Overview of Turkish Defence and

Aerospace Industry

BİLAL AKTAŞ

Industrialization Department Head

Undersecretariat for Defence Industries (SSM)
Ministry of National Defence, Turkey
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 TURKEY AT A GLANCE

78 million population, 25% under age 15

Average 5,6% growth rate forecasts through 2020

GDP more than tripled since 2002 - USD 231 billion to USD 813 b$

17th largest economy in the world

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TOP REASONS TO INVEST IN TURKEY

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TOP REASONS TO INVEST IN TURKEY

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 WHY TURKEY – SECTORS OF OPPORTUNITY

Liberal and
Qualified and
Growing reformist
Population competitive labor
investment
economy force
climate

Energy corridor
Centrally Low taxes and
Infrastructure and terminal of
incentives
located Europe

Customs Union
Large domestic
with the EU market
since 1996

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 THE STRUCTURE of MoND

Ministery of
National
Defence
(MoND)

Undersecretariat of National Defence Undersecretariat for Defence Industries

 Responsibilities:  Responsibilities:
 Policy making  Major Systems Procurement
 Personnel  Industry Policy Making
 Logistics  Localization
 R&D  R&D

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 TURKISH DEFENCE INDUSTRIES with NUMBERS
Defence and Aviation Exports
(million $)
2.000 1.391 1.647
1.0901.262
1.500 853
615
784 832
2016 Target
1.000 487
337
500
331
196 2 Billion USD
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

6000 5101
5076
4756
4381
2014 Turnover 3707
4000
3087 2900
5,1 Billion USD 2438
2000
2006 2007 2008 2009 2010 2011 2012 2013 2014

927 887
1.000 773
800 666 672
600
510 505 2014 Annual R&D Invesment
345 350
400 228 221 237
~887 Million $
206 143 200
64 79 90 120
200
0

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TURKISH DEFENCE AND AEROSPACE INDUSTRY STRUCTURE

GOV’T CONTROLLED
OTHER SECTORS
CORPORATIONS

MILITARY FACTORIES
PRIVATE COMPANIES

JOINT VENTURES CLUSTERS

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 INDUSTRIALIZATION POLICY

Incentivise
STRATEGIC PRIORITIES involvement
of SMEs in
defence
 Achieving Maturity Strenghten business Promote
in Program technological export of
capabilities of Turkish
Management Turkish defence
Industry products
SSM
 Sustainability of the
INDUSTRIALIZATION
Defense Industry POLICY
Universities Multiplier
 Developing
and incentives
Technological Institutions for SMEs
Competence
Clusters

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 INDUSTRIALIZATION ACTIVITIES AND OFFSET

SSM TOPICS RULES

CONTRACTOR
THRESHOLD TO
5 Million USD
REQUIRE OFFSET
IP/O COMMITMENT 70 % of the Contract Price
PROJECT
MANAGEMENT Main SUBCONTRACTOR / 30 % of the Category-A
Procurement Procurement SME PORTION IP&O
Management
Agreement
Domestic Net Added Value
CREDITING BASIS
(DNAV)
Separate IP&O Agreement
Industry TYPE OF AGREEMENT
INDUSTRIALIZATION with the Contractor
IP/O Participation
Management
MANAGEMENT ve Offset BANK GUARANTEE 6 % of IP&O Commitment
Agreement PERIOD OF
Program Duration + 2 Years
%70 PERFORMANCE
6 % of Unfulfilled
PENALTY
Commitment
Sector Strategic Preparing sector and sub-sector strategies
TEMPORARY Allowed (Some Conditions
Management Developing Subcontractors and SME’s CREDITING May Apply)
Coordinating Investments
BANKING OF CREDITS Allowed (Valid for 5 Years)
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 LONG-TERM PARTNERSHIPS PRE-CREDITING

For the excess IP/O activities within

A company that has IP/O Category-B and/or Category-C context
liability towards SSM that have been accomplished by a
Contractor, which has an Pre-Crediting
(upon company’s request)

A company that does not For the IP/O activities which will be
accomplished by acquiring a Pre-Approval
have IP/O liability within Category-B and Category-C context by
towards SSM Pre-Crediting (upon company’s request)

The Pre-Crediting related to an IP/O activity will be valid for 5

(five) years following the successful accomplishment of the
mentioned IP/O activity.

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 CLUSTERS

OSTIM DEFENCE AND

160 AVİATİON (OSSA)

IZMIR AEROSPACE ESKISEHIR

42 (HUKD) 30 AEROSPACE

TEKNOKENT DEFENCE
70 INDUSTRY PLATFORM(TSSP) ISTANBUL BURSA AVIATION
27 DEFENSE AND 28
AEROSPACE
CLUSTER (SAHA)

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 AEROSPACE CLUSTER & ORGANIZED
INDUSTRIAL ZONE PROJECT
Aerospace Industry Cluster initiative

 Government supports creation of Aerospace

industry cluster
 13,5 million sqm (inc. TAI)
 SME cluster to support future growth of
aerospace industry in Turkey
 Cluster expected to become operational by
2016
www.hab.org.tr

30% capacity use 600 million $ ~ 700 million$ export First Local Platform
~5000 employee turnover %80 capacity use 1 billion $ export

2017 2018 2020 2022 2023

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 DEFENCE INDUSTRY PRODUCTS
AVIATION & AEROSPACE PLATFORMS

ANKA HÜRKUŞ ATAK

Unmanned Air Atack/Tactical
Basic Trainer
Reconnaissance
Vehicle Aircraft Helicopter

Turkish Utility TX/FX

Indigenious Helicopter
Helicopter
T-70

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 DEFENCE INDUSTRY PRODUCTS
AVIATION & AEROSPACE PLATFORMS

Joint Strike
Fighter Göktürk I
JSF Göktürk II

Transport
Aircraft
A400M

15
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 DEFENCE INDUSTRY PRODUCTS (PLATFORMS)

LAND PLATFORMS NAVAL PLATFORMS

MİLGEM
ALTAY

SYHK YTKB GÖKTÜRK

SG-AK

MKKA MRTP

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 DEFENCE INDUSTRY PRODUCTS (SYSTEMS)
SYSTEMS & AVIONIC SOFTWARE - COMMUNICATION
OTHERS
INTEGRATION & AVIONIC

ATAK

GÖREV
UÇUŞ
BİLGİSAYARI
BİLGİSAYARI
SİMÜLATÖR

T-38 HEDEFLEME PODU

C-130
FLIR KASK

F-16 HAVA RADARI SAR RADARI

GÖSTERGE TELSİZ

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 DEFENCE INDUSTRY PRODUCTS (SYSTEMS)

ROCKET-MISSILE COMMAND CONTROL AND ELECTRONIC WARFARE

COMMUNİCATİON ELEKTRONİK HARP
AND RADAR SYSTEMS

CİRİT

GENESİS

HGK

ÇALVİS YUNUS
JAMMER

KMS

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 REPUBLIC OF TURKEY
MINISTRY OF NATIONAL DEFENCE
Undersecretariat for Defence Industries (SSM)

THANK YOU FOR YOUR KIND ATTENTION…

BİLAL AKTAŞ
Industrialization Department Head
Phone:+ 90-312-411-9117 Fax:+ 90-312-411-9390
E-mail: baktas@ssm.gov.tr

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