Defence Industry Asks for More “Domestic Product” Utilization from the Government
Mr. Latif Aral Aliş, The Chairman of Defence and Aerospace Industry Exporters’ Association -one of the associations of Turkey that rapidly increases Turkey’s export- exposed the latest status of sector, export potentials and targets in a meeting where Prof. İsmail Demir, Undersecretary for Defence Industries also attended.
In his speech, Mr. Aliş stated about the rapid sector growthand successful projects and added, “We increase our export activities every passing year. Our defence sector, has been growing by extensive R&D activities and technological investments, is now at the position to export one-third of the production. Our sector meets nearly 60% of defence needs of our country and this portion is continuously increasing.”
Mr. Aliş reminded that the defence expenditure amount in the world in 2013 was 1 trillion and 747 billion USD and stated that the targets will be reached through synchronized and efficient studies of Ministry of Economy, Ministry of Defence and Turkish Armed Forces.
Mr. Latif Aral Aliş pointed out that Turkish products have been increasingly favored worldwide especially in the past few years and added that Turkish companies Aselsan and TAI have been listed among the world’s top defence companies. Mr. Aliş stated that they were expecting certain incentives from the government for the increase in exports and continued, “We expect financial support through private credit opportunities for our sector’s developing export activities in addition to our desire of a progress in defence industry credits that are specific to countries and supported by the Treasury. Moreover, in interstate commerce, especially in sales between the countries of our region and also in new markets, increasing companies’ exports in government’s guarantee and support is a significant method. Within this context, we expect the Government to adopt the relevant legislation to enable efficient sales. Government’s increase in purchasing domestic defence products, these products entry into government’s inventories and their utilization are among most considered issues in foreign markets. Therefore, we hope Turkish Armed Forces and security forces favor domestic products more”.
Turkey does not sell defence products to war territories
Mr. Aliş, underlined that Turkey did not sell defence products to war territories such as Syria and Iraq and added, “Our sector executes its export in line with the principles laid out by UN and NATO.”
Undersecretariat for Defence Industries to provide required coordination
The Undersecretary for Defence Industries Prof. İsmail Demir stressed the increase in exports in his speech at the meeting. “The increase in sector’s exports is quite well yet insufficient for our 2023 target. We shall take the measures in order to raise the figures” saidDemirand also underlined the need for an overall change in Turkey’s industry. Demir stated that these measures are composed of “forming an inventory for industry and human resources, coordination among relevant units, establishing long-term plans, identifying resources and their efficient utilization”. Demir told that as Undersecretariat for Defence Industries (SSM) they will be providing the coordination between the sector and relevant governmental units and added, “There should be a coordinated industrial mobilization. Presently Turkey should not be regarded as a country to sell goods but should be considered as a country to produce joint projects. My attendance to this meeting should be considered as a demonstrator of our government’s support to this sector”.
Notes from SSI exports…
- Export of the Association reached from 600 million USD in 2008 to 1 billion 260 million USD in 2012 and 1,4 billion USD in 2013.
-Defence sector was the sector with the highest industrial export rate between January-July 2014 period. Where the export was 781 million USD in the first seven months of 2013, it rose to 952 million USD in the first seven months of 2014. Rate of increase compared with the figures of the last year is 22% and Turkey’s overall exports increased by 5.7% within the same period. This figure indicates that defence sector is the leader in the increase of the export rates.
SSI introduced its end of year export figure as 2 billion USD. Turkey exported mostly to the United States of America (USA) within this seven-month period. Mostly, aircraft spares, light weapons and ammunition were exported to USA. Turkey became the source country to EU Countries, Commonwealth of Independent States, Caspian Region, Gulf Countries and Southeast and FareastAsia and Africa were determined as new markets.
Association exports aircraft and helicopter assemblies, aircraft engines, armored land vehicles, vessels and speed boats, missile rockets and shooting platforms, light weapons and ammunition, radios, command control systems, simulators, censors and software, logistical support products such as kitchenware, hospital and clothing material, modernization and modification services and technology transfer. Association’s export target for 2023 is determined as 25 billion USD.
