Turkey Defence Industry Assembly Gathered with Important Agenda Topics
Turkey Defence Industry Assembly Meeting was held under the chairmanship of Yılmaz KÜÇÜKSEYHAN, President of the Assembly and with the participation of Murad BAYAR, Undersecretary for Defence Industries and many senior executives.
Opening the Assembly Meeting, President of the Assembly Yılmaz KÜÇÜKSEYHAN made a presentation on the mid-term studies of the Assembly and 2011 Turkish Defence Industry data compiled by SASAD. KÜÇÜKSEYHAN also gave briefing on "Defence Industry Structure towards 2023 and Policies & Strategies Required to be Implemented".
KÜÇÜKSEYHAN mentioned about their visit to Deputy Minister of Science, Industry and Technology and said the necessity of the application of 15% price advantage to local manufacturers specified in the Public Tender Law and the need for National Test and Certification Centers were emphasized during the visit. KÜÇÜKSEYHAN also stated that a briefing was made to the Deputy Minister on IDEF fair and took a positive impression from the Deputy Minister on the promotion of such fair.
KÜÇÜKSEYHAN gave information about 2011 industrial data and said the sectorial turnover for 2011 reached to $4,4 billion, including civil aviation figures. "The distribution of the turnover into sub-sectors is 34,5% to electronics, 15,96% to land vehicles and 13,59% to aerospace. The sectorial export is $1,089 billion;36,24% of the export was made to European countries, 32,61% to North America and 19,08% to Middle East and North Africa. The distribution of export into sub-sectors is 53,02% to aerospace, 16,06% to land vehicles and 11,90% to weapon/ammunition/rocket/missile" added KÜÇÜKSEYHAN.
Turkey’s New Agenda is "Life Cycle Management"
Sedat GÜLDOĞAN, Deputy Undersecretary for Defence Industries, also made a presentation at the meeting and made 2011 performance evaluation of the sector and explained the prospective anticipations of the Undersecretariat. "There is an increase in the targets within the framework of 2011-2016 Strategic Plan in order to sustain the increasing volume of the sector. We have set 2016 turnover target as $8 billion and export target as $2 billion however we will be able to revise these figures afterward in accordance with the performance of the sector" said GÜLDOĞAN. He also stated that the Industrial Participation / Offset Directive was revised and the industrial participation rate raised to 70% and sub-industrial participation rate to 30% in this respect. "Our Undersecretariat has undertaken two new missions for the supply of urgent needs of the Undersecretariat of National Intelligence and General Directorate of Security. ‘Cradle-to-Grave’ logistics concept has been developing and we have been adopting ‘Life Cycle Management’ by handling need identification, supply and logistics services" added GÜLDOĞAN.
Defence& Aerospace Cluster is getting ready to attract foreign investors
SSM Aviation and Space Manager Bedriye CİCİOĞLU made a presentation on the studies for cluster to be established in Kazan region and said the focus for cluster is on aviation and space industry. "TAI’s location is an advantage therefore through this aviation and space cluster, we aim to develop the sub-industry in cooperation with TAI. The cluster will not only gather specific industry groups, but also be comprised of a comprehensive laboratory and test infrastructure. Being competitive is of great importance in attracting the foreign investors" added CİCİOĞLU.
In relation to this matter, Sedat GÜLDOĞAN, Deputy Undersecretary for Defence Industries said that a protocol with Ankara Chamber of Industry is about to be concluded; the structure of the cluster is being planned through the support of the Ministry of Science, Industry and Technology and the establishment process is expected to be completed until the end of 2012.
ÖZDEBİR: "The European Aircraft Manufacturers are heading for Eastward"
The President of Ankara Chamber of Industry Nurettin ÖZDEBİR stated that they will initiate location selection process once the protocol for Aviation and Space Organized Industry Region is concluded. ÖZDEBİR said that all embassies and trade consulates were informed within the frame of promotion activities and emphasized that the aim is to make this region a brand.
"Several aircraft manufacturers in Europe are heading for Eastern countries where they can reduce their costs. Within this scope, Turkey has become a more significant market and the importance of Aviation and Space Organized Industry Region increases much as a result" added ÖZDEBİR.
BAYAR: "All firms should deepen their area of expertise"
Murad BAYAR, Undersecretary for Defence Industries, at his speech at the meeting emphasized that three areas have been determined for the growth of the sector and these can be specified as export activities, logistics services and public procurements. "The sector has been drawing higher interest of the world’s countries; however the domestic products developed by our own technology are primarily required to be utilized by Turkish Armed Forces. A specific capacity of technology has been accumulated in Turkey and the potential in export will increase with this perception. For the sustainability of the export activities, reliability, cost-efficiency and production of good quality are essential. We have been conducting joint studies with the General Staff for the improvement of logistics services; the weapon system from cradle to grave will be under the companies’ responsibility from now on and a model will be established by SSM in order to deliver services to the General Staff in parallel.Many of the public institutions have initiated to make investments on critical technological projects. Turkish defence industry can take the place of the foreign resources with its acquired technologies and experience in such projects. The prospective sectorial projects have also been continuing and we have advanced to next stage especially in critical projects such as ATAK helicopter, ANKA aircraft and HÜRKUŞ aircraft. Important steps have also been taken for land and naval vehicles. In recent years, significant progress has been achieved especially for naval vehicles and guided weapons will also considerably take part in the coming period. This technology portfolio of the sector can be developed further by an efficient cooperative culture to be established amongst the stakeholders in the sector. For the establishment of such cooperative culture, focus on expertise is essential and all firms are required to deepen their area of expertise" said BAYAR.
KOBİDAK Chairman Hürsel KENDİR made a presentation on "The Prominent Expectations of SME’s and Sub-Industry Firms" and conveyed the expectation of sub-industry from both the main contractors and Undersecretariat for Defence Industries. "The sub-industry is of great importance for a sound defence industry; therefore the main contractors are supposed to regard the SME’s and sub-industry firms as a ‘Solution Partner’ from the ‘Conceptual Design’ phase to ‘Integrated Logistics Support’ phase rather than just a ‘Supplier’. The main contractors should develop‘Specialized Solution Partners’ out of sub-industry firms instead of establishing an ‘Approved Supplier’ database. It is necessary to ensure ‘Permanent and Sustainable Collaboration’ rather than working on project basis. As stipulated in 2012-2016 Strategic Plan of the Undersecretariat, the ratio for domestic supply of the needs is required to be increased through a supply chain extended to lower base. The infrastructure supports provided to the main contractors can also be granted to SME’s and sub-industry firms, and the SME’s in the sector should enjoy more from R&D and Investment Incentives’ said KENDİR.
Following the speeches and presentations, the meeting was ended with an agenda to be discussed in the next meeting in September on "The impacts of the changes made in the Turkish Commercial Code on the sector; The Incentive Law no 5746 and Defence Industry; 2011 World Defence Industry and Turkish Defence Industry (2011 Sector Report).
