MKE-SAHA Supplier Meeting Held in Ankara
The "MKE-SAHA Supplier Meeting" took place at Ankara Congresium in collaboration with MKE A.Ş. and SAHA Istanbul Defense and Aerospace Cluster Association on 18th July. The event was organized as part of MKE's commitment to working in partnership with the domestic and national defense industry. Around 1,200 officials representing approximately 600 companies attended the meeting to engage with potential suppliers and explore opportunities for cooperation.
The purpose of the event was to identify new subcontractors for MKE and support existing subcontractors while establishing new business partnerships. The focus was on finding more competent subcontractors to meet MKE's growing production requirements. The summit also welcomed participation from non-SAHA Istanbul member companies and suppliers to meet the increasing production needs of MKE.
The event commenced with opening speeches from İlhami KELEŞ, General Director of MKE, Levent Kerim UÇA, Secretary General of SAHA Istanbul, and Celal Sami TÜFEKÇİ, Deputy Minister of National Defense and MKE Chairman of the Board.
In his address at the event, İlhami KELEŞ, MKE General Director, highlighted that MKE, established in 1956, has achieved successful exports to 67 different countries, covering a wide range of products from ammunition to weapons, rockets, and platform systems. KELEŞ emphasized that the objective of the event was to strengthen the supply chain required for the production process and to foster collaboration among individual companies to enhance production and design capabilities. KELEŞ further stated the following: "I would like to express my gratitude for your participation in MKE's supplier development efforts. Dear industrialists, MKE has a rich history dating back to 1453 and was established in Kırıkkale in Anatolia during the occupation of Istanbul in the War of Independence. In 1956, it was officially established as MKE. MKE is the oldest defense industry company that holds a special place in the hearts of the Turkish people. With a remarkable production potential, MKE caters to the diverse needs of the Turkish Armed Forces (TAF) in various domains, including ammunition, weapons, rockets, platform systems, and a wide range of guns and ammunition from 5.56 to 203mm. Moreover, MKE also produces ammunition for export purposes. MKE has played a pivotal role in shaping the Turkish defense industry and has become a renowned national defense industry company, exporting to 67 countries. As MKE, we aim to establish strong partnerships, improve the supply chain, and leverage the production and design capabilities of individual companies to develop more effective products within our industry and expand our product range. Our goal is not only to meet the needs of the TAF but also to secure our place in the global defense industry.”
MKE General Director İlhami KELEŞ: "We have transitioned to the e-tender system to enhance the capabilities of the defense industry and streamline procurement processes by leveraging the infrastructure of more companies."
Emphasizing that Türkiye has established a robust framework for validating high-tech defense industry products developed in various conflict fields in recent years, KELEŞ stated that they have transitioned to the e-tender system in order to consolidate these capabilities and enhance procurement processes by leveraging the infrastructure of more companies. “Türkiye has made significant strides in the development of high-tech defense industry products in recent years, establishing a structure that efficiently produces and validates technology on the battlefield. The shortcomings of Europe's defense industry have become evident in the wake of events such as the Ukraine war, prompting countries to increase their defense expenditures, some even reaching 3 percent or 4 percent of their GDP. This reality presents a substantial market opportunity. Consolidating these capabilities is highly valuable. To enhance procurement processes and leverage a broader range of companies, we have transitioned to the e-tender system. Our colleagues will provide more details on this. In our bilateral meetings, our team will identify, note, and guide us based on your expertise and talents.”
In his speech, Levent Kerim UÇA, Secretary General of SAHA Istanbul, highlighted the significant growth of SAHA Istanbul since its establishment in 2015. With 960 member companies, SAHA Istanbul has not only become the largest defense industry cluster in Türkiye but also in Europe. UÇA emphasized their ongoing efforts to bring start-up companies into the sector and further expand their reach. UÇA also shared that a new committee has been formed under the national space committee to address Türkiye's needs in the national space project. This committee will focus on the domestic production of platforms, subsystems, and components, thereby contributing to the development and advancement of Türkiye's capabilities in the space industry. “SAHA Istanbul, since its establishment in 2015 with 27 members, has achieved remarkable growth and currently stands as the largest defense industry cluster not only in Türkiye but also in Europe, with a total of 960 companies. The primary objective of SAHA Istanbul is to foster the development of domestic and national technologies, address the production gaps in our country, and transition from being a technology consumer to a technology exporter through the creation of innovative products. To achieve these goals, SAHA Istanbul operates with 10 technical committees, each dedicated to specific areas of expertise. These committees actively contribute to the defense and aerospace industry by initiating projects and seeking involvement in significant initiatives. Moreover, SAHA Istanbul focuses on enhancing the institutional capacity of its members and implements initiatives like the SAHA Girişim, which provides sector-specific training and support to start-up companies entering the industry. While continuing its efforts in the aviation field, SAHA Istanbul has also made substantial progress in the space sector. In this regard, a new committee has been established under the National Space Committee to develop the space industry ecosystem, address Türkiye's upcoming needs in the national space project, and promote the domestic production of platforms, subsystems, and components. In 2022, the committee's efforts resulted in becoming a member of the International Space Federation, enabling closer monitoring of global space activities and providing guidance to companies operating in this field.”
SAHA Istanbul Secretary General Levent Kerim UÇA: " SAHA Expo anticipates a significant turnout, with over 200 exhibiting companies, more than 500 official and trade delegations, and an estimated attendance of over 150,000 traders."
Highlighting the unique aspect of SAHA Expo among other defense industry exhibitions, UÇA emphasized its role in not only showcasing products but also facilitating marketing opportunities and fostering new collaborations. UÇA also announced that SAHA Expo 2024 is scheduled to take place at the Istanbul Expo Centre, featuring more than 200 exhibitors and over 500 official and trade delegations. “SAHA Expo stands out from other defense industry exhibitions with its unique focus on introducing not only large companies but also the projects that form the backbone of the sector. It aims to support business development and export efforts while fostering marketing opportunities and new collaborations, rather than solely showcasing products. Notably, SAHA Expo is the only exhibition specialized in the defense industry, as well as the civil aviation and space industry. In the previous edition held in October 2022, the fair saw the participation of 957 domestic and foreign companies. The upcoming SAHA Expo in 2024 will be held in a larger area at the Istanbul Expo Center. The event is expected to attract over 200 exhibitors, more than 500 official and trade delegations, and an estimated attendance of over 150,000 traders. The fair is planned to run for 5 days and will include an increased focus on B2B and B2C meetings. SAHA Expo 2024 is designed as a new generation fair, offering industrialists the opportunity to experience numerous innovations and enhanced efficiency.”
In his opening remarks, Deputy Minister of National Defense Celal Sami TÜFEKÇİ emphasized the significance of the inaugural supplier summit in establishing a more effective ecosystem within the defense industry. TÜFEKÇİ highlighted the importance of defense industry companies growing within a collaborative ecosystem rather than operating individually, stressing the value of cooperation in advancing national technology and promoting domestic production. "I wish the inaugural supplier summit great success. MKE holds immense importance for Türkiye, representing a longstanding organization with a history of more than half a century since its official establishment. It stands as a cornerstone of the significance that Turks attribute to firearms and innovation. Although I am new to MKE, those who are familiar with me know that I come from the defense industry background. During my time at the Defense Industry Agency, I actively engaged in various industrialization initiatives. MKE is undeniably one of the esteemed institutions within our defense industry. The collaborations and the contributions of Turkish industrialists hold immense importance to us. We greatly value the dedication and efforts of Turkish industrialists, who can be considered as true heroes despite challenging conditions. Why are industrialists important? Without a productive workforce and industries, a country cannot progress or thrive economically. Production, whether in heavy industries, chemical manufacturing, or other sectors, is the primary driver of national income. The focus should be on high value-added production.”
Deputy Minister of National Defense Celal Sami TÜFEKÇİ: "The value per kilogram of Türkiye's $250 billion exports is estimated to be around $1.5, while the defense industry attains a substantially higher value of approximately $60 per kilogram.”
TÜFEKÇİ highlighted that Türkiye's annual exports amount to $250 billion and stated that the defense industry achieves a value of approximately $60 per kilogram. He emphasized the importance of increasing the production of value-added products. “Türkiye is a powerful country and is playing in the super league. Under the leadership of our President, we have made significant progress over the past 20 years, but we believe there is still more to achieve. While meeting the needs of the Turkish Armed Forces remains important, our primary objective is to market and sell MKE's products to other countries worldwide. Let me share some figures with you. Türkiye's total export figure stands at approximately $250 billion, but the value per kilogram of these exports is $1.5. On the other hand, the defense industry boasts a value per kilogram of around $60. This clearly demonstrates that added value is crucial for us. How do we increase added value? Very simply, by streamlining project processes, optimizing workforce, and embracing automation. We have established several companies to produce added value and acquire national technology. As the current chairman of the board of ULAK, I am proud to share that our company has achieved an export figure of $160 per kilogram for outdated 4.5 technology, and an impressive $340 per kilogram for 5G technology. The incorporation of current technology into the system and the optimization of production processes play a critical role in driving progress and efficiency. I place significant importance on ÜRTEM, the company I established specifically for advancing production technologies.”
Following the opening speeches, the second part of the program involved MKE A.Ş.'s teams and representatives from participating companies engaging in around 900 B2B meetings simultaneously at 40 tables. The event concluded with a joint press statement by Deputy Minister of National Defense and Chairman of the Board of MKE, Celal Sami TÜFEKÇİ, and MKE General Director, İlhami KELEŞ.
Deputy Minister of National Defense Celal Sami TÜFEKÇİ: "Producing high added value is one of our primary objectives."
TÜFEKÇİ highlighted that they aim to enhance MKE's production capacity and exports by leveraging the production capabilities, technologies, and expertise showcased by the participating suppliers in the summit. He emphasized that one of MKE's primary objectives is to generate high added value. “Ensuring a faster market supply is one of our key objectives. Equally important is our commitment to producing high added value, which we strive to achieve through the implementation of automation and other initiatives that accelerate production processes in technology.”
MKE General Director İlhami KELEŞ stated that the upcoming IDEF '23 International Defense Industry Fair will showcase new products that will significantly enhance the capabilities of the Turkish Armed Forces. “We are proud to announce that our latest sniper rifles, featuring caliber-changing capabilities and developed entirely by our team, will be showcased at IDEF '23. Additionally, we have developed a new product specifically designed for utilizing MK-84 ammunition as an offensive naval mine. This groundbreaking product, which will be introduced at IDEF '23, offers significant capabilities to our Armed Forces and holds great export potential. The MK-84 can be effectively fired from various platforms, including F16, Akıncı, and Aksungur.”
MKE General Director İlhami KELEŞ: " In only six months, our exports have surpassed $400 million this year.”
Stating that export figures surpassed $400 million in the first six months, MKE General Director KELEŞ said: "Our second batch of exports is currently on the production line. MKE has successfully achieved significant export potential in technology transfers, particularly in line installations for various weapons and ammunition. The line installation process is currently underway in three countries, with ongoing negotiations with eight other countries. The export figures have exceeded $400 million in just six months this year, compared to $30 million in 2022. While the prevailing market conditions have played a significant role in this growth, sustainability requires a shift towards more value-added and technologically advanced products, as well as increased focus on joint productions. We are actively pursuing joint production initiatives with friendly and allied countries. Recently, we had the honor of hosting the Minister of Defense Industry from Azerbaijan, a valued friend and brother country. Azerbaijan holds significant potential for collaboration in various areas. Additionally, we are exploring opportunities for co-production with countries in our region, as well as technology transfers to third countries, all aimed at strengthening our capabilities. It is crucial that we capitalize on the current export momentum that Türkiye has achieved. In fact, we anticipate receiving positive news from the Gulf region within the next 1-2 days”
