Defence Turkey (DT): It is obvious that Havelsan has made significant achievements in 2009. What is your assessment on developments in 2009 in terms of production, investment, as well as local and international activities? What are your 2010 objectives?

Faruk Yarman: In fact, the achievements of Havelsan began increasing at the beginning of the new millennium and continued to do so in 2009. Despite the global financial crisis and changing dynamics in recent years, our growth was realised with correct strategies, proactive measures, synergy created within the company and the strong relationship established with our stakeholders. When examined, the success has not only been achieved through preserving the company’s current position, but by taking proactive measures, closely following global technological trends as well as the dynamics in our own country, and creating a competitive Havelsan which took a leading role in technology and industry.

In the last decade, we took on the strategy of expanding into foreign markets, resulting in an increase in our foreign sales to 57 million US Dollars in 2009. The Undersecretariat for Defence Industries played an important role in this success through its Industrial Participation/Offset strategy, giving a vital push for Havelsan to fulfil its targets and to increase its technological and managerial competencies. On the other hand, we formed a business ecosystem and, in line with a strategy of cooperation, rather than competition, we formed new collaborations with companies in the Turkish Armed Forces Foundation (TAFF), and then with foreign and domestic global and local companies. Also, we have increased the value created for shareholders and customers, thus bringing about a dramatic leap in financial growth and backlog, despite the financial crisis.

Also in 2009, we strengthened our relations with our customers and stakeholders and signed new project contracts as well as national and international collaboration agreements. When we consider the world market’s struggle with the crisis, those attempts are very strategic and valuable. For example, the contract for Electronic Warfare Training System (EWTS) that we have signed with the Defence Acquisition Program Administration for the Air Force of the Republic of Korea is a very important business opportunity for us and our country with its 100 million US Dollars export value.

On the New Type Submarine Project, we have signed a contract with Atlas GmbH for the maintenance and development of command control systems and software for submarines during their life span. On the other hand, in order to expand the export opportunities for our GENES?S programme worldwide, we signed a teaming agreement with Raytheon for cooperation in marketing the GENESIS Ship Integrated Combat Management System for G class frigates.

In 2009, three important international Memorandum of Understandings (MoUs) were signed. In order to seek to utilise industrial, technological and commercial opportunities in the aircraft simulator section of the market, we signed a MoU with KAI. On the other hand, in order to pursue industrial, technological and commercial opportunities in Command and Control Systems, Naval Systems, Air Defence, Electronic Warfare and Homeland Security Systems in the Turkish, Italian and other markets, we signed an MoU with Finmeccanica. The third MoU for cooperation in submarine control simulators and a submarine command team training simulator was signed with Rheinmetall.

In the local market we have signed project contracts with the Undersecretariat for Defence Industries to meet the needs of the Turkish Armed Forces. T-38 Operational Training Aircraft Simulators (ARISIM), Basic Training Aircraft Simulators (TESIM), Cougar Helicopter Simulator (HELSIM-COUGAR), F-16 simulators and the MILGEM Combat Management System are the subjects of those contracts and we are again proud to provide contributions to our Armed Forces with those projects.

As I mentioned before, due to our strategy of cooperation, rather than competition, we formed a strategic cooperation protocol which was signed with Roketsan for joint work on defence projects.

Through this period we not only succeeded in financial growth, but also paid attention to our own company structure, carrying out a restructuring of the macro and micro organisation of the company in order to increase the value it creates for its stakeholders. As a result, Havelsan carries out its activities through a strategy focused on organisational structure by reinforcing the structure of its corporate governance and increasing transparency, equality, integrity, delegation of authority, accountability and the effectiveness of the internal control system. In this period, organisational changes were made to support and accelerate this change and our R&D centres became Ministry of Industry and Trade certified. As a result of the aforementioned, we increased our profitability by decreasing the production costs of our products and our operating costs.

In 2010, Havelsan will continue to develop reliable and original systems to meet the needs of existing and potential customers by keeping abreast of domestic and international developments and by strengthening its relations with its shareholders. In the up and coming future, with the same passion and synergy, we are absolutely certain we will have a successful working period.


DT: It is seen that last year you accomplished a spectacular success on international platforms. Can you please provide us information about Havelsan’s exports and its activities and targets in the international field? With which capability and product of yours do you think you have more competitive power on international platforms? Is there any plan for the joint production with new investment thoughts and technology transfers?

Yarman: This is a very specific question, I would not say our accomplishments have been spectacular in international platforms; nevertheless, I think it’s quite an achievement. That is to say, Havelsan’s growth in the national market almost exclusively took place last year. Our exports to our sales volume/value is about 47% and I don’t think this is just a coincidence, it is the result of a well planned, well executed and well balanced programme. In fact, it is the output of our strategic plan which has been carefully tailored in order to implement the Havelsan products, product lines and Turkish solutions in other countries.

I would analyse our success along three different axes. One of the axes is on the geographical ground; that is to say, our selection of the target market places was very well chosen. We focus on the central Asian Republics, Korea, the Middle East, and Eastern European countries. In those countries, the fact that Havelsan provides solutions and services to the most selective armed forces of the world, including the Turkish Armed Forces, is a very good reference. Needless to say, we enjoyed significant support of the political climate and support in the military arena.

There is a very important rule in export; if you can’t sell in your hometown, you can obviously not sell in other countries. So the first axis I‘d define it on is the geographical ground, the second axis of our success should be based on the thematic and technological priorities of Havelsan. It is very interesting to know that Havelsan, unlike other companies during the cold war and after it, focused on IT technologies and IT is a very sensitive segment of the defence industry and by no means releasable from countries such as the United States and is not available in the ex-Soviet Union and newly emerging block countries. Therefore Havelsan, by its focus on the IT sector or software intensive systems, has been very much privileged. So Havelsan has a very good track record and competitive advantage over its competitors in the technology and thematic fields.

The third and most important axis is the way we manage our international marketing efforts. Havelsan provides marketing activities at three definite levels. The highest level is on the strategic ground. This is carried out by our board members and executive committee members. The second level is tactical marketing, where actually our international marketing department is taking care of and presenting and representing Havelsan on international platforms, symposiums, academic exercises, as well as one to one relationships. And the third level of our marketing management is operational management carried out by our technical services in order to provide a proposal on a selected topic. One of the axes of our proposal preparations is the technical solution. We are very keen and very cautious in defining the technical solution we provide. And we are very sensitive in not giving any financial feasibility if the technical draft is not well defined and selected. Another sub second fact in our proposal preparation is, in having fixed the technical solution we provide a careful analysis of the administrative and legal feasibility study. As known in different countries of the world, the procurement rules, regulations and laws are quite widespread with different practices. And finally, the financial feasibility; we have been working very hard in bringing down our costs in order to make our products and services cost effective.

So putting them together, I would not say spectacular, but our accomplishments were quite good in recent years on the international platform as our activities focused on international markets, as well as in the Turkish markets. One of our marketing slogans is now very famous: “American Technology with a Turkish price”. The fact that the Turkish Armed Forces have been modernised under NATO in the last half a century and more provides a good example to other nations and I believe we are very flexible in getting and insisting for support in our governmental arena. Needless to say, those accomplishments cannot be achieved without the support of the President of the Republic, Prime Minister, Minister of Defence, SSM Undersecretary and our Military Commanders, who have been working together so proudly in the last 28 years with Havelsan.


DT: What is the status of the Turkish Early Warning and Command Control System Project (Peace Eagle), the Maritime Patrol Aircraft (MELTEM) project and others which are operated in this context by Havelsan developing reconnaissance, surveillance and intelligence systems?

Yarman: As is well known by the defence sector, Havelsan is the main Boeing subcontractor on the Peace Eagle Programme and Havelsan has been on Boeing’s Approved Suppliers list since 2008. The Peace Eagle Programme is a large scale C4ISR project that turned the Turkish Air Force Command into one of the few powers in the world possessing an Airborne Early Warning and Control (HIK) aircraft. For the development and integration of Airborne Early Warning and Control (HIK) aircraft mission computer software, development of ground systems and the support for maintenance and tailoring to services during their life-span, we carry out: the programme and system engineering management in a multinational environment; system level analysis and design; work within the scope of product development activities, hardware and software development, including aircraft mission computer and ground support systems software; design of software development and system integration laboratories and integration, verification and validation; integrated logistics support; and training.

The multi sensor integration, tactical picture compilation, situation-threat evaluation, sensor designating, weapons and all other similar C4ISR functions are carried out by the Mission Computer software developed by Havelsan in the scope of the Peace Eagle Project. We completed the development and testing of the Mission Computer and delivery to Boeing.

We also developed the Ground Support System and software as part of the Peace Eagle Project. Further, we participated in the development, modification, integration and testing of Turkish Air Force Command specific software and their integration into the 737 AEW&C Main System Software developed by the Boeing company.

As a part of the Ground Support System, we perform the software and hardware design, production, supply, integration and testing of the mission simulator, mission support centre and the support centre. The installation of the mission simulator and task support centre units were completed in Konya.

However, our responsibility in the Peace Eagle Project does not end when we deliver our tasks, as we are responsible to ensure the maintenance and modification support of these systems throughout their life span.


DT: It is well known that Havelsan is a major player in Naval Combat Management Systems. How do you assess your activities in this field? Could you please inform us about the project carried out by Havelsan in naval platforms?

Yarman: One of Havelsan’s major and important capabilities is Naval Combat Management Systems. In this field we have realised many state of the art projects and solutions which proudly serve for the needs of our Navy. Havelsan has developed very important capabilities, such as combat management systems, combat system integrations, ship data distribution systems, message handling systems, GENES?S Data link Systems, and command control systems for national and general purposes.

The Combat Management System is the starting point in the functional integration of Combat Systems and plays a key role. Only an efficient and effective Combat Management System can ensure the ability to make the best decisions and recommendations in real time and maximise the utilisation of all data and resources.

Havelsan significantly increased its capabilities and expertise in Combat Management Systems. As was the case in previous years, Havelsan continued to be the one and only national Combat Management System integrator in Turkey as well as the leader in the field of Combat Systems in Turkey.

Havelsan was recognised as the main contractor in the activity field of Combat Management System and their integration in the Undersecretariat of Defence Industries’ 2009-2016 Defence Industry Sectoral Strategy Document.

Havelsan was the first company in Turkey and in the world to successfully carry out GENESIS, a modernisation project for G-class (USS Oliver Hazard Perry Class FFG-7) frigates’ Combat Management Systems. The modernisation process, which began in January 2005, will continue until December 2011.

On 20th of July 2009 the fourth ship in the GENESIS project was delivered to the Naval Forces Command before the planned date, as were the other three ships previously delivered. Factory Acceptance Test System tests on the Land Based Test System and ship installation were completed on the fifth ship. System Integration Tests on the fifth ship and Factory Acceptance Tests for ships were begun in December 2009.

During the G-Class Frigates’ Combat Management System Modernisation programme we developed significant capabilities which shouldn’t be ignored. They include adaptation and development of the middleware and command-control application software according to changing needs, using only domestic resources, developing most of the devices and systems using domestic resources and commercial-off-the-shelf products, completing system integration and tests, providing the required training and providing maintenance support to the system throughout its life-span, should be underlined.

In addition, it is planned that the support for the system throughout its life-span will be performed with low cost methods. Havelsan expanded its capabilities in the field of G-Class Frigates’ Combat Management System modernisation to the field of combat systems of Anti-Submarine Warfare and Reconnaissance Patrol Corvettes combat systems.

Also, we carry out system engineering activities including the analysis, design and verification/validation of MILGEM Combat System Supply Project System level requirements. We develop the GENESIS-MILGEM Combat Management System as a part of the Combat System. Within this scope, Havelsan has the capability to develop and adapt sub-system integration and command control software for the integration of weapons/sensors that are a part of the combat system subsystems.

Furthermore we perform the design, development/production and integration of the Ship Data Distribution System (one of the sub systems of MILGEM Combat System) including the supply and integration of the Message Handling System; the supply and integration of Torpedo Countermeasure System; and the design, supply, production and integration activities of the Ship Integrated Information System. Havelsan is seen as a Combat Systems integrator in these activities, which it has been carrying out for the MILGEM platform and in the integration and modernisation projects of the Combat Management System for floating platforms.

As known, the New Type Patrol Boat project was designed to meet the reconnaissance, surveillance, patrol and Submarine Defence War task needs of the Turkish Naval Force Command in bases, harbour approach waters and near-coastal areas, and also to contribute to the mission functions of Base and Harbour Defence. Dearsan Shipyard is the main contractor and Havelsan is the Combat Management System Main sub-contractor in the project in which it is planned that 16 New Type Patrol Boats will be produced. In accordance with the concept of the New Type Patrol Boat, Havelsan is performing the supply of the electronic equipments/systems (called the 4000 group), production and integration of the Havelsan product, the Ship Data Distribution System, system Engineering and Integrated Logistics Support, combat System Platform Integration, and the integration of the 4000 group with the Weapon Systems to be supplied by Dearsan.

If we talk about more recent projects in the naval combat management systems field in the landing Ship Tank (LST) project that will meet the need of Turkish Naval Forces Command for two Landing Ship Tanks, Havelsan will be developing the software and system integration activities. Also, in the New Type Submarine Project, Havelsan is the main sub-contractor for the Integrated Underwater Command and Control System, and Havelsan will be responsible for the integrated underwater command and control system software training, development of integrated underwater command and control system software, installation and testing of land based test systems and integration of the integrated underwater command and control system to the ship platform.

I should also inform you about one of the R&D projects, which is the “Command and Control System for Domestic and General Purposes”, that began in 2008. This is a project for the development of a general purpose command and control system that can be integrated to various platforms with minimum modification. The first version of its application and substructure software was completed and became part of the Havelsan product line. In order to strengthen our leading position in the field of Combat Management Systems, we developed the first version of the product in line with the target of “developing a New Generation Naval Combat Management System” as defined in the Undersecretariat of Defence Industries’ “2009-2016 Defence Industry Sectoral Strategy Document”. This software was developed as part of the Command and Control Information Systems Substructure project, which provides data sharing in order to integrate the information systems of our Land Forces. The patent of the product was registered in Havelsan’s name. The product is used in NATO/Domestic tests and manoeuvres as our country’s national software.


DT: Could you provide us some information on Havelsan simulation technology? What is the technological competence developed in recent years?

Yarman: Havelsan has developed its expertise levels, which started with the modification, operations and maintenance to infrastructure systems for design and production throughout the years. Today we are not only developing our own simulator systems, but also we have become as competent as to produce turn-key solutions, including simulator training plants. After all those years of experience, Havelsan has become one of the leading companies in the global market with the capabilities reached in simulator technologies due to our portfolio, which includes turn-key training centres, full mission and flight simulators, both for fixed wing and rotary wing platforms, weapon system trainers, operational flight trainers, virtual flight trainers and other synthetic training aids tailored for the specific needs of the end user.

We also have other offerings such as a tactical control centre, a training & logistics management system, radar simulation, sensor vision simulation, weapon simulation computer-based training and e-learning applications. Army training and simulation products include a mortar simulator, artillery forward observer simulator and various armed vehicle simulators. We are able to offer integrated live-virtual-constructive applications with interoperation of various simulators installed at different locations utilising HLA and other networking technologies.

In means of our simulation technology capabilities, systems integration, real-time software application, aerodynamic modelling, flight system modelling, radar system modelling, tactical environment modelling and simulation, electronic warfare system modelling and simulation, EO/IR sensor system modelling and simulation, weapon modelling, real OFB and mission computer applications, 1553 MUX BUS&ARINC BUS applications, embedded software applications, VME BUS applications, visual database applications, HLA&DIS applications, computer based training applications, simulator modifications, visual system and database upgrade, and contractor logistic support is available.

Havelsan, as a global player in the simulation technologies, is recognised as the centre of excellence for simulation and training systems by the Undersecretariat for Defence Industries (SSM) of Turkey due to its developing a number of Level C and Level D qualified Full Flight Simulators for a variety of customers worldwide. In addition, we provide maintenance, repair, operations, modification and supporting services.

We established the “Simulation Technologies Centre” in 1995 in our main plant. Since then, Havelsan has been working on design, manufacturing, integration and CLS activities for various simulation and training system programmes of the Turkish Armed Forces and other military/civilian organisations at home and abroad. Today, in its 10,000m2 Simulation Technologies Centre, more than 200 simulation engineers and technicians are employed. In the manufacturing plant, there is the capacity for six motion base simulators, four fixed base simulators and various simulation projects can be carried out and realised simultaneously.

All simulator and simulation projects in the centre are followed and performed according to CMM Level 3 Quality Assurance Regulations, whose certificate was granted to Havelsan in 2003 according to NATO and National Level Security Standards.

Havelsan has gained a praiseworthy competitive advantage in the world market and Havelsan is now a preferred company in the simulation technologies.


DT: One of the other key areas of Havelsan is “Air Force Information Systems”, known as the major integrated command control information system in Turkey. Could you clarify in detail about this system in terms of the technological innovations and benefits it provides?

Yarman: The Turkish Air Force Information System is Turkey’s largest defined Command and Control Information System project. The Turkish Air Force Integrated Command and Control System (TICCS) is based on Havelsan's Military Enterprise Information System (MEIS), an automated information system with all integrated core business processes for an air force to manage its strategic, tactical and operational dynamics. It serves all levels of the air force organisation, aiming for a comprehensive coverage of air force functions.

TICCS has two major functional subsystems: Battle Management and Resource Management, together with four others: System Management, Decision Support, Document Management and Military Message Handling, and an integration subsystem.

The technical architecture varies between subsystems:

• Battle Management: custom-developed software utilising object-oriented methodologies, Java, EJB and J2EE technologies, extended with COTS/MOTS components. It is based on a distributed architecture to facilitate autonomous operations at unit level.
• Resource Management: centralised architecture based on COTS-Enterprise Resource Planning (ERP) implementation, with some customisation and enhancement.
• System Management: based on COTS components, it is customised and configured to form the underlying platform for the two main subsystems. It makes use of custom additions and uses custom-developed security products. For internal and external integration, XML as well as AdatP-3, HL-7 are used where necessary.
• The Decision Support system makes use of custom-developed info cubes designed within the data warehouse, which are accessed via analytical tools.

The software is platform-independent and runs on a range of COTS hardware.

As we developed and delivered the TICCS to the Air Force Command, its maintenance is ongoing by Havelsan. Using the background knowledge and capabilities gained from TICCS and other projects, we also developed the MEIS-BM and entered into the international market and signed a contract with the Pakistan Air Force in 2009.