Turkish Defence Industry Exports on the Rise
According to SaSaD’s report on sector performance issued in the second quarter of the year, Turkey’s aerospace and defence industry turnover reached $5.068 billion by the end of 2014 and a total increase of $25 million was recorded in turnover, compared to the figures of 2013. Where there has been no significant change in the turnover in comparison with the previous year’s turnover, this partial increase in the figures of 2014 is said to be due to the delays in the deliveries resulting from extended test procedures. According to the sector performance report, the total $5,1 billion for 2014 is composed of the following sectors; Land Vehicles $520,Vessels $298 million, Informatics Technologies $207 million, Aerospace $1,139 billion, Electrics & Electronics $1,384 billion and other Manufacturers $1,507 billion.
Defence Industry Exports Reached $1,844 billion
The domestic turnover of the industry dropped to $3,3 billion, decreasing by 7 percent on an annual basis in 2014 while the export turnover reached $1,844 billion with an increase of 18 percent. Despite the fact that there has been a fall in 2014 in the performance in the defence industry, according to the latest figures issued, Turkey still has high important targets ahead. According to the 2011 – 2016 Defence Industry Strategic Report issued by the Undersecretariat for Defence Industries; Turkey is expected to increase its defence industry exports to $8 billion in 2016. It is observed that Turkey has been attaching priority to the development of the local industry within the scope of the defence industry in general in the recent period and according to the sector data, Turkey’s exports (Off-Set and services included) increased to $1,844 billion. Taking the total export distribution into consideration, Turkey realised an export of total $572 million to the United States of America (USA) with a decrease of 16 % compared to the previous year. Turkey’s total exports to the USA summed up to $680 million in 2013. Within the context of total export figures, Turkey’s exports to the European continent remained in the second row and with an increase of 11.6 % compared to the previous year, Turkey accomplished a sale of $375 million to the European countries. The aforementioned figure was $336 million in 2013. Within the scope of Turkey’s exports in defence and aerospace, the USA and Europe stand out as the main buyers while exports to Asian and African countries has distinctly increased in the recent period. The total export to user countries of these two continents reached $873 million in 2014. Considering the foreign sales, the exports other than the USA and European countries, an increase of 54% was observed and the report states that sales to Pacific/South Asia and Gulf countries, in particular, played a great role in this increase.
On the other hand, the Defence Industry Exporters’ Association (SSI) released a seven-month export data to the public opinion at the end of July 2015. In light of the released data, the defence and aerospace industry exports summed up to $1,524 billion within the first seven months of the year. During the same period of the previous year, exports remained at the level of 1,560 billion. The decrease was calculated as 2.3 %.
According to the data provided by the Turkish Exporters Assembly, the main reason for the decrease in exports was linked with the Euro/ USD exchange difference and corresponding delays in some Off-set obligations. The cuts made in defence expenses by many countries, regional political developments were pointed out as the reasons for the decrease in the sector’s existing export volume during this period.
The Greatest Share in Imports belongs to the Power Pack
Where the sector’s imports of 2014 reached $1,351 billion, an increase by 1.8% compared to the previous year has been recorded. Considering the total imports; Land Vehicle imports were $134 million, Vessel imports were $87 million and imports in Aerospace reached $428 million. The “power pack” drew attention as the main component and for sensor procurement in Electric – Electronics worth a total of $444 million in imports were achieved in 2014.
$1,073 Million Spent for Total R&D and R&T
In respect with the Product and Technology Development, a resource of $1,073 billion was allocated to the defence industry in 2014. A part of the expenses valued at $763 million, was allocated to project support and incentives while $310 million was directed to the sector’s equity capital. The R&D and R&T expenses executed through equity capital increased while project supported expenses displayed a significant decrease.
