The second production phase of Parla Textile Company was inaugurated by Minister of Industries, Mining and Trade Mohammad Shariatmadari last week.
Located in Tabriz, Parla Textile Company operates under the aegis of a major Turkish brand, whose name was withheld due to company policy.
In an interview with Financial Tribune, Ahmad Seyyedi, the Iranian company’s administrative deputy, explained that the launch of the first production phase dates back to the fiscal March 2008-9 when the Turkish side made an investment of $25 million and created 700 jobs.
The Turkish company set up a production line and transferred equipment and machinery with the support of East Azarbaijan Foreign Investment Industrial Estate Company.
Speaking about reasons behind the Turkish company’s move into Iran, Seyyedi said they had exports to Iran before the establishment of Parla and incurred a great deal of expenses because of duties, customs clearance, transportation and such.
“They realized that energy costs are considerably lower than those in Turkey, which could eventually lower end prices,” he said.
“The availability of good raw materials, including yarn, as well as skilled human resources in Iran was another advantage.”
What is more, Iran’s geographical position in the region made it more feasible for them to have exports to Russia, Turkmenistan and other countries in the region with more ease and lower costs.
“All in all, they came to realize that it would be a good idea to invest in Iran. The East Azarbaijan Foreign Investment Industrial Estate Company also secured their investment and they felt sure of investing with confidence,” Seyyedi said.
The second phase of investment worth $15 million was made on April 24 for starting the new production line with new equipment and machinery, and creating jobs for 150 people.
The official noted that Parla Textile Company is the biggest producer of curtain fabrics in Iran and 98% of the company’s personnel are Iranians.
With the operationalization of the second production phase, the output increases from the current 60 to 80 million square meters per year, 40% of which are exported and the rest is sold in the domestic market.
According to Seyyedi, in the last Iranian year (ended March 20, 2018), the company exported $5 million worth of products to markets in Central Asia and Europe, such as Hungary, Poland, Romania, Turkey, Russia, Azerbaijan and Iraq.
This is not the first time a Turkish company has established a foothold in Iran’s production sector. In October 2017, Turkish company LC Waikiki, otherwise known as LCW, became the first major foreign apparel manufacturer to officially start cooperation with Iranian garment players. LCW is already in cooperation with Iranian clothing company Ronak Jean and the Iranian company’s production line has been making clothes for the Turkish brand labeled “Made in Iran”.
