MKEK’s Exports to Sky Rocket by 45-50% for 2015
Defence Turkey: Mr. İzzet Artunç, first of all we would like to thank you for your time. What are your assessments on the year 2014 and first half of 2015 as the Machinery and Chemical Industry Institution (MKEK)?
I would like to initially express my gratitude for giving me the opportunity for introducing our Institution to your readers through this interview.If we have a look at how the years 2014-2015 have been for our Institution, actually the combination of the projection of the structural changes that the defence industry has gone through as a result of the international conjuncture, technical developments and the asymmetrical threats with our Institution’s flexible structure, that is adaptable to the technical/environmental changes, thanks to its experiences accumulated since the fifteenth century, enabled it to become a supplier that has an active role in the international market.
In the global market dominated by foreign investors, MKEK - a 100% governmental institution – existing for 500 years enjoys the competitive advantage stemming from the continuity parameter which is regarded as the most essential parameter by the customers of the international market. Moreover, as it is a governmental institution and since Turkish Armed Forces - one of the greatest armies in the world – utilizes all the product ranges offered for sale in the international market, MKEK has become a corporation that offers high reassurance to its customers in addition to guarantee and after sales support issues.
MKEK has transformed the experiences and the adaptation capacity it gained since the 15th century into an intellectual and technical acquisition and as a result become an important brand in the international market.
Our Institution increases its range of products according to the demands of the customers and meanwhile as a service supplier, it focuses on the modernization, upgrading and renewal capabilities. In 2015, the aim of the Institution is to expand the services offered to the customers by utilizing its resources and capabilities and execute such services in countries where they have never been offered or partially executed.
Defence Turkey: Recently you have been active especially in the international markets. Could you please inform us on your export figures of 2014, the markets you are active in and your export products?
We have been conducting our services in foreign countries in a wide range of activities composed of semi – product export, light weapon and spare parts, light weapon ammunition, heavy weapon ammunition, end product export, facility establishment, training, technology transfer, technical support and joint production, maintenance and repair and extending life-cycle terms.
No matter how each region of the world has its own unique dynamics, our Institution attaches special importance to its existence in the Gulf Countries, USA and Far East markets. MKEK has created brand awareness through its offshore marketing and promotional activities and made its way in the global market with the high quality products, services, timely delivery, customer satisfaction, custom and flexible products and adopted the strategy of offering all kinds of solutions to its customers at a single point in order to protect its place in the market. Within this scope, we expect our exports to increase up to 100 million USD with a 45-50% increase from the figure of 60 million USD in 2014.
Defence Turkey: As MKEK, you assumed the locomotive role for the private sector not only in defence industry but also in civilian industry. Regarding this, what would you like to say on the activities conducted within your institution and the share of the civilian industry in your total turnover?
Since its establishment, MKEK has been an institution that assumed the role of serving as a school for both defence and civilian industries in addition to itself. Many technical personnel operating within the Turkish defence industry intersects with the experiences and background of our Institution.
We can claim that our Institution that adopted the role of being the locomotive of the Turkish industry has also assumed the role of being a pioneer in the production of the civil products such as the special alloyed steel, brass material, dynamite, capsules required by the civil markets. Then again, the developments in the private sector in Turkey in the recent years and the within the efficiency and profitability principles in the global market, paving the way for the civil market, resulted in the rapid increase of the private sector entrepreneurs in this area. Still the rate of the civil products such as the civil type explosives, brass and steel material, capsules that we produce is around 30-40% within the total sales of 2014 and 2015. With our new Steel Plant investment to start its production activities in 2018, we expect an increase in our civil production’s share within the turnover.
Defence Turkey: Mr. Artunç, within the scope of the Modern Infantry Rifle Serial Production Term Contract, the Machinery and Chemical Industry Institution signed a contract with the Undersecretariat for Defence Industries in the last July for the production of 20.000 MPT-76s in the first stage. What is the current status of this contract? What would you like to say on the investments to be made in this area and on the processes for the delivery to the Turkish Armed Forces (TAF)?
Our supply and production activities continue for the timely delivery of 20.000 MPT-76s within the scope of the Modern Infantry Rifle Term–2 Contract signed between the Undersecretariat for Defence Industries and our Institution. Our new worktop investments are about to be completed, and we identified the subcontractors that may take part within this process. With our production and test infrastructure, we are ready to fulfill the requirements of the Turkish Armed Forces.
Defence Turkey: Mr. Artunç, the infantry rifles in the inventory are planned to be replaced with MPT-76s within the next twenty years. How many of the rifles to be manufactured within this scope will be produced by the MKEK? Moreover, are there any studies conducted for increasing the defined capacity in the future years and shortening the duration?
The activities regarding the replacement of the infantry rifles within the Turkish Armed Forces inventory are being planned and conducted under the coordination of the Undersecretariat for Defence Industries. The existing annual MPT-76 Infantry Rifle production capacity of the MKEK Weapon Factory is limited to 20.000 rifles, however if an increase in demand emerges, through new worktop investments and/or increasing the rate of sub-industry utilization it is possible to increase the production capacity.
Defence Turkey: How do you assess the foreign demand for MPT-76 that accomplished 42 different tests according to the NATO standards? Could you please inform us on its advantages compared to its rivals as well as on the latest developments?
Based on the demands of the Turkish Armed Forces, the MPT-76 was designed in a way to become the main weapon of the Turkish Army. MPT-76 is a first in the Turkish Republic’s history as it was completely designed and manufactured with national resources and capabilities.
The preferred infantry rifles of worldwide regular armieswere examined in detail and the reasons behind this choice were studied. During the design of the rifle, 3 dimensional solid modeling and engineering analysis programs were used and computer supported production programs were applied throughout the manufacturing process. The latest generation of infantry rifles and MPT-76’s best features were combined, the result was a synthesis design of the east and west, an original short stroke gas piston rifle.
“In the mass production of military rifles, the rifle is expected to have a high firing accuracy and a structure that allows operations under all circumstances. MPT-76 is a rifle that combines both of the aforementioned criteria in a single system. Moreover, it successfully passed 42 severe tests such as mud, icing, dynamic dust and sand tests that were implemented according to the TOP 3-2-045 standards.
MPT-76 Infantry Rifle emerging as a result of the devoted efforts exerted by the Turkish engineers draws great attention at international fairs and events as well. Many countries already express their wishes for employing the MPT-76 Infantry Rifle in their own armed forces inventory of permanent weapons and mention that they may give direct orders or join in the joint production line to this end.
Defence Turkey: The Penetrating Bomb was developed by Machinery and Chemical Industry Institution (as a contractor) and with TUBITAK SAGE (as a subcontractor). The certification of the bomb for F-16 and F-4 fighter aircrafts of the Turkish Air Force has been recently completed and utilization has started. Could we claim that this bomb stands out in its category amongst its worldwide rivals? Which distinctive features does it have?
When the Penetrating Bomb is compared with the similar bombs around the world, the fact that it has higher penetration efficiency stands out as a distinctive feature amongst its rivals. Additionally, when it hits the target from lower angles, it easily penetrates the target different than the Solitary Penetrating Bombs. It can be dropped from all types of aircrafts that are capable of carrying General Purpose Bombs and also these Penetrating Bombs have the potential of being used with all guidance kits installed over the General Purpose Bombs.
Defence Turkey: Are there any activities conducted for the Penetrating Bomb to be modified and integrated with the F-35 aircrafts that Turkey will be purchasing in the upcoming period? What are your comments regarding this issue?
The Penetrating Bomb developed by our Institution can be dropped from all aircrafts capable of carrying General Purpose Bombs (MK 84, MK 83, MK 82, etc.). Penetrating Bombs’ certification for the F-16 and F-4 aircrafts in Turkish Air Forces Command’s inventory has been recently completed and with the entry of the F-35 into the Air Forces Command’s inventory and in line with the demand of the Air Forces Command, certification process for this aircraft can be realized as well.
Defence Turkey: How is the demand of the international markets for the Penetrating Bomb? Do you have any joint production or joint development projects with the partner countries and partner companies on your agenda?
The NATO certified Penetrating Bomb attracted considerable attention in the international markets and we anticipate quite a great level of demand that includes ready sale and joint production in the future. In parallel with the fulfillment of the Turkish Armed Forces’ demands, we assess the foreign demands affirmatively. Still, we do not have any joint attempts in this regard.
Defence Turkey: Which areas do you plan to invest regarding R&D in the upcoming period in order to increase your existing capacity?
For increasing the local content in meeting defence industry’s demands, significant projects such as insensitive explosive design and production for the desensitization of tanks, howitzers, rifles, rockets and ammunition are being conducted by our Institution. Investments are planned particularly for high accuracy, long range, low weight, extended life time and environmentally conscious smart ammunition systems and high-tech weapon systems.
Defence Turkey: Mr. Artunç, activities for the modernization of Machinery and Chemical Industry Institution (MKEK) Heavy Weapon and Steel Factory were initiated recently. Which advantages will the Turkish Defence Industry gain with the activation of this modern facility?
Within the scope of the Turnkey Steel Plant Contract signed between our Institution and the Danieli Company located in Italy, a new Steel Plant is being established in the field of the MKEK Heavy Weapon and Steel Factory Directorate. Annual 220 days of production is assumed with the working principles based on 18-19 daily castings through the Electrical Arc Furnace with 30 tons/casting capacity and 3 shifts. Based on the aforementioned figures, the liquid steel capacity of the Steel Plant is estimated as 120,000 tons/year in average.
Therefore, with the renewal of the technology, the production of the qualified steel that has strategic importance for the manufacturing of the weapons and heavy weapon systems demanded by the Turkish Armed Forces and that is not easily procurable will be produced by our Institution. Additionally, a significant amount of the qualified forged steel that is imported as it could not be produced in our country will be provided by our Institution and a great contribution to Turkish industry and economy will be achieved.
When our new steel plant investment is accomplished, 120.000 tons of Liquid Steel and 100.000 tons of Qualified Forged Steel that is compatible with the steel technology in the world standards will be produced annually. Approximately 30.000 tons of the aforementioned 100.000 tons of Qualified Forged Steel will be utilized in the production of various weapons and ammunition at MKEK Factories. Vector wheels of the Altay tank and its certain parts will be manufactured with this new qualified steel as well.
Last but not least, vessel shafts with lengths up to 14 meters that will be required as part of the MILGEM (Patrol and Anti-Submarine Warfare Ship “Turkish Corvette Program), currently on the agenda, can be built with qualified forged steel that has gone through vacuum degassing.
Defence Turkey: Could you please inform us on the domestic and international programs and activity areas of your Institution as well?
With a projection of an Institution that adopted fulfilling the demands of the Turkish Army as a priority and that focused on the target of becoming an international brand, I would like to underline initially the strategic importance of an effective R&D infrastructure. Within this scope, our activity areas and programs have been structured not only for combining the production and technology but also for accelerating the business development activities with the numerous technical personnel assigned to R&D studies. Moreover, the feedback received from our customers, the special demands of our customers and by closely following the developments in the defence sector, our Institution continuously develops its technical infrastructure. To this end, in addition to its own capacity, our institution utilizes the external R&D capabilities efficiently. The universities, private R&D associations and institutes are the institutions working in cooperation in order to achieve this objective. Air Portable Howitzer, New Generation Gas Mask and Smart Ammunition are amongst the projects that we believe would meet with the domestic and foreign end users in domestic and international markets as a result of our recent R&D activities.
Thanks to its experienced workforce, intellectual capital and financial power, our Institution will continue to transform its aforementioned features into opportunities in the world market. We aim to offer a competitive MKEK brand to the market through increasing the promotion activities conducted in foreign countries and therefore we plan to attend significant international events, increase our contacts with the end users, and benefit from the intergovernmental cooperation opportunities.
Defence Turkey: Mr. Artunç, where do you see MKEK within the next era? What would you like to say on your objectives and expectations?
The existence of the armies with high operational capacities, adopting advanced technologies and that are capable of resisting all types of threat is of essence for the survival of the states in the new century. At this point, the Machinery and Chemical Industry Institution will continue to support the Turkish Army in order to provide the continuity of the state.
The wide variety of worldwide demands are composed of deterrence and battling strategies containing high technology, light weapons with high maneuver and survival capabilities that are capable of battling all types of enemies, struggling against terrorism and protection of peace and natural disaster recovery operations. In line with these various requirements, our Institution will continue its existence as a supplier that offers turnkey solutions in the market and that adopts “customer satisfaction” as a prior principle through combining its product and service portfolio with its technological infrastructure and intellectual capital.
Defence Turkey: Lastly, is there any message you would like to convey to the readers of the Defence Turkey?
Finally, I would like to mention that the Machinery and Chemical Industry Institution is a governmental entity that has extremely strategic importance in our country and is capable of competing with the worldwide giants in foreign markets. Therefore, as the General Manager of this Institution, I would like to express my pleasure in being part of such a value created herein and leading our personnel that contribute greatly to this achievement. At this very point at which we’ve we arrived, taking a look at this successful picture, I claim that our Institution will be making its mark on greater achievements in the future with its awareness of being a locomotive force in the defence sector. Without doubt, MKEK would inevitably increase its production based on R&D and design and would be going through certain structural changes in order to achieve such a broad vision target. In addition to the changes we accomplished in the last 4-5 years, I believe that bringing the legal structure of the Institution to a level that will allow worldwide competition and change its structure to provide flexibility are essential. This issue’s evaluation in a broad perspective by the Ministry of National Defence, other related ministries and Undersecretariat for Defence Industries would further deepen our studies.
