defence and aerospace manufacturers association turkey … · defence and aerospace manufacturers...
TRANSCRIPT
DEFENCE and AEROSPACE MANUFACTURERS ASSOCIATION
TURKEY
Aziz SİPAHİ Board Member, SASAD
General Manager, AYESAS and Vestel Defense
DEFENCE AND AEROSPACE INDUSTRY MANUFACTURERS ASSOCIATON OF TURKEY
ESTABLISHMENT : 1990
ABOUT SASAD
THE MISSION OF SASAD IS TO PROMOTE, ENHANCE THE SURVIVABILITY AND COMPETITIVENESS OF THE DEFENCE AND AEROSPACE INDUSTRY OF TURKEY.
SASAD REPRESENTS AVIATION, SPACE, SECURITY AND DEFENCE INDUSTRIES IN TURKEY AND HAS 151 MEMBERS
2014
Revenue Foreign Sales New Order Import P&T Devolopment
Employement
11.000 Million $
5.101 Million $
887 Million $ 31 242 person
1.351 Million $
1.855 Million $ 2013
8.000 Million $
5.076 Million $
926 Million $ 32 368 person
1.327 Million $
1.569 Million $
OVERALL PERFORMANCE DATA FOR TURKEY D&A INDUSTRY (2013/2014)
1
3,067
4,174
4,400
4,800
5,076
5,101
2009
2010
2011
2012
2013
2014
163.273 $ Revenue per employee
REVENUE DISTRUBUTION FOR THE YEARS 2009-2014 (Million $)
M$
(mill
ion$
)
INCREASE IN 2014 WITH COMPARISON TO 2013 : 18%
853
1.100
1.626
1.570
1.855
0 500
1000 1500 2000 2500 3000
2010 2011 2012 2013 2014
TURKISH DEFENCE AND AEROSPACE INDUSTRY HAS REACHED 1.855 MILLION $ FSR LEVEL IN 2014. DIRECT EXPORT PORTION IS 1.650 MILLION $ AND REMAINING 205 MILLION $ IS SERVICE AND ENGINEERING FEE OBTAINED BY TU D&A INDUSTRY IN FOREIGN COUNTRIES
COMPOUND ANNUAL GROWTH RATE (CAGR): 21%
PROGRESS ON FOREIGN SALES (FSR) 2010-2014
MILLION DOLLAR
FOREIGN SALE REVENUE (FSR)
FOREIGN SALES TO USA IS ABOUT 581 MILLION $ IN 2014. IN 2013, IT WAS 680 MILLION $. 15% DECLINE.
OTHER REGIONS
USA
EUROPE
1,855
15% DOWN
T.D 154
887
P.D
7
33
220 28%
%84
513 72%
130 84%
24 16%
Milyon Dolar
ÜRÜN VE TEKNOLOJİ GELİŞTİRME HARCAMALARI
BY EQUITY
BY PROJECT SUPPORT
BY PROJECT SUPPORT
BY EQUITY
887
MILLION DOLLAR
PRODUCT AND TECHNOLOGY (P&T) DEVELOPMENT EXPENDITURE
HISTORICAL RELATIONS
US-TURKEY FRIENDSHIP 1831 (OTTOMAN EMPIRE)
FIRST DIPLOMATIC RELATION 1927
ECONOMIC AND TECHNICAL COOPERATION AGREEMENT 1947
NATO ALLY 1952
WITH HER GEORAPHICAL LOCATION, IS A KEY PARTNER FOR US POLICY
Is Turkey a best value Defense & Aerospace partner for a long term strategic coopera[on (not offset driven only)
• in certain business areas and at certain parts of the world; YES • if technology and quality level is important, but compe[[veness is also expected; YES
• if you are looking for educated, young, mo[vated engineering force; YES
• if government support and user’s coopera[on is required; YES • if you want to be at the center of the emerging defense and aerospace market; YES
WHAT IS TURKEY AFTER?
• JV’s, partnerships: • BAE (%49 shareholder of FNSS) • L3 (Ayesaş) • GE (TEI) • Sikorsky (Alp Havacılık) • SNC (Esen Entegrasyon)
• Business coopera[ons: • Prah & Wihney (Kale Havacılık, Alp Havacılık) • Boeing (TAI, Alp Havacılık, Ayesaş) • Lockheed Mar[n (TAI, Alp Havacılık, Ayesaş) • Raytheon (Roketsan, Aselsan)
USA COMPANIES OPERATING IN TURKEY
• Marke[ng, sales and transfer of «US origin defence ar[cles» are under US State Department control.
• Unfortunately US State Department has a broad defini[on of “US origin”.
• Therefore non-‐US companies opera[ng in other countries are having export diffucul[es due to many bureaucra[c ac[ons required in order to market, sell and transfer of the products manufactured under license and having SME items in their content.
ISSUES BETWEEN TURKEY AND USA IN DEFENCE
• State Department, however, made significant improvements on this process over the years.
• Standard Agreement formats and online applica[on opportuni[es, now, shorten the approval process significantly.
• Also removing numerous items from ITAR list to EAR list made the commercial ac[vi[es move faster then previous years.
ISSUES BETWEEN TURKEY AND USA IN DEFENCE
• Both countries have common and different interests. It is good to note that there are channels like ATC to speak about issues
• Turkish Defense Industry is happy about improvements in USA’s export regula[on process. The progress should be enhanced.
• Trade balance between the two countries is in favor of USA. This Trade imbalance should be corrected.
CONCLUSION AND SUGGESTIONS
just an example about US export control...
CONCLUSION AND SUGGESTIONS
NATO UNCLASSIFIED
16/11
NATO UNCLASSIFIED
Export License Challenge KARAYEL – Tactical UAV by Vestel Defense
Payload : EO/IR Camera with
laser designator
Endurance : 20 hours
Altitude : 22,500 ft
Radius : 150 km
Wingspan : 10,5 m
Length : 6,5 m
Customer : Turkish Army
Status : Flight Tests ongoing
STANAG 4671 USAR
Airworthiness Requirements
NATO UNCLASSIFIED
17/11
NATO UNCLASSIFIED
Export License Challenge
Vestel Defense L3 Com - WESCAM
Signed an agreement on October 2012 EO/IR with
Designator
Export License
Defense Technology Security Agency (DTSA)
Turkey is not listed !
DOD Policy for Payloads
An exception letter is required
NATO UNCLASSIFIED
18/11
NATO UNCLASSIFIED
Export License Challenge
Challenge: Who is going to write whom &
what?
Vestel Defence Ind.
L3 Com - WESCAM
Defense Technology Security Agency
(DTSA)
U.S. Combatant Commander (COCOM)
ODC, Ankara
US Embassy Ankara
US Military Attache, Ankara
Eucom ECJ5
Turkish MOD / SSM
SSM Washington DC Office
An exception letter is required
NATO UNCLASSIFIED
19/11
NATO UNCLASSIFIED
Export License Challenge
Challenge: Who is going to write whom &
what?
Vestel Defence Ind.
L3 Com - WESCAM
Defense Technology Security Agency
(DTSA)
U.S. Combatant Commander (COCOM)
ODC, Ankara
US Embassy Ankara
US Military Attache, Ankara
Eucom ECJ5
Turkish MOD / SSM
SSM Washington DC Office
Oct’12 17 Months Mar’14
THANK YOU
PEACE AT HOME
PEACE IN THE WORLD