Öner TEKİN: “You`ll be Seeing AYESAŞ in Areas Other than Defense Soon!”
AYESAŞ General Manager Öner TEKİN
Defence Turkey: Last year you celebrated AYESAŞ’s 30th anniversary. Yet, due to the pandemic you did not have a chance to make a big launch. What would you like to say about the technological achievements you have made in this journey of 30 years? In which areas does AYESAŞ have indigenous design and manufacturing capabilities?
Öner TEKİN: First of all, thank you for taking time for this interview. In fact, AYESAŞ is a very special company as it made its mark on groundbreaking novelties, achieved, and launched many innovations and still remained successful after all these.
At this point we arrived in this thirty-year long adventure AYESAŞ turned into a great model in the sector. AYESAŞ’ capability of offering its products and services upon the technology transfer and its ability to export the products and services in international standards and quality presents AYESAŞ’ adventure of thirty years, as the best story.
Pandemic conditions shaped and improved all of us in different ways, perhaps it bothered and tired us, but we still need to see the upside of this crisis. Normally, distinctive celebrations for anniversaries are scheduled, unique events and activities are organized, and we also had amazing plans for AYESAŞ, yet they were disrupted by the pandemic.
We constantly touch upon AYESAŞ as a role model and claim that it has displayed model development. This company has contributed immensely to the sector, but it is recognized differently by all actors. So, we wished to introduce AYESAŞ’ thirty-year history in a comprehensive brief manner, and the idea of an almanac surfaced, and we followed through on it. Because of the confidentiality policy in defense sector as you obviously know, prevents us from disclosing all our accomplishments, therefore we could share 50% of our achievements. Beyond our expectations, we received great reactions and feedback regarding this almanac. People conveyed their views on the format, content, the topics, we presented and our achievements through their feedback. We have crowned our 30th anniversary with a valuable summary.
Defence Turkey: The pandemic affected the working process of companies in 2020 and shifts had to be changed as a result. Taking into consideration the process emerged during the pandemic, did your company go through any deviations in terms of turnover and targets in 2020? Could you also inform us on the financial dimension of the orders and your expectations for 2021?
Öner TEKİN:Thank you for this question. The pandemic needs to be tackled on multiple dimensions, there is the human dimension, and our group has always placed health and welfare at the top of our priorities. We prioritized the health of our employees and their protection from the pandemic. Thus, we regulate many categories based on how we can best protect our employees, and on the measures, we need to adopt if we chose to continue working in the facilities. We grouped the staff into categories based on chronic illness, pregnancy, age and so forth and made our plans accordingly.
Without doubt, our business has been affected by this process. We made gradual plans. AYESAŞ has a rather flexible organizational structure and this allows for the daily adoption of decisions. By setting various shift systems and creating different additional employment opportunities, we managed this process thanks to mutual understanding and plans. In this way, we avoided major drawbacks in our business. Yes, we experienced several problems in procurement, and this continues. Then again, we proceed through various stock strategies and in this sense, we have not experienced a loss in turnover or in business due to the pandemic. When global defense companies needed more reliable, strong, and flexible business partners in the pandemic environment, AYESAŞ stepped forward with these features and turned the crisis into an opportunity for itself. Our plans for 2021 and 2022 proceed as if there were no pandemic conditions.
Defence Turkey: AYESAŞ exported Turkey’s first Avionic Software in 1999. It’s been nearly 22 years since this first sale, and you always underline that keeping the added value in the country is crucial. AYESAS export figures were relatively high when compared with other industry, Does, this upward trend continue also in 2021? What would you like to tell, about the added value you acquired for our country? Could you evaluate the export process of the company?
Öner TEKİN: When one achieves the best, the expectations elevate, this is the way we think. We were at the top and now we are working on maintaining this position from this perspective, we managed to maintain the figures we achieved with the assistance of alternative business that we created despite such developments. We are working to achieve more. We built a new strategy on finding new customers or creating new responsibilities for our existing customers. As you know, launching such strategies is not easy in our sector. In early 2021, we gradually started to reap the benefits of this strategy that was launched in 2019 as AYESAŞ started to receive new export orders.
Card Pick & Place (foto copyright Defence Turkey)
Defence Turkey: AYESAŞ displayed vertical progress in Air Defense Systems with the projects it assumed for the Turkish Armed Forces and NATO and became a critical integrator in software, system engineering and production operations. Could you enlighten us on AYESAŞ’ approach to R&D, for example what share of earnings does the company typically allocate to R&D, and what are some of the ongoing major R&D investments/activities?
Öner TEKİN: First of all, I would like to mention our group’s overall approach and strategy. If a company fails to renew itself or its infrastructure, it can never keep up with developments or achieve new export opportunities. In line with this motto, each year we revise the entire infrastructure.
With this strategy, for instance, we renewed the entire infrastructure in the production of CCA (Circuit Card Assembly), the existing infrastructure remains, activities related to that are being conducted as well but we quadrupled our production capacity due to the increase in business volume and capacity and the new potential we observed.
Our facilities have been completely renewed for productivity and in terms of the equipment pool. Let me add this, even the preparation of the material for our systems is conducted automatically. This is a technology owned by the global giants. Our partners told us that it was implemented for the first time in Turkey. In this way, we increased our efficiency, production rate and raised the traceability to the highest level. These all provide an advantage in our new potential business. These issues are linked with the production aspect.
R&D is another topic. AYESAŞ has an R&D department at a Teknopark - a technology zone. In line with the requirements, we built two more R&D centers, and this is the first time we are announcing this. The first group is our design activities particularly in terms of system engineering, as part of the second group we founded a design center in production. It is a design center in our headquarters where we gather all the design activities. These two centers received the R&D and Design Centers Certificate in line with Law No. 5746 from our Ministry of Industry and Technology. In this way, we crowned the importance we place on R&D and investment with these two centers.
Defence Turkey: Turkey also has the National Fighter Program (MMU/TF-X). How is the process of transferring capabilities to this program proceeding? What can you tell about the activities conducted in this regard?
Öner TEKİN: We are relaying our entire experience in this area to the relevant institutions and organizations. When our support is requested in such activities or when we are assigned with a business share, etc. we will be fulfilling it all the way. All in all, presently the F-35 is the world’s best 5th generation fighter jet. AYESAŞ as you know is the sole source company that holds the responsibilities such as the development and production of Missile Remote Interface Unit as well as manufacturing of Panoramic Cockpit Display System’s modules and electronic circuit card assemblies. As part of the F-35 Program, software design, equipment design and the production of the equipment have been conducted by AYESAŞ for years and this proves that AYESAŞ already possesses significant know-how on what a 5th Generation Fighter Jet should feature. We need to display this know-how and really use it.
Defence Turkey: Turkish Mobile Radar Complexes (TMRC) C3I configuration developed by AYESAŞ is presently one of the main components of the Turkish Armed Forces’ air defense early warning capability. In the last period, AYESAŞ realized the integration of the NATO ACCS to the National Air Traffic Control System. What is the current status of the Project?
Öner TEKİN: AYESAŞ is the company that realized the NATO ATM Gateway Project in Turkey. In fact, AYESAŞ did not only realize the project in Turkey but also installed other 11 NATO member countries and been actively used. Our roles and responsibilities as part of the ACCS Project continue. Other than that, you have touched upon a good point, the Turkish Mobile Radar Complexes Project is one of the factors in AYESAŞ’ establishment. In other words, we presently own the best know-how in Turkey and in the world (only a few companies) in radar networks, radar systems, fusion of the radar data and their interpretation. In this context, we have been carrying out our assignments in existing projects as well as our activities regarding new generation projects. That area is one of our main areas, I am confident that we will be developing quite different products and solutions in the upcoming period.
Defence Turkey: In November 2019, AYESAŞ signed a cooperation agreement on the development of a FADEC (Full Authority Digital Engine Control System) Digital Engine Control System project with TEI. What would you like to say about the added value and capabilities this project will add to our ongoing turboshaft engine program particularly in terms of foreign dependency? Could you also summarize the latest status in the program for our readers?
Öner TEKİN: Actually, I always claim that there is no business, project or product in the world that cannot be developed by a Turkish engineer. The main principle at this point is a good strategy, management, resources, and time. When these are well planned, Turkish engineers can easily accomplish such tasks. A Turkish company’s capability to design engines is indeed a source of pride for us. With the “know-how” we accumulated to date, I am talking about avionic and security-critical software and avionics equipment, the DO-178 and DO-254 (DAL-A) with all our knowledge in such areas, we became a candidate for the indigenous development of the control unit of the indigenous engine. We are thankful to the Presidency of Defense Industries (SSB) and TEI for relying on our company in this area, we worked on the project together, built our design and decided to proceed on that path. We started to work in that area and the project is proceeding quite well. We have built great synergy with our stakeholders and we will accomplish the project with such synergy. At the same time this is a critical part of our strategy towards having more say in off-the-shelf products from relevantly more project-based solutions and products. It is even the most critical part. As soon as we took part in this complicated business so far, we took part in the most complicated business and based on the products we manufactured so far and our capabilities, we believed that we could achieve it and now we show that we can achieve it.
TÜBİTAK BİLGEM’s national real-time operating system (GIS) is going to be used on an airborne platform for the first time and we are happy to share our experiences and collaborate with TÜBİTAK team at this critical national project.
Defence Turkey: Which technical advantages will this capability offer? What are the disadvantages of foreign dependency in this area?
Öner TEKİN: Let us approach it in this way, one builds a car, but it is not intelligent, so you must import intelligent systems. Then the whole process fails to have a meaning. However, when indigenously manufacturing the electronic part in charge of control and management, it would be incredible. On top of it all, we at the same time realize this with an indigenous real-time operating system. Manufacturing the most critical component with an indigenous operating system is quite courageous and amazing. It is in fact an achievement that really must be emphasized. As the stakeholders of the project, as the SSB, TEI and AYESAŞ, we bravely launched a brand-new domain in Turkey and have been carrying it out quite well.
AYESAŞ Wiring Harness Line ( photo copyright AYESAŞ)
Defence Turkey: AYESAŞ has been assigned as the wiring harness to many international air platforms and this is a critical reference for you, isn’t it?
Öner TEKİN: Of course, all the projects we have conducted are considered critical references, as AYESAŞ has been executing business on an international level since its establishment. The wiring system of the international version of a globally well-known and critical air platform will be exported by our company for 10 years. We agreed upon the contracts, launched the production and we have started to receive orders. This is a remarkable step for our country. This, at the same time, proves that a company from Turkey is certainly capable of conducting business on a global scale and is a provider of infrastructural products and services to international platform owners and providers. We always underline that presently we are directly running the business of the top 10 global defense industry companies. We offer services and products directly to NATO. These are all remarkable indicators and evidence as well as crucial references for our country.
By transferring global technology to Turkey, our company actually begins to build its “know-how” here, then from this reference point, it continues to build upon it, runs the domestic business and exports the “know-how” abroad, and we have reached a certain level with our references and expertise acquired up until this point. Surely, the projects we conduct here, all projects we execute in the country, avionics projects, projects regarding harnesses, equipment projects such as the task computer, these all turn into critical references for our company, they facilitate our negotiations.
Defence Turkey: Could you briefly summarize the ongoing activities regarding Avionic Software which is one of your company’s leading export items? Within this framework, since 1999 you had conducted a series of software projects.
Öner TEKİN: We have a great deal of expertise in Avionics Software since year 2000. We worked both on civil and military projects and went through numerous certification audits from different authorities. Also in the near past Avionics Software was an export item for us. We worked with several companies like Rockwell Collins, L3 Avionic Systems, Honeywell. Our work with Rockwell Collins was a very long-term partnership starting from 2000 through 2012. As I mentioned earlier, we are working on a project basis. Our partners/stakeholders, solution partners or our customers abroad contact us whenever a demand arises. We continue to work on those areas whenever we find the opportunity. We are not a company that constantly performs the same business; instead, our activities are based on projects. Projects are assigned to our company, and we accomplish and deliver them. We win new projects and then work on them. In this context, surely, we receive new projects from them. As I said before, we have a strong reference, we have been the Golden Supplier of many globally notable companies, and our quality levels are at the top. We conducted the software and hardware design and production of the F-35 JSF Project which is regarded as one of the most critical projects globally. With all these references, our customers are pleased to assign our company new responsibilities and projects.
Defence Turkey: Can you inform us also AYESAŞ’ capabilities and the ongoing activities on surface and underwater platforms?
Öner TEKİN: There are numerous joint activities on the agenda. Presently, our partners abroad, solution partners and our partners that we collaborate with in Turkey which are already involved in various projects conducted abroad, and they definitely get in contact with us whenever a maritime project emerges. We work together and offer them our solutions. AYESAŞ slightly refrained in the maritime projects lately, or perhaps lagged behind, but we gained impetus in this area in the last four years and made our mark on critical projects. MİLGEM has been the most recent project. We have been providing the infrastructure required by the consoles and cabinets within the scope of the MİLGEM Project in that we are contributing to the first of the I-class frigates – the fifth boat in the program – for which we have provided equipment for the Combat Management System (CMS).We will also design and manufacture hardware products with Havelsan for use in the CMS of the MİLGEM project, specifically for “Istanbul”, as the fifth boat in the project, and the first of the I-class frigates. We are also undertaking responsibilities related to training, technical support, integrated logistics support, documentation, and warranty activities within the project.
Also, as you are familiar that we have been producing military platform consoles since 1990 and have taken this experience to the next level, creating new generation products that utilize technological advances. Our Next Generation Operator Consoles are suitable both for surface and submarine military and civilian platforms, as well as military shelters and land vehicles. These consoles, which have common characteristic, are aimed at meeting the current expectations of both the foreign and domestic markets, and can be easily adapted to suit user requirements, while being competitive in both performance and cost and featuring a modern design.
Similarly, we have a very crucial collaboration with Navantia, we directly provide the Integrated Platform Management System there. When it comes to our IPMS Consoles, we have also taken on the responsibility of providing critical subsystems for the battlefield platforms of Turkish Naval Forces Command in the Multi-Purpose Amphibious Assault Ship project, involving the design and production of IPMS Consoles and we are providing further support to Navantia in integration, testing and training like MİLGEM.
AYESAŞ IPMS Consoles for LHD was displayed at IDEF'19 (photo copyright Defence Turkey)
Defence Turkey: Have 17 products been delivered?
Öner TEKİN: Yes, indeed. There are also new activities regarding this issue. In those activities, we continue to collaborate with Navantia which is one of our most critical partners. As we said, we have a wealth of “know-how” in that area as well and we have activated this potential.
Defence Turkey: Could you enlighten our readers on the business packages and deliveries AYESAŞ assumed within the scope of Type 214 TN REIS Class Submarine Project?
Öner TEKİN: Concerning this issue, let me tell you this, I cannot directly mention the names, but we have already taken part in many projects related to the submarines. For that matter, you know that we built the entire consoles and cabinets with Atlas Elektronik in the TYPE 214 Reis Class Submarine Project. We even manufactured and delivered all the equipment. In this context, if similar requirements emerge, we will take action as we did not only manufacture what our partner designed, we designed it ourselves. We designed it and gave it to the partner company. When a partner company realizes that we have such competence, then in new projects, it invites us to collaborate, we have such potential there.
Defence Turkey: You have briefly mentioned it before, the Integrated Platform Management System (IPMS) which will be used in the Anadolu LHD Ship is in fact a similar project. What would you like to say about the technical features of the IPMS to be employed by the ship?
Öner TEKİN: All in all, it has been designed for us; this is not an ordinary IPMS project. It was designed based on Turkey’s requirements and demands. Our teams collaborated here and with our partner’s company in Spain for a long while. Ultimately, a custom-made design was revealed which fulfills our requirements, featuring technology that is far more advanced than the ones in the market, as it has been redesigned.
Defence Turkey: In the next 20 years, what targets and niche businesses will AYESAŞ focus on. As technologies further deepen and impact the future, which main capabilities/activity areas will the company concentrate on?
Öner TEKİN: As AYESAŞ, we gradually started utilizing our capabilities acquired in the aerospace and defense domain in civilian areas. We collaborate with the public institutions in this area and our group companies are active in this field while we do this. Without giving much detail, I can say that data processing, data evaluation, artificial intelligence and the IoT (Internet of Things) over this basic technology will be fused with AYESAŞ’ long-term expertise areas. We will compile the defense and security vision with IoT technologies which already play roles in all aspects of our daily lives.
Above all, we started to build considerable know-how in smart city applications. Thanks to this know-how, you will be seeing AYESAŞ more in areas other than the defense industry.
Defence Turkey: Could you inform us on AYESAŞ’ approach to space and its activities in this domain?
Öner TEKİN: Space is not a subject that we can underestimate. One cannot run a business in space just by saying, ‘OK, I will do business in space’. A resilient foundation must be laid initially, and to that end, we started research on international cooperation in the first stage and negotiated with a few major global actors. We aim to take part in the space area in one way or another and we wish to launch this with a model where we benefit not only from our own know-how but also from global knowledge in this area. To sum it up, when you come across AYESAŞ in the space area, the business we will be running will most definitely be on a global level, I can share this with you.
Defence Turkey: It seems like soon we will hear some good news from you regarding space?
Öner TEKİN: Hopefully, this is among the most critical topics within our agenda for 2022.
Defence Turkey: We know you give much importance to female employment at your companies and the overall percentage of female recruitment is very high compared to defense industry’s averages. What is the female employment rate in your company?? And what more new approaches and opportunities you offer to your employees?
Öner TEKİN: There are particularly two subjects that I want to emphasize and let you know about. First is the employment of females, in particular female power in the defense industry. The percentages regarding this issue in our group are maintained with our group’s “An Equal Life Project” and approach as well as our Women’s Power in Defense approach. Presently we are at the level of 32%. The number of our female executives constitutes 37%. Currently, there are no female General Manager or President in the sector. In fact, I really wish to see a female General Manager in our industry. We see female executives in international companies. Lockheed Martin had a female executive acting as the President for many years, and we must approach this matter in a similar way.
The second point I wish to underline is entrepreneurship. Our group has a bright idea project, and in this project, we collect ideas every year. The idea may be related to our sector or it may be regarding another project. Everybody reveals their ideas in a free format and these ideas are evaluated by a jury. The ideas are evaluated in stages by experts in their fields and our staff. In the end, if the owners of the idea prove that it is worth investing in and if it passes all the stages, then we separate those employees from the company. They build a company, and we invest in them. We launched this nearly three years ago and it is proceeding quite successfully. I would like to particularly stress that though it may seem hard to accomplish in the defense industry, it is in fact more achievable in our sector.
Cem AKALIN- Managing Editor of Defence Turkey Magazine met with Öner TEKİN
Defence Turkey: How many projects/ideas have passed all stages during this time and how many of your employees have left the company in pursuit of these new endeavors?
Öner TEKİN: To date, on a Group basis, 2 projects last year and 1 project the year before last passed all related stages.
Defence Turkey: So, you have three entrepreneurial projects in this framework?
Öner TEKİN: Yes, there are currently three new entrepreneurial projects, we even examined ideas this morning and 8 ideas have been shortlisted, tomorrow they will be voted out by the jury and the staff. Therefore, tomorrow this year’s entrepreneur will be selected.
Defence Turkey: Do you become a partner in these companies?
Öner TEKİN: Sure, in fact, the partnership depends on the type of the solution. If the solution is based on the defense industry, then our defense industry department becomes a partner. In fact, we have a company titled Ventures under our group of companies. We usually expect Ventures to invest since it is the duty of this company, but in any case, we certainly take part in the business.
Defence Turkey: So, has Ventures become an angel investor?
Öner TEKİN: Indeed. For instance, we fully incorporated a company active in healthcare technologies into our defense industry company.
Defence Turkey: This leads us to a question, is that organic growth or inorganic?
Öner TEKİN: Actually, let me put it like this, we started with two companies and presently we have three companies. We are definitely open to this and it needs be this way, especially if there are any companies with improved special technologies. We have another specific project, and we signed a cooperation agreement with a company that specialized in that area and we are presently carrying out all their marketing, production activities, we are conducting all the activities. They are developing the technology and as they do, we are growing them and growing together in that sector.
Defence Turkey: Does this apply only to AYESAŞ staff or are you open to different ideas and technologies that may support you?
Öner TEKİN: Of course. Well, I have mentioned it earlier; we are surely open to new ideas. The ones who built the company/enterprise I have stated in the previous example were not AYESAŞ employees. They worked at another company for a long time and then left and founded a start-up working on various special technologies. The team was only nine people when we started our journey together, now they are nearly 30 people. Therefore, we are always open to companies with ideas, companies wishing to build cooperation and requiring support. AYESAŞ is a company that distributes 30% of its turnover to the sub-contractors; I believe we are number one in our sector in this respect.
Defence Turkey: Mr. Tekin, Do you convey any message to our readers?
Öner TEKİN: One of the things that I would like to emphasize in these days when we are approaching our 40th year is that as AYESAŞ, which has completed important projects that will be considered milestones in our sector and has left its 30th year behind, we will continue our activities without stopping to make many significant contributions to our country by growing with continuous development and change.
On this occasion, I would like to thank the Defence Turkey family through you for your efforts and contributions in promoting every stage of AYESAŞ's long-established adventure to our industry and the public with the principle of accurate reporting since your establishment.
Defence Turkey: Mr. Tekin, on behalf of our readers I thank you for your time and wish you success
