of the textile and clothing value chain and is essential for all textile and clothing
products sold to the consumers.
Ownership abiding with the brand / procurer and later passing on the consumer is the biggest hurdle why there
is no claim on the materials for reuse or recovery. Turkish producers see repair, re-use, renting services as ‘out
of their responsibility’ and can envision little from the opportunities coming from these circular business
models.
Sorting for recycling is very low. Whether sorting responsibility abides with Turkish producers or by the Dutch
brands, retailers, or other intermediaries is another contradictory discussion.
4.2.7 Repair Services

Repair services are not seen as a responsibility of the producers; it needs to be done in the domestic markets
that goods are shipped to and hence cannot be remotely done from Turkey.
Traditionally, there is little capacity around fabrics only, as mentioned by some of the producers. For knitted
fabric, expertise from Italy is consulted.
16
4.2.8 Collection schemes (sorting)
So far in the EU there is rather limited experience with separate collection of textiles as only 15 – 20 % are
separately collected while the vast majority ends being landfilled or incinerated. Furthermore, there are large
differences among Europe in terms of how they manage this waste stream and the performances they have
[16]. This indicates a significant lack of sorting services.
Recycling of post-consumer textiles from EU is mentioned to be a major new business area for Turkey,
especially with established recycling production sites of GAMA Iplik, Else Bornewa, Kale Iplik, Dünya Iplik, Kipas,
ISKO, Bossa, etc.
The total textile waste from the Netherlands and Turkey is a significant potential for recycling, dependent upon
sorting services are in place.
UNIT Tonne
WASTE Textile wastes [17]
GEO/TIME 2004 2006 2008 2010 2012 2014 2016 2018
Netherlands 115,935 125,344 128,783 107,245 114,260 95,156 102,261 126,208
Turkey 260,549 0 389,834 85,496 160,658 214,324 206,442 231,836
The problem resides with the current local stock levels of post-consumer textile necessary as input for these
sites and others to come. The local collection capacity is low despite increasing attempts from the local
governments and Kızılay (Turkish Red Cross).
This discussion of post-consumer recycling comes very strongly from the Dutch consulted parties, pinpointing
Turkey’s potential competitiveness, given regulatory framework is in place.
Moreover, current regulatory framework is inhibiting import of post-consumer goods to Turkey, which is a
primary concern for circularity seeking Dutch parties and some Turkish producers.
To meet the expectation, there are provisions to the existing law for deformed textile imports, which opens the
way for others to come, as quoted from ITKIB (Istanbul Textile and Garment Exporters Association):
Importation of Used Textiles

Importation of goods that are old, used, replenished, faulty and worn-out is subject to the
permission of the Ministry of Trade. In this context, the importation of used clothing and finished
goods or rags from textile manufacturing process and fibres, wastes, lints shredded was considered,
within the 7th clause of the Import Regime Decision by the Ministry of Trade, and the importation
of that types was not allowed in order to protect domestic production.
ITKIB raised demand for amendment of the 7th clause of the Import Regime Decision to allow the
importation of the used goods which were collected from customers by global clothing brands to
be used in the production of goods to be exported, was considered by the Ministry of Trade. The
importation of the fibered or clipped goods which are collected from consumers and are not in the
final product form (yarn, fabric, garment etc.) is allowed on the condition that all of the final
products that are produced from these imported materials will be exported back under the Inward
Processing Regime in order to protect our existing domestic production and not to damage the
relevant clause.
On the other hand, it was conveyed by ITKIB to the Ministry of Trade that Turkish leading brands in
the garment industry take “making their products environmentally sensitive” as one of their
primary goals with the assumption that sustainability and recycling projects have gained
17
importance in world trade. The intent from these leading brands to increase production from
recycled materials and in time production from only recycled materials was put forward.
In this context, considering the fact that the new products which are produced by the inputs
obtained from recycling of used products are not to be considered as used items and the
importation of these used products will be beneficial/will have a positive impact for the
employment, production and export capacity of Turkey was confirmed. ITKIB was also informed by
Ministry of Trade that some polyester fibre and synthetic yarn product groups from recycled
(regenerated) were to be allowed for importation.
4.3 Eco Design

Eco-design capability is important for circular textile
transition. It is a mutual responsibility of the brands to
demand for it as well as the producers to bring forward the
capabilities.
From the producer perspective, flexibility in design resides

with the Turkish producers. However, the demand from the
brands is working for dynamics of fast fashion – quick design,
short term use. Circular design principles on the other hand
are not necessarily in the agenda, except for the few niche
collections or from specialised brands.
To reflect circularity in design principles, this pillar looks into

six topics:
❖ Design for longevity

❖ Design for reuse
❖ Design out waste
❖ Designing with nature (Biomimicry)
❖ Complies with eco design guidelines
❖ Digital design capabilities (3D sampling, 3D collection, etc)
18
4.3.1 Survey Results:
❖ Despite the consulted producers Turkish Textile Capabilities | Eco-Design
see their ability to design for circular Defining Circularity Of
Textile Industry In Turkey
slightly higher, the average ratings Design for Collaboration Opportunities
from the Dutch and Turkish parties longetivity Between Turkish And Dutch
4 Markets, Brika
show that the capability is medium Sustainability, 2020
to low on all topics. 3
Digital design
2 Design for reuse
capabilities
4.3.2 Design for longevity 1
0
In a recent survey by Sourcing Journal
Andrea Price, Manager of fabric R&D for
Complies with eco
knits at Gap says “In theory, if the Design out waste
design guidelines
circular economy is functioning in the
way that it should, [the materials] Designing with
should be basically high quality. That nature
does not necessarily mean expensive. It 0 - Not Enough Insight
means the best material for the job for 1 - None NL
the lifespan of that product. In order for 2 - Little TR | Stated Industry Average
3 - To Some Extent
TR | Stated Company Specific Average
something to be recycled, refurbished, 4 - To a Large Extent
remanufactured, reused, redistributed,
maintained and prolonged [or] regenerated, you have to have good materials and good design—simple design
and quality materials.” [18]
On the other side, the consultations in general – both the producers and buyers – do not show enough evidence
that the industry is there yet. Contrarily, the operating principles reward short-term gains.
As Ismail Kolunsag from Cross Jeans says: “The current business model does not allow for the cost of circularity
in terms of design, production and business processes in general. The number of days accommodated for design
is about four days, whereas design for circularity can be achieved in 40 days, having a direct effect on lead times
and cost structure. Whether the customer is ready to pay for circularity or not is the question here.”
Another perspective is reflected by a sector consultant, Alper Cataloglu, as “For more circular design of products,
buyers /brands must commit a baseline in volume.”
In summary, design for longevity requires dedication, committed demand, and comes at an additional cost
during transition.
4.3.3 Designing with nature (Biomimicry)

This is a very immature area and there seems to be limited demand and supply related to designing with nature
principles.
There is ambiguity in understanding the relative merits of bio-design, an emerging design movement which
incorporates the use of living materials, or ‘moist media,’ such as fungi, algae, yeast, bacteria, and cultured
tissue. The idea is to create a product whose properties are enhanced as a result of the use of these living
materials. [19]
Under common design principles, there is little mention to designing with nature, which shows the lack of
demand and output as a result. The few examples are on mushroom- based leather, hairy fabric, etc. Research
indicates that there is also Turkey-based leather and suede producer Flokser, who developed a synthetic leather
19
fabric (phthalate free artificial leather polyurethane systems) made from bio-based materials from DuPont Tate
& Lyle Bio Products and BioAmber. [20]
This is an emerging area for design and development fitting strengths of both the Dutch and Turkish parties.
4.3.4 Compliance with eco design guidelines

In general, the producer capability to comply with the eco design guidelines is very high, as also evidenced by
the use of voluntary sustainability standards.
Yet, there are brands who still do not approach producers with standardised eco-design guidelines. Further,
there is no standardisation of eco-design guidelines. Brands demand for varying standards, which makes it hard
for producers to develop a common basis for circular textile.
This creates a direct impact on lack of standardisation on circular and sustainable textile practices. Also,
necessity to deal differing guidelines from various customers or buyers cause additional management and
operational burden on the producers.
Alignment of parties around common eco design criteria is necessary for circular textile transition.
4.3.5 Digital Design Capabilities

This is an upcoming trend and a good approach for circular textile. Some of the consulted companies were
already utilising it found it beneficial especially during the pandemic period when demonstrating goods
virtually.
Still, there is lack of standardised demand for further usage of 3D capabilities. Istanbul Fashion Academy states
that out of 100 established producers, on average 5 are using 3D design capabilities despite their efforts to
promote it. ‘Brands should be accepting the prototypes only by 3D printed forms’ says an executive from the
Academy.
3D presentation of collections should be demanded and promoted by the brands and hence become common
practice in order to save on materials and eliminate the cost and footprint of business travels.
4.4 Sustainable Fibre Production

Turkey has a tradition of using recovered/recycled fibre for over
a century; especially for a valuable type of fibre – wool - around
Usak region.
Bergama cotton from Aegean region offers best quality at a

competitive cost for the European market (as opposed to the
Egyptian and American supima cotton).
20
Better Cotton Initiative Turkey (IPUD), whose aim is to Turkish Textile Capabilities | Sustainable
Defining Circularity
make cotton production better for the people who Fibre Production Of Textile Industry In
Turkey Collaboration
produce it and the environment it grows in by Use of recycled Opportunities
fibers Between Turkish And
reducing the environmental impact and improving 4 Dutch Markets, Brika
Sustainability, 2020
livelihood in cotton producing areas, estimates the 3
total better cotton production as about 190 thousand 2
tons for 2020 with approximately 2000 farmers 1
Regenerative
involved. The regions of production resemble the R&D facilities 0
fiber use
production clusters defined earlier, a fact reinforcing
local production capabilities. [21]
Sustainable
sourcing
labeling
1 - None NL
2 - Little
3 - To Some Extent TR | Stated Industry Average
Season: 2020-21 Lint Cotton

Total Area Under Cotton Seed Cotton
Projected Better Cotton Production
Farmers Production (Ha) Production (MT)
Production in Turkey (MT)
Licensing Data (12.10.2020) 1,986 34,153 187,842 73,258
Turkish textile also offers a strong base for synthetic fibres. To reflect circularity in fibre production, this pillar
looks into four topics:
❖ Use of recycled fibres

❖ Regenerative fibre use (biodegradable or compostable)
❖ Sustainable sourcing labelling
❖ R&D facilities

❖ The capabilities for recycled fibres and sustainable sourcing labelling are to a large extent.
❖ R&D capability exists, not necessarily indicating that this capability is serving circularity.
❖ Regenerative fibre use is relatively a small capability area.
❖ In general, there is a strong base and balanced (square) strength for sustainable fibre production.
21
4.4.2 Recycled fibre use
Recycling of natural and synthetic fibres capability of Turkey especially with established recycling production
sites of like GAMA Iplik, Else Bornewa, Kale Iplik, Dunya Iplik, ISKO, Kipas and Bossa is quite significant.
This mechanical process is based on manual and/or machine-aided shredding where up to 90% of the textile,
as stated by the major recyclers, can be regenerated. There is still 10% going to incineration despite best efforts
and technology. Incineration is yet another environmental catastrophe especially for synthetic materials like
the popular material polyester or nylon causing carcinogenic fumes.
This is primarily a design weakness as fast fashion demands a huge variety of materials and techniques to be
used, considering little for the need for recycling as the last resort. ‘The bulkier the design with varying zippers,
buttons and fibre, the harder it gets to increase recycling percent’ states Zafer Kaplan from Gama Iplik.
Another mentioned challenge of recycled fibre use is coming from government subsidies on industrial fibres. In
order for recycled fibre to be competitive, these subsidies need to be eliminated.
As Siem Haffmans from Partners for Innovation states in his co-written book “Products that Flow” [22],
technically everything can be recycled. Milling down something, or melting, or dissolving and separating
elements to use them for producing something new, however, is not just a matter of conquering technical
challenges. It also involves the identification, selection and subdivision of ingredients and combining them
again, procedures that precede what happens in shredders and may continue after that.
This brings the challenge back to design and sorting services, where the ultimate aim is keeping the material in
the ‘cradle’, giving no harm to the environment by not toxicating and using as little energy as possible. Assuming
that recycling is an ultimate solution to eliminate sins from irresponsible consumption and production might be
fatal.
4.4.3 Regenerative fibre use (biodegradable or compostable)

Regenerative fibre is a developing concept; considerably new when compared to recovered/recycled. There is
consensus that the further development and use should be promoted.
Likewise, in designing with nature, there is little mention to regenerative fibre use, which shows the lack of
demand and output as a result.
4.4.4 Sustainable sourcing labelling

Labels on textiles is one of the biggest waste streams as they are the first to be cut or removed by the
consumers. According to Zafer Kaplan from GAMA Iplik, 450.000 tons of label material per annum is discarded;
as ending up in the landfill through housing waste. Digitalisation of labelling is an immediate quick win to
eliminate this waste.
For sustainable sourcing labelling, brands designate nominated trim suppliers to producers.
4.4.5 R&D Facilities

R&D facilities of the producers consulted exist to a large extent. This provides the capability to deliver requested
design and materials content flexibly. The downside is that this variety production does not necessarily consider
circular design principles and hence gives way to further fast fashion.
22
4.5 Sustainable Production
Sustainability of production is another broad pillar of
circularity, which looks into how efficiently and sustainably
energy and materials are used in production as well as how
workplace security and labour conditions are managed.
This pillar is examined under seven different topics:
❖ Resource efficient production

❖ Vertical production
❖ Fair work conditions
❖ Quality and Safety
❖ Digital monitoring (IoT)
❖ Energy efficient hardware (equipment, machinery,
monitoring systems, etc)
❖ Use of renewable energy

❖ There is alignment on medium-to- Turkish Textile Capabilities | Sustainable
large extent efficient resource use. Production Defining Circularity Of
Textile Industry In
However, it should be noted that the Turkey Collaboration
Opportunities
resonation of this topic among the Between Turkish And
Resource efficient Dutch Markets, Brika
consulted is on efficiency for financial production Sustainability, 2020
gains. 4
❖ Vertical production, meaning Use of renewable 3

Vertical production
energy
integrated production capability is 2
believed to be there for Turkish 1
producers but less so for the Dutch 0
Energy effiicient
parties. Fair work conditions
hardware
❖ Fair work conditions, quality, and
safety, which are mentioned to be
Digital monitoring
critical to the Dutch consumers, is to Quality and Safety
(IoT)
a large extent strong for Turkish
producers while not as obvious for
the Dutch parties. NL
1 - None
TR | Stated Industry Average
❖ Energy efficiency in the used 2 - Little
TR | Stated Company Specific Average
3 - To Some Extent
equipment is prevalent. 4 - To a Large Extent
23
❖ Use of renewable energy in production is
a souring area where there is limited
capacity among the producers.
❖ Digital monitoring of production is the
topic with biggest gap in claimed versus
assumed. Like the other digital capability
topics, this might be due to lack of
communication on the capability or
inability to meet the expectation from the
buyer side.
In general, denim production differentiates

itself as more efficient. Yet, denim is not
‘innocent’ for its production. Considering Levi
Strauss & Co’s life cycle assessment study in
Ereks Garment - Blue Matters Green Production Facility in Turkey, 2020.
2007, one pair of jeans consumes almost 4000
litres of water and emits 33 kg of CO2. [23]
On the other hand, there is little economies of scale when producing ‘green’. Incentives by the brands as well
as financial subsidies by governments should be in place.
Next-generation green factories or sites exist among the consulted producers. The infrastructure and energy-
efficient machinery are other advantages with the consulted producers.
4.5.2 Resource efficient production

Cotton cultivation, known for its intense use of water, pesticides, and fertilisers, is widely practiced in the water-
stressed Mediterranean countries. Turkey is among the top ten cotton-producing countries but is also in the
category of “countries facing water shortage problems” with 1,519 m3 of water per capita [24].
ITKIB/IHKIB representatives state that capacity usage of Turkish textile exporters is around 80%, +4 points above
the global averages. Even the small producers have this capability and accept it as criteria for competitiveness
when exporting. On the other hand, there is waste and over-stock levels in the industry; the later primarily
coming from fluctuations in exchange currency rates pressurising the producers.
4.5.3 Fair work conditions

This is a relative strength area for Turkish Textile due to strict regulations implemented locally and audits
executed locally and externally. However, the levels of confidence in this capability are not prevalent for the
Dutch parties and further re-confirmation is needed.
On the other hand, some producers claim that the external audit efforts are not aligned and standardised and
hence is taking too much of operational burden for the producers. This misalignment might be the reason for
the discrepancy in the results.
4.5.4 Digital Monitoring (IoT)

Most producers claim their digital infrastructure is capable for digital monitoring. Some use artificial
intelligence.
24
This capacity among the consulted companies is stated to be high compared to previous research on
digitalisation stating that only 36% of garment producers in the Aegean Region can utilise digital monitoring
capability. [25]
This might be due to overall maturity level of the consulted group and/or the lapse time since the previous
report. Also, this maturity level is not perceived by the Dutch parties.
Given the scope and capability that digital technology might bring, it is worthwhile to verify the current use and
consider updates.
4.5.5 Use of Renewable Energy

Renewable energy capacity is limited to a few of
the consulted companies, at varying degrees. Few
plants can produce 100% of the energy needed
from renewables while most others are in planning
phase.
This constitutes a risk for both buyers and

TYH Textile Akhisar –100% RE Site
producers when EU Green Deal requirements are
in the way. Investment plans should be visited immediately. Policy requirements and options need to be
discussed further.
25
4.6 Safe & Clean Materials
4.6.1 Phasing out of from chemicals of concern

Generally, despite there is demonstrated Turkish Textile Capabilities | Safe & Clean Defining Circularity
Of Textile Industry
compliance in REACH, ZDHC and other major Materials In Turkey
Collaboration
voluntary sustainability standards, there are Opportunities
chemicals of concern being used that are not Between Turkish
And Dutch
necessarily addressed by the criteria. (See Markets, Brika
Sustainability, 2020
Appendix C Glossary of Abbreviations)
Binding VSS
For example, sodium hypochlorite, potassium
permanganate and pumice stone are commonly
used for denim production.
Phasing out of from

chemicals of
concern
0 1 2 3 4
0 - Not Enough Insight NL

1 - None TR | Stated Industry Average
2 - Little TR | Stated Company Specific
3 - To Some Extent Average
The difficulty with eliminating chemicals of concern or toxicating chemicals is the fact that there are none or
few ecological alternatives. This is a huge opportunity area for collaboration.
Hence, there is way to go in defining of all chemicals of concern with potential negative impacts in
environmental integrity and social welfare. Retail brand from Sweden, H&M, is leading a project for elimination
of chemicals of concern, which some Turkish producers are part of. Knowledge transfer might be helpful at this
point.
26
4.7 Collaborative networks
Reaching the state of circularity, a challenging transition from the
current state, requires strong collaboration among various
stakeholders, presence in atypical networks and engagement in
unique opportunities.
This brings with it a challenge for traditional textile relationships,

which are based on strong bilateral ties and little engagement in
extended networks.
This pillar examines the level of collaborative networks under six

topics:
❖ Social impact networks

❖ Integration with academia and students
❖ EU Green Deal Readiness
❖ Customs Union between EU & TR
❖ Platform based economic models facilitated by trade organisations
❖ Sustainability reporting & communications
❖ The level of engagement of Turkish Textile in social impact networks and in integration with academia &
students are perceived lower and little for the Dutch parties as opposed to a medium-high level of
engagement assessment by the Turkish producers.
❖ Likewise, engagement in platform-based economic models is perceived lower and little for the Dutch parties
as opposed to a medium-high level of engagement assessment by the Turkish producers.
❖ EU Green Deal Readiness is an emerging capability for both the Dutch and Turkish Parties. To serve this, a
special chapter is presented as part of this report.
❖ Sustainability reporting and communications is meeting the expectations while leaving room for
improvement.
❖ Customs Unionisation is an indifferent issue for the Dutch parties while the Turkish side set expectations.
27
4.7.2 Social Impact Networks & Platform- based Economic Models
This is a strong initiative area for circular textile
Turkish Textile Capabilities | Collaborative
Defining Circularity Of
progression. Traditional textile relationships, networks Textile Industry In Turkey
which are based on strong bilateral ties, needs to Collaboration
Opportunities Between
be extended into impactful platforms and Turkish And Dutch
Markets, Brika
networks. Companies face financial & Sustainability, 2020
Social impact
technological barriers which they cannot address networks
alone and therefore need collaboration across 4
Sustainability 3 Integration with
value chains.
reporting & 2 academia and
Despite efforts from organisations like communications students
1
ITKIB/IHKIB, TGSD (See Appendix C), level of 0
communication and cooperation among
Platform based EU Green Deal
producers is stated to be low. This is a hurdle economic models Readiness
when transitioning to circular economy. Various
parties from the whole of the value chain needs Customs
Unionisation
to be collaborating further. between EU & TR
4.7.3 EU Green Deal – Harmonisation

Beyond Carbon Tax 0 - Not Enough Insight NL
1 - None
Harmonisation of all production systems with EU 2 - Little
TR | Stated Industry Average
is significant short-term concern as half of 3 - To Some Extent TR | Stated Company Specific Average
Turkey’s exports go to the European Union.
Further, alignment with the EU Green Deal is
possible based on this harmonisation of all production areas and sectors.
Critically, the primary issue is treated only in terms of a border carbon tax. The producers with the related
production (or financial) capability will prevail and other who fail will be serving the developing countries with
their lower quality (with highly dense emissions) products.
4.7.4 Customs Union between EU & TR

This version of the Report addresses to the business specific issues and opportunities. Although Customs Union
is an aspect questioned in the survey, the output regarding this topic is not sited here for pragmatic purposes
and can be referenced in the longer version of the Report.
This section intends to deliver the findings from consultations with the Dutch and Turkish parties as well as
highlights from the research around circular textile during the course of the study.
Chapter 6 will look deeper into opportunity definitions.
28
5 MACRO-ECONOMIC ANALYSIS OF TURKISH
TEXTILE:
STYLISED FACTS & CHALLENGES & POLICY
RECOMMENDATIONS
his part of the research highlights key challenges of textile and clothing sectors in Turkey while summarising
T from international trade and other development indicators, sector objectives and strategic roadmaps.
Statistical & stylised facts on Turkish Economy and Textile & Clothing Sector are discussed in detail in the
longer version of the report, available upon request.
Summary of Turkish Textile & Clothing Sectors wi thin a Global Perspective:
5.1 Turkey Is a Significant Player of Box 1: Turkey-the Netherlands Textile and Clothing
Foreign Trade†
Internationalised Sectors
Turkey’s textile and clothing sector exports to
Global trade volume for textile and clothing sectors is Netherlands have been growing during the last 25
USD 730bn and they are highly integrated in global years; but their relative weight has been decreasing as
value chains. Despite this high degree of the total trade volume increased by almost four times
internationalisation, the foreign direct investment (FDI) to $8.5B.
stock is relatively low compared to the other Trade from Turkey to the Netherlands, 2019, $ Mn
manufacturing sectors and the number of Exports Imports
multinationals or big companies operating within the Textile 497 31
sector are limited. Clothing 853 6
Total 5444 3071
As of 2019, global textile sector alone exports stood at
USD 331bn with China exporting 36% of the global As of 2019, Turkey’s textile and clothing sector exports
volume. Contrary to the general belief that as countries are 25% of the total $5.4B exports, while imports are
only 1.2% of the total imports from Netherlands.
develop countries move-on from labour-intensive
Clothing imports from the Netherlands are at
sectors to high-technology sectors, developed countries
insignificant levels; but textile imports from
like USA, Germany, Italy, Japan, the Netherlands,
Netherlands lost share within Turkey’s textile imports
France, and Spain continue to be in the top 20 exporters to the Asian countries, like China, India, Bangladesh,
of the textile goods1. Turkey is the seventh biggest and Indonesia.
†
For detailed foreign trade numbers between Netherlands
and Turkey, please refer to longer version of the Report.
1
For detailed list of the top 20 exporters and their share, please refer to longer version of the Report.
29
exporter in the world with USD 9.8bn and 3% share. In the clothing sector, Turkey is the one of the top
manufacturers, along with China, Bangladesh, Vietnam, India, UK, and Indonesia 2.
Therefore, textile trade is significant for both Turkey and the Netherlands; especially when considered from a
collaborative perspective.
Yet production capacity is lagging behind the manufacturing sector average; hinting some portion of domestic
production was replaced by imports.
This is an area drawing attention to more efficient production systems and digitalisation for circular textile.
5.2 Negative Contributions to Foreign Trade Balance for Textile Fibres

In general, there is positive trade contribution from textile sector imports to Turkish economy, reaching as high
USD 6.9bn in 2011 while falling back to USD 4.5 bn at the end of 2019. The only product group, which has a
negative trade balance within the ISIC codes, is textile fibres.
This negative trade balance for textile fibres indicates an improvement potential for improving positive trade
balance position of Turkey around circular textile with sorting services and recycling.
5.3 High Employment Capacity Within the Manufacturing Sector

Registered employment constituted only 65% of the employment in these two sectors. Since the beginning of
2018, employment capacity is again on the rise.
Female workers constitute 41% of the total registered workers in textile (27%) and clothing sectors (51%), well
above the total registered female average of 31% and the second highest female worker ratio in Turkey (after
the education sector).
This raises the impact of social welfare indicators in existing state as well as when transitioning for sustainable
textile. The solutions or collaborative opportunities need to take into account this diversity potency of the
sector.
5.4 Regional Development

Textile and clothing sector contribute to the regional development as the companies are diversified in different
regions of Turkey. While textile sector is more concentrated in bigger cities, clothing sector has a weight in
middle-income cities in Turkey and it is more regionally distributed. Majority of clothing sector companies are
concentrated in Istanbul, while textile sector companies are located both in Western and Eastern (Gaziantep,
Kahramanmaras, Malatya etc) parts of the country.
Based on the clustering indicator for circular textile, this geographical representation (as discussed in Chapter
4), is an advantage while leaving space for better (self-sufficient and integrated) re-organisation; which might
indicate an opportunity for collaboration.
2
Top 20 exporters of clothing sector, see [35]
30
5.5 Recent Figures Indicate that Some Re-shoring Might Be Taking Place
Even though textile and clothing sectors
plummeted during the second quarter of Manufacturing Sector Production Change, 3q20, YoY
the year as one of the side effects of the Textile Clothing

15% 10.9%
Covid-19 pandemic, both sectors re-
10%
bounded faster than the rest of Turkey’s 3.7%
5% 3.0%
exports. Latest export figures as of end of
0%
3q20 reveal that both textile and clothing
-5% -1.5%
sector exports increased much faster -3.3%
-10% -6.7%
than the total exports, signalling first -10.3% -11.4%
-15%
near-shoring attempts after the start of -16.3%
-20% -17.9%
the pandemic. Field findings of this
Developing Developed World China Turkey
research signals that Turkey is using its Countries Countries
geographical, logistical, and flexible Turkish And Dutch Markets, Brika Sustainability, 2020
production advantages as international
companies are trying to diversify their markets.
This nearshoring potential is significant for competitiveness of the textile and clothing sectors of the
Netherlands and indicates that there is room for collaboration.
5.6 Textile and Clothing Sector Objectives and Strategic Roadmaps

As one of the most important exporters of Turkish economy, both textile and clothing sectors are emphasised
within public sector’s development plans, sectoral plans. Additionally, business organisations specific to these
two sectors also draw roadmaps for the future of the sector.
Details of the 11th Development Plan of 2019-2023 developed by the Presidency of Strategy and Budget [6] and
the ‘Special Expertise Commission for Textile, Clothing and Leather Sectors’ are summarised and cited in
Appendix D 11th Development Plan of 2019-2023
JETCO is another strategic initiative between the Netherlands and Turkey, commitments submitted at high
levels.
These are strong opportunity indications that should give way to private sector initiatives between the
Netherlands and Turkey.
5.7 Challenges
Besides the above stated fragilities of a circular business model, there are macro level issues that the Turkish
Textile Industry is facing, like any other leading textile manufacturer country or region. Some are cited below
to indicate the urgency for transitioning to circular textile.
❖ Growing stress in natural resources has consequences in pre-production, primarily with production of
cotton as it necessitates judicious use of water, chemical fertilisers, and pesticides for sustainable
production.
❖ Sustainable inputs for production and from post-production are becoming critically important as
competitive parameters.
31
❖ Trade asymmetries created in foreign trade agreements (FTAs) that EU signs with the third countries are
challenging for Turkish textile and clothing industries; and they undermine the overall connectedness
benefits that the Customs Union is designed to create.
❖ Legislation harmonisation with the EU has resulted in Turkish textile and clothing sector companies’ fast
adaptation with the EU standards (REACH, ZDHC, etc), which is also evident with the field research. Despite
this, full adaptation to EU standards in production and waste management varies regionally due to lack of
financial capabilities for investments in waste management and overall for more sustainable production.
❖ The requirements to measure, report, and factor in the costs of a product’s carbon footprint within the EU
is expected to escalate and become a requisite for companies exporting to Europe. According a recent study
[26] on the possible impact of an EU carbon-border adjustment mechanism, Turkish textile sector can be
exposed to a total tax of Euro 120mn with a carbon price of 30 Euro/tCO2; while the tax on all Turkish
exports amounting to Euro 1,085mn. If the carbon tax is raised to 50 Euro/tCO2, the levy on the textile
sector would increase up to Euro 195mn, corresponding to 1.4% of textile exports to the EU region; while
total export tax to the EU region amounting to Euro 1,809mn. This is a significant budget not only for
Turkish producers, but also for the buyers of these goods.
❖ Despite no indication of low levels of total factor productivity for Turkish Textile and Clothing within
manufacturing per se, there is little scope for innovation in their current production and organizational
structures [27]. At the international level, unless both sectors develop their R&D intensity and increase
cross sectoral technology diffusion, there are risks of deteriorating contribution to Turkey’s longer-term
ladder of development for these sectors as well as risk of disruption.
5.8 Policy Recommendations

Policy recommendations regarding macro-economic findings, which indicate opportunities for collaboration
between the Netherlands and Turkey, can briefly be summarised as below:
❖ Upgrade in raw material production process to a more sustainable cultivation via the use of digital tracking
technologies in agriculture (as expressed in the ‘Science and Innovation Section ‘of JETCO meeting notes in
September 2020),
❖ Standardisation and accreditation of non-GMO cotton production
❖ Promoting regenerative farming as textile inputs while abolishing subsidies on industrial agricultural inputs,
❖ Legislative arrangements for the recycling of and import of used clothing sector products within the scope
of Customs Union (as aligned with JETCO meeting notes in September 2020) including special investment
support mechanisms for established facilities,
❖ Further legislative harmonisation with the EU for circular textile standards and accreditations,
❖ Inclusive financing mechanism should be developed for SMEs with a regional perspective in adaptation to
circular economy practices,
❖ Developing a roadmap to reduce the emissions through investments, R&D, technological innovation while
promoting and incentivising via financing at lower credit rates (e.g., Euro 1bn for research and innovation
projects, EBRD voucher framework co-financed by the Netherlands EBRD Trust fund to support Turkish
SMEs for circular business models),
❖ Policies for improving R&T intensity and digitalisation (beyond e-trade).
32
5.9 Summary of Macro-economic Analysis
This macro-economic research is complementary to the field textile analysis executed, giving it depth and macro
level of context into how and where the opportunities fall under.
33
6 COLLABORATIVE VALUE DEFINITION FOR
CIRCULAR TEXTILE
s stated well in Holland Circular Hotspot’s Report “From Linear to Circular in the Textile and Apparel
A Industries” [28], ‘a circular textile value chain is a blueprint to the future, because circular business models
contribute to the various challenges within the industry. But the transition to the circular economy requires
systemic change and asks for collaboration, above all in the textile value chain that is so spread out over the
world. Governments can set the ambition, boundary conditions and nurture experimentation or give the
example by circular procurement. Researchers and knowledge institutes can develop new insights and tools,
validate ideas and boost awareness. Global brands and retailers, especially after COVID-19, should realise that
this is about resilience and about their future markets.’
In general terms and from the perspective of the circular textile economy, two major changes need to occur:
1. Firstly, the production systems must be restructured to allow this transformation.

2. Circular economy has a structure that transgresses the borders of a single country. All companies and
governments that are part of this system need to acknowledge that they will need partners with varying
needs and skills at every point in the product cycle.
As a practical example, reuse of products, which is an important chain in this link, may not take within the same
country or the same region. Therefore, production, use, and reuse can be profitably carried out in different
countries or regions. A healthy process stream for reuse may only be possible with repair and refurbishment of
the products. For this reason, systems that accept the circular economy goal have to invest in the necessary
spare parts or materials, in case of textile. Further, it should be noted that products, even when no longer used
by the end-user, still have value. In order to maintain this value, the end product must be collected from the
final user in a proper way. The conversion of the product to be recycled in the most similar way to its main
structure requires the least effort and energy. In order to achieve this, the original system must be set up
correctly. Otherwise, after recycling the outcome will be an insulation material, not a valuable raw material that
may be obtained at the end of proper recycling.
This research intends to see the ‘gaps’ or ‘challenges’ when transitioning to circular textile, which indicate the
opportunities and collaboration initiatives for all parties, the Dutch and Turkish.
The identified opportunity areas of interest from the consulted parties as well as from the desk research
executed falls under the categorised initiatives, discussed in detail below.
Summarising the opportunity areas based on the consultation framework may be shown as below (as bigger
spots as higher areas of mutual interest to parties) (See Appendix B Collaboration Opportunities):
34
35
Below are the groupings of the
indicators where participants from ❖ Use of Digital Technologies
❖ Circular Design Capability Build-
both sides expressed their interest to Up
collaborate. The indicators in this way ❖ Renewable Energy Use ❖ Recycling & Sorting
❖ Collaboration & Reporting Services
represent opportunity areas, which ❖ Circular Production
are grouped according to the voting Capability Build-Up
they received from the participants. Medium

Ranking
Potential to Grow: These are the areas
Opportunities
where there is high level of
collaboration demanded from the
Turkish producers but as high from the Higher Ranking
Lower Ranking
Dutch parties. This might be due to ❖ Others Opportunities
Opportunities
specific expertise areas of the Dutch
parties consulted. The
recommendation is that these to be
considered closer by the appropriate
Dutch parties.
❖ Digital Monitoring (IoT)

❖ EU Green Deal Readiness
❖ Energy efficient hardware
6.1 Opportunity Definitions & Recommendation
6.1.1 Recycling & Sorting Services • Recycling & Sorting Services

❖ Use of recycled fibres • Circular Production Capability Build-Up
❖ Regenerative fibre use (*)
❖ Design for longevity
❖ Collection schemes (sorting Recycling & Sorting Services
• Use of Recycled Fibres
services) Higher Ranking • Design for Longevity
❖ Renting services Opportunities • Collection Schemes
❖ Design out waste • Renting Services
• Design Out Waste
❖ Compliance with eco-design • Compliance with Eco-design Guidelines
guidelines • Digitalisation & Online Platforms
Circular Production Capability Build-Up
❖ Digitalisation & online platforms • Vertical Integration
❖ Sustainable sourcing labelling • Quality & Safety
• Local Production Capabilities
The research attempts to define the • Integration with Academia & Students
• Use of Renewable Energy
textile & clothing flows as they exist. • Binding VSS
Despite these flows are very high level • Regenerative Fibre Use
• Sustainable Sourcing & Labelling
and needs to be verified further, the
• Digital Monitoring
picture is presented to demonstrate
the existing patterns.
36
What is already established is demonstrating a clear linear ‘take, make, waste’ model. How to transform to a
circular pattern involves establishment of distinct processes and flows.
A good starting point for collaboration towards circular textile & clothing is to develop a circular framework,
verify baselines and identify flows, and then establish a strategic transformation plan that involves various
stakeholders working together, including consumer education. As denim and sustainability expert, Adriana
Galijasevic states it:
‘Improvements can be made through customer education, inspiring them to be more conscious regarding their
purchasing decisions, as well as by setting up convenient infrastructures that will allow them to depart from
their products responsibly once they no longer need them’
The real opportunities can only be defined afterwards. For example, there is no material value that can be
designated to ‘repair services’ when there is lack of a market structure to address the need. The same holds
true for re-use and re-generate services. Even for recycling, the only known is how much is produced and
disposed. Assuming the complexity of the textile & clothing production when considered within the industrial
production, the potential is not yet known for recycling.
When transitioning to a true circular economy, production systems should be established so as to ensure that
products are obtained as fabrics to be used for the same purpose when they are recycled. Recycling without
considering these regenerative systems will be costly and will not give the desired result in environmental
impact assessments.
37
Fate of Textile Raw Materials in EU [12]
Considering the amount of waste in textile and the EU regulations expected textile sorting for recycling is a
significant potential. Given the nearshoring and existing recycling capacity of Turkey, a collaborative business
model design around sorting-services-for-recycling is a strong opportunity.
‘While apparel is only one of several textiles’ applications, the global apparel production and consumption
appear to have doubled over the past 15 years, generating higher waste. Even if the amount of textile
waste separately collected in Europe has increased over the last five years from an estimated 2 million
tons in 2014 to 2.8 million tons in 2019, this volume is expected to increase substantially once the EU
waste legislation will be put into practice by the end of 2024. In less than four years textile waste shall be
collected separately and could total an amount between 4.2 to 5.5 million tons which should be dealt with
ideally within the EU.’ [7]
ReHubs Initiative was raised by EURATEX, the European Apparel and Textile Confederation, who proposes the
development and set up of European Textile Recycling Hubs (ReHubs). On November 16, 2020, a joint initiative
to upcycle textile waste and circular materials all over Europe was announced in Brussels. The aim is to create
5 hubs to process textile waste and become European coordination centres and collect an amount between 4.2
to 5.5 million tons to be dealt with ideally within the EU, as stated in the announcement.
Opportunity: It is critical and necessary that at least one of these ReHubs are located in Turkey. Turkey’s
existing textile and recycling capability, nearshoring potential, and willingness for collaboration, as detailed in
the previous chapters, is the basis of a strong opportunity definition.
38
Country Yearly reusable textile waste per person (Kg) Percentage of gross domestic product (GDP)
Yearly incinerated textile waste per person Yearly export of worn clothing per person
Yearly Total Textile waste (Tonnes)
(Kg) (Kg)
Yearly textile waste per person (Kg) Yearly landfilled textile waste per person (Kg) Final Score (100-0, 100 being the worst)
Yearly recycled textile waste per person (Kg) Spending Per person, pound per capita (2018)
Italy 465,925 7.7 0.8 0.6 1.9 4.4 £920 3.7% 2.6 100.0
Portugal 1,715 8.0 0.8 0.6 2.0 4.6 £680 4.1% 2.1 96.9
Austria 62,446 7.0 0.7 0.6 1.7 4.0 £1,080 2.9% 4.6 84.9
UK 206,456 3.1 0.3 0.2 0.8 1.7 £980 3.2% 5.9 59.1
Belgium 169,949 14.8 1.5 1.2 3.7 8.4 £810 2.3% 16.7 51.7
Czech Rep. 108,273 10.2 1.0 0.8 2.5 5.8 £300 1.8% 3.4 49.7
Denmark 18,134 3.1 0.3 0.3 0.8 1.8 £840 1.9% 2.6 47.0
Spain 98,881 2.1 0.2 0.2 0.5 1.2 £580 2.7% 1.3 45.7
Finland 14,934 2.7 0.3 0.2 0.7 1.5 £750 2.1% 2.3 44.4
Germany 391,752 4.7 0.5 0.4 1.2 2.7 £780 2.3% 6.0 43.5
Netherlands 102,261 5.9 0.6 0.5 1.5 3.4 £870 2.3% 9.0 41.6
France 210,001 3.1 0.3 0.3 0.8 1.8 £570 1.9% 1.2 39.0
Ireland 22,944 4.7 0.5 0.4 1.2 2.7 £650 1.1% 2.4 34.1
Poland 103,683 2.7 0.3 0.2 0.7 1.6 £340 3.1% 4.8 28.3
Hungary 23,190 2.4 0.2 0.2 0.6 1.4 £210 1.8% 5.0 0.0
[29]
To look more into how these circular flows can be established, similar practices in Prato, Italy can be examined.
Opportunity & Policy recommendation: A quick win area for recycling is coming out from ITKIB/IHKIB export
numbers. Turkey has exported medical clothing and masks valuing over $ 100 Million in the first nine months
of 2020, an increase of 800% since 2019. Assuming there is a fast and one-time use of these clothing and an
expected further increase due to the pandemic, these export numbers nor the fast consumption of these
materials are not expected to decline in the short term.
There might be a bilateral close-loop agreement to take back the fast-consumed medical equipment to be used
for regeneration or recycling.
Group 1: 62101092 - Single-use gowns, of a kind used by patients or surgeons during

$ 28,547,735.40
surgical procedures
Group 2: 621132100012, 621133100012 - Protective overalls $ 1,373,653.09
Group 3: 630790920000 - Perforated drapes - flat drapes - dental sheaths (drapes used in
$ 6,923,658.63
surgical operations)
Group 4: 621010980000 - Non-woven garments (Protectives included) $ 63,271,093.55
Group 5: 621132100011, 621133100011, 621142100000, 621143100000, 621149000019 -
$ 786,690.07
Aprons (All types included)
TOTAL $100,902,830.74
There are different reasons for low recycling rate of waste textiles, that are related with the different
composition of textile goods being composed of various materials such as cotton, wool, rayon, polyester, nylon,
etc., making it difficult to separate the waste textiles.
How this waste can be recycled and by whom is another problematic issue. The biggest challenge to large-scale
commercialisation is the ability to recycle blended materials, regardless of whether the source is post-consumer
or post-industrial. Mechanical recycling has its limitations, and chemical recycling is still comparatively nascent.
39
Elastane is also cited as a restriction by more recyclers globally than any other fibre, posing a challenge because
of its ubiquity. Nylon and metals, too, are often restricted. [30]
In order to increase recycling rate of waste textiles and to reduce the final disposal waste volumes, a recycling
strategy should be established that includes not only what different types of fibre should be used in
production, which is a design principle including technical recyclability, but also a systemic solution on how
to bring consumption patterns and hence sorting into the picture.
Sorting - Mechanical Recycling

A strong technology to sort large volumes of mixed
post-consumer textiles by fibre type comes from
Fibersort, launched by Valvan Baling Systems and
Wieland Textiles in March 2018. [31]
With the promise of preventing 170,000 tons of

discarded garments from incineration and hence
upcycling them as raw materials, Fibersort uses 3D
scan and analysis by means of spectrography,
software aided high-speed analysis based on the
composition, colour, and structure of used fibres.
https://www.wieland.nl/en/innovation-fibersort/
Opportunity: Due to the amount of mechanical sorting necessary, both in Europe and in Turkey, Fibersort
technology can be installed in Turkey, preferably in one of the production clusters mentioned in the previous
chapter.
Chemical recycling
Chemical recycling, on the other hand, is yet another immature area. Despite there are various attempts from
the niche as well as known producers locally and on a global scale, there is little data showing to what extend
and efficiency this process is achievable.
Chemical recycling is seen as a key means of making petrochemicals based content more sustainable and is
considered to be an interesting complement to today’s mechanical recycling.
An interesting example from Sweden is worth mentioning: Renewcell’s patented Circulose® technology
dissolves used cotton and other natural fibres into a new, biodegradable raw material, Circulose® pulp, which
is used by fibre producers to make biodegradable virgin quality viscose or lyocell textile fibres.
Opportunity: Successful development of chemical recycling will depend on availability of waste streams –
reinstating importance of sorting services and the opportunity for the Netherlands (not exclusively for textile)
might be an annual CO2 reduction of 1.6 Mt is projected for 2030 [32].
Chemical recycling capabilities is suggested to be established using collaborative strength of Dutch innovative
platforms, academia, entrepreneur ecosystems, textile players, governments, etc.
Circular Brand Design

Circular textile can be possible with the right design perspective of the business model and of the products.
Brands are at the steering wheel of this change required for changing consumption and production patterns.
40
Brand designs embedding repair and reuse are getting more popular especially from the younger generations.
Mud Jeans is a good example from the Netherlands on this ‘next-gen’ circular brand design.
Another example is from Sweden’s Nudie Jeans, who brings together the circular use into its brand proposition:
‘Recycling post-consumer garments can be trickier than it might sound. One needs to have a functional system
for collecting garments and equally as important, have control over the fibre content to ensure a high-quality
end product. Fortunately for us, the Repair and Reuse initiatives have since long built a foundation for collecting
unwanted jeans, and since they are ours, we know the fibre content very well. Basically, the idea of repairing
and reusing our own products paved the way for recycling them as well.’ [33]
It is important that these ‘next-gen’ circular brands scale up as well as established brands adopt these patterns
in their business model.
Last but not the least, the clothing industry must abandon operating principles that only reward short-term
gains. There is no way for fast fashion to be on the runway of textile & clothing economies.
Opportunity & Policy recommendations: From the environmental perspective, as stated earlier recycling and
second-hand sales has the potential to reduce greenhouse gas emissions by 13%, water use by 18%, land use
by 8%, and eutrophication by 12%. In addition, in case of a more circular model where 57% of its products are
sold as second-hand greenhouse gas emissions has the potential to decrease by 43%, water use by 61%, land
use by 25% and eutrophication by 48%. This is why environmental footprint considerations for products should
be imposed by regulations, in pricing considerations and in labelling.
In order for the circular flows to be established, below are some recommendations:
❖ Minimum recyclable content criteria in textile & clothing

❖ Subsidies for recycled fibre and elimination of subsidies on industrial agricultural fibres
❖ Subsidies for re-use, repair and regeneration type • Use of Digital Technologies
of businesses • Circular Design Capability Build-Up
• Renewable Energy Use
• Collaboration & Reporting
6.1.2 Circular Production Capability Build-up
❖ Vertical integration
❖ Quality & safety Use of Digital Technologies
• Digital Tracing
❖ Local production capabilities
• Production on Demand
❖ Integration with academia & students • Resource Efficient Production
❖ Use of renewable energy • Sustainable Sourcing & Labelling
❖ Binding VSS Circular Design Capability Build-Up
❖ Digital Monitoring (IoT) • Design for Reuse Medium
• Designing with Nature Ranking
Trace and Elimination of Chemicals of • Regenerative Fibre Use Opportunities
Concern • R&D Facilities
• Re-Use Platforms
Toxic chemicals cause serious violations of planetary Renewable Energy Use
boundaries. To reduce the existing problems in textile • Use of Renewable Energy
Collaboration & Reporting
production, good examples exist among the Turkish • Social Impact Networks
producers. Some are cited below: • Sustainability Reporting & Communication
• Design Out Waste
41
ELYAF Textile’s Heritage™ Dying is a “ready
to use natural dyestuff” bringing in an
innovative natural way of dying cellulosic
fibres such as cotton, viscose, linen,
bamboo, Tencel, Modal etc. Local forestry
products picked up plants from the nature
are transformed into powder with grinders
to be brewed directly for dyeing. Patent
owning drying innovation helps to lower
chemicals, water, and energy use
significantly. The social aspect is important as well: The domestic plants picked up by local villagers from the
nearby forests, gaining economic welfare from this innovative technology.
Likewise, Soktas Textile’s Naturally Coloured Cotton from their

family-owned farmland a few kilometres away from their
production site is an environmentally friendly no-dye product,
creating a pure and breathable fabric with a soft and delicate feel.
Elimination of dying process contributes favourably in fibre and
fabric footprint calculations.
Opportunity: Use of no-dye fibres and harmless dye can be

promoted and further commercialised. Besides textile, farming
Soktas Textile’s Naturally Coloured Cotton and forestry ecosystem can be tapped; the benefits can the
extended to other sector definitions.
Another solution comes from a joint Dutch and Turkish venture, WiserGlobe /WiserWash. By their patented
Certified by Union Control Process washing process, they can reduce the water used in decolorisation to only
200 ml per denim and the whole process saves up to 92% of the clean water and 40% of energy consumed in
traditional washing. The process is also free of sodium hypochlorite, potassium permanganate and pumice
stone, which are chemicals of concern for denim production. (www.wiserwash.com)
42
6.1.3 Use of Digital Technologies
❖ Digital tracing (blockchain)
❖ Resource efficient production
❖ Production on demand
❖ Sustainable sourcing labelling
Digital Monitoring
Digital Monitoring capability (IoT) is critical to be able to understand shortages in material and energy usages.
The well-functioning of this capability is to be verified and monitored regularly to see the upcoming
opportunities here.
Digital Tracing:
This type of technology, not only limited with blockchain, has the potential to bring in intelligence to almost all
circularity indicators mentioned in this study.
The digital loading project from Cross Jeans, as discussed in the earlier chapter, is a good example there.
Another example that might be relevant to reflect on the circular thinking is from Circularise and Porsche
collaboration with Borealis, Covestro and Domo Chemicals to enable the traceability of plastics in the
automotive sector.
‘Stuttgart/The Hague/Vienna/Leverkusen/Ghent, November 3, 2020 - Circularise, the blockchain supply chain

transparency provider, as part of the Startup Autobahn innovation program, recently launched a project with
Porsche and its pioneering material suppliers – Borealis, Covestro and Domo Chemicals – to enable the
traceability of plastics on blockchain and to ensure that the use of sustainable materials in Porsche cars can be
proven. By digitizing materials Circularise was able to create a digital thread through the whole supply chain,
enabling material traceability, tracking the CO2 footprint and other sustainability metrics like water savings 3.
Opportunity: Likewise, in textile & clothing, similar projects on digital tracing can be developed with
involvement from technology players.
Sustainable Sourcing & Labelling

Digitalisation of labelling is an immediate quick win to eliminate this waste. The potential impact is addressed
in the previous chapter.
Policy recommendation: In order to reduce and finally eliminate labelling based on material use, regulatory
improvements are necessary.
Recyclable garment targets may be set, and minimum recyclable content criteria imposed by legislation
Opportunities:
❖ Labelling is a huge segment of textile & clothing once digitalised.
❖ Recyclable zippers and buttons (imports mostly from Japan at this point)
3
https://www.circularise.com/press, https://tcbl.eu/projects
43
6.1.4 Circular Design Capability Build-up
❖ Design for re-use

❖ Designing with nature
❖ Regenerative fibre use
❖ Design out waste (*)
❖ R&D facilities
The “bridge” between brands and manufacturers to build structured transformation. The Dutch platforms can
be the bridge.
Opportunities:
Design principles in regard to circularity needs to be re-visited considering below:
❖ Sustainable materials, clean production (currently limited to PCW and PIW)

❖ Design of raw materials, regenerative raw materials, nature-based design
❖ Design with raw materials, processes that can enable reuse, refurbishment, creative redesign, recycling –
apply 10R instead of 3R
❖ Design for disassembly, re-assembly
❖ Nature driven design through R&D
Further, ideas for collaboration might be given regarding above:
❖ The Dutch designers, who are already working to design waste out as well as developing nature-based
solutions can be linked with the Turkish manufacturing industry. The ‘realist project’ given below is a good
example for this.
❖ Fashion for Good led workshops might be organised for knowledge transfer
Regenerative materials and R&D:

Opportunities:
In order to develop regenerative materials, below cycles or areas need to be familiarised:
❖ Vegetable farming and harvesting

❖ Animal farming and harvesting
❖ Synthetic fibres production from petroleum hydrocarbons-based polymer batch
❖ Regenerative fibre production – hemp
❖ Farm to Closet mind-set in R&D
❖ Use of cross industry frameworks, such as integration into gaming and VR, into acceleration of circularity
Policy recommendation for R&D:

How to scale up R&D efforts for circular materials and processes is a significant issue.
Turkish Government subsidies exist for R&D capacity development, which supports cross-border collaboration.
On the other hand, regarding R&D from abroad, the subsidies are not offered for P&D (product development)
capacity. Assuming circularity necessitates cross border collaboration, research and development subsidies
might be revisited.
The governments should discuss further, as mentioned in JETCO agreement in September 2020 on how to scale
up innovations.
6.1.5 Renewable Energy Use
❖ Use of renewable energy
44
Lack of renewable energy use and amount of carbon used during production constitutes a risk for both buyers
and producers when EU Green Deal requirements are in the way.
As stated in the JETCO 2020 agreement, both sides also highlighted the importance to the provision of an
inclusive finance mechanism and the mobilisation of both EU and international funds fairly for supporting the
Green Deal globally.
Investment plans should be visited immediately and collaboratively.
6.1.6 Collaboration & Reporting
❖ Social impact networks

❖ Sustainability reporting & communication Lower Ranking
❖ Sustainable sourcing labelling Opportunities
As discussed in detail, collaboration, monitoring, and

* Others
communication are the ultimate ways of successful
• Energy Efficient
transformation. Hardware
Opportunity: From a cultural as well as business • Fair Work Conditions
• Repair Services
perspective, the Dutch Parties can play an accelerator role
• Digital Monitoring
here, which may bring win-win benefits for both parties in • EU Green Deal Readiness
the search for circularity. The established circular
consultancy services are a good leverage to work on these
collaborative platforms and methods.
There are some good examples of these type of

collaborative models between the Dutch and Turkish
parties that are worth mentioning (without any intention
to be exclusive):
Denim Deal
House of Denim, a foundation promoting best practices
and network-wide collaboration for cleaner and smarter denim practices, led for a new post-consumer recycling
of textiles called the ‘Denim Deal’, which was signed in October 2020 by 30 parties representing the Dutch
central and local government bodies, the Dutch brands, the Turkish producers, technology, and consultancy
partners [34]. All signatories to the Denim Deal have committed themselves to meet certain sustainable
standards as part of their operations. This includes agreeing to work as quickly as possible towards a standard
of using at least 5% recycled textile in all denim garments.
One improvement potential for the Denim Deal, as stated by some producers, is that it scales up the planned
impact by having further representation from bigger brands and some other bigger producers.
New Cotton Project (New Cotton Project, 2020)

Another project that went live during the course of this research (24th November 2020) is the New Cotton
Project with twelve parties; consortium of brands, manufacturers, suppliers, innovators and research institutes,
funded by European Union. Being a close-loop design from start, this project intends to achieve over a three-
year period, textile waste’s collection and sorting, and regeneration into a new, man-made cellulosic fibre that
looks and feels like cotton – a “new cotton” – using Infinited Fibre Company’s textile fibre regeneration
technology. The fibres will be used to create different types of fabrics for clothing that will be designed,
45
manufactured, and sold by global brand Adidas and companies in the H&M Group. One of the recycled fibre
producers Kipas, who is part of this research, is one of the parties of this circular business model and will use
the regenerated fibres to denim.
Realist Project
Knitwear Lab from the NL and Bersa Triko from TR’s
REALIST_ Project aims to produce knitted with Turkish
post-industrial textile waste.
In a multi-collaborative environment with partners from

the Creative Industries Fund NL, the Dutch Consulate in
Istanbul, Maison the Faux and the Marmara University,
the project demonstrates a good example on cooperation
between the innovative power of technological Dutch
Design and the Turkish textile knowhow, bringing a
commercial and recycled collection for the mainstream
fashion markets in Europe and Turkey. The project is also
significant from a stakeholder engagement perspective
and brings in communities and women, academia, and
research centres, governments when developing the
business concept.
Some other collaborative projects worth mentioning here

are as below:
1. Renewcell & Levis partnership

2. Evrnu
3. Econyl
4. Natural Fibre Welding
5. HKRITA
6. GALY – cotton grown in a lab
7. Texloop
8. H&M Green Machine
9. H&M Planet First Program
10. Unspun
11. EON-ID
12. Ioncell
Reporting & Communication

Reporting and communication are among the key parts of circularity transformation, as defined by the
consulted parties.
Opportunities:
Besides monitoring sustainability progression, impact measurement methods and standards should also be
adopted by the players. This means measuring of the total environmental and social impact that one operation,
business model or the industry in general is creating.
The whole textile and clothing industry must call for consumer awareness on circularity transformation. The
language needs to be simple and relevant.
Education on circularity of citizens and the industry must accompany all efforts.
46
6.2 Conclusion
This research is conducted in order to give direction to the Dutch businesses, government, academia, and others
a high-level indication on the type of opportunities that arise around circular textile engagement with Turkish
textile producers and other involved ecosystem partners.
Analysing the overview of the textile & clothing market with a perspective from production to consumption,
the transition to circular textile is inevitable. The material and resource waste, production footprint (carbon,
water, chemicals), energy and process inefficiencies have negative economic, environmental and social impacts
– in other words, current production and consumption systems are not sustainable.
Turkey is a major textile & clothing player as well as a significant supplier for the Dutch market. Due to its
nearshoring potential, which is critical for establishing circular textile loops, Turkey has important advantages.
Immaturity of production conditions for circular textile in the Turkish market brings significant opportunities
for Dutch businesses, as discussed in detail previously. The aim should be to translate problems into
opportunities, which enable a fair welfare distribution to parties involved.
There is a role for all parties. The below sections summarise the recommendations for the Dutch businesses
and the Dutch Government.
Recommendations for Dutch Businesses are as below:
➢ It should be remembered that the most opportunities refer to non-existent market definitions or business
models. Above opportunity areas, as also highlighted by the participants of the research, needs to be
detailed with stakeholders.
➢ For higher ranking opportunities (recycling & sorting services; circular production capacity build-up) and
medium ranking opportunities (use of digital technologies; circular design; renewable energy; collaboration
& reporting), task forces need to be established to define scope and magnitude. As an example [23] , the
possible impact of an EU carbon-border adjustment mechanism on Turkish textile sector (with a carbon
price of 50 Euro/tCO2) can be a levy of Euro 195mn, corresponding to 1.4% of textile exports to the EU
region; while total export tax to the EU region amounting to Euro 1,809mn. This is a significant budget not
only for Turkish producers, but also for the buyers of these goods. The planning by these task forces should
include an investment case for the specific transition areas.
➢ The brands will need to support consumers in their choices by offering and their supply chain supplying for
only sustainable products. No production partner will produce with circular textile principles unless there
is demand from buyers. Seizing the opportunity in the long-term dynamics of the textile market, brands
need to take the initiative to transform the market both from consumption and production patterns.
➢ The waste and recycling sector need to organise itself, encouraging the customers and producers on
delivering high-quality use of recyclables rather than primary raw materials. Recyclable raw materials shall
no longer be incinerated. Consumers will regard the careful use of products and materials as a standard
matter, in order to make a concrete contribution to the preservation of natural capital and the countering
of climate change.
47
These activities are suggested to be pursued involving the Dutch businesses and platforms, Turkish producers
as well as the Dutch Government:
1. Business Framework Development: A good starting point for collaboration towards circular textile &
clothing is to develop a circular framework, verify baselines and identify flows, and then establish a strategic
transformation plan that involves various stakeholders working together.
2. Raising Awareness: The research provided an initial and articulate picture to the participants on what
circular textile is about and what kind of transition it requires. The positive feedback received from the
participants is confirming that the discussions should pursue and be extended to other players.
3. Developing Circular Innovation Agenda: A significant portion of the solutions needed for circular textile are
not commercially available, e.g., nature-based production chemicals, chemical recycling, biomimicry-based
design, … The communities (entrepreneurial organisations, academia, business platforms, etc) should be
brought together around developing solutions.
4. Coordination and Communication: Transition to circular textile should be coordinated and communicated
for the stakeholders involved.
Recommendations for EU are as below:
➢ There should be ambitious recycling and landfill-reduction targets for 2030/2035, mandatory waste
prevention measures and reinforced rules on separate collection of waste.
➢ Further legislative harmonisation with the EU for circular textile standards and accreditations is needed.
➢ There needs to be legislative arrangements for the recycling of and import of used clothing sector products
within the scope of Customs Union (as also aligned with JETCO meeting notes in September 2020) including
special investment support mechanisms for established facilities,
➢ Followingly, Dutch government level recommendations in this research can be summarised as below:
➢ Raw material production process might be upgraded to a more sustainable cultivation via the use of digital
tracking technologies in agriculture (as expressed in the ‘Science and Innovation Section ‘of JETCO meeting
notes in September 2020).
➢ There should be legislative arrangements for the recycling of and import of used clothing sector products
within the scope of Customs Union (as aligned with JETCO meeting notes in September 2020) including
special investment support mechanisms for established facilities,
➢ There needs to be standardisation and accreditation of non-GMO cotton production.

➢ Regenerative farming as textile inputs should be promoted while subsidies on industrial agricultural inputs
should be abolished.
➢ Inclusive financing mechanism should be developed for SMEs with a regional perspective in adaptation to
circular economy practices.
➢ Developing a roadmap to reduce the emissions through investments, R&D, technological innovation while
promoting and incentivising via financing at lower credit rates (e.g., Euro 1bn for research and innovation
projects, EBRD voucher framework co-financed by the Netherlands EBRD Trust fund to support Turkish
SMEs for circular business models).
➢ Policies for improving R&T intensity and digitalisation (beyond e-trade) are recommended.
➢ Policies to eliminate labelling based on material use, regulatory improvements are necessary.
48
Mutual recommendations for the Dutch and Turkish governments can also be mentioned as below:
➢ The governments should discuss further, as mentioned in JETCO agreement in September 2020, on
how to scale up innovations and provision of an inclusive finance mechanisms and the mobilisation
of both EU and international funds fairly for supporting the Green Deal.
49
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https://ec.europa.eu/info/strategy/priorities-2019-2024/european-green-deal_en.
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M. Vooges, “Measuring the Dutch Clothing Mountain: Data for sustainability-oriented studies and actions
in the apparel sector,” 2017.
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https://www.ihkib.org.tr/tr/etkinlikler/ulusal-uluslararasi-destekli-projelerimiz/hazirgiyimde-dijital-
donusum-projesi/k-413.
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https://www.mediamatic.net/en/page/240473/what-is-bio-design.
[20] Flokser Kimya, “Technical Faux Leather Industry Polyurethane Systems,” 2020. [Online]. Available:
https://www.flokser.com.tr/kimya/en/technical-faux-leather-industry-polyurethane-systems/.
[21] BCI Initiative Turkey, “Iyi Pamuk Uygulamarı Dernegi,” 2020. [Online]. Available:
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[27] World Bank, “Firm Productivity and Economic Growth in Turkey,” 2019.
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make the circular shift together,” 2020.
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index?locale=en.
[30] Rivet, “2020 Denim Circularity Report,” 2020.
[31] Valvan Baling Systems; Wieland Textiles, FIBERSORT, 2018.
51
[32] G. Bergsma and M. Broeren, “Exploratory study on chemical recycling,” CE Delft, 2019.
[33] Nudie Jeans, “Nudie Jeans,” 2020. [Online]. Available: https://www.nudiejeans.com/.
[34] Denim Deal, “What is the Amsterdam 'Denim Deal' All About,” 16 11 2020. [Online]. Available:
https://www.sportswear-international.com/news/stories/Sustainability-What-is-the-Amsterdam-
Denim-Deal-all-about-15643.
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content/uploads/2019/07/OnbirinciKalkinmaPlani.pdf.
[36] E. Dijkgraaf and R. Gradus, “The Effectiveness of Dutch Municipal Recycling Policies,” Tinbergen Institute
Discussion Papers, Vols. 14-155/VI, 2014.
[37] W. T. Organization, “World Trade Statistical Review 2020,” 2020.
[38] E. E. Agency, "Textiles in Europe's circular economy," 19 November 2019. [Online]. Available:
https://www.eea.europa.eu/publications/textiles-in-europes-circular-economy.
52
APPENDIX
A List of Companies Consulted

TR ORGANISATION ORGANISATION TYPE WEB SITE
1 BOSSA TICARET VE SANAYI ISLETMELERI TICARET A.S. Company http://www.bossa.com.tr/
2 ZORLU DIS TICARET A.S. Company http://www.zorludisticaret.com/
3 EREKS KONFEKSIYON SAN. VE TIC. A.S. Company https://www.ereksgarment.com/
†
4 GAMA RECYCLE ELYAF ve IPLIK SAN. A.S. Company http://www.gamaiplik.com/
5 BURSALI DIS TICARET A.S. Company https://www.bursaligrubu.com/
6 ORTA ANADOLU TICARET VE SANAYI ISLETMESI T.A.S. Company https://www.ortaanadolu.com/
http://www.enkaytextile.com.tr/
7 ENKAY MODA KONFEKSIYON SAN. TIC. LTD. STI. Company
tr/enkay-moda.html
8 YESIM SATIS MAGAZALARI VE TEKSTIL FABRIKALARI A.S. Company https://www.yesim.com/
9 DENIMER KUMASCILIK SAN. VE TIC.LTD.STI. Company http://www.denimer.com.tr/
10 CALIK DENIM TEKSTIL SANAYI TICARET A.S. Company https://www.calikdenim.com/
11 ALPER CATALOGLU Consultancy /expert
12 EROGLU GIYIM SAN.TIC.AS Company http://www.eroglugiyim.com/
13 FASHION POINT TEKSTIL URETIM A.S. Company http://www.fashionpoint.com.tr/
14 WHOSUSTAIN Consultancy http://whosustain.com/
15 KIPAS PAZARLAMA VE TICARET A.S. Company http://www.kipasmensucat.com/
16 ELYAF TEKSTIL SAN. VE TIC. A.S. Company https://www.elyaf.com/
Business platform / non https://iyipamuk.org.tr/Default.a
17 BETTER COTTON INITIATIVE - IPUD
profit spx
18 OZAK TEKSTIL KONFEKSIYON SANAYI VE TICARET A.S. Company http://www.ozaktekstil.com.tr/
19 PAMEKS GIYIM SAN. A.S. Company http://www.pameks.com/tr/
20 DYNAMO - DENIM KUMASCILIK SAN. VE TIC.LTD.STI. Company http://www.denimkumas.com.tr/
21 TYH ULUSLARARASI TEKSTIL PAZARLAMA TIC. A.S. Company http://www.tyh.com.tr/
22 WWF TURKEY Non profit https://www.wwf.org.tr/
https://akademi.itu.edu.tr/karakas
23 ITU (ISTANBUL TECHNICAL UNIVERSITY) - HALE KARAKAS Academia
hal/Hale-Karakas/
24 SOKTAS DOKUMA SANAYI VE TICARET A.S. Company http://www.soktas.com.tr/
25 TAYPA TEKSTIL GIYIM SANAYI VE TICARET A.S. Company https://www.taypa.com.tr/
https://www.lcwaikiki.com/tr-
26 LC WAIKIKI MAGAZACILIK HIZMETLERI TICARET A.S. Company
TR/TR
BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT TURKEY Business platform / non
27 http://www.skdturkiye.org/
(BCSD TURKEY) profit
28 CROSS TEKSTIL SANAYI VE TICARET A.S. Company https://crosstextiles.com/
https://www.wiserglobe.com/ho
29 WISER GLOBE Company
me
30 PERSEUS TEKSTIL DIS TICARET LTD. STI. Company http://www.perseus.com.tr/
ISTANBUL TEXTILE AND APPAREL EXPORTERS' ASSOCIATION Business platform / non
31 https://www.itkib.org.tr/
(ITKIB) / ISTANBUL APPAREL EXPORTERS' ASSOCIATION (IHKIB) profit
https://www.istanbulmodaakade
32 ISTANBUL MODA AKADEMISI Academia
misi.com/
53
TR ORGANISATION ORGANISATION TYPE WEB SITE
†
33 ISKO DENIM Company https://iskodenim.com/
https://wiserwash.com/wiser-
34 WISER WASH KONFEKSIYON TEKSTIL SANAYI DIS TICARET A.S. Company
wash
35 RECYCLING FIBER (no wish to be sited) Company
36 EBRU DEBBAG Consultancy / expert https://www.indigo-friends.com
Business platform / non
37 TURKISH CLOTHING MANUFACTURERS' ASSOCIATION (TGSD) https://tgsd.org.tr/
profit
†
Stated opinion only
NL ORGANISATION ORGANISATION TYPE WEB SITE

1 CIRCLE ECONOMY Consultancy and services https://www.circle-economy.com/
2 CIRCULAR COLAB Business platform https://www.circularcolab.org/
3 FASHION FOR GOOD Business platform https://fashionforgood.com/
†
4 FRONTEER Consultancy and services https://fronteer.com/
5 HOUSE OF DENIM Business platform https://www.houseofdenim.org/
https://www.jeanschool.com/international-
6 JEAN SCHOOL Consultancy and services
courses/?lang=en
7 MUD JEANS Brand https://mudjeans.eu/
8 SCIRCULA Consultancy and services https://scircula.com/
https://www.scotch-
9 SCOTCH AND SODA Brand
soda.com/global/en/home
https://www.mvonederland.nl/en/textile-
10 MVO NEDERLAND Business platform
network/
11 MODINT Business platform https://modint.nl/
12 CIRCO Consultancy and services https://www.circonl.nl/english/
13 OXIOUS Brand https://oxious.com/home.html
https://www.netherlandsandyou.nl/your-
14 DUTCH CONSULATE † Government country-and-the-netherlands/turkey/about-
us/consulate-general-in-istanbul
15 HOLLAND CIRCULAR HOTSPOT † Consultancy and services https://hollandcircularhotspot.nl/
16 PARTNERS FOR INNOVATION Consultancy and services https://partnersforinnovation.com/en/
17 PVH Brand https://www.pvh.com/
18 KNITWEARLAB Consultancy and services & brand https://knitwearlab.nl/
†
Stated opinion only
54
B Collaboration Opportunities
NL TR Turkish And Dutch Markets , Brika Sustainability, 2020
Use of recycled fibers

Design for longetivity
Complies with eco design guidelines
Design out waste
Digitalisation & online platforms
Collection schemes (sorting)
Social impact networks
Design for reuse
Digital tracing (blockchain)
R&D facilities
Digital design capabilities
Resourse efficient production
Production on demand
Sustainable sourcing labeling
Integration with academia and students
Reuse platforms
Regenerative fiber use
Vertical production
Designing with nature
Sustainability reporting & communications
Platform based economic models
Phasing out of from chemicals of concern
Quality and Safety
Customs Unionisation between EU & TR
Renting services
Local production capabilities
Use of renewable energy
EU Green Deal Readiness
Repair services
Fair work conditions
Digital monitoring (IoT)
Energy effiicient hardware
0 25 50 75
55
C Glossary of Abbreviations
REACH: Registration, Evaluation, Authorisation and Restriction of Chemicals
ZDHC: Zero Discharge of Hazardous Chemicals
IHKIB: Istanbul Apparel Exporters’ Association
ITKIB Istanbul Textile and Garment Exporters Association
TGSD: Turkish Clothing Manufacturers’ Association
BCI: Better Cotton Initiative
rPET: Recycled Polyethylene Terephthalate

CO2: Carbon dioxide
IoT: Internet of Things
D 11th Development Plan of 2019-2023

In the 11th Development Plan of 2019-2023 developed by the Presidency of Strategy and Budget [35], these
main objectives have been listed:
❖ The main objective is to be one of the leading countries that directs the value chain with a focus on fashion
design and branding in the textile, leather, and clothing sector.
❖ Fast and flexible production, innovation, customer focus, integrated production structure, social
responsibility, and environmental awareness, retailing and organisational skills will be developed in the
sector.
❖ With regard to technical textiles, which is one of the key areas in the transformation of high value-added
structure in the sector, companies will be supported to select optimum technology, comply with the
environmental protection legislation, energy efficiency and waste re-use activities and cooperate with other
stakeholders in the value chain (in particular machinery, fibre and technical end-use manufacturers).
The report of the Special Expertise Commission for Textile, Clothing and Leather Sectors, further details the
2019-2023 objectives of these sectors:
❖ Changing from a sector procurer of world brands to a fashion-brand country with branding, design, and
collection infrastructure.
❖ Strengthening the “organiser country role” by using the organisational power of the sector and the
advantage of geographical location.
❖ Focusing on activities aimed at digitizing the supply chain, where buyers' demands are concentrated, using
the leverage of technology.
❖ Ensuring that there are 5 Turkish brands among the 100 biggest brands of the world by investing in brands
with global brand potential.
❖ To turn towards innovative and multi-functional products by using new technologies; to be among the
leading countries in this field by increasing the production and export of technical textiles.
56
❖ Increasing productivity through modernisation and restructuring of production capacity.
❖ Increasing the added value in exports with the production of special fibres and high technology yarns.
❖ Increasing the production and investment capacity in man-made fibre and yarn, which are important for
technical textiles.
❖ Transition from ordinary products to special products such as hip composites, biomaterials, turning towards
environmentally friendly and new textile applications.
57
TEAM
Senior Research Team

Gulin Yucel
Pelin Yenigun Dilek
Ebru Debbag
Prof. Levent Kurnaz
Junior Research Team

Ozge Tugralı
Mehmet Seber
Emren Borhan
Aytac Pacal
Naz Yucel
Sule Caglin
58
This is a publication of
Netherlands Enterprise Agency
Prinses Beatrixlaan 2
PO Box 93144 | 2509 AC The Hague
T +31 (0) 88 042 42 42
E [email protected]
www.rvo.nl
This publication was commissioned by the ministry of Foreign Affairs.
© Netherlands Enterprise Agency | April 2021

Publicationnumber: RVO-075-2021/RP-INT
NL Enterprise Agency is a department of the Dutch ministry of Economic

Affairs and Climate Policy that implements government policy for
Agricultural, sustainability, innovation, and international business and
cooperation. NL Enterprise Agency is the contact point for businesses,
educational institutions and government bodies for information and advice,
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Netherlands Enterprise Agency is part of the ministry of Economic Affairs and

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Circulair Textiles Turkey 2021

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Circulair Textiles Turkey 2021

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DEFINING CIRCULARITY OF TEXTILE

COLLABORATION OPPORTUNITIES BETWEEN TURKISH AND

2.1 From Linear Inefficiencies to Circular Opportunities 2

2.2 About Textile & Clothing Sector in Turkey 3

2.3 Highlights of prioritised opportunities: 6

2.5 Guiding Remarks 8

4 CIRCULARITY ANALYSIS OF THE VALUE CHAIN 11

4.2 Circular Business Models 14

4.3 Eco Design 18

4.4 Sustainable Fibre Production 20

4.5 Sustainable Production 23

4.6 Safe & Clean Materials 26

4.7 Collaborative networks 27

5.1 Turkey Is a Significant Player of Internationalised Sectors 29

5.2 Negative Contributions to Foreign Trade Balance for Textile Fibres 30

5.3 High Employment Capacity Within the Manufacturing Sector 30

5.4 Regional Development 30

5.6 Textile and Clothing Sector Objectives and Strategic Roadmaps 31

5.8 Policy Recommendations 32

5.9 Summary of Macro-economic Analysis 33

6 COLLABORATIVE VALUE DEFINITION FOR CIRCULAR TEXTILE 34

6.1 Opportunity Definitions & Recommendation 36

A List of Companies Consulted 53

D 11th Development Plan of 2019-2023 56

2.1 From Linear Inefficiencies to Circular Opportunities

These inefficiencies have burdens on the Dutch, EU and Turkish economies:

2.2 About Textile & Clothing Sector in Turkey

• Industrial Experience and Geographical Advantage:

• Diverse and Flexible Manufacturing:

How far are the players from ‘ideal state textile’?

In order to assess where the consumption and production

This Circular Textile Framework includes six different pillars;

Use of recycled fibers

Design for longetivity

Complies with eco design guidelines

Design out waste

Digitalisation & online platforms

Collection schemes (sorting)

Social impact networks

Design for reuse

Digital tracing (blockchain)

Digital design capabilities

Resourse efficient production

Sustainable sourcing labeling

Integration with academia and students

Regenerative fiber use

Designing with nature

Sustainability reporting & communications

Platform based economic models

Phasing out of from chemicals of concern

Quality and Safety

Customs Unionisation between EU & TR

Local production capabilities

Use of renewable energy

EU Green Deal Readiness

Fair work conditions

Digital monitoring (IoT)

Energy effiicient hardware

2.3 Highlights of prioritised opportunities