Havelsan is Ready to Cooperate with Poland
Defence Turkey: Mr. Yamaç, first of all we want to thank you for giving us your time. HAVELSAN is celebrating its 31st founding anniversary. We note that HAVELSAN has accelerated its expansion during the previous year. How do you assess HAVELSAN’s growth figures and the contribution of export sales during last year?
As you have indicated, HAVELSAN has completed 31 years in the sector by signing off on many successful projects. At the beginning HAVELSAN was founded to eliminate the technological gap and foreign dependence of our Armed Forces. It is a national organisation that has extensive experience with its identity to produce smart technologies and generators, command and control systems, simulator and training systems and in the areas of information and security technologies. At the same time it has signed off on one of the biggest e-state projects in Turkey and in this way, in reaching contemporary standards for all our citizens, has provided benefits in the state-industry-citizen cycle and provided solutions in this regard. In its adventure covering 31 years, in terms of IT and in terms of system integration, HAVELSAN is a company that has succeeded in providing an advanced technological threshold on behalf of our country.
In particular during the last period, HAVELSAN can be said to have a growing financial structure. Finally, HAVELSAN has an $820 million business potential that is guaranteed during one year. We believe that this potential will open the way for the sector at the same time.
In examining the contribution of export sales within the growth of our financial structure, we see that an average 30 percent of our export sales are based on advanced technology among HAVELSAN’s revenues during the last six years.
For example, our total sales in 2012 were 373 million TL of which 45% is made up of exports. Our target for 2013 is to reach 558 million TL and our 2023 target is to reach 4 billion TL. This means a minimum tenfold growth in a decade.
We are aware that it is not possible to be a global power by just signing off on important projects within the country. For this reason, we will continue to give importance to the domestic market as well as to overseas markets.
Up to now having realised exports to countries such as Pakistan, Republic of Korea, Georgia, Azerbaijan, Turkmenistan, Iraq, UAE, Qatar and Saudi Arabia, today HAVELSAN is proud to have become a global player in this region.
In particular during the last few years, the technological know-how we have gained in the domestic market, with the principle of sharing this with friendly and close nations overseas as well, HAVELSAN is rapidly advancing on the path of becoming a global actor. We have accelerated our activities in Central Asia, the Middle East, the Gulf states and in North African countries. We continue to form long-term collaborations with large companies relating to our sector in America and Europe.
In conducting these expansions, we see firms that take place or are candidates in our eco-system that we collaborate with, as our sub-contractors in our sector, as HAVELSAN’s power. Our objective is to turn this association we have accomplished into a synergy.
Our goal is to make HAVELSAN one of the top 10 brand names that represent our country in the world. During the coming year, in order to put HAVELSAN in a position of a global leader and to further contribute to our national economy, we will work harder with all our might.
The success of our company is solidified with the many awards it has received with its success in the export area. This year we have shown our success as a company by realising the largest sales in the areas of “software exports” and “hardware exports” according to research on the “Top 500 IT companies” organised by INTERPRO and have won first prize in both categories.
Defence Turkey: Mr. Yamaç, last April prior to the IDEF Fair, the Polish delegation paid a visit to Ankara, Turkey. Did a meeting take place with HAVELSAN within the coverage of this visit? In particular, which capabilities of HAVELSAN were at the forefront during this visit? May we obtain your views?
Actually our contacts with the Polish procurement authorities and armed forces took place before IDEF. In contacts that took approximately two years, intense meetings took place with the Polish Naval Forces. HAVELSAN had prior initiatives relating to the modernisation of two frigates that were donated to the Naval Forces of Poland by the United States. The Polish authorities asked HAVELSAN that a technical analysis be undertaken on the two frigates. Only later would they re-evaluate the need for modernisation and get in contact with us.
With the successful conclusion obtained with GENESIS (Ship Integrated Combat Management System- CMS) Modernisation Programme within the coverage of the 8 G-Glass (Perry Class) Ship Combat Management System that is in the inventory of the Turkish Naval Forces, it is important to collaborate with the Polish industry in applying this to similar class frigates in the inventory of the Polish Naval Forces. The reason for this is that the application of the GENESIS CMS is put forth as a proven technology that is of high quality and a cost effective solution. In this respect, by bearing these points in mind, Poland continuing its meetings with HAVELSAN is important.
Prior to IDEF 2013, extensive presentations were given to the Polish authorities during their official visit to Turkey starting with the G-Class (Perry Class) Ship Modernisation Programme and the National Ship (MILGEM) Corvette Project and within this coverage the design, development and integration of combat management systems for air, surface and underwater platforms.
Additionally, comprehensive information was provided on air simulation and training systems towards training needs and weapon/system simulators based on HAVELSAN solutions.
Defence Turkey: Turkey will undertake a national participation for the first time at the MSPO Fair in Poland between the 2nd and 5th of September. As HAVELSAN you will take part in this fair? Which products and which capabilities will be put at the forefront in this fair? What are your expectations from this fair?
First of all, we think that the Turkish Defence Industry being identified as the main theme at the MSPO Fair which is celebrating its 20th year is very important. I can say that with the initiatives of the Undersecretariat for Defence Industries, the relationship in the area of defence co-operation between Poland and Turkey has accelerated during the last few years and is an important step in this direction. Hence, I think that MSPO 2013 will be particularly beneficial not only in terms of jointly taking up areas of co-operation with Poland but also in presenting in a concrete way HAVELSAN’s capabilities to potential customers one-on-one basis. Additionally, as the third largest effective organisation among the defence exhibits in Europe, the MSPO is not only important for the Polish defence sector followers but also because it is an exhibit that draws the attention of all potential customers in neighbouring countries and in particular it is also very important in that it plays host to Eastern European armed forces visitors.
Defence Turkey: Mr. Yamaç, recently Poland has commenced on a comprehensive modernisation and procurement programme. With which capabilities do you think HAVELSAN can be included in this programme that Poland has started? If we bear in mind the strong competitors in the region, what, in your view, are the parametres that will make HAVELSAN effective and strong in this region?
As I have previously indicated, in particular the combat management system, air, surface and underwater command and control systems as well as simulation and training systems are the capabilities that HAVELSAN plans to put forward. However, the comprehensive acquisition and modernisation programme that Poland has started in recent years is the centre of attention of not only HAVELSAN but also other firms active in international markets. HAVELSAN will put its difference to the forefront from other large initiatives that present similar solutions. This is beyond high quality and cost effective ratios, for the whole world knows that a 100% offset and which includes a local contribution supply system known as “Polinisation” contains very heavy conditions for companies. As a result of Polinisation, technology transfer has become a necessity. However, if we bear in mind HAVELSAN’s performance in other countries, it can be seen that as a company, HAVELSAN develops its own software and does not have a dependency on this subject with foreign firms and in this matter it is in a more flexible situation compared to its competitors. I think that we can put forward our assessment that we are open to all types of collaboration with Polish state shipyards and local defence firms and that we can put forth applicable solutions on the subject of forming joint business partnerships.
Defence Turkey: Will you undertake intiatives on the subject of joint investments or joint production in future years with Poland or in this region? Do you have a medium and long-term planning, road map on this subject? May be obtain your views?
Actually, I mentioned in a comprehensive way a little while ago about our approach on the subject of joint investments and joint production. However, there is one point that I should add. The first step in in carrying out medium and long-term business in this country is to collaborate, even if its small, in the short-term. HAVELSAN can only show that it is a solution partner beyond selling products if and only if with a concrete experience. For this reason, a project that we can start with the domestic defence industry in Poland will be the best proof. As HAVELSAN we would like to establish the right partnerships and do not want to limit this collaboration only within the borders of Poland. Continuing a strong business partnership with the Gulf states and North African countries, that currently HAVELSAN is active in, will create valueable benefits for both countries.
