German clothing firm Hugo Boss has criticised the Turkish government's tax policy in the country's free trade zones, saying that they have prevented the company from setting up a major production hub in the region.  

Dr Werner Lackas, a member of the board at Hugo Boss, said the company's production facilities in the Eagean Free Zone are its biggest in the world.

But he added that the company's plans to build a major production hub incorporating suppliers of yarn, fabric and accessories have not been achieved because of the Turkish government's tax policy.

"My biggest dream was to build the world's largest production centre in Izmir while we were investing here," he said. "We wanted to bring all of our suppliers to this centre. But our dream has ended in disappointment."

Speaking at the launch of its Centre of Operational Excellence (OPEX), Dr Lackas added that if the Turkish government made changes in its tax policies with regard to the free trade zones then Hugo Boss would continue its investment.

"We invested €2.5 million euros in OPEX. In Germany we mainly produce samples for our collections; however, in Izmir we produce high quality products in large quantities," he said.

Dr Sezai Kaya, general manager of Hugo Boss Turkey, added: "We aim to produce 1.7 million shirts, 700,000 suits, and 350,000 sportswear garments for both men and women by the end of this year. We believe will reach this target."

By Hasan Gulveren.