ID :
183829
Mon, 05/23/2011 - 13:17
Auther :
Shortlink :
https://www.oananews.org//node/183829
The shortlink copeid
Turkey''s Booming Defense Industry, supported by proactive foreign policy - study
GENEVA, May 23 (KUNA) -- In recent years, Turkey's defense industry has dramatically increased its exports, supported by a proactive foreign policy, a study published by the International Relations and Security Network (ISN) of the academic Center for Security Studies (CSS) said on Monday in Zurich, Switzerland.
"The country is also planning to increase reliance on local industries for internal needs - putting the country well on its way to to becoming a globally established actor in military procurement", said the study.
In four years, Turkey has managed to double its defense exports. As calculated by the Turkish Defense Industry Manufacturers Association (SaSad), defense companies exported USD 669 million worth of products in 2009 - up from USD 337 million in 2005.
Turkey is investing heavily in the sector, trying to strengthen exports through its diplomatic network. During President Abdullah Gul's recent visit to Indonesia, Turkey signed a USD 400 million deal for the provision of communications and weapons systems - just one example of how Turkish diplomacy is promoting its defense industry abroad.
The government is also intervening at a domestic level; the Undersecretaries for the Defense Industry (SSM) is planning to develop an initiative which will consist of a system of low-interest credit to cover the export costs sustained by defense industries.
Similarly, the creation of the Ostim Defense and Aviation Cluster, an organization that includes more than 60 small and medium enterprises (SMEs) operating in the defense sector, is designed to enhance coordination of SMEs based in the industrial area of Ostim, Ankara.
In 2010, Turkish Aerospace Industries (TAI) presented the first medium-altitude long-endurance (MALE) unmanned aerial vehicle (UAV) produced by a Turkish company.
A second, more ambitious, project aims to reduce Turki sh dependence on US-produced fighter jets. Earlier this year, SSM provided TAI with USD 20 million, and gave it two years to design a new fighter aircraft, which TAI might then develop and produce in partnership with a foreign company by 2020.
Previously, Turkey managed to partially circumvent the problem by relying on Israel's cooperation; current relations between the two countries have, however, hindered this partnership.
President Guel's recent visit to Indonesia was aimed at strengthening diplomatic and economic relations. With a population of 246 million, 86 percent of whom are Muslim, Indonesia is likely to become one of Turkey's main strategic partners in Asia.
Three of the largest Turkish defense companies - FNSS, Aselsan and Roketsan - have signed a deal with Indonesia to deliver armored vehicles, wireless devices and rockets worth around USD 400 million, and there might be a second agreement with TAI on the horizon, for the joint production of naval vesse ls and the modernization of Indonesia's F-16s.
Indonesia is not the only Southeast Asian country that Turkey is eyeing up; the country has also recently cemented astrategic relationship with Malaysia. A few months ago, the two countries signed a USD 600 million defense deal stipulating that FNSS will manufacture 257 armored vehicles in partnership with Malaysian DefTech - the biggest deal ever signed by a Turkish defense company. Turkey is likely to cooperate closely, given that Malaysia was the world's sixth largest arms importer from 2009-2010.
Closer to home, Azerbaijan is a trusted ally of Turkey and a long-time partner in defense procurement. While Turkish Otokar has secured a deal to supply an undisclosed number of armored personnel carriers to Azerbaijan, Roketsan, in cooperation with an Azeri company, has started test production on a range of different rockets. Should tests prove successful, a contract for full-scale production will follow.
PakiF is another strategic partner. The world's second largest defense importer, Pakistan has a well-established relationship with Turkey. TAI is modernizing the Pakistani air force's F-16, and Aselsan is providing wireless equipment to the Pakistani army. Moreover, Pakistan is among the countries that have shown interest in buying Turkey's new UAV.
Turkey's strategy of relying on long-time partners, while strengthening relationships with new ones, is aimed at making long-term strides. Trading with major importers such as Pakistan and Malaysia will increasingly net a clear payoff, and collaborations with Azerbaijan and Indonesia are likely to be highly profitable.
Furthermore, the Turkish defense sector is likely to receive a rejuvenating boost in the coming decade from this renewed engagement. As a result, Turkey may finally be able to start relying on domestic production for its defense needs - and perhaps even be in a position to present their defense companies' products abroad.
Focusing on exports is going to be an important turning point for companies operating in the sector, as a great deal of Turkish defense procurement is currently employed in internal security operations in the South-Eastern region of the country.
Should the threat posed by domestic terrorism diminish, the country's need for weapons systems would shrink accordingly. In a scenario with a reduced internal demand, closing deals with foreign countries would become fundamental for the survival of Turkish defense companies
"The country is also planning to increase reliance on local industries for internal needs - putting the country well on its way to to becoming a globally established actor in military procurement", said the study.
In four years, Turkey has managed to double its defense exports. As calculated by the Turkish Defense Industry Manufacturers Association (SaSad), defense companies exported USD 669 million worth of products in 2009 - up from USD 337 million in 2005.
Turkey is investing heavily in the sector, trying to strengthen exports through its diplomatic network. During President Abdullah Gul's recent visit to Indonesia, Turkey signed a USD 400 million deal for the provision of communications and weapons systems - just one example of how Turkish diplomacy is promoting its defense industry abroad.
The government is also intervening at a domestic level; the Undersecretaries for the Defense Industry (SSM) is planning to develop an initiative which will consist of a system of low-interest credit to cover the export costs sustained by defense industries.
Similarly, the creation of the Ostim Defense and Aviation Cluster, an organization that includes more than 60 small and medium enterprises (SMEs) operating in the defense sector, is designed to enhance coordination of SMEs based in the industrial area of Ostim, Ankara.
In 2010, Turkish Aerospace Industries (TAI) presented the first medium-altitude long-endurance (MALE) unmanned aerial vehicle (UAV) produced by a Turkish company.
A second, more ambitious, project aims to reduce Turki sh dependence on US-produced fighter jets. Earlier this year, SSM provided TAI with USD 20 million, and gave it two years to design a new fighter aircraft, which TAI might then develop and produce in partnership with a foreign company by 2020.
Previously, Turkey managed to partially circumvent the problem by relying on Israel's cooperation; current relations between the two countries have, however, hindered this partnership.
President Guel's recent visit to Indonesia was aimed at strengthening diplomatic and economic relations. With a population of 246 million, 86 percent of whom are Muslim, Indonesia is likely to become one of Turkey's main strategic partners in Asia.
Three of the largest Turkish defense companies - FNSS, Aselsan and Roketsan - have signed a deal with Indonesia to deliver armored vehicles, wireless devices and rockets worth around USD 400 million, and there might be a second agreement with TAI on the horizon, for the joint production of naval vesse ls and the modernization of Indonesia's F-16s.
Indonesia is not the only Southeast Asian country that Turkey is eyeing up; the country has also recently cemented astrategic relationship with Malaysia. A few months ago, the two countries signed a USD 600 million defense deal stipulating that FNSS will manufacture 257 armored vehicles in partnership with Malaysian DefTech - the biggest deal ever signed by a Turkish defense company. Turkey is likely to cooperate closely, given that Malaysia was the world's sixth largest arms importer from 2009-2010.
Closer to home, Azerbaijan is a trusted ally of Turkey and a long-time partner in defense procurement. While Turkish Otokar has secured a deal to supply an undisclosed number of armored personnel carriers to Azerbaijan, Roketsan, in cooperation with an Azeri company, has started test production on a range of different rockets. Should tests prove successful, a contract for full-scale production will follow.
PakiF is another strategic partner. The world's second largest defense importer, Pakistan has a well-established relationship with Turkey. TAI is modernizing the Pakistani air force's F-16, and Aselsan is providing wireless equipment to the Pakistani army. Moreover, Pakistan is among the countries that have shown interest in buying Turkey's new UAV.
Turkey's strategy of relying on long-time partners, while strengthening relationships with new ones, is aimed at making long-term strides. Trading with major importers such as Pakistan and Malaysia will increasingly net a clear payoff, and collaborations with Azerbaijan and Indonesia are likely to be highly profitable.
Furthermore, the Turkish defense sector is likely to receive a rejuvenating boost in the coming decade from this renewed engagement. As a result, Turkey may finally be able to start relying on domestic production for its defense needs - and perhaps even be in a position to present their defense companies' products abroad.
Focusing on exports is going to be an important turning point for companies operating in the sector, as a great deal of Turkish defense procurement is currently employed in internal security operations in the South-Eastern region of the country.
Should the threat posed by domestic terrorism diminish, the country's need for weapons systems would shrink accordingly. In a scenario with a reduced internal demand, closing deals with foreign countries would become fundamental for the survival of Turkish defense companies
