aerospace & defense cooperation with turkey
TRANSCRIPT
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Cooperation with Turkey
Bilal AKTAS
Industrialization Department Head
Undersecretariat for Defence Industries (SSM)
Ministry of National Defence, Turkey
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Turkey at a glance
76 million population, 25% under age 15
Average 5,6 % growth rate forecastes through 2020
GDP more than tripled since 2002 USD 231 billion to USD 786 billion
17th largest economy in the World
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Why Turkey – Sectors of Opportunity
Succesful economy
Population
Infrastructure Centrally located
Customs union with the EU since 1996
Qualified and competitive labor
force
Liberal and reformist
investment climate
Energy corridor and terminal of
Europe
Low taxes and incentives
Large domestic market
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Why Turkey – Sectors of Opportunity
defence Oil&gas
railway Environment&water
Marine&ports
automative education
airport finance
construction
defence
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Why Turkey – Sectors of Opportunity
defence
defence Market Size: • 15th in World’s top military spenders • budget from 20,5 B$ to 22,4 B$ with a 9.5 percent
increase. Market Growth • Expanding and improving indigenous defence industry Opportunities • High level of production technology & improvement and
potential in research initiatives
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Ministry of National Defence – Structure
Responsibilities:
Major Systems Procurement
Industry Policy Making
Localization
R&D
International Industrial Relations
Undersecretariat for Defence Industries (SSM)
Responsibilities:
Policy making
Personnel
General procurement
Logistics
Undersecretariat of National Defence
Ministry of
National
Defence
(MoND)
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Major Systems Acquisition
R & D and Technology
Management
Industry Policy Making
IP/Offsets Localization Credits and Investment Financing
Clustering Activities
International Industrial
Cooperation
Quality, Test and
Certification
.
SSM; Main acquisition body for defence system needs
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Other Players – Government, Commercial Aerospace and Air Transportation
GOVERNMENT REGULATORY INSTUTIONS – (MINISTRY OF MARITIME AFFAIRS, TRANSPORT AND COMMUNICATION)
Directorate General of Aeronautics and Space Technologies (Regional Aircraft Program) (R&D Funding)
Directorate General of Civil Aviation (Local Airwothiness Certification Authority)
General Directorate Of State Airports Authority– Airports Management and Infrastructure Investments
PRIVATE; AIR CARRIERS and AIRPORT CONSTRUCTORS & OPERATORS
Turkish Airlines / Cargo – Anadolu Jet -- (Turkish Technic – MRO)
Pegasus, AtlasJet, Onurair, Corendon, SunExpress, Freebird, İzAir, MNG Airlines, Seabird, Tailwind,
Borajet, ULS Cargo
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SSM Procurement Model Priorities
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1. Local Development
2. International Consortium
3. Co-Development/Co-Production
4. Direct Procurement
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1. Local Development
Indigenous design and development of priority systems
Enrichment of the product portfolio and international market share
Unmanned Air
Vehicle
ANKA
Basic Trainer
Aircraft
HÜRKUŞ
TX/FX
Indigenious
Helicopter
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2. International Consortium
Participation in joint development programs
Design / development of risk partnership potential
Transport
Aircraft
A400M
Joint Strike
Fighter
JSF
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3. Co-Development/Co-Production
Turkish Utility
Helicopter
T-70
Production under license
Joint production-Joint-Marketing / Opportunities for local industries
Atack/Tactical
Reconnaissance
Helicopter
ATAK
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Turkish Utility Helicopter Program
Program; procurement of S-70, will be modified to T-70
Main Contractor: TAI Long-term partnership agreement with Sikorsky Other Subcontractors: ASELSAN, TEI, ALP 6 Users Contracts signed on 21.02.2014 Co production of 109+ T-70i
Industrial Partnership Agreement Long Term Partnership (30 years) Export from gained capabilities e.g;
Aselsan Cockpit, TAI final Assembly Alp Dynamic Components
Further localization opportunities and involvement of additional local industry
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4. Direct Procurement
Only if above options are not feasible
BELL 429
S-92 VVIP
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Industrial Participation/Offset
Category A
Category B
• Gain technology / capability
• New investment in the areas of defence, aerospace and homeland security Category C
TRANSACTION MULTIPLIER
Design & Engineering Works Performed by SMEs 2
All other IP Works 1
Export of Platforms 4 - 5
Export of Systems / Subsystems 3
Export of Structural Parts 2
SME Portion in Transaction (+ 1)
Export to New Market (+ 1)
Transfer of Technology / Capability 3 - 5
Transfer of Special Technology / Capability Requested by SSM 6 - 8
Direct Foreign Investment 4
Transfer of Hardware / Sofware to University / Research Institute
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70% IP/O Commitment
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Category A
Category B
Category C
335 Million 700 Million
3,3 Billion
Offset commitment of foreign contractors (as of now)
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Aerospace
Other sectors
2%
81%
17%
Aerospace Category A Category B Category C
2,3 Billion
2 Billion
Offset commitment of foreign contractors in aerospace
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Industrialization Policy
SSM
INDUSTRIALIZATION
POLICY
Incentivise involvement of SMEs in
defence business Promote
export of Turkish defence products
Multiplier incentives for SMEs
Clusters
Universities and
Institutions
Strenghten technological capabilities of
Turkish Industry
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Kazan Aerospace Clustering Project
Kazan Aerospace Cluster & Organized Industrial Zone
TAI
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Kazan Aerospace Clustering Project
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Kazan Aerospace Clustering Project
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Conclusion
Rockets Land Vehicles
Naval Platforms Command Control Systems
Fire Control Systems Jammers
Mine Detection Systems
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Conclusion
k
Electronic Warfare
Weapon Missile
Trainer Aircraft
Helicopter Unmanned Systems
Rockets Land Vehicles
Naval Platforms Command Control Systems
Fire Control Systems Jammers
Mine Detection Systems
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Conclusion-Cooperation Areas
k
Rockets Land Vehicles
Naval Platforms Command Control Systems
Fire Control Systems Jammers
Mine Detection Systems
Advanced Jet Trainer
F-X New Generation
Fighter
Medium Class Utility Helicopter
UAV Programs (Strategic Combat Rotary-Wing)
Indigenious Mission Computer
for Fighters
Cyber Security
Satellite Systems
Electronic Warfare
R&D Material, sensor, propulsion/engine tech.
(fundamental sciences)
Electronic Warfare
Weapon Missile
Trainer Aircraft
Helicopter Unmanned Systems
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Thank You
Bilal AKTAS Industrilisation Department Head
www.ssm.gov.tr
Republic of Turkey Ministry of National Defence
Undersecretariat for Defence Industries