Defense Leaders TURKEY

THE EXECUTIVE GUIDE OF THE GLOBAL DEFENSE AND SECURITY INDUSTRY

TURKEY 2014 POLICY MAKING PROVIDING PREVENTING PROTECTING SERVICES

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FrontLine Publishing

Frontline Publishing is a consultancy specialized in competitive and security intelligence. Since 2007, the Frontline team has been providing partners with knowledge of the defense sector and risk management through custom analysis and access to top-ranking international network partners.

THE EXECUTIVE GUIDE OF THE GLOBAL DEFENSE AND SECURITY INDUSTRY

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Turkey 2014 The development of a solid and independent defense industry, shaped by years of cooperation with the Western world, is part of Turkey’s recent history. Thanks to its partnership approach on high-technology programs, Turkey is now able to develop its own domestic R&D projects and has become a major player in the global defense arena.

Currently ranked 16th worldwide in terms of turnover, the Turkish defense sector aims to position itself in the top 10 by 2023, the year of the centennial of the Turkish Republic's foundation.

Over the last decades, the defense sector in Turkey has shown its ability to develop and manufacture complex systems such as attack helicopters, unmanned aerial vehicles, laser-guided missiles and warships, in addition to the land combat vehicles and small-scale combat boats that have traditionally been the main defense exports of the country. With today’s high quality products and competitive prices, Turkey is well positioned to reach the ambitious objective of 8 billion dollars in yearly defense revenues and 2 billion dollars of exports by 2016.

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DEFENSE LEADERS • TURKEY 2014

Institutional Partners

Defence Industry Manufacturers Association (SaSaD) is the organization of Turkish producers of defense systems and equipment for domestic and international markets.

SaSaD was established by twelve companies in 1990 with the support of the Ministry of National Defense. In January 2012, civilian aerospace manufacturers were included in the scope of the association and the name became Defence and Aerospace Industries Manufacturers Association.

Military Science and Intelligence (MSI) is the first and only aviation, defense technologies and strategy magazine that is published monthly in Turkey. As a reference publication in the Turkish defense industry, MSI includes special interviews with high-level government officials and business executives, strategic analyses concerning Eurasia and the Middle East, presentations of the leading defense companies and news articles about the latest developments in the world defense industry.

MSI is prepared by a team of academics and editors who are experts on their subjects and published monthly with a circulation of 7,000-8,000 copies. Complimentary copies are delivered to the major defense organizations in Turkey. MSI is also sold in newspaper and magazine outlets throughout Turkey.

Event Partners

THE EXECUTIVE GUIDE OF THE GLOBAL DEFENSE AND SECURITY INDUSTRY

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6 POLICY MAKING

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General Necdet Özel • Chief of the General Staff

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İsmet Yılmaz • Ministry of National Defense

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Murad Bayar • Undersecretary for Defence Industries (SSM)

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SSM • Faruk Özlü

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Turkish Armed Forces Main Equipment

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SSM • Serdar Demirel

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Military Facts and Figures

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SaSaD • Kudret Önen

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Defense Industry Facts and Figures

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A Firm Contender on International Markets

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SSI • Latif Aral Aliş

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Turkey’s Main Defense Exports since 2000

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TÜBİTAK • Yücel Altunbaşak

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TÜBİTAK Bilgem • Dr. Hasan Palaz

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ODTÜ • Volkan Atalay

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ODTÜ Teknokent • Tolga Özbolat

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Istanbul Teknopark • Turgut Şenol

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American Turkish Council • James Holmes

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A Long-Standing NATO Member

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Office of Defense Cooperation • Brig. Gen. James E. Daniel

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Turkey’s Main Defense Imports since 2000

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The Year in Review

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OSSA • Ahmet Mithat Ertuğ

58 PROVIDING

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A Shift Towards Indigenous Production

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TAI • Muharrem Dörtkaşlı

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Ayesaş and Vestel Defence • Aziz Sipahi

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Roketsan • Eyüp Kaptan

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Shareholding Structure and International Joint Ventures

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Fostering Local Technology

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MKEK • İzzet Artunç

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Aselsan • Necmettin Baykul

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Otokar • Serdar Görgüç

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Havelsan • Sadık Yamaç

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FNSS • Nail Kurt

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STM • Recep Barut

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Nurol Makina • Engin Aykol

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Meteksan • Murat Erciyes

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Koluman • Mustafa Koluman

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Gate Elektronik • Turgay Maleri

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Saab

100 Yaltes

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Alp Aviation • Mustafa Kemal Erçelik

102 Bites • Uğur Coşkun

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Honeywell • Anthony Azar

106 Karel • Yaman Tunaoğlu

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Fotoniks • Effective Participation of Small & Medium Sized Enterprises in the Defense Industry

108 Eutelsat • Jean-François Bureau

PREVENTING

104 Simsoft

109 Thuraya • Robert Demers

DEFENSE LEADERS • TURKEY 2014

Published by: Frontline Publishing Limited www.frontline-publishing.com DEFENSE LEADERS 34, avenue des Champs Elysées 75 008 PARIS - FRANCE Tel: +33 9 77 19 50 22 www.defense-leaders.com Main enquiries: office@defense-leaders.com Advertising opportunities: sales@defense-leaders.com Editor-in-Chief: Johan Mlouka Chief Analyst: Martin Aurenche International Project Coordinator: Gizem Aydemir

Art Designer: Anais Lailler Sub-Editors: Matthieu Creux, Olivia Grégoire, Stephen Lloyd, François VidalCastel, Pierre Tallon, Younes Benabdelouahed, Burcu Çömlekçioğlu, Stephen Hartka Printed by: Assistance Printing The publishers would like to thank the Undersecretariat for Defence Industries (SSM) for its collaboration and contribution.

Savunma Sanayi Müsteşarlığına yardımlarından ve işbirliklerinden ötürü teşekkür ederiz.

The views and opinions expressed in this magazine do not necessarily express the views of the publishers.

While every care has been taken to ensure that the content of this publication is accurate at the time of printing, the publishers make no warranty, nor do they assume any legal liability, direct or indirect, or responsibility for the accuracy, completeness or usefulness of any information contained in this publication.

The entire contents of this publication are protected by copyright. No part of this publication can be reproduced or transmitted in any form or by any means, electronic, mechanical photocopying, recording or otherwise, without the prior permission of the publishers.

Cover picture: F-511 TCG Heybeliada is the lead ship of the Ada-class corvettes.

Built by the Istanbul Naval Shipyard Command under the Milgem program, it was commissioned on September 27, 2011. Mainly equipped with indigenous systems, it is intended for littoral combat with anti-submarine warfare and high-seas patrol capabilities. In the background can be seen its sister ship, F-512 TCG Büyükada, commissioned on September 27, 2013. © Turkish Armed Forces

110 PROTECTING 111

Securing the Future

126 SERVICES

112 Istanbul Shipyard • Atilla Çiftçigüzeli 114 Yonca-Onuk • Ekber I.N. Onuk

127 Pi Makina • Engin Gündoğdu

116 Ares Shipyard • Kerim Kalafatoğlu

130 Birom Engineering / Oznur / Tektronik / Armelsan Defence Technologies

118 Sedef Shipbuilding • Metin Kalkavan

138 EXECUTIVE GUIDE

131 Reus Turkey • Luc Buys

139 Business Accommodation

120 SDT • Fatih Ünal

132 Verisis

142 Business Services

122 Global Teknik • Hakan Karalar

134 MSI • Media Relations Improve as Turkish Defense Industry Becomes a Global Player

145 Rank and Insignia of Officers

123 Fotoniks 124 Turaç 125 Tisaş / Girsan / Sarsılmaz

136 COGES - Eurosatory • Patrick Colas des Francs

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146 Acknowledgments 147 Index 148 Defense Leaders Distribution

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POLICY MAKING “The Turkish Defense Industry is developing with an increasing tempo.”

Today, Turkish Armed Forces consist of Land, Air, Naval and Special Operations Forces. The General Command of Gendarmerie and the Coast Guard Command serve as a military enforcement force under the Ministry of Interior during peacetime and, with their assigned units, they are tasked to serve under the Turkish Land Forces Command and the Turkish Naval Forces Command respectively during time of war.

Could you tell us about the ongoing and prospective modernization projects?

In order to acquire the capabilities required by the future operational environment, the Turkish Armed Forces are managing more than 600 modernization projects. Thanks to these projects, the Turkish Armed Forces’ existing critical capabilities will be diversified and reinforced. Some of our main modernization projects, which will contribute to Turkish Armed Forces’ regional and global efficiency after their commissioning over the next couple of years, are the following. The Heavy Lift Helicopter and the Utility Helicopter projects are designed to improve air assault operations, combat search and rescue (CSAR), heavy/high volume equipment transportation and natural disaster relief capabilities. With the acquisition of the A400M transportation aircraft, the Turkish Air Force Command will have long-distance strategic transportation capability. This project is managed jointly with five European members of the Future Large Aircraft Exploratory Group (FLAEG). Another important project is the Airborne Early Warning and Control Aircraft Project (AEW&C).

This project will enable continuous radar coverage of the Turkish airspace. In addition, with high-tech sensors and Beyond Line-ofSight (BLOS) sensitive engagement capabilities, a new generation combat aircraft (Joint Strike Fighter F-35 A) will be commissioned by the Turkish Air Force as an important component of our defense system. The Landing Platform Dock (LPD), with its own logistic sustainment capability, will enable long-term access to crisis areas without any external support. Upon completion of this project, along with acquiring amphibious operational capability, the Turkish Naval Forces will be able to participate more effectively in international peacekeeping and humanitarian assistance operations. Another important project is the Submarine Rescue Ship Project. This project will enable personnel rescue and underwater repair capability in case of accident.

How are the Turkish Armed Forces contributing to the success of Turkey’s indigenous defense programs?

Our main procurement and acquisition strategy for the modernization projects is based on a systems approach that will ensure the maximization of in-house development, production and technology acquisition. In addition, we strive to support the Turkish defense industry by setting a national contribution obligation on foreign procurement projects. With this strategy, the Turkish defense industry is developing with an increasing tempo. It has reached a level that can meet a significant portion of the Turkish Armed THE EXECUTIVE GUIDE OF THE GLOBAL DEFENSE AND SECURITY INDUSTRY

General Necdet Özel Chief of the General Staff of the Republic of Turkey Forces’ defense requirements and has increased its international competitiveness. Turkish Armed Forces, by using national weapons and systems, in a sense, is continuing to provide work to the Turkish defense industry. Tactical reconnaissance and assault helicopter (ATAK) and national modern tank (Altay) production projects will increase the fire power and maneuver capabilities of the Turkish Armed Forces. With these projects, national helicopter and tank production infrastructure will be attained. Another national project, the basic training aircraft (Hürkuş) project, will enable the training of Turkish Air Force pilot candidates by nationally manufactured aircraft. In addition, with this project we will acquire conceptual design capability and production infrastructure for another important project, the national fighter aircraft project. Upon completion of the Unmanned Aerial Vehicle (Anka UAV) project, the Turkish Armed Forces’ reconnaissance, surveillance, target acquisition and identification requirements will be met by maximum utilization of national defense industry capabilities. In the coming years, this system is planned to be integrated into one of NATO’s most important defense projects, the Allied Ground Surveillance (AGS) project. The national patrol ship (Milgem) project aims to construct corvette type, anti-submarine and reconnaissance patrol ships in Turkey. With this project, Turkey has become one of the few countries that can design and construct warships. Likewise, construction of air-independent propulsion submarines, which can conduct extended underwater operations, has also started.

How important is it to have a strong armed force and how does this reflect on the formation of Turkey’s foreign policy?

The likelihood of conventional conflict has diminished after the end of the Cold War, however, this was replaced with multi-faceted risks and asymmetric threats like terrorism, climate change, internal instabilities in some countries, proliferation of Weapons of Mass Destruction (WMDs) and their deployment means, energy security, piracy, cyber threats, environmental issues, radical organizations, organized crime, human trafficking and drug smuggling. These risks and threats to the security environment have evolved from a symmetrical, single-dimension, state-to-state paradigm into a multi-dimensional, multi-source, asymmetrical and multi-variable structure. Uncertainty has since come to dominate the security environment. In addition, threats and risks to states from non-state actors have begun to impact the security environment. Located amid the world’s most unstable regions (i.e. the Balkans, the Caucasus, Central Asia and the Middle East), Turkey, with it is geostrategic and geopolitical position, connects three continents and borders the

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world’s most important oil and natural gas reserves, the Middle East, the Caspian Basin and the Russian Federation. In the meantime, Turkey is an active participant in UN, NATO and European Union (EU) peace support operations and international efforts to promote regional and global stability. In this context, coordinating and implementing military, diplomatic and economic activities in a mutually-supportive way is becoming increasingly important.

Nations consider many different criteria while determining their foreign policies and they adopt policies that they can sustain with their national strengths. Military power deserves a special emphasis among other elements historically and it preserves this special position today as well. It is a natural consequence for a country, which is located in such a critical geographic location facing numerous risks and threats, to maintain a robust military force.

Likewise, being located in one of the most turbulent regions of the world, it is natural for Turkey to maintain military instruments that can deter prospective threats and contribute to regional stability. Within the context of terrorism, Turkey has been a target for over 30 years. Turkish Armed Forces will continue to counter terrorism, which threatens the unity and integrity of the state and the nation, in line with the responsibility and authorization given by the Constitution and related laws.

Could you highlight Turkey’s contribution to NATO and international operations?

NATO is the principal organization to provide security for Europe. As you know, there are three core tasks in the Alliance’s Strategic Concept. These are collective defense, crisis management and cooperative security. We have made significant contributions in this area. Turkey continues to build and maintain a robust conventional force structure in order to maintain NATO’s deterrence in the region. These forces are declared to NATO in accordance with the NATO Defense Planning Process. We also host the ballistic missile detection radar, which is an important part of the NATO Ballistic Missile Defense Architecture for Europe’s defense, and the NATO Land Command. One of NATO’s Rapid Deployable Corps, the NRDC-T, was founded by Turkey. Moreover, we actively participate in NATO exercises.

Under crisis management tasks, Turkey continues to take part in current NATO operations and missions. Within this context, Turkey currently contributes to the NATO International Security Assistance Force (ISAF), UN Assistance Mission in Afghanistan (UNAMA), EUFOR Althea in Bosnia-Herzegovina, NATO Active Endeavour (AE), NATO Kosovo Force (KFOR), UN Interim Administration Mission in Kosovo (UNMIK), UN Interim Force in Lebanon (UNIFIL), Combined Task Force 151 (CTF-151) and the Standing NATO Maritime Group 2 (SNMG-2).

Turkey establishes and maintains bilateral military relations with non-NATO member states within the cooperative security context. Furthermore, Turkey contributes to regional security cooperation mechanisms with active roles in promoting peace and stability, such as the Operation Black Sea Harmony, the Operation Mediterranean Shield, the Black Sea Naval Cooperation Task Force (BLACKSEAFOR) and the Southeastern Europe Brigade (SEEBRIG).

Turkey has been a strong supporter of the NATO Response Force (NRF) from the outset.

For instance, Turkey periodically contributes to command and control capabilities. We also continuously provide forces to NRF. As part of NATO Force Structure, NATO Rapid Deployable Corps-Turkey (NRDC-T) took over the NRF Land Component Command (LCC) responsibilities during NRF-1, 2, 8 and 17 periods. Additionally, Turkey fulfilled the NRF Special Operations Component Command (SOCC) HQ framework nation responsibility in 2011. During this period, the NRF SOCC core HQ formed by Turkey was deployed to Naples (Italy) as part of the Operation Unified Protector in Libya.

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Turkey continues to build and maintain a robust conventional force structure in order to maintain NATO’s deterrence in the region.

These forces are declared to NATO in accordance with the NATO Defense Planning Process.

DEFENSE LEADERS • TURKEY 2014

POLICY MAKING What are the threats that Turkey has identified for Europe’s security?

Considering the political, social, economic, military and cultural developments and numerous tensions in these areas, I see that the world today faces risks and threats substantially different from the past. Parallel to this, national perceptions of threat and national security requirements have become even more complicated. In this framework, terrorism, proliferation of WMDs and missile systems, cyber-attacks, risks emanating from failed states, illegal immigration and organized crime, energy supply and security and environmental issues are considered to be among the possible threats that Europe and the transatlantic region might encounter. Moreover, we expect that uncertainties in the global security environment, along with some nations’ resource allocation to armament, will increase the risk of proliferation of WMDs, as well as conventional arms. It is likely that risks and instabilities that could emerge in the Caucasus and the Caspian Sea regions, which have critical importance in terms of their strategic positions and abundance of energy resources, would be on the agenda of European countries. Considering the North Pole becoming more accessible and exploitable due to global warming, along with the continuing sovereignty struggles in the region, we believe that national tensions in the North Pole, the North Sea and the Baltic region would probably pose a threat to European security. In light of the developments after the Arab Spring, with the increasing number of people with nothing to lose and the rise in internal conflicts, terrorist organizations can exploit safe havens emerging in the region (Somalia and Afghanistan) to threaten Europe.

Consequently, at this point, it is possible that the European security may be directly affected by any risk and instability in Europe’s periphery, such as the Eastern Mediterranean, the Caucasus, the Middle East and North Africa.

What roles can Turkey play in light of these threats?

Turkey, as member of NATO participating in all NATO international peace keeping and peace support operations, contributes to both global and European security and stability, especially in the Balkans. Turkey contributes to European security by playing an active role in many international disarmament and arms control organizations, such as the OSCE, and by being a state party to all international treaties, agreements, regimes and initiatives on proliferation of WMDs. Turkey inherently plays an important role in energy security with its geographic location between Europe and energy resources, especially in the Caspian and Middle East regions. Giving great importance to the border security and taking necessary measures fastidiously, Turkey is also undertaking a critical role in fighting against arms and drug trafficking. In addition, Turkey and the EU have already signed an Agreement on Readmission of Persons Residing without Authorization. Once the agreement comes into force, Turkey will be able to play a more effective role in the struggle against human trafficking. Turkey contributes to the EU’s training missions deployed not only in continental Europe but also outside. Moreover, Turkey, as a country that has fought against terrorism for many years, shares its experience, knowledge and know-how via institutions like the NATO Centre of Excellence Defense Against Terrorism. Turkey, with its dynamism, effective and experienced military power, strategic location and democratic structure, is an important security exporting country. With its key location in the Middle East, the Balkans, the Caspian Basin and Africa, Turkey has considerable potential to contribute to security and stability in the region, as well as in the international arena. Additionally, in the context of international burden sharing discussions among powers with tighter budgets, Turkey’s accession to the EU can be advantageous due to the country’s potential and contribution to European security. Moreover, if we take into account the role that the EU and NATO try to execute in this complex global environment, we assess that by becoming a full EU member, Turkey will be able to better perform its function of being a bridge between the world’s important geopolitical regions.

THE EXECUTIVE GUIDE OF THE GLOBAL DEFENSE AND SECURITY INDUSTRY

Turkey, as member of NATO participating in all NATO international peace keeping and peace support operations, contributes to both global and European security and stability, especially in the Balkans.

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“we aim for our country to be amongst the top 10 DEFENSE INDUSTRIES in the world.”

İsmet Yılmaz Ministry of National Defense National defense will be based on our national strength.

The Turkish defense industry policy has been reconstructed and experienced a strategic transformation over the past decade. We are now able to design and manufacture our own critical technology defense systems and, when we consider the constraints on manufacturing and assembling in the past, this is a historic change.

More than 10 years ago, 80% of our defense industry was dependent on foreign technology, but today, by mobilizing Turkey’s engineering and production capabilities, it has been transformed into a national structured industry with more than thousand of companies, SMEs, research organizations and participating universities.

Today, our defense industry has reached an annual production capacity of almost 5 billion dollars with an export capacity of 1.4 billion dollars. It has become Turkey’s largest investment made in R&D with a 773 million dollar annual budget. Two of our top companies, Aselsan and TAI, are also now ranked among the top 100 largest defense companies in the world. All this progress was made in the days when our national defense budget was below 2% of our national income and our defense spending was relatively low.

Therefore, our defense procurements were a heavy burden on our economy.

It has now been converted to a great added value for our country’s industry and technology.

and a mass production contract was signed for an Unmanned Aerial Vehicle (UAV) program. And finally, from the Corvette project emerged the first two Milgem warships added to our navy’s inventory.

If these projects had been brought to life using old methods, billions of dollars would have been funneled abroad. Our armed forces would have been equipped with systems dependent on foreign technology and there would not be any accumulation of local knowhow in our industry. Hence, the decision made has been a turning point in our defense industry. The requirements of the Turkish Armed Forces (TAF) paved the way for developing indigenous solutions and have given an impetus to accelerate the development of the sector.

By removing the barriers and obstacles blocking our defense industry and with the support given, the needs and requirements of our armed forces began to be addressed with local industry contribution. In this process, nearly 100 military ships and patrol vessels have been produced and delivered in Turkish shipyards. Today, our navy is on the way to becoming fully locally supplied.

Furthermore, our new breakthroughs in the fields of frigates and submarines will continue unabated.

Today, our defense industry has reached an annual production capacity of almost 5 billion dollars with an export capacity of 1.4 billion dollars.

To mention what has concretely been done during this period, we must start with the Defense Industry Executive Committee of May 2004. Cancelling four import tenders, it took a landmark decision to implement new methods based on our national industry. Our local industry has undertaken the tasks of development and production of these projects. From the Main Battle Tank project emerged the Altay tank. After the Attack Helicopter project, we started the production of our national Atak helicopter. Then, the Anka project was started

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Our aviation sector, which had been on a standstill for years, came back to life when our first national aircraft, the Hürkuş, designed in accordance with European Aviation Safety Authority certification standards, took off in 2013. Moreover, the development of our indigenous helicopter project, which will meet our military and civilian requirements, has been started and our national fighter aircraft conceptual design has been completed. After conducting a wide range of studies on UAVs, we decided to create a large UAV family, with a joint production, to fulfill our own needs and to target the needs of foreign markets. The maritime patrol aircraft developed by the capabilities of our national industry has also been added to our inventory and AWACS aircraft DEFENSE LEADERS • TURKEY 2014

POLICY MAKING

are scheduled to begin operation in the next few months. The armored vehicle requirements of the land forces will continue to be developed under indigenous production.

As a result of large investments made in new generation rocket and missile technologies, cruise missiles, anti-tank missiles and guided missiles are now being manufactured indigenously. Furthermore, studies and research are underway for the establishment of our own satellite launch center. Our first national observation satellite, Göktürk-1, is scheduled to be launched in 2015. It will have a higher image resolution than the Göktürk-2, our first satellite to have been successfully launched and tested. Our military observation and communications satellite systems will therefore be completely designed and manufactured in Turkey.

To eliminate the legacy of past neglects in our air defense, huge steps are also being taken.

The initial testing of HİSAR missiles, which were developed for low and medium altitude air defense, was successfully completed in October 2013. In the international tender opened for the long-range air defense system based on coproduction and technology transfer, the most cost-efficient solution has been selected.

For the first time in our history, we are also planning to have our first national infantry rifle in service in 2014, which is being manufactured with the latest technologies. This means that all the weapons used by our troops will no longer be under foreign production or license. By the centenary of our republic in 2023, we plan to fly our first national fighter aircraft, to launch locally designed satellites, to produce national submarines and to put into service long-range rockets. In this direction, we have taken the necessary decisions and first steps.

As part of our defense industry, along with the huge investment made in a Satellite Assembly, Integration and Test Center, we are currently building a Radar and Electronic Warfare Center scheduled to open in Ankara in 2014. The first stage of the Istanbul Teknopark is also completed and it will start operating later this year. It is planned to become a technology center meeting the highest international standards.

As of today, most of the needs of the TAF modernization projects are being implemented with the participation of our country’s industry. In 2013, more than 50% of TAF requirements were met domestically. It is certain that with the adequate equipment and infrastructure and the sector’s dynamic and original solutions, we can meet the Turkish Armed Forces requirements locally. Within the framework of our vision for 2023, we aim to be amongst the top 10 defense industries in the world and we will work tirelessly and with great precision until this goal is reached.

By the centenary of our republic in 2023, we plan to fly our first national fighter aircraft, to launch locally designed satellites, to produce national submarines and to put into service long-range rockets.

In the environment we live in, we have a wide range of security challenges that require defense technologies that we should aim to procure through national resources. The Turkish Armed Forces hereinafter will see the real support of our country’s industry, engineers, design capability and production potential and our national defense will be based on our national strength.

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“Our products are becoming very competitive and attractive for other countries’ armed forces.”

The Undersecretariat for Defence Industries (SSM) was created in 1985 with the mission of developing the Turkish defense industry and has greatly contributed to fostering a world-class defense sector in Turkey. Murad Bayar has been at the head of SSM for the past 10 years and has been instrumental in the transformation of the Turkish defense sector.

What are the main responsibilities of SSM? SSM is the main procurement organization for the Turkish Armed Forces and has several missions. One is providing and procuring equipment for the armed forces and the other is the development of the Turkish defense industry. Since our establishment, our primary mission has not changed, but the way we implement and execute this mission has evolved over time. Originally, we were more dealing with the procurement part of the mission. Then, we moved into coproduction type programs. In the last decade, we have developed a strong emphasis on R&D, investment in technology and investment in systems development for the military requirements of the Turkish Armed Forces. We therefore currently have a better balance than in the past between the procurement role and the industrial role. Furthermore, we are also responsible for the overall guidance and overseeing of the sector itself and are directly involved in regulatory activities.

What have been the main drivers behind the evolution and success of the Turkish defense sector?

Undersecretary for Defence Industries (SSM)

a mission without the necessary equipment. This is always a priority but, when it is possible, we always try to line up these two plans and I believe that was one of the significant drivers of our success.

We can say the same in land systems. For example, we are now developing our main battle tank, the Altay, but if you look back at the past 20 years, you can see the efforts taken to reach a full-scale development of the Altay program. We went through upgrades of existing tanks, development of sub-systems of the tanks, such as fire control systems, and we have now decided to pursue a full-scale tank development project. Going back to the naval systems, we are currently planning our frigate program, which will be based on the medium corvette and other programs we have done. In this way, we are building the capabilities and, at the same time, delivering systems to the armed forces that are more complicated and technologically advanced, such as the TF2000-class frigates.

We currently have a better balance than in the past between the procurement role and the industrial role.

Primarily, our success lies in our ability to synchronize the requirements of the Turkish Armed Forces with the development capabilities of our industry. Having these two responsibilities under one roof, we can have a road map of the Turkish military requirements and match them against the development plans for industry capability. This has been the case in naval systems for example. We are moving these two in parallel, negotiating with the Navy to have this timeline of meeting the requirements along with the development capabilities of the industry, and this has been a very successful approach. Of course, when there is an immediate need by the armed forces, we always buy on the shelf from the world market and we never leave

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Murad Bayar

What are the objectives of the 2012/2016 strategic plan for defense?

We have outlined two primary objectives in the plan, in addition to the program objectives like Anka and Altay. The first pillar of the plan is developing the sustainability of the industries through a better planning of the armed forces requirements, but also by adding other dimensions to the industry such as exports, logistic services to the Turkish Armed Forces and providing the defense industries with the technologies and capabilities that have an impact on other sectors, such as transportation, energy, and more generally high technology investments in Turkey. This is our sustainability goal. The second one is increasing the depth of the sector in terms of the technology suppliers network. We now have major systems built in Turkey with many components in those systems. Some of them are critical, and DEFENSE LEADERS • TURKEY 2014

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THE EXECUTIVE GUIDE OF THE GLOBAL DEFENSE AND SECURITY INDUSTRY

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Our armed forces are becoming one of the few in the world maintaining an operational capability at a very highlevel. as much as we would like them to be 100% manufactured in Turkey, we know that this is impossible for Turkey or for any other country. But we can make significant progresses. That is why we are starting some parallel R&D programs in parts, components, materials, technologies and promoting more significant involvement of Small and Medium-sized Enterprises (SMEs) in our programs. At the end of the day, it is a matter of using the industrial capability of Turkey more effectively in our pursuit of commercial industries and engaging them in defense programs more effectively. Those are our two main pillars and focusing on dual use technologies and on companies that have dual sectors is critical. Indeed, there are very qualified SMEs in Turkey that can offer their capacities for defense programs.

What are the strengths and weaknesses of the Turkish defense sector?

One of the strength of our sector comes from the domestic customers, the Turkish Armed Forces, which have extremely high standards for defense equipment. Our armed forces are one of the few in the world maintaining an operational capability at a very high-level. They demand significant performance and criteria from our armament programs. Once they achieve that level of performance and once they are put into use by the armed forces, we collect feedback from the field and further improve the equipment. Our products are becoming very competitive and attractive for other countries’ armed forces because they find in Turkish equipment the quality they are looking for and because another customer has done it for them on a very demanding level. So, that is one strength, in the local market, industries

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DEFENSE LEADERS • TURKEY 2014

POLICY MAKING Our offset programs have two components, one is for the local content and the other is for exports.

are subject to very tough and demanding conditions. Of course, supporting industry does not mean we are propping up inefficiency. Each project and project department has its own budget requirements and schedule. The project is subject to very strict criteria in terms of competitiveness. This means that on the commercial front as well our companies are competitive. The weaknesses are new in most aspects, because we are developing very complex products in terms of engineering. Most of these programs are in their first cycle, therefore, their post-capabilities are still being developed. We are also novice in marketing and exporting to other countries and in dealing with other countries’ armed forces. We do not yet have the networks fully established and we need to learn some of the competencies not only to export, but also to partner with other countries or local companies on defense programs. We will need to invest in those skills during the coming years.

How do you plan to develop offset programs?

The way we want to use our offset programs is to establish partnerships between Turkish industry and foreign corporations, both in Turkish and foreign markets. The way we try to design our offset programs is to establish links between Turkish companies and, primarily, their western counterparts. We want these links to be long-lasting and make business sense in the long term. This is what we are seeing happening as most of our offset relationships are continuing after all the offset credits have expired. This means that companies in Europe and in the US see their Turkish counterparts as competitive suppliers and partners. This is true for the Turkish market, but also for other markets. Our offset programs also have two components: one is for the local content and the other is for exports. We think that this is functioning very well right now in terms of creating partnerships in Turkey and abroad. We try to make our offset programs as business friendly as possible. We have some natural markets, such as the Middle East and Gulf countries, because defense relations require good political and military relations. It is not all, but it is necessary. We also work with countries in Asia and South-East Asia and we want to further expands into European and US markets as well.

THE EXECUTIVE GUIDE OF THE GLOBAL DEFENSE AND SECURITY INDUSTRY

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POLICY MAKING

Faruk Özlü Deputy Undersecretary Undersecretariat for Defence Industries (SSM) How important has the Turkish defense industry become in Turkey’s economy?

Expected defense turnover by 2016

$8 billion Expected defense exports by 2016

$2 billion Turkey has reached a unique capability with the Anka UAS program that only several countries have.

16

Turkey experienced a significant improvement in supplying domestic design and production for the Turkish Armed Forces in the last 10 years. Within the context of the SSM’s strategy, it is estimated that the turnover for the defense, security and aerospace industry will be 8 billion dollars for 2016 with exports of 2 billion dollars. In my opinion, those figures may easily be doubled in 2020s with the condition that the activities envisaged as a part of the strategic plan are efficiently undertaken and that maximum effort is made for the stimulation of the defense, security and aerospace sector. At the same time, we are aware that there has to be a link between the defense industry and the other related sectors. For this need, we are coordinating the necessary studies for the integration of the defense industry with other sectors. On the other hand, to maintain and develop the design and manufacturing infrastructure based on high technology currently owned by our defense industry, it appears that there is a need to launch a breakthrough for the foreign sales as well as the satisfaction of the domestic demand. In terms of international markets, we aim to increase exports by giving priority to the Middle East, North Africa and the Far East markets.

How is SSM helping to foster R&D initiatives in Turkey?

Turkey is in a stage of technological transformation.

The Turkish defense industry has started equipping the Turkish Armed Forces with indigenous products.

Along with the requirements of indigenous products, there is a positive trend in the number of technoparks and R&D centers. Furthermore, there is already a certain technological base established in our universities and R&D centers, which employ qualified and talented young engineers. However, there are still short comings in various technology areas. At SSM, our R&D tasks are focused on these specific areas. Within the scope of main system projects, SSM’s R&D policy favors technologybased R&D activities involving applied and experimental research aiming at the development of sub-systems, components and technologies.

From the R&D point of view, SSM carries out R&D projects in order to meet the requirements of Turkish Armed Forces. It means developing sub-systems, components, technology infrastructure road maps and, in this context, identifying and supporting

primarily defined R&D projects. SSM is conducting R&D activities in accordance with the defense R&D road map in order to define the contribution of technology in development programs. The total R&D expenditures of defense industry has reached 772 million dollars in 2012. 200 million dollars of this amount comes from the equities of defense industry companies. The rest is provided by SSM projects or other government agencies. This means that R&D expenditures represent more than 15% of the total turnover. It accounts for around 3% of the GDP in developed countries and 0.7% of the GDP in Turkey. If we consider the total turnover, exports and R&D values of the defense industry together, it is obvious that the R&D initiatives provided by SSM foster the development of indigenous products and technologies.

Could you expand on the Turkish UAV programs?

Since Unmanned Air Systems (UAS) are a key requirement for the Turkish Armed Forces, Turkey has invested substantially for the development of indigenous UAS since 2004. Our efforts are based on our UAS road map which was prepared according to TAF requirements and has the ultimate aim of establishing the necessary technological capability to build Turkish Unmanned Fighter Aircraft with mostly domestic capabilities. The first UAS program to develop a mini UAS was produced by KalekalıpBaykar Makina Partnership. The Kale-Baykar UAS has been operational in Turkish Armed Forces since 2007 and was also exported to Qatar in 2012 as the first UAS export by Turkey. There are three UAS projects ongoing at the moment. Two tactical UAS development programs, which were started in 2010 and 2011, are now in the production phases. Karayel UAS system being developed by Vestel Savunma Sanayi and Çaldıran UAS system being developed

by Kalekalıp-Baykar Makina Partnership will start to enter into TAF inventory in 2014. Although the contracts require tactical class UAS with an 18,000 feet ceiling and 10 hour long endurance, both companies are sure that their UAVs will have more capabilities: up to a 23,000 feet ceiling and 18 hour long endurance. The Anka medium-altitude long-endurance (MALE) UAS by Turkish Aerospace Industries (TAI) has completed successfully the acceptance flight tests of the first development phase in January 2013. Turkey has reached a unique capability with the Anka UAS program that only several countries have. The main challenge is the design and production of a platform that can carry DEFENSE LEADERS • TURKEY 2014

POLICY MAKING several payloads while flying at 23,000 feet for up to 18 hours. During the next phase of the development program, the flight envelope will be expanded to a 30,000 foot ceiling and 24 hour long endurance.

Other challenges are the development of a data link with 200 kilometer range and the integration of indigenous ISR (Intelligence, Surveillance and Reconnaissance) payloads. The contract for the initial serial production of 10 Anka-S UAVs was signed on October 25, 2013. The deliveries of Anka-S UAS will start in 2016 and will be finalized in 2018.

Satellite control (SATCOM), a secure data link and an advanced EO/IR camera system are some of the new additional capabilities. For the time being, we have three UAS projects for TAF that will be completed in the future. The first one is a VTOL (Vertical Take Off and Landing) UAS system that will be stationed on Turkish Navy ships. We are planning to finalize the project preparation this year and then will collect Request For Proposals (RFP). The strike UAS project was launched in 2012 with the aim of producing a UAS with a higher ceiling, longer endurance and more payload capacity. Our final project is for the production of a combat UAS with mostly domestic capabilities.

In the very near future,Turkey will have a family of UAS from nearly all UAS classes, including a wide range of sub-systems and payloads.

How do you see the potential for Turkey to export these systems?

Although SSM’s first aim is to provide the best systems to the Turkish Armed Forces, preferably with our indigenously developed products, we also support our local companies in exporting those products to foreign countries. In the very near future, Turkey will have a family of UAS from nearly all UAS classes, including a wide range of sub-systems and payloads. I am sure that our local UAS producers will offer efficient solutions for foreign customers with reasonable and comparable cost. So, we do not only target a specific regional market or a specific type of UAS market, we target the global UAS market.

How important has the issue of cyber-security become for Turkey?

This issue has two perspectives for us. First, our own information systems’ requirements and second, and more important, the Turkish military requirements.

For its own requirements, the Information Systems Department has been redesigned from scratch and the staff in that department has undertaken numerous trainings to handle the situation. We have also updated the internal regulations applied to the information systems and the SSM staff. We have

initiated an exercise with numerous governmental agencies to study our current preparedness against cyber-attacks. In that exercise, several cyber-attacks of different types have been performed to observe the performance of the security systems currently used. We have evaluated the results and taken the needed actions. We are aware that this process is an issue that has to be improved and developed continuously. For the second perspective of this issue, SSM has initiated several projects, feasibility studies and also conducted numerous conferences and workshops. SSM has taken this issue at the highest level and, in 2008, with METU (Middle East Technical University, one of the top universities in Turkey), we started a Network Enabled Capability (NEC) feasibility study. For this study, about 25 academics from METU and 10 engineers from a company worked together with the Turkish military to devise the NEC road map. Now, SSM is following that road map and has started three other projects with its own resources to increase the awareness of military agencies. We also have performed several workshops and conferences that brought the related sides of this issue together. Now, the Turkish military has a separate Cyber Warfare Command. We are closely working with them for their requirements. As a result, I can say that SSM is aware that the cyber warfare issue has to be handled carefully through a plan and in advance.

R&D 2012 Expenditures

$772 million

How important are SMEs to further develop indigenous capabilities?

In the scope of the 2012-2016 Strategy Document objectives, SSM will focus on the initiatives to ensure the depth of the defense sector. Moreover, SSM will guide the SMEs and suppliers present in the defense industry in order to develop their capabilities related to program management and technology level.

As it is acknowledged, for many years, offset has been implemented and executed by SSM under the defense industry projects. For defense industry projects, the contractors are obliged to commit an IP/O (Industrial Participation/Offset) obligation equivalent to at least 70% of the main contract value. To emphasize the SMEs’ importance, within the scope of the 2011 IP/O Directive category-A (Industrial Participation), foreign contractors must conform to requirements of at least a 30% share for local industry including at least 15% for SMEs. For the proposals to be submitted in this respect, more use of the national industry, especially SMEs and suppliers, will be primarily promoted to deepen the domestic defense industry. After this point, the real challenge we are facing in terms of the SMEs’ situation is the limited volume of domestic defense and aerospace market. Therefore international cooperation activities are gaining more importance.

SMEs and suppliers will be primarily promoted to deepen the domestic defense industry.

THE EXECUTIVE GUIDE OF THE GLOBAL DEFENSE AND SECURITY INDUSTRY

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TURKISH ARMED FORCES MAIN EQUIPMENT Main Battle Tanks Leopard 1T

391

Leopard 2

339

Armored Fighting Vehicles

UAVs Anka

ACV-300 Variants

(10 to be ordered)

-

2,079

M113 Variants

3,335

Heron

10

M60T

170

Otokar Akrep

370

Otokar Cobra

1,200

MQ-1 Predator

(Leased, operated by a joint Turkish-US unit)

3

Altay

4Prototypes

MRAP Kirpi

293

Transport / Attack Rotary Aircraft

28

106

Cobra / Super Cobra

Sikorsky UH-60 Black Hawk

Eurocopter AS-532 Cougar

46

18

(To be phased out by T-129 ATAK)

TAI/AgustaWestland T-129 ATAK

(63 more ordered)

5

Prototypes

DEFENSE LEADERS • TURKEY 2014

TURKISH ARMED FORCES MAIN EQUIPMENT Air Force B737 aew&c

(to be delivered)

F-16 Fighting Falcon

4

246

KC-135 Stratotanker

7

85

C-130 Hercules / C-160 Transall

32

F-4 Phantom II F-4E/RF-4E

Hürkuş

15

ordered

A400M

(9 more ordered)

1

Yavuz-class

4

Barbaros-class

4

Frigates

Gabya-class

8

Corvettes

Ada-class (6 more to be ordered)

2

Burak-class

6

Submarines Atilay-class Type 209/1200

(to be replaced by Type 214 in 2015)

6

Preveze-class Type

4 209/1400 Gür-class Type 209/1400 4

THE EXECUTIVE GUIDE OF THE GLOBAL DEFENSE AND SECURITY INDUSTRY

Observation Satellite Göktürk-2

(Göktürk-1 in completion)

1

19

POLICY MAKING

Serdar Demirel Deputy Undersecretary, Platform Projects Undersecretariat for Defense Industries (SSM) The platform projects department at SSM is in charge of all the manned and indigenous platforms used in combat by the Turkish Armed Forces such as tanks, armored vehicles, mobile bridge, NBC systems and everything related to army use in general. Some of the landmark projects the department oversees also include the Milgem national warship program, the Navy Submarine Rescue Mother Ship (MoShip) and the T129 attack helicopters among others.

What are some of the main changes of the past decade in your approach to procurement?

The scope of our activities in the past 10 years has broadened tremendously. Before the 1990s, the majority of our work was concentrated on meeting the modernization requirements of the Turkish Armed Forces. So, for example, when they were in need of more battle tanks, we would procure offthe-shelf battle tanks. But for the last 10 years, our attention has shifted to developing the weapons to exactly fulfill the TAF’s needs and this had many implications. It means the indigenous developments in the Turkish defense industry are concentrated mostly on providing the correct solution for the customer’s usage, in this case, the Turkish Armed Forces. So it does not imply only coming up with innovative solutions or using even some foreign participation in a system, but it means that we are doing mostly engineering work. For example, when the Turkish Armed Forces need a main battle tank, the most prestigious alternatives would be US Abrams, German Leopard or French Leclerc battle tanks. However, none of these three tanks is able to fulfill all of the TAF’s needs. So we need to come with tailored solutions that perfectly fit the requirements

of our armed forces. That is exactly what our mission is at SSM and we are doing it by matching our local industry capabilities with those needs. That does not mean that there are zero foreign components in our programs, but the core engineering and the critical components are locally designed and manufactured.

For example, the engine of our Altay main battle tank comes from German MTU. We are not concentrating on doing everything built and designed in Turkey, as we are not aiming to “reinvent the wheel”. Our aim is rather to produce exactly what the Turkish army needs. Another program I would like to mention is the Kirpi land vehicle. It is a mine protected armored vehicle and quite unique in the world. There is no vehicle, to my knowledge, that can do exactly what this vehicle does. It is manufactured by BMC in Turkey. The Turkish army needed a mine resistant and ambush protected vehicle of this type for homeland security purposes. There was no similar vehicle existing in the world that was matching exactly our armed forces needs. So our industry, under an SSM program, developed this vehicle. To finish with, I would like to add that we are also very well aware that any defense industry that is only producing solely for its domestic customers cannot survive in the long term. We also have to export our products to third countries in order to keep our companies’ profits up.

Which regions of the world hold the most potential for Turkey’s indigenous platforms?

First, I want to insist on the fact that in the defense export arena, sales do not happen in the same way as they do in any other industry, where you are looking at catalogues, comparing the technical specifications and buying the highest technical specifications with the cheapest prices. There is also, most of the time, political relations between countries that play an important role in the defense exports. In this context, we are thinking that the Turkish companies are the most successful in the Middle East, the Gulf region and also South East Asia. On the other hand, we are continuously focused on South America and, to a certain extent on North America, but it is a very hard market to penetrate. Furthermore, we are trying to improve our foothold in some European countries.

For example, in our indigenous fighter jet program, we are looking for a working partner from Europe, not because we are afraid to develop ourselves, but more because it will allow us to export it more easily in the future. We have the same approach in some other programs. For example, we have partnerships

20

DEFENSE LEADERS • TURKEY 2014

POLICY MAKING

with Germany in the battle tank program and we also have partnerships with South Korea because we think that it can bring us wider marketing space.

To what extent do the Turkish army’s demanding requirements also help Turkish companies to be competitive internationally?

The Turkish army is very famous and recognized worldwide for its expertise. This, of course, gives a significant edge on the international market to our companies, especially regarding indigenous developments. Indeed, international buyers can often be worried by indigenous development, but if the Turkish Armed Forces are using it, it gives confidence and a guarantee on the quality of the product. They

In our indigenous fighter jet program, we are looking for a working partner from Europe, not because we are afraid to develop ourselves, but more because it will allow us to export it more easily in the future.

stamp: “used by the Turkish Armed Forces”. So we think that working with the Turkish army is a great leverage for selling to third countries. Also, most of the other countries we are partnering with in our products are also looking for the expertise of the Turkish army for training. That is an added guarantee for them. If you buy the attack helicopter, then you are under the umbrella of the Turkish army aviators. They will train and assist you with logistic organization.

Could you outline some of the most successful projects of your department?

I would like to mention four indigenous projects. I will give the first place to the Altay main battle tank.

The second seat goes to the Milgem national warship project. For three and four, I would like to mention two new programs. One of them is the TFX program, which is the indigenous Turkish fighter jet that we are very serious about. By 2023, we are hoping to have the first flight. And I saved the best place for last: our indigenous helicopter program. It is called Özgün, which means indigenous. It is not publicly announced yet, but we are planning to announce it in a few months’ time. So we are developing a fiveton helicopter for eight to 10 persons, which will be used for both civilian and military purposes. It will be commissioned by all the Turkish forces. It is a smaller helicopter than the Sikorsky Blackhawk, but it is bigger than the Bell ones for example. It is a niche market and there is currently nothing comparable on the market. We are hoping to have the first flight with this indigenous helicopter in five years’ time. It is developed with TAI and Aselsan and we are planning to use existing engines. So our aim in this is not like a US helicopter corporation that is producing everything in-house. What we are doing here is to try to come up with a new solution. As I said before, there are no five-ton military certified helicopters available.

When a weapon system has been accepted and used by the Turkish Armed Forces, it is an internationally recognized quality stamp: “used by the Turkish Armed Forces”.

know that the Turkish army does not accept any system if they are not convinced that it is 100% perfect. We had a lot of examples, such as the T129 attack helicopter, which is still undergoing some verifications. The army requested minute changes such as problems with scratches on the glasses or the position of the pilot’s feet when he is not pushing the pedals. We are going into this level of detail, but it is a valuable thing because when a weapon system has been accepted and used by the Turkish Armed Forces, it is an internationally recognized quality THE EXECUTIVE GUIDE OF THE GLOBAL DEFENSE AND SECURITY INDUSTRY

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MILITARY facts and figures Military Expenditure (1988-2012) $ Million

15

th

Largest defense budget in the world in 2013

22,000 4%

20,000 18,000

3.5%

16,000 3%

14,000 12,000

2.5%

10,000 2%

8,000 1988

1999 Military expenditure in millions of dollars

2004

2013

Military expenditure as a percentage of gross domestic product (GDP)

Active Military Personnel (as of September 2013)

35% RANKS 72,740

19% OFFICERS 40,350

46% Turkish Armed Forces Headcount (2013) Total 640,495 The Turkish army is NATO’s second largest

22

non-commissioned officers 97,181 conscripts 378,021 Career soldiers 210,271 CIVILIANS 52,203

DEFENSE LEADERS • TURKEY 2014

MILITARY facts and figures 2012 Turkish Budget for Defense Affairs (Millions of Turkish Liras) Ministry of National Defense Undersecretariat for Defence Industries

18,500

66.7%

39.6

0.1%

Defense Industry Support Fund

2,900

10.5%

Coast Guard Command 335

Gendarmerie Command

1.2%

5,200

National Intelligence Organization (MIT)

THE EXECUTIVE GUIDE OF THE GLOBAL DEFENSE AND SECURITY INDUSTRY

18.8%

750

2.7%

23

POLICY MAKING

Kudret Ă–nen Chairman of SaSaD The Defense and Aerospace Industry Manufacturers Association (SaSaD) was created in 1990 to promote the interests of Turkish defense manufacturers and contribute to addressing the issues that the industry faces. Civilian aerospace manufacturers were included in SaSaD in 2012 and it is now the largest and most influential defense association in the country.

What are the main issues that SaSaD is currently trying to address?

The number one issue is the users and purchasing bodies: the Undersecretariat for Defence Industries (SSM), the Ministry of Defense and whoever else is involved in the purchasing process for military equipment and systems. They should now realize that Turkey has completed a substantial amount of investment, half from the government and half from private sector. We have done enough investment to set up good competition in the market. We believe that in certain sectors there is enough competition, which benefits us. They should stick to what they have achieved in the market and not try to enlarge the production base. We believe they should take Europe as an example of what has happened in the past and learn lessons from that. We should not

24

follow the same route whereby a heavy consolidation takes place and then you lose the technologies, competencies and know-how. We believe there is enough competition in most sectors of the market.

I have to voice what my members are saying and I believe it as well. In certain sectors, there is enough competition and there are competencies or technologies being created and these are export sectors as well. If they are successfully exporting, earning profits and spending money on R&D that shows there is enough in the market. We should hold their hands and support their future instead of creating similar companies which will, at the end of the day, result in consolidation of the market. This is the strategy of Turkey so we will follow it.

DEFENSE LEADERS • TURKEY 2014

POLICY MAKING To what extent do you believe Turkey has the ability to develop an indigenous fighter?

Technically, I am not an expert in this field so for me to say anything about the details would not be relevant. But, target-wise, Turkey should give people who are interested in supplying equipment to Turkey an understanding of our ambitions and where we want to take the technology to; that is the most important. Whether we make it or not is a secondary issue. The main thing is that we started doing it and we are aiming to do it. Even if we get only halfway there, we will have learned many valuable things and we will have also developed a lot of new technological know-how. But in any case, I am sure that if we try to make it, we will make it. People are spending billions and billions and this is a target, so it should give an indication to our partners from all over the world of what we want to do in Turkey.

Producing a tank is not a big design issue nowadays; it is a matter of using the latest technology, integration and testing.

How do you see the role of SMEs in the development of new technologies in Turkey?

There are many R&D projects that are being offered to smaller enterprises and I believe that the more SMEs we have involved, the more special, niche technologies will be developed in Turkey and that is exactly what we need. Large corporations are more integrators and designers. Another thing that is important is that Turkey has to produce its own material. We do not do that now, so that is why the carbon fibre, steel and aluminum are important. Apart from systems, Turkey should be spending money and investing in producing its own materials. We should be free to use whatever basic materials we have. And smaller companies that specialize in niche projects will help these bigger companies a lot. If they take that responsibility from the big companies, we will be more flexible to design what we want in the future. SaSaD does not want to do everything; we want more specialized, niche companies. In the US for example, you will find thousands of these. When you go there, these companies have five or 10 employees, but they do just a very specialized job. That is what we want. We do not need any more big integrators in Turkey. Now the issue is, I believe, producing our own materials.

Those small companies really do important but small jobs and those can be created through R&D budgets which Turkey is spending huge amounts on. We are spending lots on R&D and we should continue that. If this is spent on specific projects then the big companies will be freer to use those technologies.

How important for Turkey is the Altay main battle tank program?

I can answer that because I have been in this project for 10 years. The most important thing is that producing a tank is not a big design issue nowadays; it is a matter of using the latest technology, integration and testing. That is what we are doing in the Altay project. Today, if we have a problem with German engines, we can use X country’s engine. Yes, it costs more, but you do the testing and you are free there. The issue is to make a competitive tank which can be exported. Engine technology is not new; it is 100 years old. We can make an engine in Turkey, but when you put it into a tank and you make 500 a year, the product will be unsellable. We want to make something which is competitive and can be successfully exported. The technology is simple, it only takes time. For equipment it is not only about the engine; there is other equipment that we put in which we think will make a competitive tank.

What is SaSaD promotion?

doing

for

We want more specialized, niche companies.

international

We are not doing much as of now, but it is one of our targets for the future. SSI is doing a lot and they are using all the financial aids that the government can offer, to be present in the international exhibitions for example. At SaSaD we are only welcoming guests from abroad and we are in touch with similar organizations from other countries. At exhibitions, we have meetings and we exchange news. If need be, we are acting as a contact point in both ways. There is not much done on the export side, as that is more the role of SSI. As for SSI, when you export something, you pay a certain fee to the government and SSI collects that. In our case, when the defense industry exports, SSI gets a certain percentage of the money we are giving and they are using it to promote our exports. They are finding ways and means to do that. One of those is to support our export activities, not the exports themselves, by creating new markets.

THE EXECUTIVE GUIDE OF THE GLOBAL DEFENSE AND SECURITY INDUSTRY

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DEFENSE INDUSTRY facts and figures Defense Turnover, Exports and R&D (2000-2012) 2016 Target

$ Billion 4.5

Turnover $8 billion

4

r To t s ta lR &

Exports $2 billion

Ex

Tu

rn

3

po

ov

er

D

3.5

2.5 2 1.5 1 0.5

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Off-the-Shelf Direct Imports 1985-1990

2006-2011

98%

12%

Local Production in Turkish Armed Forces Procurement 2003

25%

26

2009

45%

2011

54%

DEFENSE LEADERS • TURKEY 2014

THE EXECUTIVE GUIDE OF THE GLOBAL DEFENSE AND SECURITY INDUSTRY

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POLICY MAKING

A Firm Contender on International Markets Turkey’s defense industry has witnessed important changes in the past years. Until a few years ago, it was mainly involved in supplying domestic demand. However, the very stringent requirements of the Turkish Armed Forces have pushed Turkish companies to develop high-tech solutions that are proving to be very competitive in international markets.

Secondly, the government, through its Undersecretariat for Defense Industries (SSM), has been very keen on fostering defense exports and is helping the sector by developing strategic plans every five years (the latest plan runs from 2012 to 2016) and by providing support in terms of international marketing through participation in major tradeshows around the world.

According to Turkey’s Defense and Aerospace Industry Exporters’ Association (SSI), Turkey is currently exporting one-third of its defense production and the country’s defense exports have now exceeded 1 billion dollars, representing a 43% increase from 2008.

The creation of SSI in 2011 is a vibrant testimony of this will to promote the industry on the international level. According to SSI’s chairman, Latif Aral Aliş, the defense industry has gained speed in production and exports in recent years.

“The export volume, at 600 million dollars in 2008 has risen to 1.4 billion today. We are exporting onethird of the sector’s production” he said, adding that they had set a goal for exports to reach 25 billion by 2023!

The recent change in the capacity of Turkey to export defense products is a result of several factors. First, the Turkish Armed Forces have had, in the past 10 years, very high requirements in terms of technology and variety of products due to the geography of the country and the numerous threats it has to address. This has pushed the local companies to develop state-of-the-art defense products to address the needs of the armed forces.

Turkey has become a country able to manufacture and export a large part of its defense equipment such as helicopters, Unmanned Aerial Vehicles (UAVs), warships, training aircraft and missile guidance systems. As an example, the Turkish Aerospace Industries (TAI), has developed the Anka, a strategic UAV capable of flying up to 26,000 feet with a range of more than 3,000 miles.

Turkey thus entered the very closed international market of UAVs, with two very promising ongoing negotiations with Middle Eastern countries.

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Among the top countries for Turkish exports is the United States, followed by the European Union, the former Soviet Republics and Middle Eastern countries. Another strength for the Turkish defense industry is its ability to provide combat proven products at very competitive prices. Most of its defense exports have already been used by the Turkish Armed Forces, improved if needed, and then exported.

$1.4 billion in exports in 2012

43% 2008-2013 increase

Turkey, the second largest army within NATO, has quietly developed an indigenous defense industry that is poised to be a significant player in international military procurement, thanks to excellent cooperation between the country and its allies. The cooperation will continue, as Undersecretary for Defence Industries Murad Bayar said and the country is targeting 2 billion dollars in exports by 2016.

DEFENSE LEADERS • TURKEY 2014

POLICY MAKING

Latif Aral Aliş Chairman of Defence and Aerospace Industry Exporters’ Association (SSI) Established in 2011 in order to improve exports of the Turkish defense and aerospace industry, SSI is the sole industry association of the Turkish defense and aerospace sector working under the auspices of the Ministry of Economy. SSI is also fully cooperating with the Ministry of National Defence and with the Undersecretariat for Defence Industries (SSM).

What is the role of SSI in the promotion of Turkish defense exports?

Being the exporters’ association in the Turkish defense and aerospace industry, and in accordance with our legislation, all exporting companies of the sector must be members of our association. SSI has 221 members as of the end of 2013 representing a threefold increase since our establishment. And this figure is growing everyday. SSI’s main mission is to support the exporters of the Turkish defense and aerospace industry, both financially and in terms of market access. The growth of defense exports in the last two years indicates that SSI has already played an important role. In all the meetings we have, it is continuously confirmed that critical points for our industry are R&D-based production, a high-level of coordination among actors, support to SMEs, inventory-based efforts, the development of financing and credit models and exports. We have

30

also recently established our industry promotion group, the Turkish Defense Alliance, for international promotions and activities, which we believe is contributing to our exports to a great extent.

What are the main services you bring to your members?

Our members’ number one expectation from SSI is naturally to help them increase their exports globally. We are working in full cooperation with all the relevant bodies. Our main approach is to cover and enhance the interests of all our members. We are in close contact with all of them at any given time. Mainly, SSI acts as a bridge between the private sector, governmental bodies and international markets. SSI provides information about target markets and offers practical advice to members on export, logistics, banking, customs regulations, etc.

SSI also communicates and cooperates with other DEFENSE LEADERS • TURKEY 2014

POLICY MAKING national and international organizations. In this context, organizing national participation in the main international defense and aerospace exhibitions around the world or participating in the important international fairs with info-stands are among the main activities of SSI.

SSI plays an important role in preparing the ground for more international sales, thus opening the way for more investment in R&D, together with the relevant governmental, technical and private parties.

Which export markets hold the most potential for the Turkish defense industry?

A country which is to compete with big international players must have strong credentials in two critical fields: defense and energy. Our government approaches our defense industry strategically. The defense and aerospace industry is ahead of other industries vis-a-vis the rate of export increases, meaning that, in the last two years we have attained significant momentum. We have a target of being a leader in the proportional sense. It is not that there are not problems, but we are not interested in talking about them constantly. We rather focus on solutions and opportunities. In short, we are looking towards the future and moving forward. In the medium and long term, we are aiming to be one of the major global suppliers. We are fully aware of the importance of public relations and sales activities and we are positioning ourselves accordingly. There are six main regions to be mentioned in this sense: North America, the Commonwealth of Independent States (CIS), the European Union, the Caucasus region, the Gulf region and South East Asia. There are different steps being taken not only by our members, but also by governmental bodies and financial institutions to increase our exports. These steps include developing state-to-state sales possibilities, financing options and programs. Of course, we are planning to enhance our international presence at SSI. This is a globalized world we are talking about.

For all kinds of international partnerships, there is one thing clear we can say: they are important and necessary in terms of technology transfer, knowhow, strategic relations on the international stage, and thus for more exports.

How is SSI helping to foster R&D initiatives in Turkey?

First thing, as I have tried to explain, this sector is considered as a very strategic one by all the relevant actors in the country. It is already a leader in terms of increasing rate of exports, and it has a very high value on the export value/kg scale. Its most advantageous component is the fact that whole sector depends on R&D. What we have to do, and what we are doing, is to capitalize on this component. SSI plays an important role in preparing the ground for more international sales, thus opening the way for more investment in R&D, together with the relevant governmental, technical and private parties. Furthermore, SMEs play a significant role in our industry. We are integrating them more and more into the system, with a vision of promoting R&D, creating an even stronger labor force and increasing exports and employment. We are taking all the necessary steps in full coordination with the governmental bodies and institutions.

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members

Which ongoing defense programs are of top priority for Turkey?

We have to think of all the programs underway as “the priority”, as they are all connected or relevant with each other and with the strategic approach adopted. Nevertheless, we may mention some of the projects that are underway or have been completed, such as the Altay tank, the Anka UAV or the Milgem frigates, the Göktürk reconnaissance and surveillance satellite, Hürkuş trainer aircraft, TOROS 230A/260A artillery rocket systems, NEB bunker buster bomb, KGK smart wing adapter or the HGK guidance kit.

What are the main priorities for the Turkish defense sector in the coming years?

Working hard to be one of the major global suppliers, with a strategy based on high value added, high-tech products and services, defines the road map for the coming decade. Turkey has the will to be one of the most important members of the international defense industry with its strategic approach, political determination, national coordination and cooperation among relevant institutions and bodies, fast developing know-how, highly talented R&D labor force, growing companies, high quality products, increasing public relations and sales efforts and political, economic and historical links with many regions and countries of the world.

At SSI, we are well aware of our responsibilities and working very hard to that end.

SSI acts as a bridge between the private sector, governmental bodies and international markets.

THE EXECUTIVE GUIDE OF THE GLOBAL DEFENSE AND SECURITY INDUSTRY

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TURKEY’S MAIN DEFENSE EXPORTS SINCE 2000 AZERBAIJAN

GEORGIA • 100....

Cobra 2007-2008 Ejder 2008-2009 • 70......

MRTP-33 2008-2009 • 1........

MRTP-20 • 1........

TOMA Riot Control Vehicle •

Netherlands • 18......

Stinger Launcher Systems 2006

• 35.....

Cobra 2011

• 37.....

Shorland 2011

• 51.....

Land Rover Defender

Part of $21 million deal Part of $21 million deal Part of $21 million deal

• 30.....

Roketsan 107mm and 122mm 2013 - coproduction • 36.....

T-155 Firtina 2013

Deliveries delayed due to MTU engine export refusal

• 1........

MRTP-33 - Deliveries delayed due to MTU engine export refusal

SLOVENIA • 10......

Cobra NBC 2009

•

T-300 missiles 2013

$244 million deal

• 20.....

TOMA • VHF tactical radios 2009

JORDAN

$2.3 million deal

• 17......

F-16 modernization 2005-2007 ACV-S 2003-2004 • 100....

•

$42 million deal

TUNISIA

Electro-Optic Systems, coproduced

TURKMENISTAN

• 1,800. Night vision systems

• 2.......

• 40.....

Kirpi 2014)

YTKB 2012

€55 million or €120 million deal 8 more ordered

Bahrain • 15......

• 13......

EGYPT • 6.......

MRTP-20 2011-2012

Cobra 2008 ARMA 2013

maybe more ordered

3 produced locally

• 6.......

2013

Patrol boats

OMAN • 1........

Fire/Damage Control Training Simulator 2013

Libya • 20.....

TOMA 2013

SAUDI ARABIA • 98.....

Cobra 2004 ACV-S 2007 • 10......

M113 upgrade 2007-2013 • 620...

SS-30 rocket 2011 • 9,350 .

• 2....... VHF tactical radios and ElectroOptic Systems 2011-2012

QATAR • 6.......

MRTP-16/34 2012 SMASH • 3.......

Naval Gun 2013 • 1........ AW-139 simulator 2013 mini • 10......

IHA UAVs

$14 million deal

IRAQ • 573...

Akrep/Scorpion 2005-2006

Part of $88 million deal

united arab emirates NIGERIA • 204...

Cobra 2008 Patrol • 5....... boats 2014

Tanzania • 2.......

Patrol boats 2014

• 133....

$75 million deal

• 14......

• 10,000.

• 2,500

million deal

ACV-300 1999-2000

Cobra 2005 T-122 122mm 2005-2008 ASM CIRIT 2012 - $196

• 34.....

MRTP-16 2012-2013

• 150....

STAMP and STOP naval guns

22 produced locally

about 100 produced locally

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DEFENSE LEADERS • TURKEY 2014

Armored Patrol Vehicle (APV) Riot Control Vehicle Armored Personnel Carrier (APC) Infantry Fighting Vehicle (IFV) Howitzer / Self-propelled Howitzer Patrol Craft Fleet Tanker Fighter Modernization UAV Rocket/Missile

Naval Gun

Combat System

Training System / Light Equipment Date Year of Delivery

KAZAKHSTAN • 20.....

Cobra 2012 ... Cobra production line 2012 • TOMA • 17......

• Electro-Optic Systems, coproduced

PAKISTAN • 2.......

MRTP-33 2007-2008

2 more maybe ordered

• 2.......

• 52.....

MRTP-15 Panter 155mm 2008-2009

• 41.......

• 1..........

F-16 modernization 2009-2014 Fleet Tanker 2013

40 produced locally

Disclaimer: information has not been confirmed by the manufacturers.

Defense Leaders team takes the sole responsibility for the figures published in this graphic.

produced locally

• Genesis Naval Combat System 2013 STAMP Naval Gun • 4........

• 1........ Electronic Warfare Test and Training Range 2010 • VHF tactical radios 2010

SOUTH KOREA • 1........ CN-235 simulator 2005 • 1........ Electronic Warfare Test and Training Range 2012

$204 million deal, produced locally

$101 million deal

BaNGLADESH • 22.....

Cobra 2007-2008

PHILIPPINES • 1........

• 6.......

ACV-300 2004 ACV-300 2010

MALAYSIA Sri Lanka •

VHF tactical radios

$350 million deal

• 211...

ACV-300 2002-2004

• 48.....

ACV-300 2010

• 267...

Pars 2011

• 10......

MRTP-16 2011

$278-300 million deal

Part of $153 million deal

$2.5 b billion deal, produced locally

Indonesia •

6 produced locally

Joint development of Medium Armored Vehicle 2013

Part of $300-$400 million deal

THE EXECUTIVE GUIDE OF THE GLOBAL DEFENSE AND SECURITY INDUSTRY

33

POLICY MAKING

Yücel Altunbaşak President of TÜBİTAK TÜBİTAK, the Scientific and Technological Research Council of Turkey, was founded in 1963 to promote, support and conduct scientific and technological research in Turkey. As an autonomous public institution governed by a Science Board, TÜBİTAK acts as an advisory agency to the Turkish government and is the secretariat of the Supreme Council for Science and Technology (SCST), the highest science and technology policy-making body in Turkey.

What are the main objectives of TÜBİTAK? One of the main aims of TÜBİTAK is to support R&D projects carried out in universities and public and private institutions through grant programs, as well as undergraduate and graduate students through scholarships. Moreover, beyond funding R&D, TÜBİTAK conducts high-tech R&D projects through its research centers and institutes. As part of its efforts to promote science and technology, TÜBİTAK publishes popular scientific journals, books and magazines and organizes science and society activities for the development and dissemination of scientific culture, contributing to the adoption of a scientific approach by society. TÜBİTAK also represents Turkey concerning science, technology, and innovation under bilateral and multilateral relations and has been assigned officially by the Turkish government as the contact organization for the EU framework programs.

What are the main priority R&D areas that TÜBİTAK has identified?

Acting in accordance with national priorities is crucially important in establishing a country’s science policy. Therefore, at TÜBİTAK, we specify our fields of activity and offer our support and projects

to the service of our country in line with the priorities determined by the Supreme Council for Science and Technology (SCST), which functions under the chairmanship of the Turkish Prime Minister.

We have been moving towards a mission-oriented approach in R&D funding while keeping the balance between focused areas and bottom-up research. We defined automotive, machinery and manufacturing technologies, ICT, energy, water, food, security, health and space sectors as our priority areas. Within this approach, one of the most recent initiatives taken

by TÜBİTAK has been the launch of the Priority Areas Research Technology Development and Innovation Funding Program that has been designed for the private sector and academics. Through this new program, we are supporting the priority sectors of Turkey. Opened calls include those in the automotive, ICT, machinery and manufacturing, energy, food and water sectors based on their sub-technology areas.

Also, starting from 2013, we support mega R&D projects, which we call “Landmark Projects”. We have started with electric vehicles, where we see a great potential for Turkey. Grant Programs administrated

by TÜBİTAK could be roughly classified under three groups according to the nature of the supported parties: Academia and Public Organizations, Private Sector and, lastly, Researchers and Students.

TÜBİTAK provides grants through a constellation of committees that scrupulously evaluate each and every application with the assistance of neutral panels of scientists and dispenses the funds accordingly.

What was the vision behind the creation of TÜBİTAK Sage?

TÜBİTAK Defense Industries Research and Development Institute (TÜBİTAK Sage) was established in 1972, in order to meet the needs of the Turkish Armed Forces and the national defense industry organizations and to faster research and development cooperation with national and international organizations. The main objective of TÜBİTAK Sage is to perform applied research and technological development in order to contribute to establishing a healthy national defense industry based on scientific and technological infrastructure throughout the country. In this context, the institute carries out activities to develop genuine defense products and systems, enables these products and systems to enter in the inventory and acquires the necessary technology and infrastructure in the national projects. TÜBİTAK Sage was mostly focused

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DEFENSE LEADERS • TURKEY 2014

POLICY MAKING on academic studies and technology representation until 1996, when we start the TOROS project, a multiple launch artillery rocket system developed with tiny budgets and limited country opportunities.

With TOROS, TÜBİTAK Sage demonstrated that a missile can be domestically developed without any technology transfer. The success of the TOROS project led to the execution of the HGK precision guidance kit project and the institute in general began to undertake more systems level projects.

What are some other defense projects that were developed by TÜBİTAK Sage?

HGK, which is a smart bomb, was developed with the support of Turkish Air Force, as the user, and the Ministry of Defence, as the acquisition authority, with a relatively low budget. Using the HGK system, which possesses both a GPS and an inertial navigation system, targets can be hit with high precision. Thanks to this project, TUBİTAK Sage became the first competent national authority in the guidance, control and navigation area. HGK is the first munitions project that was developed, certified and integrated to combat air vehicles fulfilling the military standards. The project was successfully completed in 2006 and HGK has been produced serially since 2009. After the success of HGK, another guidance kit development project, the

Wing Assisted Guidance Kit (KGK), has since started and is considerably increasing the normal range of the bombs. Thermal battery technology is another innovation that has been achieved by the HGK project. Because of the high costs and international regulations in the procurement of thermal batteries from international firms, the Institute took the decision to develop thermal batteries in-house.

Thanks to the development of these batteries in TÜBİTAK Sage, our country attained the capability to design and produce thermal batteries domestically.

Following this development, TÜBİTAK Sage focused on critical sub-system technologies. With the experience of these successful projects, TÜBİTAK Sage started Turkey’s first cruise missile, the Standoff Missile (SOM) project, which is being developed with national resources. SOM is aimed at fulfilling the Turkish Air Force’s long-range missile necessity.

Through this project, a cruise missile featuring long range, high accuracy, powerful lethal impact, low visibility, flexible mission profile and engagement to target of opportunity is being developed in Turkey for the first time. In 2012, a cooperation protocol entered into force for long-range cruise missile design, production and domestic and international sales between TÜBİTAK Sage and Roketsan. Serial production efforts are still directed by Roketsan and in this process, TÜBİTAK Sage takes the design authority role. Within the scope of the SOM project, the development of different variants of the missile

by Sage, is also a target. Enabling technologies such as terrain aided navigation systems, image referenced navigation systems and automatic target acquisition were developed for these variants for the first time in Turkey. Besides these above-mentioned projects, dozens of other projects are currently going on at TÜBİTAK Sage. Consequently, TÜBİTAK Sage has become a pioneer institution in the Turkish defense industry that develops state-of-the-art systems and sub-systems by converting its R&D capability in the field of rocket and munitions systems into products and services. In addition to that, Sage plays a key role in minimizing the dependence on foreign countries. With the success it reached so far, TÜBİTAK Sage continues to emphasize the significance of research and development in Turkey.

How does TÜBİTAK Bilgem contribute to the national security of Turkey?

TÜBİTAK Informatics and Information Security Research Center (TÜBİTAK Bilgem) is the biggest R&D center of TÜBİTAK and Turkey. Consisting of more than 1,700 staff, of whom 80% are R&D staff, TÜBİTAK Bilgem provides our country with innovative and national solutions for its technological needs thanks to its research in the fields of informatics, information security and advanced electronics.

With its entirely domestic military and civilian technologies developed in a highly secure operating environment, Bilgem contributes to our national security. Additionally, the center supports the country’s competitive power through its products being exported to NATO and the international arena. With its qualified staff, it takes firm steps in directing the current technological developments both at home and abroad and in shaping future technology. In the forthcoming term, we aspire to enhance cooperation with foreign countries.

Thus, we aim at providing friendly countries with high-technology products through the selling and technology transfer of the mentioned products. In the same vein, we aim to establish closer ties with industry and contributing more to our economy and R&D experiences. We strongly believe in the fact that these goals will further strengthen the success of the country in becoming a world power in technological fields. Based upon over 40 years of experience, the center is now one of the most competent R&D centers of Turkey. The institutions within Bilgem have so far attained hundreds of project achievements in the fields of information security, software and telecommunication. These institutions are the National Research Institute of Electronics and Cryptology (UEKAE), the Information Technologies Institute (BTE), the Advanced Technologies Research Institute (İLTAREN), the Cyber-security Institute (SGE) and the Software Technologies Research Institute (YTE). Thanks to the projects of these institutes, Turkey has become one of the few countries to declare its technological independence in the fields of information security and informatics.

THE EXECUTIVE GUIDE OF THE GLOBAL DEFENSE AND SECURITY INDUSTRY

One of the most recent initiatives taken by TÜBİTAK has been the launch of the Priority Areas Research Technology Development and Innovation Funding Program that has been designed for the private sector and academics.

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POLICY MAKING

Dr. Hasan Palaz President of TÜBİTAK Bilgem Bilgem’s (Informatics and Information Security Research Center) story started 45 years ago.

The center was first established within ODTÜ (Middle East Technical University), then moved to the TÜBİTAK campus located in Gebze. Today, with its six institutes and staff exceeding 1,700, it is the largest R&D center of TÜBİTAK and of Turkey.

research and development activities. Last but not least, we have the Software Technologies Research Institute (YTE), which offers R&D software solutions to both state and private sectors and provided e-Transformation services to public institutions that were needed during their transition to the e-Government system. The six institutes are now organized under the Bilgem structure and we have created new departments under the vice presidencies of Bilgem.

What is the contribution of these institutes to the global security of Turkey?

What have been the recent changes in the organization of Bilgem?

staff

1,700

6

institutes

36

Bilgem is a government research center that includes six different institutes. Before the research center, there was only the National Electronics and Cryptology Institute, which now make up the core of Bilgem. The cryptology and informatics institutes were later merged to become a major research center. We then created six new institutes that now operate under Bilgem. The first one is the National Research Institute of Electronics and Cryptology (UEKAE), which works on information security and electronic systems projects vital to strategic government institutions, making significant contributions to Turkey’s capabilities in information security. The second one is the Information Technologies Institute (BTE), which aims to improve the welfare and security of the public through the realization of projects in the areas of intelligent transportation systems, homeland security, defense technologies and sensor and radar systems. Then we have the Fundamental Sciences Research Institute (TBAE), which was established in 1968 to put forward, analyze or help solve the problems of fundamental and applied research in the field of fundamental sciences. The fourth one is the Advanced Technologies Research Institute (ILTAREN), which conducts research activities in electronic warfare (EW). The fifth one is the Cybersecurity Institute (CSI), which provides information systems and security consultancy services to public, private and military organizations and conducts

The institutions within Bilgem have so far attained hundreds of project achievements in the fields of information security, software and telecommunications. Thanks to the projects of the six aforementioned institutes, Turkey has become one of the few countries to declare its technological independence in the fields of information security and informatics. Products and solutions developed

by Bilgem have been deployed beyond the country’s borders and are being used by many European and Asian countries, as well as NATO. In other words, Turkey is no more a country that only imports informatics and information security; we also compete with the world’s leading countries in this regard.

To what extent does Turkey recognize the importance of cyber-security?

Cyber-security is a hot topic not only in Turkey, but also in the rest of the world. We have been working on this issue since the end of the 1990s when we created a small group to work on cyber-security. In 2012, we created the Cyber-security Institute. The Turkish government also created the Cyber-security Council, of which TÜBİTAK’s president is also a member. Our institute is responsible all the technical work of this council through a contract we have with the Ministry of Transportation and Communication.

We prepared the Turkish National Cyber-Security Policy, in which we defined the country’s vision and targets. We are now supporting government agencies by helping them protect and implement a higher level security for their information systems.

We are also conducting some R&D projects funded by the Ministry of Information and Communication.

In today’s world, everything is connected to the Internet, including portable devices, and that is why cyber-security is a top priority. For instance, cyberDEFENSE LEADERS • TURKEY 2014

POLICY MAKING microprocessor-controlled communications systems that enables underwater communications between surface and underwater vessels via acoustic waves.

Communication can be achieved in telephony or telegraphy mode. Underwater telephones are made in two different model lines: the regular type for the Milgem frigate and the portable type for rescue vessels. We also provided some infrared data management analysis software to the Milgem warship. Last but not least, one of Turkey’s next major defense projects is the development of the TFX indigenous fighter jet. We are also in charge of the R&D side of that project.

What are the key priorities for Bilgem?

Our top priorities as of today are information security, electronic warfare, cyber-security and information processing (big data). We also signed a contract supported by the Undersecretriat for Defence Industries (SSM) and Aselsan to develop the silicon-germanium (SiGe) process of production.

It is widely used in the phase array radar systems.

So this is a very important priority for Turkey and for Bilgem.

To conclude, how do you see the potential of the defense sector for Turkey? security is not only about government information.

In fact, most cyber-attacks are carried out in order to obtain the economic and industrial information.

Cyber-security of critical infrastructure is also a priority we are currently working on. The Ministry of Development supports this initiative, but we are also working together with several other ministries, related industries and private companies. As a part of this initiative, we are creating a database of the critical infrastructure and then we analyze all the potential weaknesses of the private companies and government agencies concerned. Finally, we prepare a report for the ministries and propose what they should do in terms of cyber-security for these critical infrastructure. That is a just starting point and we will continue working in this direction.

Turkey has a huge potential because, if you look at the scale of the army, it is very large. We have a very good market in Turkey, which easily supports the creation of new products and companies. The weakness of out companies, however, is that they have some difficulties selling these products outside of Turkey; that is the main bottleneck. We have to develop the products to satisfy the requirements of our army and foreign customers. We also have many large corporations in this sector, but we need more SMEs to support them in order to develop a complete defense ecosystem like in other more developed defense industries, such as Germany.

The institutions within Bilgem have so far attained hundreds of project achievements in the fields of information security, software and telecommunications.

What is your assessment of Turkey’s expertise in cryptology?

In cryptology, we have a very good position worldwide. We are providing some cryptology solutions to NATO as a sole source supplier, such as secured USB flash memory storage devices called SIRs. This shows our level and position worldwide, where we play undoubtedly in the big leagues.

TÜBİTAK started working on cryptology at the beginning of the 1980s and has become extremely qualified in the domain. We are also producing our cryptology chips with our own national algorithms.

Are there any successful projects that you would like to highlight?

We have participated in many projects in Turkey.

For example, we provided technology to the Milgem national warship program, namely degaussing systems and an underwater acoustic phone system.

The purpose of degaussing systems is to generate a magnetic field that is equal in strength but opposite in direction to that of the ship, thereby cancelling the disturbance caused by the ship’s presence in the Earth’s magnetic field. The underwater telephone is a THE EXECUTIVE GUIDE OF THE GLOBAL DEFENSE AND SECURITY INDUSTRY

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POLICY MAKING

Volkan Atalay Vice President of the Middle East Technical University (ODTÜ) The Middle East Technical University (METU or ODTÜ in Turkish) is an internationally recognized university and one of the most selective in Turkey. The university has more than 40 undergraduate and 150 post-graduate programs and a strong focus on the defense sector.

Located in Ankara, it has also created the largest technopark in Turkey, the ODTÜ Teknokent, which hosts more than 300 high-tech companies.

We get many grants locally from TÜBİTAK, SSM, the Ministry of Industry and Science and KOSGEB among others.

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What are the main areas of focus of the university?

In general, we have three missions as a university: teaching, which is to transfer the acquired knowledge from one generation to the other, generating knowledge with research and applying knowledge.

Also, from a social standpoint, we have a mission of service to society. At ODTÜ, we try to strike a balance between all of our missions. We may not be the best in each one of them individually, but overall we are the best in Turkey. As our name implies, our university was created with emphasis on the sciences and engineering. If we go more into details, and considering our location in Ankara, one of our really strong focuses is on the defense industry.

The industry inherently touches upon a very broad spectrum of sectors, such as material sciences, information technologies and radars. For instance, at ODTÜ, we have an extremely strong link with Aselsan, the leading defense company in the country. The defense sector is our most important focus, while the second is information technologies. Furthermore, with the collaboration of our technopark, ODTÜ Teknokent, we are also trying to establish two more areas of focus. One of them is renewable energy and the second is in the medical and health sector.

The idea is for Turkey to start producing more health and medical devices and biotechnology locally. The role that the Undersecretariat for Defence Industries

(SSM) has played over the last decade has proven a very successful model and the government wants to replicate it in the medical sector. The health sector is much larger than defense, but 95% of the equipment and pharmaceuticals are imported in Turkey. The ultimate goal is to increase domestic production, as Turkey did with the defense industry.

ODTÜ can provide support in terms of education, research and technology development.

How do you see the potential of the defense industry for Turkey?

Murad Bayar, the Undersecretary of Defence Industry, has greatly contributed to the transformation of the sector since 2004. He has outlined very relevant strategies and made sure that they were applied in practice. For example, the goal of having 50% of our defense needs met by local output was an ambitious goal and one that has been achieved. Now, there is a new strategy for exports. It fits very well for us because, first, they have strengthened the local industry and now they are trying to make it competitive in the global sense.

Without competition, we cannot proceed. We have seen that in our case as well. For example, when Bilkent University was created, the collaboration and the competition with them has enabled us to become even better than we were. I truly believe that competition is sound and has a positive contribution DEFENSE LEADERS • TURKEY 2014

POLICY MAKING on performance. Likewise, exports are a good way of being confronted with competition. Of course, it can also lead to many tensions in the government, in the private sector and in universities, but it has a positive contribution at the end of the day. As an example, when Aselsan and the Turkish industry make a system for Turkey, the critical components are sometimes imported from the US, Germany or Japan. But when they then want to export it to a third country, the foreign companies do not allow them to re-export these critical components. So these critical components have to be produced in Turkey if we want to be able to export our products.

Generally, these critical components are related to fundamental research. The SSM has now started some fundamental research projects needed for exports. We are very happy with that because now our basic sciences are more geared towards of the defense industries and this is good for the university.

We thus have more research funding from SSM for the basic sciences. That is the main benefit of this export strategy in the universities.

ODTÜ receives 10% of the entire FP7 research budget for Turkey. This means that we do very good research.

To what extent is ODTÜ a good example of university-industry partnership?

In the Turkish university system, we have two ways to interact with industry. One of them is the Döner Sermaye or revolving fund. But there is high overhead with this system and it increases the cost of service for the state universities. We cannot compete very well for these kinds of cooperation with the private universities. The second way is through technoparks, or technology development zones, which have their roots back in the 1980s. At that time, the stateplanning agency started to think about such science and research parks. Around 1985, ODTÜ prepared a strategy plan and, in 1991, the university managed to establish an incubation center in collaboration with the Directorate of Small and Medium Sized Enterprises (KOSGEB). It was one of the first of two incubation centers in Turkey; the other was at the Istanbul Technical University. In the early 2000s, ODTÜ pushed the idea of developing technology and science parks. Before the laws and regulations were even finalized, we began construction on a technopark. In 2002, the legislation for establishing technology development zones was created, giving tax incentives to the companies present in technoparks. After this law came into force, ODTÜ and TÜBİTAK MAM were the first two institutions to establish technology development zones. At ODTÜ, we now have more than 1 million square meters devoted to the technology development zone, ODTÜ Teknokent. It has been running for the past 13 years and it is a very successful project for our university.

We also see it as the main arm for collaboration with industry. We have about 3,000 companies in ODTÜ Teknokent and 50% of them have been incubated here.

How do you finance your research projects?

Most of our budget comes from the state, but one-third of university expenditures comes from competitive research grants, both national and international. This was given a boost in 2004 with Turkey’s attempt to enter the European Union. One of the first things that was discussed with the EU was science and research and the European Union required that we have a high expenditure on research programs. At that time, our research expenditures/GDP ratio was around 0.4%; it is now between 0.8% and 1%. Over the past 10 years, ODTÜ has enjoyed a steady stream of income from research and competitive funds, including the European framework programs FP6 and FP7. We are the most successful university in Turkey in this regard and we also get many grants locally from TÜBİTAK, SSM, the Ministry of Industry and Science and KOSGEB among others. Our university gets the highest amount from research grants from these institutions. For example, ODTÜ receives 10% of the entire FP7 research budget for Turkey. This means that we do very good research, but it is also part of out mission to apply it. This means that we need to collaborate with industry so that research output has commercial and societal value. ODTÜ Teknokent is the main arm for that and there is a high-level of cooperation between ODTÜ Teknokent and the university: faculty members, graduate students, research laboratories and research centers. In the last few years, we have also seen that some of our faculty members have shown an interest in creating spin-off companies. There are now fifty of them and it is also another way of applying the knowledge and the research outputs of the university. We are trying to attract both big companies, like Turkey’s “big four” defense sector companies (Aselsan, Havelsan, TAI and Roketsan), but also, with our cluster, we are trying to attract SMEs in addition to entrepreneurs.

In this regard, entrepreneurship is now an essential alternative for our graduates to working in these large companies. We have always had very good collaboration in terms of doing consultancy work for large companies; we would now like to do more joint research projects with them.

THE EXECUTIVE GUIDE OF THE GLOBAL DEFENSE AND SECURITY INDUSTRY

ODTÜ Teknokent, hosting more than

300

high-tech companies

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Tolga Özbolat Director, University-Industry Collaboration at ODTÜ Teknokent ODTÜ Teknokent is the first and largest technology park in Turkey. It supports the creation of synergies between industry, ODTÜ university and public institutions through infrastructural and structural opportunities developed for academics, researchers and companies using and producing technology. It has become a successful model for the formation of both the legal framework and the development of other science parks in Turkey and neighboring countries.

Each and every company located in the technology park has to work on at least one R&D project.

What are the main assets of ODTÜ Teknokent?

ODTÜ is the leading university in the defense industry sector. This comes from the capability and the capacity we have in that field, as well as from our location in Ankara where most of the Turkish defense industry is located. Therefore, ODTÜ Teknokent is the largest partner for the defense industry and this is especially true in the fields of electronics, computer engineering, mechanical science, mechanical engineering and chemistry. There are some direct research projects as well as direct corporation projects. Furthermore, we also have research centers dedicated to defense where the outcomes of the projects are then transferred to the defense industry.

Finally, ODTÜ Teknokent is the largest and most innovative technology park in Turkey, in addition to being the first that was established in the country.

How many companies are currently conducting defense activities in ODTÜ Teknokent?

In total, there are more than 300 companies in the technology park and the common point of these companies is that they are dealing with R&D. We have 73 companies directly active in the defense

sector in the technology park. The remaining 230 companies are working in ICT, software development, medical application and sensor technologies, but are also servicing the defense industry to a certain extent.

What are the main advantages for companies set up in the park?

First, there are five types of tax incentives according to the Turkish law 4691. This law states that if the company is conducting R&D projects in the technology park, it will not be subject to the corporate tax. The people working on these projects are also not subject to income tax and, for five years, the state pays half of the social security premium of these research and development personnel. There are also two more advantages on the university side.

Although it is a state university and they are state workers, academics can establish a company in the technology park and they are not subject to income tax. Beyond the financial advantages, parties benefit from excellent university-industry collaboration.

ODTÜ Teknokent acts as a bridge between the university and industry in order to transfer the knowledge or the technology from university to

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73

companies active in the defense sector 40

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POLICY MAKING industry or vice-versa. The main advantage is the human resources and the research capacity of the university. The university has huge facilities, as a considerable amount of investment has been made in the research centers and laboratories, and the companies can use these resources. ODTÜ students are from among the top 3% of selected students from the national university entrance examination.

The university trains the most successful and capable engineers in the country, or even the wider region, and the companies have the ability to access this invaluable human resource. It is especially valid for defense industry companies such as Aselsan.

They directly hire students in their fourth year of university as candidate engineers and often extend their contract after graduation.

SMEs are quite powerful in developing subsystem technologies, but they need an integrator to assemble all the parts of the broader project.

What is the role of Teknokent Defence Industry Cluster (TSSK) within this framework?

We began working on TSSK during the second half of 2012 and, by the end of the year, we had selected the executive board members of the cluster and outlined the details of our working policies.

I want to insist that TSSK is not a company or an association with a legal entity; it is just a cluster.

The legal entity that speaks on behalf of the TSSK is the ODTÜ Teknokent management company. For the time being, we do not want to make it a legal entity and we do not have any membership fees.

We would like to have this evolve by itself and, with contribution from the members, it may eventually become a company, an association or a foundation.

In February 2012, with 19 defense industry companies from our cluster, we were selected by the Ministry of Economy for a 3.6 million dollar project called Development of Companies’ Competitiveness for the Global Market (UR-GE). Our aim is to enable our companies to be more competitive by improving their resources, whether that be human resources, material resources, facility-resources or know-how. The project has been planned over a six year time frame. During the first three years, we actually feed into the companies with training, consulting, attending international exhibitions, fairs, accepting delegations from countries around the world, delegations from companies and B2B meetings. Over the course of the second three years, the companies work by themselves and can have support for individual consulting on a specific issue on which they need help. We are going to start a second project to cover almost all of our members

in collaboration with the Ministry of Science, Technology and Industry, but it has not yet been finalized. Our vision is to see Turkey among the top exporters of technology in the defense industry in the near future.

Why do you believe SMEs are critical for the competitiveness of the Turkish defense sector?

For the time being, indigenous production sustains only 54% of the needs of the Turkish Armed Forces, so there is still 46% that is imported. We would like to decrease imports and increase exports as much as possible with domestic products or services and this is actually in line with the strategic objectives of the Undersecretariat Defence Industries (SSM).

We share that objective and we believe that this can only be done through the development of new technologies, in which SMEs have a critical role.

SMEs are much more flexible and reactive than large contractors. They can conduct R&D in fields that do not necessarily interest larger corporations.

Each and every company located in the technology park has to work on at least one R&D project. In the defense industry, SMEs are quite powerful in developing subsystem technologies, but they need an integrator to assemble all the parts of the broader project. We believe that the TSSK SMEs can add more to it by working with the main contractors and almost all of the SMEs in the cluster are actually subcontractors of the main contractors. We are on the right path to develop technology and to supply it to the main contractors and then increase the contribution of domestic production. The main duty of the cluster is to create the necessary conditions for such an ecosystem.

What is the international strategy of ODTÜ Teknokent?

We are actively trying to internationalize the technology park and we are trying to do it in three steps. The first one is the internationalization of the small companies. The second is to internationalize the technology park itself with the contribution of the management company. Finally, the third step is to have major international players in the technology park. We are currently trying to contact each and every key player in the sector and invite them to set up an R&D office in the technology park. In order to do that, we can offer several options. It is always possible to rent an office in the technology park or they can even construct their own buildings and make the investment by themselves. We can also have a long-term contract with them and provide the entire infrastructure. So we are always looking for international cooperation and we are open to any kind of suggestion. Dealing with innovation, we are very flexible. I would like to add that this is an open invitation to companies who would like to have their research centers in different parts of the world. Offset obligations and local contribution amounts required

by SSM seem to play a vital role. Tax incentives and high quality human resources are the other factors that attract foreign partners to Turkey. This is one of the hotspots for Turkey and for the greater Middle East region.

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Tax incentives and high quality human resources are the other factors that attract foreign partners to Turkey.

Supply of the needs of the Turkish armed forces

46% 54%

by imported products

by indigenous products

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Turgut Ĺženol General Manager of Teknopark Istanbul Teknopark Istanbul is a technology park that aims to be one of the largest in Europe. It is jointly developed by the Undersecretariat for Defence Industries (SSM) and the Istanbul Chamber of Commerce (ITO), along with academic input from several universities in Istanbul. It is expected to generate 10 billion dollars in annual income when it becomes fully operational.

We have, for example, a risk capital fund that we are going to provide to our tenants to initiate their own project.

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What makes Istanbul Teknopark so attractive?

Our goal is to create the best environment for tenants to cooperate with each other, to work hand in hand with higher education partners, to get international recognition and to have partners in Turkey, Europe, the United States and the Far East. What we are trying to do is to create that environment in Teknopark. For example, the Teknopark will never be the kind of institution that dictates what technologies companies should work on like you can see in other parts of the world where the technoparks are trying to dominate the technology landscape of a country. This is not our case and this is not the way to success. The incentives that the Teknopark is providing are quite similar to many other technoparks. We provide an income tax incentive, a corporate tax incentive and some VAT incentives. However, we also have some interesting initiatives that you do not find anywhere else. We have, for example, a risk capital fund that we are going to provide to our tenants to initiate their own projects. At the beginning, it will consist of around 25 million Turkish Liras provided by the Istanbul Chamber of Commerce and will enable us to create many new start-ups, ideas and visions. I am sure that we will have many successful stories through this initiative. We have also created a very good collaborative environment with universities.

As of today, the board has approved six universities from Istanbul. They will take part free of charge in the Teknopark. We are providing the land and they will build their own buildings, run doctorate and masters programs, open new laboratories and develop all

of the testing environment for the industries who are taking part in the project. It is a new vision and a new approach as we are going to be one of the first technoparks collaborating with more than one university. Thus, the companies will be free to work with academics from various universities. Some of these universities are creating excellent standards in the Teknopark. For example, Istanbul Technical University and Turkish Airlines are collaborating on creating an aviation excellence center in the Teknopark. Istanbul Technical University, Piri Reis and Yildiz Technical University are also going to create a naval excellence center. We want to make sure that each of the programs developed by universities match the needs of companies. So these are just a few things that make us different than other technoparks.

What are the main priority sectors that you are targeting?

We have eight main focus areas: aviation and space, biomedical, marine technologies, advanced electronics, advanced materials, energy, industrial automation and, of course, defense technologies.

The defense industry is principally located in Ankara, where all the large Turkish defense corporations have their production facilities. Istanbul, however, has much to offer the defense sector and we are trying to introduce the industry to Istanbul. We are hoping to attract their attention to the need for having new faces, new funds and new technologies in the defense industry. We are also trying to attract the attention on the human resources available in Istanbul. There are more than 40 universities in Istanbul that have a great potential to support the industry with new engineering courses. Slowly, the defense corporations located in Ankara are starting to understand the content and quality of support that they can get from Istanbul. I am sure that with the introduction of the defense industry to the Istanbul academic and industrial worlds, we will be able to meet more of our needs than we have in the past through Istanbul’s capacity. We do not explicitly say that we place extra emphasis on our defense industries compared to other activities, but by its nature, it has to be different. Istanbul is also showing a good deal of interest in defense industry and it is trying to reshape its investments to meet the needs of this particular industry.

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POLICY MAKING How is the application and selection process going?

Do you also interact with some other institutions outside of Turkey?

We already have received applications from 1,255 companies and, so far, have accepted 81 of them. We definitely do not have any demand problem, but rather a space problem for the time being. We have to create excellent infrastructure for them and we want to be sure about what types of events we will show here, what types of support will be provided and what type of collaboration will be created. These are important issues. I would say that the size of applying companies is not important, but their ideas are much more closely scrutinized, as we are attaching a lot of importance to the quality of companies’ core activities. We are trying to have corporations from almost every discipline to support each other in upcoming days to create new value.

We have international grants and international collaboration programs. We are also trying to create an environment for Turkish people living abroad called “home away from home”. A Turk living in the United States, for example, working in a company or a university, has the ability to interact with another company in Turkey. We offer him or her the opportunity to spend a few days a month in Turkey in order to transmit some of their knowledge and capacity back home and try to create a bridge between foreign companies and Turkish industry. We not only do it for Turks living abroad, but also for foreign companies that are willing to move to Turkey. We have set up similar deals with China, Israel, the United States and we even have an agreement with Malaysia. For example, if a Malaysian company wants to move to Europe, we are willing to accommodate it over here and we will take care of all the investment requirements, work permits, internal affairs, residence, children’s schooling and health care needs. The company just has to work from Turkey through to Europe. We are also inviting American companies the same way. As another example, we are creating a link between Philadelphia and Turkey to help Turkish companies trying to open a new door into the US market. They will host them in Philadelphia and we will host the American companies in Turkey. Furthermore, we are also trying to create a similar sort of collaboration with Germany, which holds very high potential with the large community of third generation Turks living there. These are all the different things that we are trying to do to reach out internationally.

How do you select the companies with so many applications?

We have tried to strike good balance between all the different companies. We have some 15% from each major focus area, namely medical, defense and marine technologies. Some 10% goes to the aerospace and aviation field. Energy, to my surprise, represents just 2-5%, but this is largely because there are not many high-tech companies in the energy sector in Turkey. We have a good amount of electronic companies and automation and software also make up another 20%. In general though, we have tried to keep a good balance and we did not give priority to any of these companies, even if I have a certain responsibility vis-à-vis SSM to try and introduce the defense industry to Istanbul’s industrial world.

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We are also trying to create a sort of collaboration with Germany, which holds very high potential with the large community of third generation Turks living there.

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James Holmes President of the American Turkish Council The American Turkish Council (ATC) was created more than 30 years ago to promote and protect the broader relationship between Turkey and the United States. As of today, the organization commits most of its resources to the promotion of business and commercial relationships between the two nations.

How would you describe the current level of military and homeland security cooperation between Turkey and the US? I believe that the relationship is an overwhelmingly good one. It is long standing and enduring, but has required that both parties be able to adjust to change.

There was a long period of time historically when the US was building the systems and Turkey was buying them. This is no longer the case. US companies have had to adjust to a different approach to this issue as far as Turkey is concerned. It is not only

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about competition in terms of other global players and defense systems, but also about adapting to Turkey’s own defense aspirations in order to put forth proposals that step up to the requirements on price and ensure that there is something in it for Turkey’s defense industry.

Is there a need for more transfers of technology from US defense corporations?

In terms of large procurement contracts handled by the Undersecretariat for Defence Industries (SSM), American industry is fully aware of what is required of them to be competitive. I do believe that in all of these areas, one must learn and improve.

What is not entirely apparent is that American industry yet appreciates the extent of technology transfer, local defense participation and pricing discounts that our competitors are prepared to extend. It is also possible that American industry “over-builds” its proposals. For example, in the most recent long-range air and missile defense system procurement (T-LORAMIDS), there was a requirement from SSM for lifecycle costs for the system, which were provided by Lockheed MartinRaytheon. However, I understand that lifecycle costs were not provided by some of the other competitors and SSM determined that lifecycle costs were too difficult for it to insist upon them, so it abandoned those requirements. Lockheed Martin-Raytheon not only provided those costs but they also provided a matrix by which they could be calculated for all the proposals. They demonstrated that Patriot Advanced Capability-3 (PAC-3) would be cheaper than any of the other competitors over the lifecycle. When the Turkish Defense Industry Executive Committee made its September decision, its analysis did not allow for that calculation and actually excluded that information. I think there is a discrepancy sometimes as to how these items are calculated and concluded between American industries and those in Turkey, and perhaps especially so with competitors like the Chinese. My impression is that the Chinese not only offered 50% local industry participation but also complete transfer of technology. The US approach is not to simply turn over all technology and walk away, but rather to help the Turkish industry to build up the capacity and remain capable partners. In the end, this is a different but equal approach to that of our competitors.

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POLICY MAKING What have been some the major recent changes in the Turkish defense industry?

The change has been enormous. I have been associated with the industry for over 20 years and I can say that, in terms of integrating parts and supplies from Turkish producers into American defense systems, it was enormously challenging in the early days and even suspect as to what the supplier relationship could be and if so, with what reliability. These questions no longer exist.

The American defense industry today fully expects that when they engage with Turkish suppliers, they engage partners that are timely, reliable and highly capable of working with new and advanced technologies. They have thus become reliable suppliers in the supply chain for major American producers like GE jet engines, Sikorsky helicopters and the Joint Strike Fighter program. The Turkish defense industry has really matured tremendously over the last two decades.

How has Turkey’s role in NATO changed over the past decade and what role will it play over the coming years?

In terms of its reliability and effectiveness as a NATO partner, Turkey continues to be an integral member of the alliance. For example, what was described as the largest post-Cold War undertaking of NATO has been in Afghanistan. Turkey has been a very important, even critical player, capable of reaching into the cultural edifices of Afghanistan in manners that other NATO members could not.

In terms of mission capabilities and leadership in Afghanistan, Turkey has absolutely fulfilled its alliance relationship and commitment. Of course, we do on certain occasions have diverging views.

These are to be expected and I believe that we will see more of them to come. Turkey has its own interests on occasions and the US does as well, but what is important is that we have repeatedly been able to work through these issues and have been productive. I cannot think of an instance where there has been enduring, damaging fallout for NATO as a consequence of diverging Turkish foreign policy or changing national interests. For years, Turkey had limited horizons, was not prepared to step out front and it was very comfortable being in the shadow of the US. Turkey even became known as NATO’s most reliable ally due to its position and political and national security perspective. Over the last decade, however, there has been a substantial change in Turkey’s own vision and global horizon. It has been much more ambitious in terms of its regional role and how it sees itself globally.

importance of the relationship between Turkey and the United States in all dimensions. The ATC is not afraid to engage in educational efforts to ensure that our leadership, whether executive or legislative, is fully informed and, hopefully, pays attention to the importance of the broader relationship.

What will be the key topics of your annual ATC conference in 2014?

We are actually now in the process of formulating a common theme with our partners. The overall theme will remain, as it has been in the past, what is necessary to reinforce the critically important relationship between Turkey and the United States.

Turkey is going to enter a yearlong period of elections. These are choices that Turks make and we are absolutely confident that the right choices to ensure the quality and durability of democratic institutions will be made. We will work with any outcomes that may arise and we need to be on the alert for those election outcomes over the next year and a half. There is also the attention that the United States and Turkey must pay to the US-EU negotiations on what is called the TTIP agreement (free trade). Successful negotiations could lead to unintended but nonetheless negative consequences for Turkey-US commerce. The American-Turkish Council members will keep a very close eye on those negotiations and the consequences because they could be inherently unequal and negative for Turkey due to the 1995 Customs Union agreement between Turkey and the European Union. This is something that we are aware of and are committed to working on. Both the US and Turkish governments will engage, educate and hopefully be able to persuade those involved in a manner that protects and advances US-Turkish commercial relations.

Turkish industries have become reliable suppliers in the supply chain for major American producers.

To what extent can a business organization like ATC help promoting diplomatic relations?

It has been demonstrated repeatedly throughout the years that tertiary matters can interfere with the smooth relations between Turkey and the United States. A good example would be the Armenian resolutions that have repeatedly been raised in the US Congress. On such occasions, it is important that we be prepared to reach political leadership, in this case US political leadership, and tell them in the correct tone and with the correct, educated approach that there are a number of important matters at stake. Therefore, we should not let our emotions run away with reason and ensure that actions taken are with a full awareness of the THE EXECUTIVE GUIDE OF THE GLOBAL DEFENSE AND SECURITY INDUSTRY

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POLICY MAKING

A Long-Standing NATO Member Having formally entered the North Atlantic Treaty Organization (NATO) on February 18, 1952, Turkey is among the alliance’s oldest members. More than 60 years later, the role of Turkey within the alliance remains strong amid new security threats and challenging regional changes. Turkey’s role was further reinforced by the New Strategic Concept. Stemming from the 2010 Lisbon Summit, it outlines the principles that members must adopt in order to make the alliance more effective against new threats that will emerge in the coming decade. The example of the Libyan crisis is an illustrative example of Turkey’s strategic position within the security environment of the Euro-Atlantic region.

Looking back at a turning point in history, the end of the Cold War era in 1989 has set the bases of a new geopolitical order. NATO integrated former socialist republics, but Turkey remained a crucial part of the alliance and NATO and Turkey worked together to respond to a wide range of new risks resulting from an increasingly changing world order. Following the terrorist attacks of September 11th, 2001, the alliance had to redefine its defense strategy against external threats that led to military engagements far beyond the Euro-Atlantic region. This gave a renewed importance to the Turkish Republic, not only because of its strategic geographic position but also because of its cultural position in the region. For example, Turkey facilitated the European involvement in Afghanistan, where Turkish troops had been stationed since 2001, and held command of the Kabul-based International Security Assistance Force (ISAF) in both 2002 and 2005.

In more recent years, Turkey’s role in NATO has increased significantly. Its military is the second largest in the alliance after the US, with overall contributions to the Alliance’s missions reaching some 3,250 troops. The Turkish military has also shown with brio its ability to lead NATO missions when it took over the command of the Multinational Task Force South in southern Kosovo in 2007. Furthermore, NATO’s Military Command Structure underwent major changes in 2011 when the thirteen former headquarters were reorganized into seven, resulting in the Izmir air command being replaced by a new land command base, making Turkey a host to one of the major NATO headquarters.

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Despite its strategic importance to the alliance, Turkey’s ruling Justice and Developments Party (AKP) has also made a move to develop a foreign policy less dependent on the West. In 2012, the Turkish Minister of Foreign Affairs, Ahmet Davutoğlu, confirmed that Turkey was no longer a “wing-country” under NATO. These remarks reflected Turkey’s vision of taking on a more regional role amid crises in the Caucasus, the Balkans and the Middle East.

However, the Turkish Republic is still very attached to NATO and may play an increasingly meaningful role in it not only due to its military capacity, but also with regard to its enhanced diplomatic efforts towards countries beyond the Europe-Atlantic region. For Davutoğlu, “in soft security terms, reaching out to Central Asia, Caucasus, Middle East and North Africa through NATO membership mechanisms, Turkey has proven to be a loyal member of the alliance”.

Moreover, Turkey’s increasing regional role makes it a strategic ally for NATO following important changes in many Middle Eastern and North African (MENA) countries. As these countries are still undergoing transformations, NATO Secretary General Anders Fogh Rasmussen sees Turkey’s role in this region as crucial for the new strategic environment and future partnerships because of its size, location and cultural and historical experience with neighboring countries. Furthermore, the Turkish Defense Minister İsmet Yılmaz believes

1stUS 2nd

Turkey

NATO Turkey’s military is the second largest in the alliance

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Turkish troops contributing to NATO’s missions

that Turkey’s economic growth, Muslim identity, democratic values and links with the West make Turkey model for many countries in the MENA region. With this in mind, he declared, “through cooperation, we can provide peace and stability in the Middle Eastern region” as was highlighted with the mission in Libya.

Last but not least, Turkey’s role in NATO is also central to the alliance’s strategic interests in developing missile defense capability, protecting European territories from the threat of ballistic missile proliferation. This is what is at stake in the current T-LORAMIDS controversy.

Turkey’s role in NATO is also central to the alliance’s strategic interests in developing missile defense capability, protecting European territories from the threat of ballistic missile proliferation.

After more than 60 years of membership in NATO, both Turkey and NATO have secured interests in continued cooperation. Despite recent trends of low public support and sometimes critical stance towards NATO initiatives from the Turkish side, Turkey seems to act carefully not to undermine transatlantic cooperation. As Davutoğlu pointed out: “NATO is the most successful defense alliance in modern history. While some may argue that this is a superficial cliché and that the Alliance is fast becoming irrelevant, others believe that this is a truthful statement reflecting the Alliance’s well-deserved prominent place, not only in the annals of history but also in today’s and, most probably, tomorrow’s security environment. I personally subscribe to the latter school of thought”. This is particularly true considering the current developments taking place in the Middle East. As Turkey itself began to feel threatened by the emerging security challenges in the region, such as the increasing possibility of Iraq and Syria’s dismemberment, the proliferation of WMDs and terrorism, NATO seems to have gained some of the ground it lost in the eyes of the Turkish political-security elites over the last two decades.

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Brig. Gen. James E. Daniel Senior Defense Official and Defense Attaché Office of Defense Cooperation Turkey The Office of Defense Cooperation (ODC) Turkey was created in 1947 as the Joint American Military Mission for Aid to Turkey (JAMMAT) and renamed the Joint United States Military Mission for Aid to Turkey (JUSMMAT) in 1958. It promotes military and homeland security cooperation between the US and Turkish Armed Forces and provides support to US Forces in Turkey.

Turkey is one of the staunchest allies in NATO and has provided forces in support of every major NATO operation over the last 20 years.

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What is your assessment of the military cooperation between Turkey and the US in the framework of the Defense and Economic Cooperation Agreement (DECA)?

The DECA has been in place for over 30 years and has seen dramatic changes in the US forces’ footprint as regional threats have changed and evolved. It was written in 1980, which was a very different time, but both our lawyers and their Turkish counterparts have looked at it and determined that, even if we tried to make a whole new agreement, it would not be very different or much better. However, Turkey and the United States have cooperated closely as allies long before the current DECA agreement was signed. In 1947, the US and Turkey signed an agreement implementing the Truman Doctrine. In 1950, Turkey sent troops to fight in Korea and, in 1952, Turkey officially joined NATO. The US and Turkey have developed a strong partnership over the years. We weathered the turbulent times of the mid-1970s with the Cyprus issue, but the important thing to note is that even during those times, Turkey maintained all essential support to US Forces. The 1980 DECA put the defense relationship on a new, more solid footing, which has stood the test of time. It was written at the height of the Cold War, when then US had 39 bases and operating locations in Turkey. After the Cold War drawdown, the US reduced the number of installations needed for the common defense. With the first Gulf War, Turkey allowed the use of Incirlik Air Base to support combat operations in Iraq and later provided critical support to Operation Provide Comfort and Operation Northern Watch. After September 11th, Turkey became a primary air-refueling hub, and logistical support base for operations in the region.

Today, Turkey remains a vital partner for coalition operations in the region and provides indispensable support for critical missions. In accordance with the recent vision, the US and Turkish military are enhancing and deepening bilateral military-tomilitary relations and engagement in areas of common concern, advancing NATO information goals and interoperability. Turkey and the US are very close allies and partners and the Office of Defense Cooperation plays a key role in facilitating the military cooperation between our two countries.

Which main threats for Turkey have you identified as key priorities?

Turkey’s security threats are identical to NATO’s security threats. Ballistic missile threats are at the top of that list and NATO interoperable land-based and sea-based ballistic missile defense is the solution.

Cyber warfare is another important security threat to everyone, not just to Turkey. Distinguished speakers at the recent International Cyber Conference in Ankara provided many examples of the detrimental security and economic impacts that an entire nation may experience because of cyber-attacks. Border security, another important threat for Turkey, is an element that must serve as a deterrent to aggression.

Conflicts near national borders pose a threat to not just Turkey but to the regional nations as the conflicts attract a wide variety of foreign fighters. Last but not least, Turkey has to deal with terrorism (internal and external) and I wish to express my appreciation to the Turkish military for their steadfast dedication to reducing terrorism worldwide.

How do you see Turkey’s role in NATO? Turkey is one of the staunchest allies in NATO and has provided forces in support of every major NATO operation over the last 20 years. Turkey has contributed both forces and leadership to NATO operations in IFOR/SFOR in Bosnia, KFOR in Kosovo (still ongoing), Operation Active Endeavor (NATO’s Article five operation in the Mediterranean Sea to prevent terrorism), Operation Ocean Shield (NATO’s Counter Piracy Operation in Indian Ocean), ISAF in Afghanistan, Operation Unified Protector over Libya and Turkey will again contribute critical leadership to ISAF in 2014. In addition to Turkey’s role in supporting these operations, Turkey’s willingness to train forces from other nations at their special unit in Isparta is significant to the successes NATO has had in securing peace. Currently, due to potential threats from Syria, Turkey has requested NATO support for several Patriot batteries in country. The US, Germany and the Netherlands have all provided support to Turkey under the auspices of NATO to augment Turkey’s air defense capabilities near its border with Syria. The batteries were deployed in Gaziantep (US troops), Kahramanmaraş (German troops) and Adana (Dutch troops) and the mission is currently being extended into its second year. I believe Turkey could play a role of increasing importance in NATO moving into the future. Turkey is in such a growth period and is not pulling away from defense. It is DEFENSE LEADERS • TURKEY 2014

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more into force projection. Turkey is going to stay in Afghanistan. It also took part in an EU mission in Kosovo while not even being an EU member.

Defensively, Europe is fairly stable as there are no longer the large threats of the Soviet era, yet Turkey’s key geostrategic position remains a constant.

How can the Office Defense Cooperation foster greater cooperation between Turkish and US defense corporations?

The ODC is the focal point for building and promoting a strategic partnership with Turkey through proactive military-to-military and security cooperation activities between the US and Turkish Armed Forces. Some programs we currently have in place include arranging education and military training programs in the US for Turkish military personnel, Turkish National Police and elected officials. We provide counter narcotics assistance through training, education and equipment and also provide coordination and facilitation of multinational and bilateral exercises involving NATO or the US and Turkey. The ODC maintains a significant focus on US government to Turkish government defense contracts and helps Turkey meet its goals by highlighting the business strategies that Turkey is utilizing to meet its defense requirements. Furthermore, at the ODC, we have personnel dedicated to the development of defense cooperative agreements between US and Turkish companies. The ODC is here to help Turkey meet its military equipment, training and exercise requirements and we work with US companies to highlight work-share opportunities when the latter ask about bringing their product or technology into Turkey. Defense business will slowly start to migrate into multi-lateral vs. bilateral agreements throughout the next five years. Multi-lateral programs offer more

opportunity for Turkey to gain industrial participation while at the same time reap any technology rewards that come out in development. Also, it creates an export market for Turkey from the beginning of the program. It is only a matter of a short time before NATO will lead the charge in identifying common requirements across multiple nations and bring together these nations to develop the product for all of them. Examples include, but are not limited to, the A400M, Joint Strike Fighter and equipment for use in space.

More generally, how would you describe the relation between the two nations?

The wonderful thing about our relationship is not only that it has withstood the test of time, like a good marriage, but even when we have serious issues between our governments, particularly on policies, no one even thinks about walking away because we know how important our relationship is.

Moreover, Turkey’s thriving defense industry provides additional opportunities for our countries to come together and collaborate. The defense sector export growth in Turkey is on the upswing (1.5 billion dollars in 2013, target 25 billion dollars in 2023) and the Turkish defense industries have become a main element in Turkey’s growing economy. There is room for more business with the West. To help Turkey meet its goal, the ODC fosters the cooperation by assisting the Turkish military in obtaining what they need to have in terms of security and to be a solid NATO and coalition partner.

THE EXECUTIVE GUIDE OF THE GLOBAL DEFENSE AND SECURITY INDUSTRY

Multilateral programs offer more opportunity for Turkey to gain industrial participation.

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TURKEY’S MAIN DEFENSE IMPORTS SINCE 2000 Submarine Frigate Mine Countermeasures Ship

Patrol Boat UAV Tank

Short-Range Ballistic Weapons

Self-Propelled Gun

Transport/trainer Aircraft

Rocket/Missile Helicopter

Fighter/Ground Attack Aircraft

Observation Satellite

Date

Year of Delivery

Off-the-Shelf Direct Import

Local Industrial Participation

UNITED STATES • 2.......

Perry-Class 2002-2003

Ex-US, 7th and 8th Perry-Class acquisition

• Torpedos 750.... Mk-46 Mod-5 1991-2005 100.... Mk-54 MAKO ASW 2012 - $105 million deal • Surface-to-Air Missiles 4,800.FIM-92 Stinger 1993-2004 400... RIM-66B Standard 1998-2003 - Ex-US 175.... MIM-23 Hawk 2005 - Ex-US 4........ Phalanx CIWS 2011 400... RIM-116A RAM 2011-2013 400... RIM-162 ESSM 2011-2013 • Anti-tank Missiles 300... AGM-114 Hellfire 2000-2004 • Anti-ship Missiles 120.... RGM-84 Harpoon 1997-2011 • Air-to-Surface Missiles / Bombs 100.... CBU-97 SFW 2007-2008 104.... AGM-154 JSOW 2007-2008 398... JDAM 2007-2009 48..... AGM-84H SLAM-ER 2012-2013 • Air-to-Air Missiles 127.... AIM-9 Sidewinder 2008 107.... AIM 120 AMRAAM 2012 • 48.....

• 18......

• 6.......

S-70B Seahawk 2002 - $325 million deal S-70B Seahawk 2011-2015 - $550 million deal CH-47F Chinook 2013-2014

$400 million deal, delivery from 2013/2014

• 4........

Boeing-737 AEW&C 2013-2014

$1.6 billion “Peace Eagle” program, possibly $500 million penalties for 6 years delay

• 30.....

F-16 Block-50/52 2011-2012

$1.8 billion “Peace Onyx-4” deal

• 109....

S-70/UH-60L

$3.5 billion deal, selected but contract not yet signed

• 100....

F-35A JSF - selected but contract on hold because of code source transfer dispute, $16 billion deal

• 210...

52

F-16 upgrade - $1.1 billion “Peace Onyx-3” deal DEFENSE LEADERS • TURKEY 2014

UNITED KINGDOM • 840...

Rapier-Mk2 2002-2010

$130-150 million deal

GERMANY • 298...

Leopard-2A4 2006-2010

• 56.....

Leopard-2A4 2010-2012

• 4........

Type-209/1400 2003-2007

Ex-German $427 million deal

Ex-German $17.6 million deal (15 for spare parts)

$556 million deal

RUSSIA

• 6.......

Type-332/Frankenthal-class 2005-2010 - $625 million deal, 1 bought off-the-shelf • 6.......

Kiliç II-class 2005-2010 Type-214 2015 - $2.9 billion deal • 6.......

• 800...

9M133 Kornet 2009-2010

$70 million deal

NORWAY • 16+16 .

Penguin-Mk2 2002, 2011

$40 + $40,million deal

Israel • 10......

Heron 2009-2012

• 3.......

Aerostar 2008

• 300...

K-9/K-10 Thunder 155mm 2004-2014

• 1........

Heron 2007

• 1........

• 108....

Searcher 2008 Harpy 2001-2004

• 40.....

KT-1 Woong Bee 2010-2012 $350-400 million deal

$183 million deal

SOUTH KOREA

Leased $10 million, then bought $30 million deal. Deal maybe cancelled in 2012 Leased $10 million

$7 million deal

$1 billion deal

5 bought off-the-shelf

• 170....

M60 upgrade 2007-2010 - $688 million deal

SPAIN • 9.......

CN-255 2001-2002

$106 million deal

SAUDI ARABIA • 6.......

C-130E Hercules 2011

Ex-Saudi, $60 million deal

CHINA • 200+.

B-611 SSM 20012007 - $300 million deal • 12......

HQ-9/FD-2000 SAM Batteries - $3.4 billion deal, selected but contract not yet signed

ITALY • 14......

Bell-412 2001-2003

• 9........

A-129C 2014

$87 million deal €110 million deal

• 8.......

ATR-72 600 2013-2018

• 4........

Comandante 2013-2014

• 60.....

A-129C 2013-2018

€279 million deal

€470 million deal €900 million deal

• 1........

Göktürk observation satellite 2015

€325 million deal

FRANCE • 17......

AMASCOS MP Systems 2012

Part of $80 million deal

• 30.....

AS-532 Cougar 2000-2003

$430 million “Phoenix-2”deal

• 24.....

Exocet MM38 2002 d’Estienne d’Orves-Class • 6.......

2001-2002 - Ex-French, $210 million deal THE EXECUTIVE GUIDE OF THE GLOBAL DEFENSE AND SECURITY INDUSTRY

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THE YEAR IN REVIEW

Turkey abandons its plans to buy an off-the-shelf SAM system, preferring a co-development with one of the four initial T-Loramids bidders

FNSS unveils Kaplan reconnaissance vehicle

Turkey’s STM signs contract for construction of Logistic Support Ship for Pakistani Navy

Otokar reveals its tracked Armored Tactical Vehicle, the Tulpar

First Turkish Altay MBT trials under way

DECEMBER

JANUARY

2012

FEBRUARY

MARCH

APRIL

MAY

SSM & TEI sign an agreement under wich TEI will develop and produce engines for the Anka (UAV)

NATO approves Turkish Patriot SAM deployment (batteries provided

by Germany, the Netherlands, and the United States)

The last of six Patriot missile batteries deployed to Turkey declared operational under NATO command and control

Turkey cancels its contract with BMC for 190 remaining Kirpi MRAP vehicles after BMC assets were seized because of company’s default International Defence Industry Fair held from the 7 th to the 10th of May in Istanbul

54

Turkey and Saudi Arabia sign an agreement to establish stronger cooperation between defense industries

DEFENSE LEADERS • TURKEY 2014

THE YEAR IN REVIEW

A Defense Industry Executive Committee chaired by Prime Minister Erdoğan announces that China’s CPMIEC is the winner of the T-Loramids tender

SSI Defense and Aerospace Industry Vision Meeting held in Bolu International Cyber Warfare and Security Conference 2013 held in Ankara

Delivery of second Milgem TCG Büyükada

Contract signed between Roketsan and SSM for building Turkish Satellite Launching System (UFS) First flight of Basic Trainer Aircraft Hürkuş

Havelsan, Booz Allen Hamilton sign teaming agreement

BMC Kirpi production starts again

Turkey celebrates the 90th anniversary of its declaration of independence on the 29th.

It is called Cumhuriyet Bayramı, the Republic Day

New generation Turkish Basic Trainer Aircraft Hürkuş -B contract signed between SSM and TAI

Anka serial production contract signed between SSM and TAI

2013 NATO Industry Forum held in Istanbul

JUNE

JULY

AUGUST

SEPTEMBER

OCTOBER

NOVEMBER

DECEMBER

Indigenous Helicopter Program kickoff meeting

YAS (Turkey’s Supreme Military Council) replaces the commanders of all four military services

Turkey’s first Airbus Military A400M Atlas transport aircraft made its maiden flight

6th Naval Systems Seminar was performed by the support of SSM in Ankara

Armored Vehicles Turkey conference in Istanbul. A two day conference welcoming senior officers from the Turkish MoD who connected and networked with international militaries and leading experts in armored vehicles capabilities and technologies across the world

THE EXECUTIVE GUIDE OF THE GLOBAL DEFENSE AND SECURITY INDUSTRY

According to SSM Murad Bayar, Turkey is not closed to “revised bids but that has not yet happened”. Companies have until January 31 to protract offer validity in case the talks with CPMIEC fail

Delivery ceremony of the first center fuselage manufactured by TAI under the F-35 JSF program

Defence Industry Executive Committee decides on Landing Platform Dock (LPD) tender, Sedef Shipbuilding selected

55

POLICY MAKING

Ahmet Mithat ErtuÄ&#x; Chairman of the board of OSSA The OSSA defense and aviation cluster was created in 2008 to improve the competitiveness of the Ostim Industrial Zone after a study by the International Competitiveness Research Institute (URAK), showing that the companies of the Ostim Industrial Zone had a crucial role to play for the Turkish defense sector.

Why was OSSA created?

When we created OSSA, we conducted research to see in which markets our companies would be the most competitive. The research resulted in four industries: the defense and aerospace industry, construction machinery, renewable energy and the medical equipment industry. These industries were the most competitive ones in Turkey. We then looked at what we could do for the companies in those industries and how we could be competitive in those markets. We also looked at how we could get in contact with companies abroad. We then established a business plan and started our activities.

Some of the SMEs in the cluster started to collaborate on common projects.

125

Member companies manufacturing defense and aerospace components

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What are the main benefits you bring to your members?

First, we act as a bridge between the government and our SMEs. That includes all the activities within the government. Furthermore, we help our members regarding licenses. With the support that we received from the Ministry of Finance, we train the SMEs so that they can get the licenses they need. We also have different activities abroad that help us promote our activities in Turkey by introducing our members in international conferences such as DSEI (London) or IDEX (Abu Dhabi). As of today, we have 125 members. We help them get in contact with other companies, communicate with the government and also get their certifications. Also, some of the SMEs companies that are in the OSSA cluster got in touch with each other and started to collaborate on common projects. We do plan on increasing our members. Our cluster used to be regional, but now we are operating on a national level with members from Izmir, Bursa and Istanbul.

Are you also cooperating with similar clusters in other countries?

There is actually a cluster in Torino (Italy), with which we have very good relationship. They are called Piemonte Aerospace. We are now checking to see how we can work together. We are active on the conference scene having made presentations in Toulouse (France) or Frankfurt Airtec Fair (Germany) for instance.

Why did you create Cooperation Days?

the

International

This conference is a networking event. The first day is a conference with distinguished speakers and the next two days are dedicated to networking activities between international corporations and Turkish-based companies. The first conference was held on March 6-8, 2013 and we have not seen real tangible results yet, mainly because of the long time needed for such cooperations to be set up. I can just say that talks on six or seven contracts are ongoing with international companies such as Thales and Zodiac Aerospace.

To what extent do you believe that OSSA has contributed to increasing the domestic defense production?

OSSA has greatly contributed to fostering the local defense industry for the SMEs. When the first companies came together under the OSSA roof, they started getting international recognition and, in this way, they could develop new activities, increasing the domestic production. For example, one of our members, Emge is currently working with Zodiac Aerospace producing small components. They also work with Thales for the Milgem project. As a cluster, our role is to market the skills of our companies abroad, trying to attract new customers interested in the quality of our products.

DEFENSE LEADERS • TURKEY 2014

PROVIDING

PROVIDING

A Shift Towards Indigenous Production In 2012, Defense Industry Support Fund provided about 1.2 billion dollars of extra budgetary funds to equipment expenditures.

The first Turkish military manufacturing plants date back to the second half of the 15th century under the Ottoman Empire period. Brought together in the 1920s under the authority of the General Directorate of Military Factories based in Ankara, these industries were then reorganized in 1950 under the name of Makina ve Kimya Endüstrisi Kurumu (MKEK, Machinery and Chemical Industry Institution) and still exist today as a state-owned company. But the real takeoff of the Turkish defense industry occurred with the US arms sale embargo imposed in 1974, as a reaction to the Turkish military intervention in Cyprus. At that time, strong initiatives were undertaken to develop the national defense industry capabilities. The establishment of several armed forces foundations aiming to provide support and financial resources to naval, air and land industries (later merged into the Turkish Armed Forces Foundation) was one of them. But it was soon realized that foundations were not sufficient to deal with both the modernization of the Turkish Armed Forces and the development of a national defense industry capable of fulfilling the armed forces requirements. This led the Turkish government to pass a law in 1985 setting up the Undersecretariat for Defence Industries (SSM), which was rapidly given the responsibility of the newly created Defense Industry Support Fund (SSDF). The fund provides SSM with a constant flow of financial resources drawn from corporate tax fees and levies imposed on alcohol and tobacco, and all forms of lottery and betting in the country. In 2012, SSDF provided about 1.2 billion dollars of extra budgetary funds to equipment expenditures.

Along with its mission to establish and foster robust domestic suppliers, SSM was given the role of handling consistent procurement programs. From less than 10 programs in 1987, it dealt with more than 100 in 2013, with a particular involvement in international ones.

Thus, SSM manages the offset policy of the country, one of the most demanding in the world. Under the Industrial Participation and Offset (IP/O) directive of 2007, it requires offsetting 50% of the contract value and offset obligations must be fulfilled in an unusually short time frame, only two years following the end of the delivery.

THE EXECUTIVE GUIDE OF THE GLOBAL DEFENSE AND SECURITY INDUSTRY

This led the country to earn a “hard-to-please counterpart” international reputation with whom it can be difficult to close deals. For example, the Turkish order of 100 F-35 JSF has been on hold for nearly three years due to an unsolved controversy on the transfer of the aircraft software source code. However, this policy also led to a rapid development of the Turkish defense industry, both in terms of turnover and of technological expertise. Of the 278 F-16 fighter aircraft produced and delivered between 1987 and 1999 by TAI, 29 were with “zero discrepancy” and three were “perfect”, according to the Turkish manufacturer. Only nine out of more than 3,900 F-16 manufactured worldwide have been labeled “perfect”. On the other hand, Havelsan received in 2008 from the Boeing Joint Leadership Council the Award of Excellence for its involvement as the main subcontractor in the Peace Eagle AEW&C program.

Since 2000, Turkey has undoubtedly extended year after year the range of its defense industry’s capabilities, and at the same time, filled up its order book. Indeed, ongoing indigenous and international projects have become countless.

The industrial production phase of Altay tanks, Anka UAVs, ATAK helicopters or Hürkuş training aircraft, after their prototyping and testing phase, are just a few examples of the Turkish defense industrial dynamism. Large naval projects are also to be launched in the coming years, such as the assembly of six German Type 214 submarines with locally designed electronic and weapon systems or the continuation of the Milgem frigates program. In the long term, Roketsan also aims to develop its own satellite launch system and Turkey is still willing to design, develop, and manufacture an indigenous fifth-generation air-to-air combat fighter jet, which would phase out its F-16 fleet. This “TFX” fighter is supposed to make its maiden flight in 2023, for the 100th anniversary of the Turkish Republic, as a symbol of the gap filled by the Turkish defense industry in less than 50 years.

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PROVIDING

Muharrem Dörtkaşlı President and CEO of Turkish Aerospace Industries (TAI) Turkish Aerospace Industries was established as a joint venture in 1984 for the coproduction of F-16 aircraft in Turkey. Progressively increasing its experience and skills, the company was restructured and TAI became a 100% Turkish shareholding company in 2005. Since then, TAI has participated to many international programs, as well as landmark indigenous programs, and is recognized globally as a reliable partner, known for its technological expertise and commitment to ultimate customer satisfaction.

1,700 engineers

What are the main ongoing projects of TAI?

TAI ranked

2nd

on R&D expenditures

by Turkish Time magazine

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I would like to start with the Hürkuş Trainer Aircraft.

After signing the design and development contract for Hürkuş in 2006, we have started an intensive study to design, develop, manufacture and certify a trainer aircraft. The first phase of the project was to produce a trainer aircraft and certify it in accordance with EASA (European Aviation Safety Agency) CS23 standard. We performed the maiden flight on August 29, 2013, and a successful flight test campaign is currently in progress. The Turkish Defense Industry Executive Committee, chaired by the Prime Minister, made a decision to initiate the procurement process for more Hürku ş trainer aircraft. Furthermore, in 2013, after the acceptance of our indigenous Anka Block-A Medium Altitude Long Endurance (MALE) UAV, we delivered the system to the customer and it is now operational. Also, on October 25, 2013 we signed the mass production contract for 10 Anka-S additional systems with the Undersecretariat for Defense Industries (SSM). The Turkish multi role combat helicopter T-129, incorporating an indigenous avionics suite and weapon systems, developed and customized in accordance with Turkish Armed Forces real battlefield experience, will also be in service with the end user in the coming weeks. Other platform modernization and

system integration projects have been successfully continuing and leading to very important milestones.

As mentioned, development and acceptance of the Anka Block-A MALE UAV was completed, Göktürk-2 low earth orbit satellite was launched on December 18, 2012 and, as an industrial partner of A400M tactical transport aircraft, several structural parts and sections were designed, manufactured and delivered to Airbus Defence and Space (formerly Airbus Military). Moreover, our studies on the aerostructure production of several fixed and rotary wing platforms like Airbus A320 family, A400M, A350 XWB, Boeing 787, Lockheed Martin F-35 JSF, AgustaWestland AW139 and Sikorsky S-70/H-60 are in progress. As a risk sharing partner of A350 XWB aircraft, ailerons were designed and delivered to Airbus. Consequently, TAI is now participating in international aerospace programs and manufacturing major components and aerostructures as sole source supplier for worldwide aerospace companies like Airbus, Boeing, Bombardier, Lockheed Martin, Northrop Grumman and Sikorsky.

What role do you give to local Small an Medium Enterprises (SMEs) in these projects?

TAI, in its mission statement, refers to the importance of establishing a sustainable aerospace DEFENSE LEADERS • TURKEY 2014

PROVIDING industry in Turkey. We make sure that we grow with our supply chain. With the experience gained from the international programs, we are assisting SMEs and the industry in Turkey to establish international manufacturing standards. We are following the work outsourced to local industry by metrics and measure our subcontractors and their delivery performance.

In the coming years, I believe that the world will be hearing more from TAI and our subcontractors.

How is TAI contributing to foster R&D in Turkey?

TAI employs more than 1,700 engineers, among whom 1,000 work on design and development projects. TAI has the capability to design, develop, manufacture and support products (from components to systems) with respect to the highest aerospace standards. Accordingly, TAI holds Design Organization Approval and Production Organization Approval from EASA, which are concrete indicators of global recognition. Being one of the major hubs for the aerospace innovation network, TAI also supports various R&D activities undertaken in universities, research institutions and high-tech SME’s. In Turkey, TAI was ranked 2nd in terms of R&D expenditures and 3rd place on R&D employee numbers in the “R&D 250” survey published by the Turkish Time magazine according to 2012 figures. The EU and NATO research and technology development studies are closely monitored by TAI, especially in the fields of manufacturing technologies and material structures in the aerospace industry. As a proof of how important R&D is in TAI’s overall strategy, we have our own technology strategy and policy.

This strategy is to become a company that leads aerospace ecology by determining, monitoring and integrating leading edge technologies and by influencing subcontractors. TAI puts emphasis on technology as the main leverage to provide its sustainable competitive global advantage in line with its policy.

To what extent is the Anka program a good testimony of the excellent expertise that Turkish defense corporations have developed in UAV technologies?

We believe that TAI, with its current standing, design capability and high quality production, has a strong international competitive power.

The major challenge in the international market is the government funding provided, especially with defense equipment sales. Compared to competitors in Europe and the US, we have an obvious disadvantage. With the continuous support of the Turkish government, we hope to overcome this problem. On the other hand, one of our advantages is the high level of excellence required by our national customer. We observed that, whenever the systems developed by TAI are accepted by the Turkish Armed Forces, a well-known customer for its high criteria of acceptance, the demand for our product automatically increases. Finally, Turkey’s rising global image and strong economy will enable TAI to increase its competitiveness. When we look at the past eight years, there is a remarkable increase in the number of defense products developed by Turkish companies and exported worldwide. This means that Turkey’s defense industry has started providing solutions that are competitive in quality, technology, pricing and logistic support. Like other defense articles sold by Turkish companies, evaluations of the Anka system are the proof of increasing trust

in Turkish indigenous defense products. TAI also concentrates on developing target drone systems.

Our initial target drone systems TURNA and KEKLIK, were developed in the late 1990s. Turkish Armed Forces branches have been using these target drones for their air defense training for years. Our new indigenous development program is the ŞİMŞEK high speed target drone system, which will be able to simulate enemy aircraft and missiles during airto-air, anti-aircraft gunnery and missile systems tracking and firing trainings. Last but not least, we are also developing a rotary wing UAV, especially for the reconnaissance and surveillance requirements of naval platforms. According to the evaluations of independent sources, the world UAV market size will be over 45 billion dollars for the next 10 years and 33% of this market is expected to be for MALE UAV’s.

As Anka is one of the few MALE UAVs’ in the world, we believe that Anka will have a significant market share, especially in our target territories like Asia, the Middle East and North Africa.

What is TAI’s involvement in the landmark A400M project?

As it is well known, A400M program was initiated to develop a transport aircraft to replace the aging C-130 and C-160 transport aircraft with the participation of Turkey, Spain, Germany, France, the UK, Belgium and Luxembourg in 2003. Initially, all of the participants committed a total of 180 aircraft and, in accordance with the procurement commitments, each country undertook a design and production workshare. Turkey committed to buy 10 A400M aircraft and, within the scope of this industrial participation, TAI took the design and production responsibility of the forward center fuselage, ailerons and spoilers, paratroop doors, hatch doors, tail cone, upper shell on rear fuselage, emergency exit door, lighting systems, water and waste systems and the fuselage harness. As it is a challenging program, several problems were confronted such as delay in the schedule, cost increase and order cancellations. Finally, the participation of Malaysia has positively contributed to the program. France received the first aircraft in 2013 and Turkey will receive its first A400M in the first quarter of 2014.

Thanks to our performance, TAI’s participation to the A400M program had a positive impact on AirbusTAI relations. Specifically, TAI has become a reliable and cost efficient design and production partner for Airbus not only for the A400M, but also for passenger aircraft programs. Indeed, TAI is a risk sharing design partner of Airbus for the A350 XWB and an important subcontractor for the A320 and A330 passenger aircraft families. In today’s world there are not many alternatives for tactical airlift requirement, and we believe that the A400M will be a very competitive solution. Although there are only 174 orders for the A400M as of November 2013, deliveries to program participants and the performance in the tactical area should increase the demand. We believe that there will be at least 200 more orders for A400Ms in the next 20 years, especially with capabilities such as air-to-air refueling, airdrop or MEDEVAC.

As Anka is one of the few MALE UAVs’ in the world, we believe that Anka will have a significant market share.

What is your estimation of the Turkish defense and aerospace industry’s potential for exports and what is the contribution of TAI? The Turkish defense and aerospace industry has a support role in Turkey’s economic growth. In 2012, Turkey’s total exports were nearly 152 billion dollars,

THE EXECUTIVE GUIDE OF THE GLOBAL DEFENSE AND SECURITY INDUSTRY

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PROVIDING

174

A400M orders

10

from Turkey

out of which almost 1.3 billion dollars was defense and aerospace products. The total number may be considered low relatively, however, from year 2005 to 2012, the compound annual growth rate (CAGR) of Turkey’s total exports was 9.51%, whereas the CAGR of Turkey’s defense exports was 17.95%. We can easily state that Turkey’s defense exports are growing fast with the increase of indigenously developed products and solutions. TAI has a key role within this framework. In 2012, half of the Turkish defense and aerospace industry’s exports (606 million dollars) came from TAI. The Turkish government initiated a “Vision 2023” plan, which gives a 500 billion dollar export target to Turkish companies from textile and agriculture to machinery and food. According to this target, Turkey’s defense export is expected to reach 5 billion dollars by the year 2023. Unsurprisingly, TAI has a major role and great responsibility in this target being one of the leading Turkish defense and aerospace companies. Our aim is to increase our presence in international markets and become one of the most important players in the world with our indigenous systems. TAI’s main export strategy is to enhance its market position through high value generated indigenous products, as well as keeping constant aerostructures work streams to sustain its business. The US and Europe are a significant part of our aerostructure business, whereas, at the platform level, our key markets are the Middle East, North Africa, Central Asia, Asia-Pacific and South America.

To expand in export markets, we are establishing cooperation within the above mentioned territories with our indigenous products like Anka, ATAK and Hürkuş, our engineering capabilities in system design, our newly established satellite integration center and our modification and modernization know-how on aircraft platforms such as the F-16 and C-130.

Could you give us an update on your international programs?

Over the past eight years TAI has taken many important steps towards becoming an important player in the global aerospace market. Continuously improving, TAI now has over 150 projects, which ranks it in the top 100 aerospace and defense companies in the world. Being a partner in prestigious multinational projects like the F-35 JSF with Northrop Grumman

62

In 2012, half of the Turkish defense and aerospace industry’s exports (606 million dollars) came from TAI. and Lockheed Martin, the A400M with Airbus Defence and Space (formerly Airbus Military), the Peace Eagle program (AEW&C) with Boeing, the joint development of the T129 with AgustaWestland, the Turkish Utility Helicopter program with Sikorsky and F-16 production and modernization with Lockheed Martin again is very important for us to expand our global image and improve our capabilities for future defense projects. Thus, with these international projects we improve our technological level and production capabilities as well as those of our subcontractors and of the Turkish aerospace industry as a whole. 2013 has been a very busy year for TAI in many respects. All of our international programs had milestone developments, including the F-35 JSF and A400M. The F-35 JSF program is very important for TAI as we are responsible for one of the most complex structural sections of the aircraft, namely the center fuselage. Our other work packages in this program include composite components, air inlet ducts and air-to-ground alternate mission equipment pylon manufacturing. With this multinational project, TAI has improved its high precision advanced composite capabilities and is now one of the leading players in the region. We have also delivered our first ship-set in December 2013 and it will be continuing with multiple deliveries in the upcoming years.

Cooperation on the ATAK program also continues successfully, with the program in its final stages of the qualification phase, and we expect the first deliveries to occur soon.

DEFENSE LEADERS • TURKEY 2014

PROVIDING

THE EXECUTIVE GUIDE OF THE GLOBAL DEFENSE AND SECURITY INDUSTRY

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PROVIDING

Aziz Sipahi General Manager of Ayesaş and Vestel Defence Vestel Defence Group is composed of Vestel Defence Industry, a leading defense company in the Turkish UAV market as a platform supplier, and Aydın Yazılım ve Elektronik Sanayii A.Ş.

(Ayesaş), a major system supplier of electronics and avionics with 24 years of experience.

Our system is the first in Turkey that was designed, developed and manufactured in accordance with the NATO Stanag 4671.

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What are the main differences between Vestel Defence and Ayesaş?

First of all, the difference is the shareholding structure. Zorlu Group, the Turkish shareholder, which is one of the biggest conglomerates in Turkey active in electronics, household appliances, energy, textile and real estate, owns 60% of Ayesaş and the remaining 40% belongs to the American L-3 Communications.

Therefore, Vestel Defence is 100% Turkish, whereas Ayesaş is 60/40. The corporate functions of the two companies, such as finance, general management, HR and marketing, are combined to maximize synergies, while the programs management and the technical groups are completely separate.

Ayesaş is a direct supplier of large international corporations such as Lockheed Martin, Boeing, General Electric, Sikorsky, Rockwell Collins, Thales and Airbus Defence and Space (formerly Cassidian).

Hence, Ayesaş is not a platforms company, but is more of a systems company. It is comprised of three main divisions: software, systems engineering and manufacturing. Within those three divisions, we have activities in two main disciplines: one of them being C4I (command, control, communications, computers and intelligence) and the other avionics.

A significant portion of Ayesaş’ work is designing and manufacturing systems or hardware units, developing software and delivering them to platform owners or to the main aerospace companies in the world. Ayesaş therefore acts as a systems supplier. On the other hand, Vestel Defence is a platform supplier

mainly for Unmanned Aerial Vehicles (UAVs). Vestel Defence designs, develops and manufactures almost everything related to UAVs except some parts like, the engine, sensors, payload etc. Vestel Defence also has R&D activities in the field of fuel cells, mainly developing hydrogen fuel cells for both military and commercial use.

What was the vision behind your decision to enter the UAV business?

Our vision is to be one of the main defense and aerospace players in the region and within that context, the UAV business has been chosen to respond to the fast growing need in Turkey and in the world. Besides, the UAV business is very new in Turkey. Turkish companies have been working in this field for less than 15 years. We started this UAV business about eight years ago and, at that time, there were no indigenous UAVs in use in Turkey and it was quite challenging. The time was coming for UAVs in the world and several issues specific to Turkey, such as border security and terrorism, unfortunately have also supported that vision. Furthermore, in the region, some countries were very active in the UAV business and, thanks to our engineering experience, we really believed that we could do it. This move was also initiated by the Undersecretariat for Defence Industries (SSM), which helped us start in parallel to our vision, as they expressed their interest in Turkish UAV capabilities being developed. We are grateful to SSM because of their trust in the Turkish private

DEFENSE LEADERS • TURKEY 2014

PROVIDING defense and aerospace industry. The first UAV we designed was a mini-UAV, named Efe, which can fly at over 15,000 feet for about an hour and a half.

Could you expand on these larger UAVs you are developing?

In 2008, SSM asked us if we could get into the tactical UAVs, meaning UAVs able to fly over 18,000 feet for about eight or 10 hours carrying a payload of up to 35 kilograms. Compared to mini UAVs, this was a very challenging request at that time and we got into that development with the goal of designing and manufacturing a prototype matching these high requirements. After that first phase was completed in 2010, SSM opened a new tender and we signed a contract for tactical UAVs. We have already finalized the design and development phases and we are now at the delivery stage of the tactical UAVs called Karayel. The new Karayel model will be able to fly over 20,000 feet for more than 15 hours. The other small UAV we have developed, Bora, is one of the outcomes of this tactical UAV story. When we started the new development for the tactical UAV, considering the complexity and the cost of the platform, we designed a smaller UAV for training purposes, but also for tests of the electronics and avionics. We now plan to launch Bora as an additional platform using the same electronics, software, avionics, ground control station and data links as the Karayel.

What are the main competitive advantages of your UAV platforms on the international level?

Firstly, our system is the first in Turkey that was designed, developed and manufactured in accordance with the NATO Stanag 4671 standard.This is extremely critical and it is going to be really one of the advantages we will have in the international markets. Secondly, we are not dependent on any other country, which is why we are flexible to meet customer needs and, of course, competitive in terms of quality and cost. I do not see big hope in marketing our UAVs in the US or in Western Europe in the short term, but the rest of the world is a market, including the Gulf States, the Middle East, Far East, Africa and maybe even South America. I am happy to disclose that there is significant interest coming from these markets.

To what extent do you believe that the high requirements of SSM have been inciting Turkish companies to push their technology forward?

We must admit that when we go to other countries or exhibitions, one of the first questions we are asked is whether we are working with the Turkish Armed Forces or not. If Turkish Armed Forces are using or have decided to buy any platform or equipment, it is a proof that it will be a high-standard product.

The Turkish Armed Forces are very well recognized on the global markets and the quality and technical requirements are very high in Turkey. This also pushes the industry to improve itself. We are working very closely with SSM, STM (certification authority) and the user. For our UAV, for example, we were trying to go a bit further than the SSM’s requirements and they then pushed us even further, which incited us to go even further. At the end of the day, the Turkish defense industry is going to be coming out with products that will be extremely competitive on a global scale in terms of quality, features and even cost.

Ayesaş is the sole source supplier of the electronic cards and the chassis of MRIU and the electronic cards of PCD within F-35 JSF program.

What are the areas of expertise of Ayesaş and some of its most successful programs?

Ayesaş, as I had mentioned above, is primarily an electronic system engineering and software company with a very wide customer base composed of not only our own Ministry of Defense and armed forces, but also defense and aerospace companies worldwide. We are proud to be an internationally recognized company for our quality and technology.

We are one of the leading companies in C4I and avionics as well, starting from system design, engineering, manufacturing and going all the way to software development. We have completed several programs in Turkey such as the Turkish mobile radar complexes, integrated maritime surveillance system, NATO ACCS integration, radar network, automated target detection and tracking system among others.

Ayesaş is also the leading designer and manufacturer of command and control consoles, cabinets, ruggedized equipment and aviation harnesses.

We are also the only company in Turkey to have, in addition to electronic card manufacturing, a design and a software share in the F-35 JSF program. Within this program, Ayesaş is the sole source supplier of the electronic cards and the chassis of the missile remote interface unit and the electronic cards of the panoramic cockpit display. I would also like to highlight that around 80% of Ayesaş’ manufacturing volume (50% of total volume) is exported and, out of that, 70% goes to the US and 30% to Europe.

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Ayesaş exports 30% Europe 70% US

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Eyüp Kaptan Chairman of Roketsan For the last 5 years, the number of projects Roketsan works has grown from 10 to more than 50, increasing its number of employees from 700 to 2,000 by the end of 2014. The company now aims to enter the top 50 companies in the global defense industry in the coming years.

What was the vision behind the creation of Roketsan?

Roketsan Missiles Industries was founded in 1988 by a decision of the Defense Industries Executive Committee for the purpose of “possessing a leading institution in the country for designing, developing and manufacturing rockets and missiles”. The first production project was to manufacture the propulsion systems of Stinger missiles within the framework of the “Stinger European joint production project”. Maintaining a systems engineering approach, Roketsan designs and manufactures tailored systems in line with customer requirements such as launching, command and control, munitions loading and transportation and various subsystems. Roketsan supplies the Turkish Ministry of National Defense, which implies for all international customers high quality along with high performance while remaining cost effective. Roketsan also provides customers training whenever requested along with its products.

As the leading designer, developer and manufacturer of rockets and missiles in Turkey, could you describe your main products and services?

Roketsan has completed the development and qualification of the new generation Cirit 70mm laser guided missile and signed a serial production contract with the Turkish Armed Forces, as well as the first export contract with the United Arab Emirates.

In May 2012, Roketsan began deliveries for combat deployment of this original missile, unique due to its range of up to eight km, multi purpose warhead

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(anti-armor, anti-personnel and incendiary), allup-round characteristic and type V insensitive munition. Additionally, Cirit is a US ITAR free (International Traffic in Arms Regulations) missile.

For international customers, the integration of Cirit into various platforms such as helicopters, UAVs, heavy and light armored vehicles, naval and land systems is run by Roketsan. Another unique missile, the Mızrak-U, is near the end of its development. It is a long-range, anti-tank missile with an eight km range, a homing IIR (imaging infrared) seeker with radio data-link and tandem-high explosive warhead.

A laser seeker option is also available. The missile has lock-on before launch, lock-on after launch and lock-on update capabilities. Mızrak-U and Cirit share common laser seekers, which enables combining both systems in the same configuration for customized solutions. Mızrak-O is a middle range antitank missile with a four km range and similar characteristics as the Mızrak-U. Moreover, conceptual developments of a SOM standoff cruise missile for the Turkish Air Force have been carried out by TÜBİTAK Sage. In 2012, initial production of SOM systems was delivered to the Turkish Air Force.

Currently, the missile has been integrated to F-4E 2020 aircraft and the F-16. SOM is an autonomous, long range (more than 185km), low observable, high precision, all weather, air-to-surface new generation cruise missile to be used against highly defended, anti-access and high value stationary and moving surface targets. Due to the common requirements of Turkish Air Force and F-35 JSF program, SOM has been offered as a modern anti-surface cruise missile for newly developed F-35 fighter aircraft. 107mm, 122mm and 300mm artillery rockets designed and developed by Roketsan are proven to reach the longest range within their own class and are exported worldwide, where they can be coproduced.

They have distinctive reduced smoke composite propellant with superior dispersion characteristics and their ability to be used both with existing steel pods and with disposable isolated pods makes them unique. They can be launched from multi-cradle systems designed and developed by Roketsan.

DSH anti-submarine warfare rockets launched from sea platforms are offered to naval forces.

Underwater explosion depth can be set by the fire control system. The rocket has explosive warhead and meets insensitive munitions requirements.

The pattern obtained by ripple firing enables maximum effectiveness on the target. In the scope of its activities, Roketsan has also built important infrastructure on its premises: a munitions disposal DEFENSE LEADERS • TURKEY 2014

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facility where expired ammunitions are safely destroyed without harming the environment and an ammunition surveillance facility dealing with life extension, control and improvement of ammunitions.

In the first facility, disassembly and demolition of 52 different types of classic ammunition, as well as missiles, rockets and landmines that are out of service, is carried out, with 6,000 tons of annual demilitarization capacity with advanced technology and maximum automation.

getting prepared for serial production, as we already know the associated configuration. Through our new ballistic protection center, we are also conducting various composite and reactive armor design, development, test and manufacturing activities for land forces vehicles, weapons systems and air platforms as well as force protection solutions.

Regarding air defense systems, could you expand on your participation in the Hisar system?

In addition to the national development and production studies, Roketsan has proven its product design and service quality to Middle Eastern customers and is intensively executing its market development activities in the US, Far East, South Africa and Northern Europe. We are offering our systems to friendly and allied countries. Roketsan is now a well-known brand in the international rocket and missile market. Today, together with exports to many different countries within the scope of Stinger European joint production program, we have an export portfolio that exceeds 300 million dollars and have recorded a significant increase in recent years. Roketsan is appearing more in the international market as a competitor rather than a sub-supplier for other companies. This is because of the technological enhancements and nonrestricted properties of our products. We foresee that Roketsan will be one of the major players in the global defense market with indigenous products and important international partnerships. Roketsan is already a partner of the Patriot control actuation system production program with Raytheon, the advanced Aspide and Otomat missile rocket motor development and production program with MBDA Italy and the naval strike missile launcher production program with Norwegian Kongsberg Defense & Aerospace. We also participate in the integration of Cirit on the EC635 helicopter with Airbus Helicopters (formerly Eurocopter). Nowadays, we are negotiating with Lockheed Martin to become the sole source for PAC3 missile program single canister production for international customers. Recently, the Defense Industry Executive Committee appointed Roketsan to lead marketing activities for national standoff missiles (SOM). Export activities for our indigenous missile systems such as Cirit and MÄązrak-U will continue exponentially in the following years.

While Aselsan is the principal contractor for the whole system, Roketsan is the sub-contractor for the all-up-round missile and its supportive peripheral hardware. Hisar-O is the medium altitude version of the Hisar-A low altitude missile being developed within family concept architecture. Both missiles are designed and developed in-house by Roketsan for the requirements of Turkish Armed Forces (TAF). The start of the project dates back to 2011 and deliveries are planned to start in 2017. The conceptual design and preliminary design phases are over. Currently, sub-system design and testing activities are being held as scheduled. The first flight test is planned next year. Being the principal missile manufacturer in Turkey, Roketsan has a substantial cumulative expertise in air defense missiles including involvement in Stinger, Rapier, ESSM (Evolved SeaSparrow Missile), Patriot, Aspide and more projects spanning over a quarter century. Roketsan is proud to play leading role in the development of indigenous ground based air defense missiles and will seek to continue its endeavor in air-to-air, long range and other air defense missiles, taking into account its vast engineering know-how.

What is Roketsan’s involvement in the Altay Turkish Main Battle Tank (MBT) armor system?

Qualification of the armor system designed and produced by Roketsan for the Altay MBT has been completed in July 2013 after a challenging test campaign. We are manufacturing a package of armor sub-systems to be installed on the tank prototype for the system level test, which is the final stage before serial production. In parallel, we are

Where does Roketsan stand in international markets?

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We foresee that Roketsan will be one of the major players in the global defense market with indigenous products and important international partnerships.

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Shareholding structure and international joint ventures Data: % Sense of ownership

0.06

Turkish Armed Forces Foundation (TSKGV) Undersecretariat for Defence Industries (SSM)

99.95

100% state-owned company

0.5 48

4.5

0.5

31.90 0.01

1

1

45.45

99

65

54.49

45

3 5

3 97.7 0.01

15

35.5

84.6

4.5 96

15 10

15 10

85 10

KutlutaĹ&#x; Holding Mikroelektronik

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DEFENSE LEADERS • TURKEY 2014

0.23

INTERNATIONAL JoinT Ventures General Electric

5.56

46.22 50.52 40.53

44.68 INTERNATIONAL JoinT Ventures

51

49

50

50

60

40

1 49 49

50

NK Kazakhstan Engineering

51

KADDB Investisement Group (Jordan)

51

International Golden Group (UAE)

49

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İzzet Artunç Chairman and Director General Mechanical and Chemical Industries Corporation (MkeK) MKEK Corporation, the oldest defense company in Turkey, has a history that reaches back to the 15th Century Ottoman Empire period under various names and statutes. As of today, it one of the few corporations in the world with an integrated structure of factories including ammunition, weapons and weapons systems, rockets, explosives and steel.

Where does MKEK come from?

MKEK exports 2001-2002

$3-4 million 2013

$50-60 million Aim for 2023

$500 million

MKEK, known simply at the time as the cannon factory, was founded by Sultan Mehmet II after the conquest of Istanbul. It has since changed its name and statute four times to reflect changes in the historical evolution of the country and the company’s main production activities. These changes are all milestones in the company history. One of these milestones is the status bestowed upon it in 1950 after having been a General Directorate, with four main groups of production: ammunition, weapons, rockets and pyrotechnics. Following this, the organization of the company has been centralized with two enterprises and 10 plant directorates.

Through this reorganization, MKEK reinforced its efficient, dynamic and productive structure while continuing to serve Turkish forces and remaining a recognized brand in the global market. Each milestones in its long history provided an added value to the company and made it a true school for generations of engineers in the country and a leader in the Turkish defense industry.

As the oldest defense corporation in Turkey, what have been the most important changes in the sector in recent years?

One of the basic features of a strong and stable foreign policy is the strength of a country’s armed forces. When the country is supported by a strong,

local defense industry, it can be powerful. Then, the sole way of maintaining a strong defense industry is to identify an effective and efficient strategy over the long-term and to carry out it delicately. Nationalizing technology and systems and improving R&D, even if utilizing foreign technologies, are all critical for the development of a country’s defense industry.

Over the last 30 years, the Turkish defense industry has made significant progress in terms of establishing a modern national industrial base along with numerous successes on the global market. With the considerable efforts of our defense industry companies, the Turkish defense industry is increasingly meeting the stringent requirements of the Turkish Armed Forces locally. The progress of the Turkish defense industry over the years and its importance for the wider economy can be easily seen when we look at the general turnover and exports on a yearly basis. Especially in the last decade, the collaboration between the main companies, the contribution of small and medium enterprises (SMEs), universities and research organizations has resulted in a high-level of local content in the Turkish forces’ programs and R&D projects. Thus, the main positive change in the sector is a significant reduction in the foreign dependency of the industry.

The sector has now become a self-sufficient industry in which many different specialized companies, universities and institutions combine their core abilities and produce 100% Turkish systems, platforms, critical sub-systems, components and key technologies. The other very important change is the increase in exports and the stature of the Turkish defense industry on global markets.

What are the main strengths of MKEK’s products in Turkey and abroad?

We have a wide range of product groups, namely weapons and weapon systems, small, medium and large caliber ammunition, rocket systems, explosives, anti-riot equipment and pyrotechnics.

We also have another production group consisting of modernization, upgrade and maintenance of systems and establishing production lines. We have very important competitive advantages that are inherent to the nature of the company. Firstly, we have leveraged our company’s long and prestigious history as a marketing tool by putting emphasis on our reliability. Our international customers appreciate the “survivability” of their suppliers and they usually prefer working with long-established companies. That means that when a customer

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PROVIDING

intends to buy a system from a familiar company, they know that the systems will continue existing for a long time. Thanks to this, MKEK, with its 500 years of history, has been using this survivability factor to its advantage. Our second competitive advantage is that all of our products that are offered on the global market are in use in the Turkish Armed Forces. This means that we can use the reference of one of the largest and most respected armies in the world. This creates trust with the client. Every end user wants successfully proven products and our products have an extremely trusted reputation because the Turkish army uses them with success. Being a governmentowned company is also a competitive advantage in terms of trust. The end user usually prefers to purchase products and capabilities that are under the guarantee of reliable after-sales services.

They want the solutions provider to be a powerful company, which will be in the international arena for years after the sales. They want to have the provider by their side as soon as they need them. As a 100% publicly held company, MKEK has the deepest trust in this respect.

How important is R&D for maintaining your international competitiveness?

Regarding R&D, we have to look at the mission and the vision of our company. Its main mission is to satisfy the requirements of the Turkish Armed Forces and to provide the industry with a valuable name on the global market. In order to achieve these goals and considering the changing needs, technology and environment, we have to give high priority to our R&D activities. It is vital for us to develop and manage technology with new products and to adapt ourselves to evolving demands and threats. The Panter and the Firtina artillery systems are perfect examples of successful R&D projects that we have conducted. We also have a very close relationship with the universities in terms of R&D and basic research projects. We try to leverage partnerships with Turkish universities as much as we can because we do not want to invest too many resources in maintaining advanced in-house R&D capacities. We thus try to use the universities and their know-how for outsourcing and as an external support for our research activities.

How important are export markets for the future of the company?

Our exports in the early 2000s were roughly 3-4 million dollars. Now, they are upwards of 5060 million dollars and our aim for 2023 is 500 million dollars. The Far East, South Africa and the Gulf regions will be our main targets in addition to markets where we are already active. In order to reach this 500 million dollar target, we will also focus our efforts onto the homeland security market. As the only government owned corporation in the defense industry and the main supplier of the Turkish Armed Forces, we are proud to state that we do not export any of our products that are not being used in our national army. We mostly export guns and tank systems, ammunitions and rocket systems.

Furthermore, we are also actively marketing our capabilities in modernization, training, maintenance and production line establishment. Being the main supplier of the Turkish Armed Forces, we work with many export units, engineers, technical experts and supervisors who are specialists in their fields. We create partnerships that we leverage to create value.

Indeed, we are focused on marketing our capabilities that come from the long experience of serving our army. This is not only about driving revenues, but also creating an MKEK brand name on the global markets that stands for success, sustainability and trust. I must stress that we are not only focused on making sales or keeping current customers happy.

Those aspects are of course a part of the overall picture, but we are also very focused on making the best use of the company’s resources, crystallizing the role and function of management and observing the legal aspects that must be respected. Doing this, success will come by itself while the company continues to move forward.

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The main mission of our company is to satisfy the requirements of the Turkish Armed Forces and to provide the industry with a valuable name on the global market.

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Serdar Görgüç General Manager Otokar Celebrating its 50th anniversary in 2013, Otokar is the most experienced and the biggest private land systems manufacturer of Turkey. The company manufactures armored vehicles from 4x4 to 8x8 and tracked vehicles from 3/4 to 60 tons. Otokar is the biggest exporter of land systems in Turkey, with over 28,000 military vehicles sold in around 30 countries to 40 users.

2,500

employees working at Otokar

5% of turnover invested in R&D in 2012

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What are the competitive advantages of Otokar in Turkey and abroad?

ability according to customer needs is an important asset of the company.

Our main mission is to design, manufacture and market various defense industry products with worldwide competitive qualifications in line with the customer expectations. The critical drivers of Otokar’s sustainable growth and success have been listening to users and learning from their needs and expectations, non-stop investment in the development of both new and existing products, our commitment to R&D with superior engineering capability, following new technologies and integrating them into our products and, finally, offering the market the right products in the fastest way possible. In addition to that, our ability to stand on our own two feet, to sell products on the five continents without any foreign partners and being a listed company at the Borsa Istanbul stock exchange are also key factors in our success. Otokar provides advanced solutions to meet the worldwide needs of defense, border security, peacekeeping, humanitarian relief and homeland security roles. It is widely recognized for its wide range of armored personnel carriers (APCs), border security vehicles, reconnaissance and surveillance vehicles, weapon platforms, mine resistant troop carriers, medical evacuation vehicles and ambulances. Today, Otokar manufactures 4x4, 6x6, 8x8 and tracked armored vehicles ranging from 3/4 tons to 60 tons.

Moreover, we have been developing weapons and turret systems since 1989. With the expansion of our product family, however, we really turned our focus on them since 2011. Along with its design and development capabilities, Otokar enjoys the significant advantage of its own integrated manufacturing technology. Flexible manufacturing

How do you maintain this competitiveness?

Otokar aims to ensure the permanent satisfaction of its customers through its philosophy of perfection.

Thus, engineering capability and R&D have always carried a vital importance for Otokar, even back in the days when we were implementing the very first computer-aided design applications in Turkey’s automotive sector in 1980s. In 2012, 5% of Otokar turnover was reinvested into R&D. The company also has Turkey’s one and only armored vehicles and main battle tank testing equipment and capabilities.

Today, Otokar designs and manufactures vehicles and systems incorporating its own intellectual property. Over 28,000 military vehicles are currently in service with more than 40 different users in around 30 countries. We are also happy to consider any cooperation and collaboration for R&D in international programs as well as opportunities in local development and manufacturing of Otokar vehicles in different parts of the world.

Could you expand on the main technological advantages of your latest products and their potential for export markets?

At the IDEF 2013 trade show, we exhibited three new armored vehicles and three new turret systems.

With the first one, the Tulpar, we expanded our product range of wheeled vehicles with a tracked vehicle. Designed to be of equivalent or superior characteristics and features as the new generation armored infantry fighting vehicles of similar programs conducted in NATO countries, Tulpar is entirely Otokar’s own development. Named after the mythical winged-horse that guards the warriors in the Turkish mythological Epic of Manas, Tulpar meets 21st century requirements with its design that allows it to operate alongside modern main battle tanks.

It is a next generation armored infantry fighting vehicle (AIFV) and armored personnel carrier (APC) that can meet the land defense needs of the future for armed forces in countries wishing to acquire modern platforms and technologies. With a varying payload of 30 to 45 tons, Tulpar enjoys a high-level of mobility and superior protection in addition to advanced firing power. It can easily carry an infantry squad. The vehicle provides low operating costs and various configurations due to its modular design. Tulpar is specially designed according DEFENSE LEADERS • TURKEY 2014

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28,000

military vehicles in around

to the requirements of the Turkish Armed Forces and export markets. We also displayed the new model of our Cobra family, the Cobra II. Designed according to the evolving needs and demands of the existing user base spread over five continents, the Cobra II has the same mobility as the Cobra, but features a higher carrying capacity and a higher internal volume for various roles. However, Otokar will continue to present both vehicles for different needs. Briefly, Otokar has applied the lessons learnt from Cobra and refined its design over time to make it even better. It is designed as a modular platform with superior technical and tactical characteristics to fulfill both the current and future mission requirements of modern armies. The Cobra II is able to provide not only the protection requirements of today, but also responds to the future requirements of changing threats. It has sufficient payload to accommodate that additional weight and a large interior space to accommodate future technologies without any major changes to the vehicle. Last but not least, we also unveiled the URAL, another new 4x4 armored vehicle specifically designed for police, security and paramilitary forces. The vehicle is the latest in the line of products reflecting Otokar’s experience in paramilitary and homeland security vehicles.

Could you expand on your involvement in Turkey’s indigenous battle tank program, the Altay?

To be selected as the prime contractor for the Altay program in 2009 was another milestone in Otokar history. We had proven ourselves and had shown that, as a deep-rooted company, we were ready for this task. Altay provided further impetus to Otokar and, through the project, our capabilities have increased significantly. All of these developments have earned Otokar great respect in the world as Turkey’s number one manufacturer, in terms of both competence and product range, in the area of land systems and as the largest privately-owned defense industry company in the country. Turkey’s national Main Battle Tank (MBT) project is the only new generation tank program currently under way among NATO member countries. The Altay project comprises two separate phases: the design, prototype and qualification process phase and the serial production phas. The Undersecretariat for Defence Industries (SSM) appointed Otokar as the prime contractor for the first phase and the project was launched officially in January 2009. Consequently, in the scope of the project, Otokar is responsible

for the design, development, integration, prototype production, testing and qualification of Altay MBT. Phase one was to be completed in 78.5 months and was divided into three sub-phases. During the conceptual design phase, Otokar assessed the current threats, the combat requirements and the expectations and needs of the Turkish Armed Forces to develop an overall concept for Altay. Otokar is expected to produce four prototypes as part of the project. The first two pre-prototypes (MTR and FTR) were put through their paces at the end of last year. The MTR (mobility test rig-prototype) was tested in cold climate conditions in March 2013.

The FTR (firing test rig) prototype has been tested since December 2012. Initial results have met our expectations and we are working to perfect Altay by analyzing the results in every detail and aspect. Under the prime contractorship of Otokar, design, prototype production and qualification are scheduled for completion in 2015 when Altay will be ready for series production, which will be launched under a separate contract. Our aim is to manufacture the ultimate prototypes, test them, and bring Altay to perfection as the most modern and capable tank in the world.

What does this project represents in terms of the capabilities of the Turkish defense industry?

550 engineers are working in order to complete the project, 260 of whom are Otokar employees.

Together with the Altay team, and nearly 100 subcontractors, we aim to make the best of our time and prepare Altay for mass production. This project is a good example of collaboration. Hyundai Rotem is the “technical support and assistance provider” for the project. The Turkish firm Aselsan is to provide the tank fire control system and the tank command control communication information system. MKEK will supply the 120mm L/55 smoothbore main gun system and Roketsan the modular armor package.

I believe that the Altay program will provide great acceleration to the land platform sector in terms of design, development and manufacturing capacities with its investments in labor force training and thanks to the technical know-how accumulated.

With stable management, a growing economy and strong army, our country will reinforce its power and leadership within the region and Turkey will take its place among the special main battle tank manufacturers of the world. Moreover, our country will continuously progress with products developed by its own resources and capabilities, and created with its own technology.

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countries

Otokar is responsible for the design, development, integration, prototype production, testing and qualification of Altay main battle tank.

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Nail Kurt General Manager FNSS FNSS was established in 1989 as an international joint venture of Nurol Holding and started operations in 1990. It was created to produce and deliver 1,698 armored combat vehicles (ACVs) to the Turkish Land Forces and has since then broadened it product range with star products like the PARS and has been very successful in export markets. In 2005, BAE Systems bought the 49% foreign shares of the company.

Our local competitive advantage is the more than 2,000 ACVs that we have already delivered.

How has FNSS been performing since you arrived as general manager in 2007?

Since I arrived at the head of FNSS, our sales have increased significantly from 30 million dollars to almost 200 million dollars as of 2012. Our headcount also increased from 140 to 800, most of whom are white collars and engineers. Furthermore, we established our R&D center, which has been acknowledged and approved by the Turkish Ministry of Industry. So, we have concurrently started to design more indigenous products. These positive figures are mainly due to the investments we have made over the past 15 years, which have been showing excellent results over the past five years.

Our strategic studies indicate sales of about half a billion dollars for FNSS over the next five years.

I strongly believe that we can achieve that. We will make the moves necessary to support that strategic objective, entering new markets other than Turkey, Malaysia, Saudi Arabia and the United Arab Emirates.

We are on the verge of entering other new markets and about to sign significant new contracts. There are also new and big Turkish programs currently under consideration and we will take a significant share of those domestic programs.

How do you explain such a tremendous growth?

Sales

$200 M 2012

$30 M 2007

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Of course, our local competitive advantage is the more than 2,000 armored combat vehicles (ACVs) that we have already delivered. We have a very good track record with the Turkish Land Forces. In the meantime, we have achieved a lot of firsts in the Turkish defense industry in terms of products and exports. Regarding exports, we are by far the number one in terms of defense land systems, with close to 2 billion dollars in total export contracts. This is a big achievement and it is an important selling point for customers who are seeking trustworthy companies with a good track record and reliable products. We have been very successful in exports thanks to our high flexibility. We strive to be a local company for our export markets, meaning that we always try to establish a local existence through cooperation with local companies involving technology transfer and produce as much as we can in the client country.

This may happen in the form of a new joint venture consortium or main contractor-subcontractor relationships.Thanks to that proximity, we understand very well the needs and requirements of our clients and serve them accordingly in a timely manner. This is one of the reasons we win consecutive contracts

from the same customers. In Malaysia, for example, we have already signed four contracts in total.

Likewise, in Saudi Arabia, we are about to sign our sixth large contract.

What is your opinion on the support that companies get from the Undersecretariat for Defence Industries (SSM)?

SSM has been, is and will be the driving factor behind the defense industry of Turkey. They play a major role in determining the sector strategy and guiding companies to where the Turkish state wants to be. It is a good example of how government, if well organized, can lead the private sector to very good results. This is what has happened in Turkey.

In the meantime, both sides, the government and the companies, have learned a lot from each other.

It has not been just a customer-client relationship, but a very interactive relationship. We always support each other. For instance, for export markets, we always see SSM and the Turkish government next to us. Also, we must mention the fact that SSM took a significant risk when they first started awarding development contracts to the Turkish defense sector, which has since proven to be a very critical move towards the development of the sector.

Not all customers can take such risks, sometimes sacrificing short term benefits for the medium to long term strategic benefits of the country. SSM has done that and succeeded.

Why do you believe there should not be more than two original equipment manufacturers (OEMs) for land systems in Turkey?

If you look at the top five exporters worldwide, namely the US, Russia, China, France and Germany, they all have a very limited number of companies working in the sector. Even if everything is liberal in today’s world, the defense sector should not be. It has to be controlled by the government, at least for complex platforms. For example, for heavily armored complex platforms, whether tracked or wheeled, there are not too many players in the world market and the ones already around are competing fiercely.

As Turkey, if we want to be strong and influential in this sector, we need bigger and more capable companies and, given the current and expected market conditions, this not going to be possible with five or six medium-sized companies. However, this is perfectly achievable with one or two strong ones. This is not a sector that should be opened in DEFENSE LEADERS • TURKEY 2014

PROVIDING

a very liberal way and if you look at the countries I named above, along with many other countries that have trademarks, you will see only one or two land systems producers.

Then what has to be the role of Turkish SMEs in the defense sector?

FNSS is known to provide most of its work to SMEs. We are a big supporter of them, especially local ones. They are an inevitable part of this sector. The more capable they are, the stronger they are, the better we are, the more capable and stronger we are.

If we look at the recent years’ tremendous growth of FNSS, our position is increasingly migrating towards the higher segments of system integration, concept development and new designs. Our position is much higher than where we were 10 years ago. SMEs and supporting companies should be coming along with us. There is a gap now, at least in the Turkish sector, in terms of SMEs capable of supporting OEMs with their design and sub-system capabilities. We need more design-capable subsystem manufacturers and suppliers in Turkey and we are working on that not only as FNSS, but also at organizations like SaSaD and SSI with the usual support of SSM.

What are some of the latest projects FNSS has developed?

We are developing an unmanned turret. The program is well under way and we are at the testing phase now. It will have 25mm and 30mm cannon options. We are also redesigning our new one-man 25-mm turret. We already have one, but this one will be a different turret with new drives and a new

shell and will come out next year. We are constantly developing our wheeled and tracked vehicles as well. We just recently released a prototype of a very light tracked vehicle weighing 10 tons, the Kaplan.

Currently, we are also working on Turkish air defense programs and recently developed track vehicles in the 30-35 tons range to support Aselsan. We are also developing a new generation of ACVs. Needless to say, we also have a number of internal R&D programs going on to support our basic tracked and wheeled platforms.

Which export markets hold the most potential for FNSS?

$2

billion

total past export contracts

The Middle East is the current focus, but, of course, we will continue working with the Far East.

I also see a great future, not in the short run, but in the mid to long term, in the CIS countries because of our historic relations, their infrastructure and their political ties with Turkey. It is developing slowly, but there is a big potential there. We also see potential in Northern Africa, and some Eastern European countries.

We are by far the number one in terms of defense land systems.

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PROVIDING

Engin Aykol General Manager of Nurol Makina Nurol Makina was established in 1976 to respond to the needs of the construction sector. At the end of the 1980s, the company decided to enter the defense industry just after the establishment of the Undersecretariat for Defence Industries (SSM) in order to fully benefit from the rapid growth of the Turkish defense industry.

Turkish police trains police forces in 40 countries and this opens huge opportunities for Nurol Makina.

230

people

50

engineers

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What are the competitive advantages of Nurol Makina?

Flexibility is one of our key strengths. Basically, for the last year, we decided to invest in 4x4 platforms instead of 6x6s. We have great experience with 6x6s, as we are the only exporter of 6x6 armored vehicles in Turkey, but we do not market them anymore. We now promote our 4x4 vehicles because our targeted international markets can more easily afford them than 6x6. We can provide them with 4x4 solutions, which we believe can be as efficient as 6x6s at a more affordable price. However, to say that we have advantages over our competitors, we have to see them as competitors. FNSS, for example, is certainly not our competitor. We are in different fields and we still supply systems to FNSS and cooperate extensively with them.

How do you see the potential of your Ejder line?

Over the last year, we extended the Ejder into a family line. It used to be a 6x6 armored vehicle and we sold 70 of these Ejder 6x6s to Georgia. That was the first contract for the Ejder vehicles; the first and only because, as I said, we stopped promoting it.

The main reason was that trying to sell 6x6s is very expensive and it is a limited market. We preferred to concentrate our own funds on new 4x4 platforms, which are much more affordable for our targeted international markets. When we took that decision and we invested in the 4x4s, our first 4x4 vehicle was the most highly rated. That was a big hit and our entry on the 4x4 market. Our gold customers liked the product very much and, right after IDEF 2013 trade show, we signed a contract to supply the Ejder 4x4 to the Turkish police. After that contract ,we signed some more contracts with them and that is why we are now developing the Ejder family. The 6x6s and 4x4s share the same power group and exhaust systems. Additionally, we have developed the Ejder TOMA for homeland security and riot control. It also shares the same vehicle system, suspension, axis and power group with the rest of Ejder family.

To what extent has the TOMA vehicle contributed to your overall success on the defense market?

TOMA was a genius design and we sold it to the Turkish police up until 2008. Even if we lost the Turkish market to our competitors, the product remains so good that we are still exporting our original generation TOMA. The Turkish police brought up the

need for a more ballistic protected version, but, with the old generation TOMA, we could not supply them because of payload constraints. The independent suspension for every tire on the new TOMA enables the vehicle to carry more load. Therefore, we can use higher levels of ballistic protection in order to meet the higher protection level required. I can give you the example of our old generation TOMA where the ballistic development was made for protection up to 44mm Magnum. Now, with the new generation, it is 7.62mm resistant. The vehicle itself is not armed; the only weapon is the water cannon, but the police inside got sometimes shot with 7.62mm rifles and therefore needed this kind of protection.

DEFENSE LEADERS • TURKEY 2014

PROVIDING There are a couple of topics that we are taking very seriously.

CBRN is one of them.

What is the importance of capabilities at Nurol Makina?

the

design

All the design is done in-house. We have great experience in design and manufacturing for armored vehicles because of the Ejder 6x6, which is a heritage from 2006. We used that experience to come up with the Ejder 4x4 and also with the Ejder TOMA. Last year, we doubled our design engineering capabilities and, within the next three years, we foresee at least tripling it because of contracts we signed with the Turkish police and some others that are still in negotiations. We try to position ourselves not like a car manufacturer, as we are not looking for huge volumes. We are instead after customized products according to users’ needs that we integrate on our base platforms. This year, we may produce five or 10 vehicles in accordance with our customers’ needs and, the next year, we may change those vehicles again depending on their feedback.

So we are like a platform armored vehicle solutions provider rather than a volume manufacturer, which is why the design team plays a very important role in our products.

How are you investing in R&D to maintain your competitiveness?

As of now we invest 9% of our turnover in R&D, but it is more oriented towards product development. We are not inventing anything so product development would be a better terminology for that. We are constructing a new area for our design team and are establishing a systems engineering group, not just dealing with development and mechanical aspects, but also electrical and software. We provide them new space with the new prototype shop where we can test the new user requirements for the different models. Starting with the Turkish police, this was key because the Turkish police trains police forces in 40 countries and this opens huge opportunities for Nurol Makina. It is the reason why we keep selling reliable products to the Turkish police. It is a very critical customer for us along with SSM.

Do you plan to extend your CBRN solutions?

For our next five-year plan, there are a couple of topics that we are taking very seriously and that is why we try to develop our system engineering capabilities. CBRN is one and designing and producing different types of payloads for our vehicles is the other. When I say payloads, it is not just for TOMA and building water cannons, but also technologies to protect the area surrounding our mobile vehicles and shelter capabilities. So yes, we plan to develop more CBRN expertise, as it is an important business element for us both for mobile and underground protection. We developed our Nurol Makina CBRN suite. We collaborate in certain cases with Indra, which is a leader in this field. We delivered Turkey’s first and only CBRN laboratory, where Indra was the main contractor and we were a subcontractor. We are looking into expanding that relationship.

Research & Development

9

%

of turnover

What are the main features of your production facility?

There are currently 230 people and 50 engineers working in our production facility. It is a huge engineering force and we will at least double it in three years and triple it in five years. We have very specialized infrastructure set up for armored production. We are trying to develop or at least to upgrade our assembly line and infrastructure with some more investments. But from the fabrication point of view, I think that we have the most capable in-house equipment in Turkey because the fabrication of the armored vehicles is difficult and requires different sets of expertise such as cutting or bending for instance.

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PROVIDING

Mustafa Koluman Chairman of Koluman Koluman was created in 1965 by Mustafa Koluman and is a vibrant success story of a private corporation that has grown over the years, along with the Turkish economy, to become one of the leading private corporations in the country. Koluman has ambitious plans to reach 100 million dollars in government sales over the next five years.

What was the vision behind your decision to enter the defense industry?

know-how to get a civilian vehicle and bring it up to military standards.

From the beginning at Koluman, we have been involved in the defense industry. Indeed, even before the official creation of Koluman, we started working on an underground military headquarters in Ankara, supplying equipment and installations.

Then, we began supplying weapon parts for the

How has the Unimog impacted your activities?

The Unimog was a great success and the Aksaray truck factory would never have existed without having the Unimog production. I knew the Unimog and its capacity very well from when I was the dealer for Turkey. It is a very good vehicle: resistant and versatile. I was demonstrating this vehicle in Turkey and then the army accepted it. We sold some 500 units and I later convinced the Turkish Army to start production of military vehicles in Turkey because, up to that date, Turkey was using American vehicles from World War II. In 1974, when Turkey decided to land in Cyprus, the trucks started from Ankara and then, on the outskirts of Ankara, you could see all these American trucks that were not able to move and go to Cyprus because they were lacking spare parts. We had delivered 500 units of Unimog to the Gendarmerie, of which 50 units were in Nevsehir.

These 50 units eventually moved to Cyprus and helped us to win the war. The Unimog had convinced the army. From then on, we could convince both the government and Mercedes-Benz to build the Aksaray facility. We now have a beautiful factory where we produced 20,000 trucks last year. In the future, our capacity can easily be increased to 40,000 if needed.

What makes you think that you can sell 40,000 trucks?

MG-3 general-purpose machine gun, designed in 1959 and produced by Rheinmetall. We then started with the production of Unimog military trucks for the Ministry of Defense and the Gendarmerie in Turkey and we are still continuing to do so. The foundation of Koluman Automotive Industry in the 1990s is another important step for the group. I was already thinking that, being in the truck business, we would need truck superstructures in the future. This is why, in 1995, we started a company in the south of Turkey to produce superstructures. At this time, we had to take the trucks from Germany, bring them in Turkey and militarize them, even though we had the

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I know Turkey is a truck country. We need trucks and now; we can go up to 40,000 trucks and maybe even 60,000. Turkey is a truck market. I see in the future something else, though. All the logistics between Turkey and Europe will be in the hands of the Turkish companies, as European companies will not be able to compete.

What was the reason behind opening a new state-of-the-art service facility in 2006?

The overall investment in this facility cost us 9 million euros. One of the main reasons for opening it and making such an investment is because, in the coming years, we want to move the commercial vehicle and vans sales activities also to this place.

So it was not only for servicing purposes. The other reason is that, by 2018, we expect Mercedes-Benz truck sales to reach 40,000 in Turkey and Koluman’s DEFENSE LEADERS • TURKEY 2014

PROVIDING

20,000

trucks produced last year Capacity can be increased to

sales to reach around 10,000 units a year. The third reason is that we have a partnership with Daimler.

Daimler is a profitable company. This year we expect a minimum of 200 million net profits after tax. We have a small share and there are many other dealers in Turkey. At Koluman, we have always been investing and showing the other dealers they should follow us, so this investment also represents a model to follow for other dealers. We have been very successful during the last 20 years and dealership is getting very difficult, but, if we want to stay ahead of the game, we have to fight and make bigger investments and be a model. Last but not least, the facility can be used as a training center also.

I convinced the Turkish Army to start production of military vehicles in Turkey.

Which other investment projects do you have in mind for Koluman?

We have an investment project in Russia. Daimler signed an agreement five years ago with Russia to renew the Kamaz trucks. As long as Russia will exist, Kamaz will be there. They have an agreement stating that Mercedes-Benz will improve the quality of the Kamaz trucks and, particularly, the quality of the engine and transmission production. We have been working on it for five years. Daimler called me because they knew I wanted to build superstructures there and they also needed the superstructures.

They wanted me to come so we could work together.

I agreed and this is our project together in Russia.

We also have plans in Iran, Kurdistan and Algeria.

How do you explain the tremendous growth of your company?

40,000

First, our principle is to be transparent and participatory, which means that we have to convey to our employees the idea that even if it is not their job, they can try to participate and give feedback.

We are also very transparent in our management system. I even sometimes tell our competitors, as they are also our friends, that if they want to look in our books they can come any time. If you are really transparent, this is the biggest power and it means that you are not afraid of competition. And I am not. We also have a board of management and functional written regulations. Behaving accordingly, the functional areas we have are marketing, finance and after-sale services. And again, each member is responsible for his or her area and jointly responsible for resolutions carried by the board of management. If you really follow this, you can feel individually responsible for your area, but also jointly responsible for decisions taken. Having good communication not only on paper, but on every format is also essential. Another key to our success is compliance with the functional regulations of the management. We have strict compliance regulations for competition and ethics. For example, if any corporation wants to do business with us, they have to sign these compliance regulations and ethic principles. Otherwise we do not enter into business with them. The last point is the internal training on management principles. We encourage people to make quick decisions whenever and wherever necessary.

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Saab Established:

1937

Headquarters: Bromma, Sweden Key markets: Europe, South Africa,

€2.7 billion Employees 2012 : 13,968 Sales 2012:

Australia and the US

Investment in R&D: turnover

Global presence: worldwide

25% of

32 local offices

Saab is a global leader in products, services and solutions in both the military defense and the civilian and homeland security sectors.

The global corporation is continuously working on the improvement, development and adaptation of its technology to meet its customers’ changing needs. Saab’s most important markets are Europe, South Africa, Australia and the United States. It employs about 14,000 staff and the annual sales of the group are at about 24 billion SEK (2.7 billion euros), of which R&D investment accounts for about 25%.

At the beginning of 2013, Saab’s established six market areas around the world, the Americas, Europe, the Middle East, South Africa, India and the Asia-Pacific region. The philosophy behind these market areas is to establish a very strong local presence in order to be able to cater to the needs of these local customers. Saab has also divided its operations into six business segments, aeronautics, dynamics, electronic defense systems, security and defense solutions, support and services and independent subsidiary competencies such as consulting.

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Saab established its presence in Turkey in 2008. The strategy defined

by Saab for Turkey is to partner with the government and local companies in a win-win situation and become a long-term strategic partner of the Turkish Republic, not only in domestic but also in export markets. The group has a deep understanding of the needs for technology transfers to Turkey and that is why Saab selected two strategic partners in the local market in order to develop indigenous programs. Of course, Saab would also like to participate in the TFX indigenous fighter jet program as it has an excellent expertise in aircraft technology and is ready to share it.

The global company is convinced that the Turkish defense technology plans developed by the Undersecretariat for Defence

Industries (SSM) and local defense corporations will give Turkey a better position on international markets in the future.

Last but not least, Saab signed a letter of intent last June with the Turkish Armed Forces Foundation, which aims to identify areas of cooperation with the Turkish defense industry and to prepare a

Fahir Altan, Managing Director Saab Turkey

Saab sees turkey as a strategic partner and is convinced that the Turkish defense

concrete business plan in both Turkey as well as other countries.

Turkey needs indigenous programs and Saab is ready to partner in air, land and naval domains as well as homeland security.

technology plans will give Turkey a better position in the future.

Turkey is in the top 30 of Saab’s list in terms of importance in the global strategy of the group. Over the next five years, Saab will be one

of the most important partners for the Turkish defense industry, particularly for Turkish indigenous programs.

Saab is a reliable, long-term partner for Turkey. We co-operate with government departments and industry in joint development programmes for future domestic and international needs.

One-fourth of our annual sales is reinvested into R&D programmes, supporting technology transfer and boosting local export markets.

www.saabgroup.com

PROVIDING

Mustafa Kemal Erçelik Board Member of Alp Aviation Located in the city of Eskisehir, the cradle of the Turkish aerospace industry, Alp Aviation is the story of a successful defense and aerospace private corporation. Created in 1998, the company has grown tremendously over the past 15 years and is currently in a joint venture with Sikorsky, a global leader. Today, Alp Aviation is the largest private aerospace exporter in Turkey.

What are the main products and services that Alp Aviation provides to the Turkish market?

Alp Aviation manufactures and exports rotarywing dynamic components and flight control hardware for all Sikorsky platforms, such as swash plate assemblies, bifilar, pressure plate assemblies, damper bracket assemblies, pitch-beams and horn assemblies. Also, as part of the Turkish Utility Helicopter program with Sikorsky, our product line expansion will include the production of all major flight critical and dynamic components, as well as assemblies such as gears, gear boxes and spindles for Black Hawk. Alp Aviation is also the source of Black Hawk and Seahawk Tail Rotor Drive Shaft (TRDS) details and assemblies. Dynamically balanced, fully finished assemblies are shipped to

programs. Furthermore, our cooperation with Pratt & Whitney is now moving into Pratt & Whitney’s new generation gear turbo fan engines. Alp Aviation is the major source for Pratt & Whitney F135 stage two to five titanium IBRs. An R&D contract was also signed in November 2011 between Alp and Pratt & Whitney to develop F135 stages six to nine nickel IBR. Alp Aviation also produces landing gear parts and subassemblies for F-35 Joint Strike Fighter (JSF), F-22 and Boeing commercial programs equipped with Goodrich landing gear systems.

The first JSF flight carried more than 40 Alp made parts in its landing gears. Collar, torque arms and drag brace assemblies and 300M and AERMET 100 alloy components are currently in production. Alp Aviation is the candidate for becoming the F-35 landing gear final assembly and check out (FACO) and maintenance, repair and overhaul (MRO) center.

Alp Aviation, as part of the Turkish Utility Helicopter Program (TUHP), will manufacture the landing gear assemblies. Alp Aviation is the source of the rudder and horizontal stabilizer for the TAI’s Turkish Basic Trainer program, as well as Sikorsky’s Black Hawk horizontal stabilizer center box assembly, among others. Alp Aviation is a fully integrated titanium machining and special processing house, with strong experience in wrought titanium, forgings and castings. In order to provide finished titanium products and assemblies four and five axes precision machining equipment, all in-house special processes and final acceptance tests are utilized.

Alp Aviation’s basic strength and competitive advantage come from its vertically integrated, yet very efficient, operations, its investments in people and operating modern technology systems. This is reflected in its very attractive quality, delivery and cost performance.

How do you ensure the quality of your industrial output?

meet the requirements of final helicopter assembly lines and spare needs of users. With a dedicated engine components facility and business unit, Alp Aviation produces engine rotating hardware such as integrally bladed fan and compressor rotors (IBRs) for Pratt & Whitney’s F135, other key engine and auxiliary power unit (APU) components for Boeing 787 and Airbus 380 programs and fuel and oil housings for Pratt & Whitney Canada engine

82

Alp Aviation facilities are in perfect accordance with the Achieving Competitive Excellence (ACE) principles and successfully demonstrate visual factory and lean manufacturing principles.

The quality system is in accordance with the requirements of the global aerospace industry, as reflected in the highest level quality certifications that Alp Aviation possesses, including AS EN 9100, NADCAP Certification for all special processes, Flight Safety Parts Manufacturing Approvals and quality system compliance for customers such as Sikorsky, Pratt & Whitney, Lockheed Martin and DEFENSE LEADERS • TURKEY 2014

PROVIDING UTC Aerospace Systems. Alp Aviation is comprised of 13 lean cells to achieve its lean manufacturing principles. We were awarded “ACE Silver Level” on 10 cells and “ACE Gold Level” on three cells in the UTC ACE Gold Program. All cells and enterprises shall reach Gold Level by the third quarter of 2014, the highest degree in the ACE system. In addition to this, the state-of-the-art enterprise resource planning (ERP) system is utilized in the management of the entire manufacturing process as well as corporate functions. The above systems help to achieve 100% quality and over 97% on-time delivery performance, in accordance with the ACE Gold standards. In addition to what I just mentioned, I must stress that our state-of-the-art ERP system is used to monitor all measurable functions on a real time basis. This is all done with smart screens and bar codes to ensure that our quality rating remains high. Another element that I should mention about Alp Aviation is that we have an ITO Quality Clinic, recognized by UTC and we are the sole UTC approved enterprise of its kind nationally and regionally. While this recognition shows the level of quality, it also helps our efforts to enhance our “zero escape” policy.

What can you tell us about the recent establishment of AlpTeknik?

Most of Alp Aviation’s current revenue comes from the production programs and some comes from spare parts. If our product is a spare part, we are generally meeting a good portion of the spare parts requirements. We decided to develop an indigenous enterprise, which would be a subsidiary of Alp Aviation, to work on the aftermarket business in a specialized manner. It starts with the spare requirements for Sikorsky Aircraft Services (SAS) products that include Sikorsky platforms and some other platforms that Sikorsky companies are servicing. AlpTeknik is the sole distributor of SAS products in Turkey. As a part of this activity and for the first time in Turkey, we are going to keep a local inventory of the high-turnover parts for Turkish users that will allow them to receive their parts in hours or days rather than months, as is the case at the moment. This will allow higher utilization of aircraft and we want to expand our Sikorsky relationship further into other after market operations beyond part distribution and part warehousing. We expect this to grow and progress over the coming years and we would like to offer this service to other UTC and non-UTC companies in the future. Our office in Ankara started its operations in 2013, however, the official opening is planned for 2014.

How do you see the potential of the Turkish defense industry?

Although Turkish defense and aerospace sector output and exports are quite small relative to total Turkish GDP and exports today, the Turkish government is giving great impetus to the sector.

One of the most important reasons is naturally the strategic and security dimension of the sector. This is also a critical sector in technology development and R&D, thus also supporting overall national technological infrastructure. Through the import substitution effect, relatively higher value added performance and high actual and expected growth rates also make the sector quite attractive and promising for the policy makers as a part of their strategic plans to reduce the current structural account deficit problem in the Turkish economy. This

support, coupled with expected growth, particularly in civilian aviation, and local projects such as the indigenous helicopter program, makes the industry’s outlook quite positive.

What is your export strategy?

Our exports are growing around 30% annually, and this is expected to continue over the next five to seven years at least. We are expecting significant rate increases in the Boeing 787, Airbus 380, F-35 JSF, Pratt & Whitney NGPF programs and the long awaited Turkish Utility Helicopter program. This reinforces our hopes for even bigger annual growth rates in the long term. After market operations will also start to bring extra growth potential starting from 2014. The company will offer 90 new direct employment opportunities in 2014, bringing the total to about 600. New investments in capital expenditures will be approximately 15 million dollars in 2014, excluding a combined investment of nearly 100 million dollars for TUHP and UTC’s NGPF programs, which are very likely to start in 2014, and continue through 2016.

Our exports are growing around 30% annually, and this is expected to continue over the next five to seven years at least.

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PROVIDING

Anthony Azar Business Director, High Growth Regions EMEA Honeywell Aerospace Part of Honeywell global, Honeywell Turkey was established in 1992 and now has more than 150 employees. All four of Honeywell’s businesses – Aerospace, Automation and Control Solutions, Transportation Systems and Performance Materials and Technologies – are active in the country. Honeywell’s business in Turkey has grown by more than 50% since 2009 and all the company’s businesses have shown strong performance in 2013.

and you will find our technologies really grouping themselves around these three areas. These are high on the priority list of Turkey, and how they view the Turkish defense capabilities and keep the industry moving into the future. We have been in Turkey since 1992. We have a big office in Istanbul, and we have recently announced our new president for Turkey, Orhan Genis, based in Istanbul. This just shows how important a market like Turkey is for Honeywell and this is why we are seriously building up our team there.

Is there any project in particular that you would like to highlight?

What is Honeywell’s involvement in Turkey?

We represent today about 54% of all propulsion on the rotary fleet in Turkey.

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Turkey is a highly strategic country for Honeywell.

We have a very large portfolio of both commercial and defense-related technologies. You will find highly critical components from Honeywell in any platform that flies, advances on the earth, in the sea, in the sky or in space, manned or unmanned.

In the Middle East region and in Turkey, Honeywell’s defense technology is extremely well represented.

We represent today about 54% of all propulsion on the rotary fleet in Turkey and that has been the case for a long time. Indeed, we have a very important heritage in propulsion, especially around the military, and with Turkey keeping us for so long, this of course bears testament to the reliability of our equipment in ensuring Turkish mission success.

This is just propulsion. If you look into the next few years, we might also mention the arrival of the CH47 Chinooks in Turkish inventory around 2015. Then our share of the propulsion market is really going to hit the upper 50%, approaching 60% when it comes to propulsion of Turkey’s rotary fleet. I would like to insist on propulsion because it is part of our efficiency portfolio. When you think about Honeywell, we are really focusing hard on safety, efficiency and reliability, whether it is military or commercial,

I would like to mention the T129 ATAK helicopter.

We have engines on there that we are supporting.

Apart from supplying the engines, we are also helping them put in the reactive capabilities locally.

This is something that we do; it is part of our core business strategy. We are also manufacturing the power module of the engines at TEI. However, Turkey’s ambition does not stop at just procuring technology to be put on the helicopter. Their ambition goes much further in terms of acquiring technology and learning about it, as well as positioning themselves to export to the region. I am happy to say that Honeywell is working very closely with the Turkish defense industry and many companies that we have there are overseers, helping them to build capabilities in every one of these areas. So whether it is technology development, whether it is manufacturing, whether it is assembly of technology or defense technology mainly for repair, Honeywell is a partner of Turkey. Of course, we can also help them in exporting and selling to the region.

Does this also imply transfers of technology?

Apart from the helicopter program we already mentioned, our intention is to work with the Turkish industry to build every area of what we see as technology transfer and counting in the future. We are working hard today to find areas of collaboration with the Turkish industry around product development, design and manufacturing.

The Maintenance Repair Overhaul (MRO) is also an area that started on the ATAK helicopter and that we would like to build and, hopefully, help to export.

Furthermore, we were recently discussing future programs and collaborations with Turkey and we realized that we are uniquely placed to help them not only in Turkey, but also outside of Turkey. I would DEFENSE LEADERS • TURKEY 2014

PROVIDING like to add the fact that Honeywell is extremely well positioned in the US, a long-term defense strategic partner of the Turkish Republic. There is a simple fact that many people do not think about when they think about Turkey, which is that half of the 1.2 billion dollar export that Turkey achieves comes from exports to the US. Part of their export ambition is to build their business in the US and we can provide them an excellent access to this market.

Do you have any activities related to land systems in Turkey?

The majority of what we are involved in, in terms of land systems in Turkey, is related to navigation and map systems. We have products in our portfolio that help the positioning of vehicles such as embedded GPS and navigation units. It is called TALIN (Tactical Advanced Land Inertial Navigator) and it can help any type of vehicle whether on sea or on land. It helps these platforms find themselves, whether there is a GPS signal or not. So Honeywell is a world leader in the supply of these systems and you will find our equipment on a large number of platforms when it comes to land navigation.

What are the challenges of working in Turkey for a global company like Honeywell?

The most important factor is that you need to be present physically in Turkey. That is my personal opinion. You need to gain the trust of Turkey. Turkey is very level-headed, very pragmatic and you need to gain that trust and be honest in order to build your activities in the country and embrace your

ambitions. So when we talked before about Turkey’s ambition to build their own capabilities, to develop and manufacture, you have to support them in that.

You have to be able, as a company, to believe in that, to be able to do it and to be present to do it.

How important is Turkey in Honeywell’s global strategy?

Apart from the defense sector that we already mentioned, our commercial aerospace business is growing in Turkey. That is within the aerospace business unit. We can also mention the automation control solutions unit, around the building solutions and then the process solutions business for refineries and chemical plants, where Honeywell is growing extremely fast. We are also involved in transportation systems as well. We supply turbo chargers and breaks for vehicles, for trucks and cars.

The diesel business is growing in Turkey, and there are many things growing with it. We have lots of products covering that area, whether it is actuators, navigation sensors or even laser gyros. Honeywell has the most advanced laser gyro mechanisms in the world when it comes to accuracy of navigation, especially for space. That is very attractive to a lot of the countries with space ambitions. To sum up, Turkey is a highly promising market for Honeywell, not only for the defense and aerospace business, but also for all the other business units of the corporation.

THE EXECUTIVE GUIDE OF THE GLOBAL DEFENSE AND SECURITY INDUSTRY

Honeywell’s business in Turkey has grown by more than

50% since 2009

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Effective Participation of Small & Medium Sized Enterprises in the Defense Industry Although unique in its aspects of technology and its application, the defense industry is actually part and parcel of industry in general. Indeed, developments in technology are often led by the defense R&D efforts. Many defense R&D innovations find a great foothold in the civilian market and far surpass their originally intended military use, such as the internet. However, the industry in general forms the basis of the defense industry, at least on a components and sub-systems, parts and support level, if not more.

There is no doubt that there is high-tech industrial innovation involved here, but have we ever wondered where the futuristic developments are actually being “grown” from a seed into a tree?

There are Small and Medium Sized Enterprises (SMEs) focused on niche technology areas all around the world that often come out with “high-tech” innovations which contribute to higher technological developments. We are, after all, living in the “information age”, which enables, for example, a group of seniors at a university dorm to write a code for social networking software which, in couple of years, grows into a 100 billion dollar company: Facebook™. This day and age allows for that, yet we are, in most parts of the world, concentrated on working with big contractors for the large defense programs. This probably has very legitimate reasons, but it should not cloud our thinking about the role of SMEs. As of today, there are indeed thousands of high-tech SMEs researching and developing solutions that make up parts of the large programs and which eventually enable them to be finalized. As such, the defense industry government leaders should make policies that support the development of SMEs in the face of larger industrial corporations and consider them like the single-cell organisms that made up the start of larger life on earth in small yeast-like formations.

The Turkish government’s defense industry clusters are a good example of this support where by SMEs are encouraged to group in clusters in industrial areas, providing for ways to find synergies amongst themselves support the work of larger corporations. Most of the NATO countries have policies and legislation that provide a “blanket” of protection and support for SMEs in order to maintain and advance the competitive edge and innovation they provide. This includes regulations that call for a certain percentage of local contracts to be distributed amongst supporting industries and SMEs building sub-systems, either as part of an industrial participation scheme or support for R&D. Turkey’s Undersecratariat for Defence Industries (SSM) has passed highly appreciated regulations that call for a certain percentage of R&D support - calculated on the basis of the overall value of large defense contracts - to be provided to SMEs involved in R&D. SSM’s support is a substantial move towards defining a policy that acknowledges the importance of innovation through small, high-tech companies and that supports them.

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However, R&D support must also be further reinforced in a manner that is true to the essence of R&D developments.

R&D is an ever-changing process where milestones and developments cannot be foreseen in full details from “T-0” or realized in full accordance with the expectations of day one. Henceforth, trying to determine these from day one and legalizing them in extremely detailed contracts may create contractual problems later on. The path of the R&D process is actually determined by the technological advancements and developments. It is sounder to recognize R&D for what it is and learn to “walk” the R&D path together with the R&D company as the governmental/ contracting authority. This way, as the R&D program progresses and details become clearer, a more “know-how” collecting and technology developing paradigm can be made possible instead of a “zero-sum” game approach.

SMEs are integral part of economies all around the world, providing most of the distributed employment, taxes and exports. Careful coordination and support of SMEs, especially in the defense industry sector, where there are a few large clients, is as important as SMEs trying to expand their footprints to include civilian areas and/or dual use products and services.

In any given case, the government support is extremely crucial for sustained technological advancements in the defense industry.

Cem Yazıcıoğlu General Manager Fotoniks Military Electronics & Electro-Optics

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Fostering Local Technology During the 20142016 period, the government will directly finance 27 defense industry R&D projects.

After having relied on foreign technology for years, Turkey has managed to develop indigenous capabilities. In the past decade, the country has conducted many successful indigenous defense programs in line with the strategic vision of the Ministry of National Defense and the Undersecretariat for Defence Industries (SSM).

For example, Turkey has become one of the few countries in the world with the capability to manufacture Medium Altitude Longue Endurance (MALE) drones on an industrial basis with the Anka project. The Milgem national warship project is another testimony to Turkey’s technological capabilities.

Turkish leaders, however, are perfectly aware that, in order to achieve the ambitious export goal the nation has set for itself, it still needs more investment on innovation. In November 2013, Turkey’s Undersecretary for Defense Industries, Murad Bayar, expressed concerns over insufficient technological advancement and insisted that Turkey would make more efforts to boost innovation in the future. “I cannot say that we have successfully supported [the local industry] with major R&D programs. Developed countries allocate 5% to 15% of their defense budgets to R&D activity. Today, the Turkish industry can develop ships, tanks and other land vehicles, but we cannot talk about a serious level of system engineering and technology and product development”, he declared in an interview in December 2013.

However, efforts to further enhance innovation are underway. For example, Aselsan, Turkey’s largest defense corporation, has plans to finish a plant for that very purpose in 2014. The 200 million dollars investment in Golbasi, near Ankara, will be dedicated to R&D, electronic warfare, long-range radar systems, intelligence systems and jammers. Furthermore, Turkey approved the construction of its first satellitelaunching center as SSM signed a contract with Roketsan to build the Turkish Satellite Launching System (UFS). Under the contract, Roketsan will design the UFS with an initial capacity to launch satellites into low-Earth orbit (500 to 700 kilometers) through a launching center built by the company and operated by the Turkish Air Force.

The Minister of National Defense, Ismet Yilmaz, also insists on the fact that the government is heavily supporting defense industry innovation with R&D funding. During the 2014-2016 period,

THE EXECUTIVE GUIDE OF THE GLOBAL DEFENSE AND SECURITY INDUSTRY

the government will directly finance 27 defense industry R&D projects while TÜBİTAK, the state scientific research institute, will support 45 R&D programs in defense and space.

Meanwhile, a new technology park, Istanbul Teknopark, is well underway with the goal of further boosting innovation in the defense industry. When completed in 2023, it will be one of the largest technoparks in Europe with 2.5 million square meters of land and targeting 10 billion dollars of turnover with 1,000 companies.

As Turgut Şenol, Istanbul Teknopark's general manager, declared during the last edition of the IDEF conference in Istanbul in May 2013, “Istanbul Teknopark will be Turkey’s most innovative zone, demonstrating the excellent technological capabilities of Turkish corporations and their ability to bring expertise in the context of international projects”.

SSM also tasked the country’s leading defense electronics firm, Aselsan, with designing, developing and manufacturing strategic radar capabilities. The contract for a multi-mission phased array radar, known by its Turkish acronym CAFRAD Faz-1, was signed last summer between Aselsan and SSM. Aselsan confirmed deliveries would be completed between 2014 and 2018.

The company will also cooperate with TÜBİTAK for the project. Under the plan, a first phase will contain the development of an illumination radar and a non-rotating identification friendor-foe (IFF) system. The second phase will involve the development of long-range surveillance and multifunctional radars.

Turkey’s technological capabilities are ramping up quickly thanks to a very well-thought-out planning and implementation strategy by the government, as well as the collaboration of Turkish corporations and universities.

Challenges remain for Turkey to reach the ambitious objectives of their vision for 2023, but the industry has already come a long way from coproduction and production under foreign license to local design and indigenous solutions.

With a continuous and strong commitment from all the stakeholders, Turkey is well placed to confirm and strengthen its leading position on the international level.

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Necmettin Baykul Chairman of Aselsan Aselsan was founded in 1975 in order to produce tactical military radios and defense electronic systems meeting Turkish Army requirements. Today, Aselsan is a joint stock company, of which 85 % of the total shares are owned by the Turkish Armed Forces Foundation, whereas the remaining 15% runs in the Istanbul Stock Market.

What are the main activities of Aselsan?

15 % of shares are traded in Istanbul Stock Market

Aselsan has a wide variety of products and systems, including military communications systems, radar systems, electronic warfare systems, electrooptic systems, navigation and avionics systems, weapon systems, C4ISR systems, naval systems, homeland security systems and traffic and toll systems. With all of its technological capabilities, Aselsan is not only at the service of the Turkish Armed Forces, but also sustains its competitiveness by meeting the requirements of allied armed forces in the international arena. Aselsan has been a reliable corporation, well known throughout the world, exporting to more than 45 countries. In some of these countries we make direct sales, whereas with others, we also do technology transfer and joint production business partnerships. Products and services are completely designed, developed and produced using national resources and contribute to Turkey’s and allied countries’ defense concepts by using state-of-the-art, advanced technologies.

Aselsan’s technical approach of maximum utilization of open system architecture and commercial offthe-shelf products to meet customers’ operational and technical requirements, provides a significant competitive advantage in both domestic and international markets.

Aselsan is a pioneering company in the Turkish defense industry in terms of its investments and international participations.

How important is R&D to maintain this international competitiveness?

One of the most important means of achieving international competitiveness and developing stateof-the-art devices and systems is the emphasis

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placed on R&D activities. While almost 60% of all human resources of the company have been assigned to R&D activities, Aselsan allocates 7% of its annual turnover to R&D activities. These activities are completely financed by Aselsan’s own resources. Aselsan also participates in European Union framework program FP7 as a competitive international research partner and carries out basic research projects with 21 Turkish universities that are all experts in their fields. We have completed 150 projects with universities and have spent over 150 million dollars. Within the framework of this R&D strategy and through strong innovation and technology management, the company’s main goals are to increase technological depth regarding critical issues, use state-of-the-art technologies in products, develop products for multipurpose technology use, utilize technologies in order to increase production efficiency, unite and guide universities and SMEs regarding technology development and to channel R&D incentives towards technological progress.

Considering the recent projects undertaken such as the Milgem corvette and ongoing ones like the Altay main battle tank, ATAK helicopter and the Anka MALE UAV, the Turkish defense industry is reaching a higher level in terms of technology ownership. The contribution of Aselsan has been increasing and encouraging local companies to design and develop latest generation solutions and products. Besides the in-house research, development, production and sales activities, Aselsan is a pioneering company in the Turkish defense industry in terms of its investments and international participations. In 1998, Aselsan founded the Aselsan Baku company in Azerbaijan.

Then, Aselsan also established joint ventures abroad, namely IGG Aselsan Integrated Systems in Abu Dhabi (UAE), KAE Kazakhstan Aselsan Engineering in Astana (Kazakhstan) and Aselsan Middle East in Amman (Jordan). Moreover, Aselsan has work shares in international programs such as the A400M, F-35 JSF, Patriot system and TALOS project within the European Union framework program FP7.

Do you have any example of R&D programs that you would like to highlight?

When established, the initial aim of Aselsan was to produce military radios for the Turkish Armed Forces.

The first production of Aselsan was a conventional tactical radio that was produced under license. In time, by giving the utmost importance to research and development, Aselsan has begun to design and manufacture its own products. The product range was DEFENSE LEADERS • TURKEY 2014

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Aselsan

exports to more than

45

countries

widened and Aselsan became a producer of major defense electronic products and systems. By the 2000s, Aselsan was one of the few producers to both design and produce software defined radios (SDR), which have the capability to communicate with land, airborne and naval platforms as a single radio, based on their software configurable architecture.

Today, Aselsan SDR systems are being used by the Turkish Armed Forces and have been exported to 10 countries throughout the world.

Aselsan is the major producer of cryptology and information security products in Turkey.

Given the growing risk in the domain of cybersecurity for electronic detection systems, can you describe how Aselsan envisions adapting to the challenges inherit in the risks of cyber spying, cyber-attacks and cyber public-private partnership?

In today’s world, where everything has been digitized, the use of information technologies has become a must, rather than a choice, in the defense sector. The use of IP-based information technologies has spread in the context of network-enabled capability in the military and homeland security sectors as well as in the government domain. The cyberspace, after its unexpected expansion, has become vulnerable to any kind of cyber-attack, and thus cyberspace has been accepted as the “fifth frontline”, after land, air, sea and space. Aselsan is

the major producer of cryptology and information security products in Turkey. In parallel with growing technologies and demands, Aselsan is planning to continue with its investments in the cyber-security area. In order to keep this development sustainable, Aselsan aims to create a “cyber-security technology development ecosystem” where cooperation between the government, universities and the defense sector will be implemented.

Which export markets hold the most potential for the Turkish defense industry?

In 2012, global defense expenditures reached 1.6 trillion dollars. This uptrend began in 1997, reaching its apex in 2011 when the USA exceeded 650 billion dollars alone, especially after September 11th attacks.

The global ratio of defense budgets to GNP currently stands at 2.6%. The Turkish defense industry too has been constantly developing throughout the 2000s and there is a promising investment scheme despite the global financial crisis of 2008-2009. In 2012, the turnover of companies in the Turkish defense industry exceeded 2.3 billion dollars and fulfilled more than 50% of domestic needs. Turkish defense companies are capable of providing internationally competitive and innovative export products which contribute to decreasing the foreign trade deficit of Turkey, which remains one of the most important concerns for the national economy. As of today, the Turkish defense industry has reached over 1.1 billion dollars in exports, whereas it was only around 200 million dollars in 2004. The objective is to reach over 2 billion dollars exports by 2016. In addition to the increasing in exports, the industry employs a highly qualified and experienced work force, mainly recruited from top universities across the country, so that the brain drain of this skilled work force is not only prevented but also reversed. AsiaPacific, Middle East and Gulf region countries and the Commonwealth of Independent States (CIS) are the primary export partners for the Turkish defense industry.

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Research & Development

7

% of turnover

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Sadık Yamaç General Manager and CEO of Havelsan Havelsan was established 31 years ago in 1982 to decrease the level of dependency of the Turkish Armed Forces (TAF) on foreign suppliers by creating more national know-how.

Starting its journey in systems maintenance for the TAF, today, Havelsan designs, develops and delivers command and control systems, virtual and live training solutions and information management solutions globally.

It is inevitable that in the near future reliable company needs in the area of IT / system integration will be increasing.

What are the main competitive advantages of Havelsan in Turkey and abroad?

Havelsan is a company that has made over two billion dollars in sales over the years. In the IT sector, there are many successful companies, but, due to poor financial infrastructure, they can run into sustainability problems. In the military and public sectors, Havelsan’s advantage comes from having both technological and financial sustainability. Due to being a foundation company, whether written in the contract or not, Havelsan answers customer requirements and completes its project, even if it results in a financial loss. On the international level, Havelsan’s competitive power comes from Turkey’s strategic, cultural and geographic location; the country is often described as a bridge between the East and the West. We are close to the Eastern culture while also having Western technological norms and processes. Havelsan is a company that meets customers’ requirements like a tailor by developing “custom design” solutions. Product-wise, we have unique and differentiated solutions. Software is also very important in considering cyber-attacks and other recent events throughout the world. There is also the issue of data theft, which is a very big issue on the table these days. In respect to these issues, there is a big need for reliable companies to provide those system integration and software offerings; Havelsan is the most reliable company in the world

when considering these areas. We are also sharing our intellectual resources and working together with small and medium-sized companies (SMEs) and thus we have another advantage. To continue to sustain ourselves, we are using our defense ecosystem with SMEs. This is a very significant advantage that we have.

How important is R&D to maintain this competitiveness?

Havelsan set aside 12 million dollars of its turnover for R&D activities in 2013. We are currently running 18 R&D projects and have academic cooperation agreements with seven universities in Turkey. Havelsan has ongoing programs in a variety of different fields. For instance, for Command-Control and Combat Systems, we have a newly launched product called Defense Out of a Box (DOOB) that covers the command control information system capability and that will be used by the armed forces for basic combat and resource management activities. We can also mention Platform Position Altitude Measurement Systems (PAMS), which is the first national Air Combat Maneuvering Instrumentation (ACMI) system, as an example for simulation systems and training systems. also, information & security systems, big data and cloud technologies are some of the other areas in which we have very impressive solutions. data mining, data

R&D 7.5%

of turnover

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PREVENTING fusion and secure mobile operating system projects in healthcare, energy and physical and cybersecurity fields can be given as examples of these solutions.

Are there any successful projects in particular that you would like to highlight?

The Turkish Information Command and Control System (TICCS) in 1998 was a milestone for Havelsan. The project aimed at providing the automation of the Turkish Air Force’s resource and battle management. This project carried Havelsan’s technological capability to a more advanced level. Also, our e-government based projects have provided valuable management information systems technological know-how. Modernization of the Perry class frigates in Turkey and developing combat management system products enabled Havelsan to make a leap in command and control. Compared with our international competitors, Havelsan is a relatively young and small company. On the other hand, if you take a closer look on our achievements during the last 25 years, you’ll see a real success story that exceeds all expectations. Furthermore, we have not only participated in, but also leaded many important and critical projects such as GENESİS. As a part of a unique endeavor initiated by the Turkish Navy, the Combat Management Systems of ex-Perry class frigates were successfully modified and modernized by Havelsan. This outstanding achievement has encouraged Havelsan to take on far more challenging tasks such as Milgem and the new type submarine programs. We were proud to be able to deliver the GENESİS and Milgem projects earlier than the project’s schedule.

Havelsan’s accomplishments in the GENESIS and Milgem projects have also been recognized by the Undersecreteriat for Defence Industries (SSM). As main naval systems integrator, Havelsan not only pays attention to the system capabilities, but also designs and develops its own projects and solutions such as the Ship Data Distribution Systems (SDDS).

Havelsan’s SDDS is now accepted as the standard data handling system by the Turkish Navy and is being used in all surface and subsurface combatant acquisition projects. Last but not least, Havelsan produces some simulation systems that include military aircraft and helicopters of various kinds. We also work on fixed and rotary wing aircraft, missiles and satellites. There are no limitations for us in the creation of simulation systems.

To what extent is the Aegis project a perfect example of successful international cooperation?

At IDEF 2013, the demonstration of Havelsan’s Combat Management System (CMS) and the AEGIS Fire Control Loop (FCL) of Lockheed Martin was the final milestone of a long cooperation program undertaken by both companies. The technical experts of both companies initiated the collaboration to define the interface and combine the capabilities of their systems in the international arena. Lockheed Martin has delivered realistic simulations of AEGIS components, focused on proving the interface. On the other hand, Havelsan has integrated the system in Havelsan’s Naval Combat Technologies Center located in Istanbul. In the scope of the integration, Havelsan had used its own CMS as the overall multimission controller. During the demonstration at IDEF 2013, it was clearly observed that Havelsan’s

CMS had been carrying out the AAW (Anti-Aircraft Warfare) mission by utilizing doctrine management, threat evaluation and ranking, engagement planning and controlling the SPY-1 radar as well as executing engagement orders by directing AEGIS through the control messages. In AEGIS, the realistic simulations of AEGIS Fire Control Loop components have been presented and it has been shown that the AEGIS has been responding appropriately to all these control directions. In summary, this cooperative effort by Havelsan and Lockheed Martin has resulted in a high performance and low risk solution. In addition to these fully satisfying results, the solution is available at the moment to potential customers all over the world. Especially for the modernization of naval platforms in Europe, North Africa and the Gulf countries and the new ship building programs in third countries, this Multi-Mission Combat System can be an extraordinary solution. More generally, in terms of international cooperation, Havelsan likes to share the work and this includes transfers of technology as well.

Which export markets hold the most potential for Havelsan?

Firstly, I would like to highlight that, this year, Havelsan had an enormous success in terms of turnover and profitability. In 2013, our operating profitability tripled with turnover exceeding 300 million dollars and contracts taken exceeded 400 million dollars. Being one of the most referred and recommended companies in the world in the fields of e-government and training systems, we are aiming to raise our profile in the Middle East and North Africa (MENA) and Central Asian and, in time, increase our global activities by pursuing growth in the Southeast Asia and Asia Pacific regions. We strongly believe that our partnership efforts with companies like SAP, AgustaWestland, Lockheed Martin and Boeing will position the company as a trusted partner and boost our export sales. Havelsan will push for international expansion in markets all over the world, including the Gulf countries, MENA and the Far East by focusing on Enterprise Resource Planning (ERP) and e-government products, command control systems like MEIS, DOOB, simulator solutions for Seahawk, Black Hawk, Cougar, AFOS systems and live training systems.

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Physical and cybersecurity for the protection of critical infrastructure will be one of the most critical issues of the future.

Havelsan

exports to more

15

than countries

99%

of shares are owned by the Turkish Armed Forces Foundation

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Recep Barut General Manager of STM STM was founded in 1991 with the purpose of providing systems engineering, technical support, project management, technology transfer, logistics support services and developing necessary software technologies for defense systems to establish and operate national software centers for software development and maintenance support. It has become the leading company in the field of consultancy services in Turkey and is ready to increase its international expertise.

The Milgem program is the most relevant in terms of growth for STM because we were one of the principal contractors for the prototype.

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What is your assessment of STM’s overall performance?

When STM was established in 1991, the primary shareholders of the company were the Undersecretariat for Defence Industries (SSM), Aselsan, Savronik and Mikes. STM was founded with the vision of providing engineering expertise to the Turkish defense sector and the Ministry of National Defense to help support the new defense programs, especially high-technology programs, and to provide quality engineering expertise within those programs. Since our establishment, we have grown quite rapidly, especially over the last five years. Our growth rate is in line with the country’s general growth, maybe even a bit more. As of today, we have more than 400 employees, specialized in areas such as satellite technologies, electronics technologies, platform technologies and underwater systems, to name just a few. Our vision remains as fresh as it was the first day: to keep our services in line with established growth rates for the Turkish Armed Forces. Additionally, in the last five years we have extended our operations into foreign countries as well.

focus to indigenous development and local design, it is a natural and direct result that it creates a need for more certification activities. Once you design something, you need to certify it to global standards and this has created a big market for STM. The government is really shifting towards indigenous developers. There are many other examples of this policy change for us in national armored vehicles or aircraft programs to name just a few.

Is there one project in particular that you would like to highlight?

The Milgem program is the most relevant in terms of growth for STM because we were one of the principal contractors for the prototype and second ship and, now, we are the strongest candidate for the construction of the third and fourth ships, with a hope for increasing responsibilities. If you compare this project to STM’s size, this created a very big opportunity for us. It was a very successful program, delivered on time and in complete accordance with the requirements and it is a purely indigenous design. The platform is 100% under the responsibility of Turkish entities.

How have the recent evolutions within the Turkish defense sector benefited STM?

What would you say are the core competencies of STM?

If we look at a time span of 20 years, the Turkish defense sector used to undertake projects by direct procurement or cooperation, such as joint ventures with foreign companies. Later, this transformed into participation in the projects and, more recently, the trend and general direction has been more towards indigenous development and genuine local design and production. Of course, when required, the participation of other countries is possible and welcomed, but the general approach is radically changing from a direct buyer to a developer or co-developer. This has benefited STM a great deal because we are a company that provides engineering expertise in all those programs. If you are trying to establish and carry out indigenous design and production projects, this calls for more local engineering and consulting support. STM is extremely well positioned to provide this support.

Therefore, this shift in approach to defense projects created new business areas for us. One typical example is certification activities. Our certification activities, compared to older international companies, are much more recent, maybe six or seven years old. Once the government changed its

Our core activity is consultancy and we believe that we have a lot of competent staff in a number of disciplines. To my knowledge, there are more than 200 active programs run by SSM and we are involved in many of those. Certification is another strong expertise that we have developed. Furthermore, we are increasingly becoming active and specialized in feasibility analysis and studies. To date, there have been many feasibility studies for which we have had responsibility. Most of the time, these feasibility studies are used as the basis for additional and future business decisions. These kinds of studies and reports are becoming very popular and have opened a large new business area for us. Another one of our new strengths is our procurement consultancy activity. Indeed, defense procurement has been mostly made by SSM and the second buyer is the Minister of Defense. There are also subdivisions and other factories and depots that have limited resources and responsibilities for procurement activities. In our case, we are a company that, given the technical requirements and available product portfolio, can process all this very quickly. It might seem like a very simple activity, but, with regards to DEFENSE LEADERS • TURKEY 2014

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All these things require a certain kind of attitude, knowledge and professionalism. We are doing this in a very efficient and timely manner, which is why it is also increasing our total business.

We are involved in NATO’s software development activities as a subcontractor. We are active in the Gulf countries and currently have several people stationed in the United Arab Emirates for consultancy services.

How challenging is it to find good human resources for an engineering company in Turkey?

Could you expand on your involvement in international programs?

We have limited access to the big programs such as the A400M for example. We have several people active there, attending the A400M security panels connected with the award certification process. Additionally, we are working with the local industry in order to increase the local participation in those programs. In Europe, we have some active international engagements. In terms of the EU R&D funds, we have been involved in several projects along with other European companies. We are also involved in NATO’s software development activities as a subcontractor. We are active in the Gulf countries and currently have several people stationed in the United Arab Emirates (UAE) for consultancy services. We are trying to expand this.

Our most exciting and largest international project is the naval tanker program. This is a project we won in an international competition. This involves indigenous design, engineering notification and providing quality and engineer controls in all of the activities for building the tanker in a Pakistani shipyard. We are the prime contractor and we will do all the design work and provide the material package, but the construction will take place in a Pakistani shipyard. We have already started providing training for shipyard personnel and we recently reached a very important milestone in steel cutting activity in Pakistan. That is very important because steel cutting is the equivalent of starting to erect a building. Doing this means your paperwork is done, verified and tested; you are ready to build.

This is very exciting and, in two to three years’ time, we will develop this ship. This is, in volume and in business, of great importance to STM’s international activities.

400

employees

Human resources are the most challenging and difficult aspect of any business, and this is especially true for an engineering company like ours. It is very difficult to recruit, train and retain qualified staff.

Since the Turkish defense industry is growing, it is not easy to retain people for a long time. Working as a white-collar staff member is unique. Some people prefer working in offices while others prefer being in the design labs and overseeing the products. These are two different business settings. Sometimes, people’s qualifications do not exactly match with our requirements or our setting. For example, someone 100% academic might not find us very useful for their career because we do not specialize in academics. Someone who prefers working in a factory in manual labor may not find our work here exciting either, because here we do brainwork and paperwork, not much psychical work. It takes a lot of time. We try to develop certain processes to recruit more efficiently and to keep these employees.

We are trying to support this by exposing them to several disciplines and offering them some useful breaks to further their education. If they want to get a higher degree, we give them less working hours so they can do that. Also, we are trying to provide professional training, either in the company or outside. Turnover is a fact of business life. Ours is around 10% and, of course, it could be improved, but this level is perfectly acceptable for our company to continue growing and for maintaining the highest professional standards in our services.

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Murat Erciyes Managing Director of Meteksan Defence Industries Created in 2006, Meteksan has rapidly grown to become a recognized provider of high technology equipment and sub-systems with its products being integrated into more than 15 Turkish platforms. A subsidiary of Bilkent Holding and Bilkent University of Ankara, the company employs today more than 180 high-qualified personnel.

We want to grow in quality and we are strategically positioning the company to become an original equipment manufacturer.

180

high-qualified personnel

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Where does Meteksan stand within the Turkish defense industry?

Is Meteksan currently considering partnerships with foreign corporations?

Our vision is to be one of the best and most trusted second-tier defense companies in Turkey.

We want to grow in quality and we are strategically positioning the company to become an original equipment manufacturer (OEM). Today, Meteksan represents a highly agile and business-efficient profile in the defense industry with outstanding performance and encouraging growth indicators for the 2012 and 2013 fiscal years. In parallel to our R&D development contracts, we also work on development projects within the company with our own financial funds. For example, we provide radar altimeters for all the Unmanned Aerial Vehicle (UAV) platform integrators and we aim to become one of top three radar altimeter manufacturers. Moreover, the Turkish defense industry has already reached over one billion dollars in exports and we may reach 25 billion dollars by 2023. That means that tier-one companies will be tasked with the production of challenging and exportable products at the global level and that they will need to be supported by subsystems and equipment manufacturers like us.

We are indeed! With the objective of speeding up our processes, we want to enter into some partnership agreements with European companies.

This is because, due to the very strict export laws applied by the US government, it is hard for US corporations to make any cooperation agreements with foreign companies. On the contrary, in Europe, there are some companies with an up-to-date knowhow and we want to add some value to what we are doing here. European defense companies are facing increasing difficulties in their domestic markets due to budget reductions and therefore have to expand their exports if they want to survive. Partnering with Turkish companies can help them reach new markets, such as the Middle East and South East Asia, due to our excellent trade relationships with these regions.

How do you see the role of foreign corporations in the Turkish defense industry?

Today, foreign corporations are in a difficult position if they want to compete with Turkish companies because of the industrialization strategies and principles that are applied at the Undersecretriat for Defence Industries (SSM). There are very few items that foreign companies can sell directly to Turkey without a Turkish contribution.

Therefore, those foreign companies will come to see us with the hope of creating business partnership arrangements in Turkey. Of course, the outcome will depend on the type of partnership (whether it is a project cooperation, a strategic partnership or a long-term partnership like a joint venture), but the interesting point is that the Turkish government is ready to invite foreign investors to come to Turkey and buy shares in Turkish defense companies. This is very important and represents a big change. 10 years ago, the decision makers were only concerned about the national defense products, meaning that, in a Turkish company, 100% of the shares had to belong to Turkey. Today, they do not care about who owns the company, but about the national intellectual property.

What is your assessment of the political consensus on the importance of the defense sector in Turkey?

There is indeed a strong consensus. Moreover, we are lucky that the Turkish Armed Forces’ technical requirements are very high because it forces us to strive for very high standards and enables us to compete on the international level. For example, after our first export to Oman, I personally went to our Turkish Navy office to thank them. They were surprised at first, but then I explained to them that Meteksan won a contract in Oman thanks to their stringent domestic requirements that had forced us to develop world-class products. It was indeed the first time that a Turkish defense company was exporting to Oman.

I am convinced that when we become an OEM, our products, such as millimeter wave radars, fire control radars, sonars, acoustic heads and data links, will be firm contenders on the international level thanks to the high technical standards required by the Turkish army.

Which particular regions hold the most export potential for Meteksan ?

The Oman deal was the first time that Meteksan exported its products. Today, in our simulation systems group, 50% of the efforts go to exports and also to international sales and marketing, with a special emphasis to South America, South Asia, the Middle East and even North America for some of our simulation software.

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Turgay Maleri CEO of Gate Elektronik Established in 1989, Gate Elektronik, with its wide range of system integration services, engineering services, software development and electronics production, is a prime example of a successful private defense company in Turkey. The corporation started locally, but is now one of the global players in its field and is targeting the one billion dollar mark for exports by 2023.

What are the main areas Gate Elektronik is implicated in?

Civilian industry

Gate Elektronik sales

Defense & military Homeland security

Gate Elektronik started with the idea to develop diagnostic test systems for software, electronic cards and units. Success has come from the beginning and we started to repair on-board aircraft electronic avionics, naval electronic boards and some industrial boards. Then we started to develop test diagnostics systems for a variety of defense systems as well as firing systems, weapons, armed vessels and electronic control systems. We have made a lot of investment in R&D in order to ensure continuous improvement in technology, mainly for electronic test systems, automatic test stations, test program sets for avionics and we designed many electronic test patches for different platforms.

While performing these activities, we gained system level design capability and began to develop some remotely controlled unmanned systems. As of today, we have become the sole local source supplier for Unmanned Underwater Systems (UUVs) and Remotely Operated Vehicles (ROVs). We are currently designing autonomous underwater vessels and ROVs and we also supply these systems to the Turkish Navy as well as for Turkish scientific research institutions. Our systems are 100% Turkish products designed and manufactured by Turkish engineers.

We have full control over our technology (including the components) since everything is done in Turkey.

We are also developing unmanned vessels for land operations and our latest project is the design and manufacturing of a Turkish electric car, called Uzoq,

that can be plugged in any 250 or 120 volt socket.

Today, 50% of our business is for homeland security, 25% for defense and military and the remaining 25% for civilian industry.

We have become the sole source local supplier in Turkey for Unmanned Underwater Systems and Remotely Operated Vehicles.

What is the importance of R&D to remain competitive on the international level?

Today, around 20% of the global turnover is reinvested in R&D and it enables us to be very successful on international markets. We are one of the main exporting companies in our sector and we are ranked 9 th in Turkey. We export mainly to the United States, Saudi Arabia, Malaysia, France, UAE, Poland, Japan, Tajikistan, Kyrgyzstan and Russia.

Our exports are mostly dual use products that can have military and civil applications. For example, we export avionic products for aircraft to Thales.

They can be used both for military and civil aircraft.

That is why our market is not only focused on the military. We concentrate on both sectors and use our products in dual use in different sectors ans fields. ROVs, for example, can be used for search and rescue operations, cabling, petrol platforms, pipelines, scientific and archaeological research.

How do you manage to compete against large government corporations of Turkey heavily involved in electronics?

We do not compete with them and we have never wanted to be in competition with local Turkish companies. This is not our target. Our approach has always been to look what Turkey was importing and then to try to make it domestically rather than competing on products that were already produced in the country. So once we have identified an

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DEFENSE LEADERS • TURKEY 2014

PREVENTING Our approach has always been to look what Turkey was importing and then to try to make it domestically rather than competing on products that were already produced in the country. imported product, we conduct R&D and develop a successful prototype, start marketing activities and finally serial production. That is why we established research centers located in university technoparks.

We co-operate with Turkish universities because they are hosting many talented scientists and we employ them. Furthermore, the Turkish Ministry of Industry supports this kind of cooperation between students,

professors and companies through co-funding. We share our needs with academics, they start to work on these needs as theses with the students, they sometimes produce a prototype and then we realize the serial production in-house. There is an excellent partnership between the government, our company and the universities. All together, we combine and create a prototype that needs to be used in the market. Needless to say, we are always looking at competitive products. We then supply them to the local market first and, eventually, we export them.

This is our strategy. We have a 20,000m2 state-ofthe-art production line in Ankara to transform the prototypes to serial production. As we invest a lot in R&D activities, we patent our products and we are also supporting our engineers in writing papers for journals and conferences.

20% of turnover invested in R&D

Are there any successful projects in particular that you would like to highlight?

Our first major success was our troubleshooting system, a diagnostic test system at the very beginning of the company. That was our idea and it is now the subject of a course in the technical college where we train the students for troubleshooting. Now, students are learning how they can repair any kind of electronics board. We are also very proud of our Unmanned Underwater Systems and our Remotely Operated Vehicles. We are the only local supplier in Turkey and one of the few in the world able to provide such products.

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Yaltes 2002 Headquarters: Istanbul Established:

€10 million Employees: 80 Turnover:

Main clients: Havelsan, Aselsan, STM, Dearsan

Share of exports:

25% of turnover

a tier-two company, providing sub-systems and solutions to tier-one corporations. The model has functioned very well and the company would like to continue functioning in this manner as it can bring very high-technology solutions to the main contractors, thanks to Thales’ expertise, while remaining a local company with the Yaltes brand, a unique combination in the domain of naval combat systems in Turkey.

Furthermore, the fact that Thales became a 100% shareholder has helped overcome the main barriers to technology transfer inherent to the joint venture model, as the international corporation can now easily transfer its expertise and know-how without any fear. Yaltes has conducted work for one of the landmark projects currently being developed by Turkey, the Milgem naval program. As subcontractor of Havelsan, Yaltes has delivered CMS hardware like operator consoles, CSVN (Combat System Video Network), integration cabinets and participated in CMS software development to integrate sensor and weapon sub-systems. Within the same Milgem program, as subcontractor of STM, Yaltes delivered the first locally-built Integrated Platform Management System (IPMS). Yaltes increased the local content for the second ship, TCG Büyükada, and developed the IPMS for the Milgem program’s subsequent ships.

Yaltes was created in 2002 as a joint venture between the Turkish Yalcin Group and Thales Netherlands with the main purpose of producing above water combat management systems (CMS).

Thales decided to buy the remaining shares in 2011 and became the sole shareholder with the goal of increasing its local footprint in Turkey through locally established know-how and technology, thus keeping the Yaltes brand. As of today, the company provides combat management systems, integrated platform management systems (IPMS) and coastal surveillance systems. From the beginning of its existence up to today, Yaltes has always wished to be and to remain

Mehmet Kitiş, General Manager

Our strategy for the upcoming years is based upon growth, competitiveness and people. We aim to grow in local and export markets with 100

This involvement in the Milgem project has clearly demonstrated the capacity of the company and its ability to work on complex projects developed by Turkish prime contractors. Yaltes has also worked on several other projects such as integrated platform management systems for the Turkish Navy. The company also has a full mechanism in place for exports with the possibility of conducting projects through Thales units as well as through Turkish shipyards in regions such as Asia and the Middle East. Last but not least, Yaltes would like to increase the level of technology in Turkey and is about to diversify, expanding its business through Turkish shipyards for the export market.

It also wants to become an expert in certain areas that do not exist in Turkey, such as mine hunting technology and mission solutions for small size naval platforms.

naval mission system solutions for small platforms by creating new expertise areas for Yaltes and ILS Services. We will be more competitive through easy to apply methodologies, reduced engineering cost

variances and better program management.

We will invest in our professionals to increase their knowledge and to carry them into international standards.

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Uğur Coşkun General Manager of Bites Bites’ story began in Istanbul in 2001 when its founder, Uğur Coşkun, began to service the digital broadcast industry with high-tech embedded software development and value added applications. The start up quickly expanded to become a thriving SME, it currently employs 30 people, and made the decision to enter the defense market in 2004.

Why did you decide to switch from the broadcast industry to the defense industry?

Primary export market Middle East & North Africa

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We wanted to create a new line of business for the company and no longer rely solely on digital broadcasting, so we decided to enter the defense sector in 2004. Our first project was with the Turkish army for a M60 tank driver simulation application.

Afterwards, the Undersecretariat for Defence Industries (SSM) had a big contract for integrated training centers for the Turkish Army and Navy Sikorsky’s helicopters. One platform was the Black Hawk and the other was the Seahawk. Havelsan was chosen as the prime contractor for the development of two synthetic training centers, the Turkish Army Aviation School in Ankara and the Cengiz Topel Air Base for the Turkish Navy in Izmit. In addition to the full mission simulators, there were partial mission simulators and some other software components such as the training management information system software and the computer-based training software. Havelsan outsourced those work packages and started a tender for it and Bites won this tender.

This was the first large official defense contract we got.

and mission training centers program. Bites developed the whole synthetic environment for that program, which is 1.5 million square kilometers in size. We have also developed the whole synthetic environment of Turkey and some other areas in the vicinity of Turkey. It was designed for the whole training cycle, including both the initial training and the mission training of the Turkish Air Force.

When an army sends troops or pilots anywhere in the world, they first train them in the simulators. In order to create mission readiness, the task force gets training many times in the synthetic environment in any kind of mission conditions such as rain, fog, urban or border missions and then they are sent to the real mission fully prepared. Bites is developing all the synthetic environment applications for these training purposes. In our synthetic environment, the level of detail and fidelity are pushed to the maximum so that when pilots look at their displays in the simulator, for example, they can see all kind of details of the mission environment. If there are different ground threats, they will be able to see the echo or alert of those threats in their sensor displays. It is quite a fancy application that took us 30 months to develop.

What are some of the other defense programs that you would like to highlight?

What are the new areas of technology that Bites is interested in?

More recently, Bites completed a very innovative work package in the scope of the F-16 simulators

We are starting a new project that involves cutting edge augmented reality technologies. The entire

DEFENSE LEADERS • TURKEY 2014

PREVENTING innovation world is after this technology and Bites was awarded a project from the naval side. When a prime contractor signs a defense contract in Turkey, there are some industrial participation and offset (IP/O) obligations to be fulfilled. This is to protect and promote the small and medium enterprises. In the scope of defense contracts, there is a technological development obligation. So an SME has to adopt a R&D spirit. Bites has been chosen by SSM in the scope of the Landing Ship Tanks (LST) national program. The new generation Landing Ship Tank is a fast amphibious vessel of upper-intermediate size with significant armament power. It will play a major role of power projection through transporting huge quantities of fire support elements and marines in order to conduct amphibious operations. The Adik shipyard is the prime contractor and Bites has been chosen as the SME that is going to develop a new technological program, the augmented reality (AR) application for the maintenance crew.

If you look in the training and simulation industry, all the companies are switching to augmented reality because it is very effective. You display the information on a video so it is pretty exciting for the defense industry as well. If you execute any kind of operation, the operators will be able to have a video stream, a smart glass like Google Glass and a software application that will display all the intelligence information while they are on the mission. Augmented reality is well-suited to Bites because we have an expertise in developing digital smart geo-information databases such as the visual databases of the virtual simulation. Once you have the digital map of the geo-locations and you can execute fast processes using this database, placing information on it is pretty easy using an optical see-through device with camera and sensors. So augmented reality projects for complex maritime maintenance training is a strong enabler for Bites’ AR technology.

What is your involvement in the space industry?

In Turkey, the space industry is very young and there are not many companies involved in space technologies. Bites has the vision of involvement of the Turkish National Space Programs through our core strengths of expertise, namely simulation and training, value-added applications of geoinformation data from satellites. The spacecraft and satellite operators demand heavy training. Operating a spacecraft is not like operating a car or an aircraft.

If you make just one mistake, you lose the whole mission and there is no turning back. The margin for error is very low. As of today, we are preparing a project for SSM in partnership with Telespazio. We are trying to build a spacecraft and satellite operatortraining application for national use. In this scope, we will develop a simulation framework and also use a simulation program as a mission-planning tool. We are also working on space remote sensing applications and geo-information data processing with our existing satellite data processing expertise.

Generally, people think that, once you have built a satellite or spacecraft and launched it, the story is over, but it is not; it is just the beginning. They are running a certain mission for the upcoming 20 years and, in that part, you need a lot of things to be done.

We work for that segment, not for the manufacturing or launch part, but we call it value added services, which has the biggest revenue income in the space segment.

What is your international expansion strategy?

We have a very basic strategy. As you know, expanding internationally requires a lot of resources, both financial resources and human resources. We have to be very realistic about our strategy and we have to be very down to earth and create priorities.

So, one of our primary markets is the Middle East and North Africa to a certain extent. In the Middle East, we have a nice customer base with Qatar, Saudi Arabia, the UAE, Bahrain and Oman. We try to be active in all those regions. In Oman and the United Arab Emirates, we have some operations but we are still trying to create this local partnership.

Secondly, or even as part of the primary market, is the Central Asian market, the Commonwealth of Independent States (CIS) countries. So, those two are our primary markets of interest. In the Western part of the world, we try to develop partnerships with corporations and big defense players, but we realize that, in Europe, the key is the quality and the value, the competitiveness and the price. We have a very good reference with the Turkish Armed Forces, which is extremely valuable for business worldwide. We know how to work with large proposals. Our vision is to become a regional player and a partner for global players. We want to have good partnerships and we want to get a position in the ecosystem of those global partners using the advantages of Turkey’s location, together with the cost competitiveness of our qualified human resources.

1.5 million km2 synthetic environment for F-16 simulators

30 months to develop

If you look in the training and simulation industry, all the companies are switching to augmented reality because it is very effective.

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Simsoft Established:

2006

Headquarters: Ankara Employees:

65

Main clients: Aselsan, Havelsan, Roketsan, STM, Turkish Armed Forces and Police, the Netherlands Armed Forces, Turkish Ministry of Culture, Turkish Ministry of Public Works, Turkish Ministry of Finance, Turkish Ministry of Health

Simsoft is a successful high-tech company incubated in the ODTÜ Teknokent, the technology park of Ankara. It was established less than 10 years ago by a group of doctoral students and two professors from the Middle East Technical University (ODTÜ), one from the Computer Engineering Department and another from the Computer Education and Instructional Technology Department.

Share of exports in defense activities: of revenues

50%

weapons systems, platforms, electronic warfare and communication linking systems. In terms of platform management software, Simsoft is involved in areas such as mission planning, combat management, command and control, data link, embedded software and test simulators.

Simsoft has an extremely good track record, having worked for the largest and most demanding defense corporations in Turkey, such as Aselsan, as well as for the Turkish Police and Turkish Armed Forces.

Foreign armed forces, including the Netherlands, also use Simsoft’s Embedded Pedestal Mounted Stinger Training Simulator on Fennek vehicle.

One of the company’s largest successful projects was the convoy simulator developed for the Turkish Police Forces. It is a fully fledged simulation tool comprised of seven connected independent simulators including driving and firing simulations that Simsoft developed as the main software contractor. Built in Gölbaşı, near Ankara, it is unique in the word and has many applications to simulate terrorist attacks. It was delivered at the beginning of 2013.

The core expertise of the company is modeling and simulation systems, as well as platform management software, test simulators, computerbased training and serious games. In the modeling and simulation fields, Simsoft mainly focuses on 3-dimensional visualization and has developed its own image generator called SimIG. Having their own image generator is one of the strong competitive advantages of the company as it is unique in Turkey. Before that, all the image generators in the country were imported from overseas. Now, the most prestigious corporations in Turkey, such as Aselsan and Havelsan, use Simsoft’s generator. The company can also produce mathematical models of

Gökçe Yıldırım, General Manager

Because we have worked with Aselsan and Havelsan, we have to comply with military standards. Simsoft is a young company, but our staff is very experienced 104

Simsoft, in close cooperation with universities and industry, has taken part in many research and development projects on simulation systems supported by the EU and public and private organizations.

Simsoft set up its quality management system based on ISO 9001:2008 and military standards. Since 2008, Simsoft has been developing its projects compliant to CMMI (Capability Maturity Model Integration) level-3 certificate.

Last but not least, the company has also developed many civil applications used in Turkey and abroad, such as bus driving simulators, fire fighting simulators, ambulance simulators and heavy vehicles training simulators among others.

in their own specialized areas. In terms of small and medium-sized simulators, we are the number one corporation in Turkey. We also want to export our simulators to other countries.

We have already exported to Azerbaijan,

Turkmenistan and we have also developed a serious game for Spain.

But now, we want to have a global presence.

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Yaman TunaoÄ&#x;lu Chief Technology Officer of Karel Established in 1986 by three brothers, Karel is an extremely successful telecommunications company that brought electronic private automatic branch exchange (PABX) technology to Turkey. The company has witnessed impressive growth over the past 10 years and has greatly expanded its portfolio and technical know-how. Having already worked for some of the most prestigious defense corporations in Turkey, Karel wants to further develop its defense activities.

How did you enter the defense sector?

Our position is indeed very different than other corporations. Normally, defense and aerospace companies just use the technology they have developed in defense for commercial applications.

We are just the opposite. We have used our commercial R&D background to develop products for the defense industry. A good example is our first defense project, the internal communications systems that we developed for military purposes. It is a product based on our PABX background. We worked with our engineers and made estimations of how many man-hours we would spend for this project, but we were not very familiar with the requirements of military projects. You have to spend a lot of manhours for documentation and testing compared to commercial projects. So when we made our first offer to the main contractor company, it was directly accepted and we were very surprised that they did not even try to negotiate the price. We understood later that it was because our offer was extremely cheap and we ended up losing money on this project because we had not properly estimated the

complexity of the documentation process and of the testing. However, it enabled us to enter the defense sector and to better understand it. Fortunately, Karel was already a fairly large company at that time and we could support the financial loss thanks to our other operations.

Is there any project in particular that you would like to highlight?

I would like to highlight a project that we started with great hesitation due to high risks, but that eventually turned into a success story. In India, we were selling our PBX systems through a very good distributor. India is a big country, so we thought we could also get involved in defense projects there. We found a professional defense company with whom we entered an attractive tender for a ruggedized private automatic branch exchange (PABX) for the army. We said to ourselves that we can do this and even if we lose the tender we thought that, with this project, we would have a self-sustained ruggedized PABX, which is in-line with our target product portfolio, that can be used for other projects. So we made a joint venture agreement with the local partner and placed an offer. We developed the product and passed all the tests. We invested a lot of money of course.

The cabinet was designed in India but we paid for it so the intellectual property rights belonged to us.

Only three companies passed the technical tests; we were one of them. We were not chosen though due to our partner’s pricing policy. However, as an outcome of this project, we developed a hightechnology ruggedized military spec Field Exchange with IP capabilities, and this year we shipped 36 of these systems with a main contractor company to the Bangladesh army. We believe that in future there will be many more opportunities for the market success of this product, which actually became a very competitive one.

Which other export markets hold the most potential for Karel?

We still think India has a lot of potential for us, especially since we are known there in the PABX market. Furthermore, in India, there is also need for the homeland security and some not very military, not very commercial, but in-between products and we also supply those. Azerbaijan also has potential because we made some rural installations there.

Their entire rural infrastructure is based on our solutions so we have very good relations in this

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country. However, for the time being, we are not very active in exporting yet. Next year, we will participate in DIMDEX 2014 (Doha, Qatar), with the support of SSM (Undersecretariat for Defence Industries), in order to investigate the opportunities in the Middle East for our ruggedized PABX and a more compact version that we are currently working on. We will also exhibit complete telecommunications solutions for small and large boats, including our military spec.

How important is it for Karel to invest in R&D to maintain its competitiveness?

Karel has three main operations in terms of R&D. One is in telecommunications, where the company began, designing and producing communications systems and almost half of our R&D team is working on this operation. We also have the electronic manufacturing services (EMS), which consist of designing and producing electronic cards for home appliances and we have a small R&D team that is specialized in this area. Finally, we have the defense industry. The other half of the R&D team is working on defense projects. When we just take the income from production, the R&D spending is about 1520% of the total turnover and we currently have about 184 people working in our R&D department.

We have to continue investing in R&D in order to maintain our competitiveness in these three areas.

How do you see the potential of the Turkish defense sector?

I see it very promising actually. During my visits to other defense companies, I am very proud to see veryhigh tech products that Turkish companies develop and manufacture. Mechanical land systems that are designed and produced in Turkey, such as the Altay or Milgem project, whose PABX is supplied by Karel, on the navy side and the Anka project regarding UAVs, are good examples of recent successful projects. I believe Turkey achieved a great success story in the defense industry area with the guidance and support of SSM. Turkey has extremely good engineers. We trust that we can achieve good work with our own engineers and become competitive in international markets. So, I see a great potential in the future for the Turkish defense industry and I believe Karel has lot to do in this industry. Indeed, we now have a very focused and very self-organized defense solutions division alongside of an R&D group within the organization. We are investing in the defense industry and there are many projects that we can take part in in the future. We will act mainly as subcontractors, which we are happy about due to the fact that there are lots of things to be done with our specific competencies. Our main expertise is telecommunications and related projects. Most of the defense projects have some telecommunications component in which we take part as a subcontractor.

Apart from telecommunications-based projects, we have expertise in designing ruggedized tablets and computer-type products as well as in video, voice and high speed storage products. We also have expertise in navigation products. An example of one of our navigation projects is a standby instrument for the helicopters. Even if everything is lost and all the electronic devices are shutdown, there is still another unit, which is called the standby instrument, that can be used for navigation in such a case. It is a R&D project that we have introduced to SSM together with a main-contractor company.

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Jean-François Bureau Director of Institutional & International Affairs of Eutelsat Eutelsat, based in Paris, is the third largest satellite operator in the world with a fleet of 32 satellites. It is the leading operator in Europe (including Western Russia, the Middle-East and North Africa), and is now expanding in the Asia-Pacific region and in South America with several recent successes.

What is Eutelsat’s involvement in the space industry?

We could imagine codevelopment programs for new generation satellites.

Satellite operators have two main activities. On the one hand, there is the definition of the needs of the satellites that the operator will then order from the main space corporations such as Airbus Defence and Space (formerly Astrium), Thales Alenia Space, Loral or Boeing. On the other hand, there is the commercialization of their capacity once the satellites have been launched to their orbital positions at an altitude of around 36,000km above planet Earth. For a long time, our main customers have been TV channels. Today, more than 4,500 TV channels rely on our 32 satellites to broadcast to a wider zone than a national terrestrial network would allow. Our second main activity that we have been developing since 2000 is to provide Internet broadband access through satellite connections.

We recently designed the most powerful satellite in this domain so far, known as the KA-SAT, which can deliver speeds of up to 20 Mbps to 2 million users in Europe. Finally, the most recent and booming activity is the satellite communication services provided to corporations and governments for their strategic and security needs. It falls under what is called the digital convergence, meaning that every piece of information, whether it is audio, video or data, can now be digitalized. It applies for a wide range of applications such as communications between multiple command centers or communication with Unmanned Aerial Vehicles (UAVs). Indeed, UAVs collect, organize and send such data to the satellites which then re-broadcast it back to ground stations where they are processed. Most of this activity has been developed during the operations in Afghanistan.

The US Department of Defense (DoD) was brought in to buy satellite capacities from commercial operators for its communication needs. Thus, we became the second satellite capacity provider of the Pentagon, making this activity about 12% of our total turnover.

And we expect it to continue to grow with the US and other governments in the coming years.

To what extent can Eutelsat be a partner for Turkey?

Our involvement in Turkey is more geared towards our civil activities than towards our defense expertise.

Recently, our KA-SAT satellite, which delivers broadband Internet access, has been used in Turkey for a very important state-supervised program. It consisted in providing 4,500 schools with 20 Mbps

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Internet access. We hope to continue with this program as Turkey’s initial request was for 20,000 schools, and, as far as we know from the initial feedback, the Turkish authorities are very satisfied with our KA-SAT services.

On the defense side, our offer does not differ from what we already offered to the US, NATO and European armies for their needs in Afghanistan. I assume that the Turkish troops engaged in Afghanistan with the NATO coalition had surely had to use the satellite capacities we provided to ISAF. However, Turksat already operates three communications satellite for the Turkish civil and, probably, military needs. Even if these satellites are close to saturation and there may be a capability gap to fill until further launches, I believe that Turkey will continue to deeply rely on Turksat in the future. This is why Eutelsat and Turksat have entered into discussions during these past months and concluded an agreement to allow them to use some of the Eutelsat capabilities in the region.

How could Eutelsat further collaborate with Turksat?

Our collaboration is not based on technology transfers because Turksat has the capacity to fully deal with the whole operational chain from the design, to the launch and then the management of communications satellite. However, we could imagine co-development programs for new generation satellites. These satellites aim to be lighter, electrically powered and strongly hardened against interferences, whether they are technical or deliberate.

How does a commercial operator deal with the confidentiality requirements of military users?

Let me take the example of Qatar. Together, we built and launched with Arianespace a satellite called ES’HAIL SAT 1. It includes a part dedicated only to the Qatari authorities, which we call a hosted payload. They deal with those capacities from a teleport based in Doha which is operated by Qatar in an autonomous way. For sure, the hosted payloads approach could not be attractive and successful if the satellite operator was not able to guarantee the other party full and exclusive control of the information which is going through its own component. A hosted payload is attractive because some costs (platform, launching, etc.) are shared, but it can be accepted for governmental missions only if the government can be sure that it has full control over the information that the satellite is transmitting.

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Robert Demers Vice President Government Services of Thuraya Thuraya is a United Arab Emirates mobile satellite communication corporation that was started in the late 1990s. It is involved in a wide range of sectors from mining and oil and gas to media, marine and defense. Thuraya is now aiming to become one of the global players in wholesale satellite communications.

What is Thuraya’s involvement in the defense industry?

First of all, I would like to briefly say a few words about our products. We have the Thuraya IP and the Thuraya IP+ devices for land data and the Thuraya XT and an XT-DUAL for land voice that provide satellite and terrestrial GSM across the globe. We have also recently launched the Thuraya SatSleeve and work with over 350 providers in more than 160 countries, with roaming agreements to provide our services on a global scale. But the real key in supporting governments and defense is not so much the device.

The device is obviously important, but we see it more as a facilitator to a solution, and a solution is a facilitator to a requirement. So, at the end of the day, our strength, and especially for government services and defense, is in our focus on customers’ requirements. Therefore, the device is just a means to a broader end as we want to provide our customers with solutions tailored to their specific needs. Overall, our customers, but especially our defense customers, want their communications to be secure, reliable, and interoperable with their systems, and these are key issues that we focus on with the device as a part of a bigger solution.

To what extent is this approach a differentiator in the competitive environment of telecommunications?

It is definitely one of our competitive advantages.

The key for us is to work with our end users to try and figure out what the requirement is, then, with our product developers, craft a solution that will hopefully be Thuraya-based. The true competitive advantage we have, however, is taking on the idea that we need to continue to be an innovator. We need to continue to take the product to the next level or come out with a new products like our new Satsleeve device, which transforms an iPhone into

a satellite smartphone. We are the first in the world to develop a satellite adaptor for iPhones. It is really a game changer, as it will enable all iPhone users to use their device as a satellite communications device while keeping all the applications they are used to. Again, it is tailored to the needs of our clients; they now can have access to satellite communications without having to use devices that they are not familiar with.

We are the first in the world to develop a satellite adaptor for iPhones.

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To what extent is Turkey an important market in your overall expansion strategy?

We have a robust hi-tech mobile device that has been in Turkey for quite some time. Turkey is definitely an important market, especially considering that, in the last years, we have gone into a more innovationfocused approach. That means we are able to offer the best solutions on the government side, as well as for NGOs or other institutions. We are also expanding in terms of new products, new services and new solutions. At Thuraya, we are looking at launching products and services that are industry innovations, then taking those capabilities and going forward, using the best technologies available to provide solutions to known requirements. Turkey is definitely of significant interest to us as it is a growing market and has a very strategic geographic position at the crossroads between the European, Middle Eastern and even the Far Eastern cultures. It is a wonderful country which brings all those different cultures together and a country moving towards a more hightech industry. So, it is a place where we want to be and they are also quite interested in Thuraya as well.

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Securing the Future Turkey, with its central position, is home to massive flows of goods and people.

With a population of 75 million and an average per annum economic growth of 6,7% forecasted by the OECD through 2017, Turkey is facing a wide range of security threats and needs to make sure it remains protected. 2013 has underlined the critical need for well-equipped and welltrained riot control forces, which were able to restore calm after the June student protests.

Turkey, with 240,000 police and 178,000 gendarmes (outside urban areas), maintains a high and efficient security level.

The issues at stake are huge. Turkey, with its central position between Europe and the Middle East on one hand and the Mediterranean area and Black Sea on the other, is home to massive flows of goods and people. In Istanbul, the world’s largest airport, with a capacity of 150 million passengers per year, is to be built by 2018. In terms of maritime traffic, with 50,000 vessels crossing the Bosphorus strait each year, it also remains one of the main hotspots of international maritime trade, especially for Ukrainian and Russian extra-European exchanges. Bordering both Iraq and Iran, Turkey imports and also re-exports crude oil and natural gas. The pipeline network supervised by the state-owned BOTAŞ (Petroleum Pipeline Corporation) is part of the critical energy infrastructure that Turkey has to safeguard.

Security will become even more important with the construction of the Trans-Anatolian pipeline, which will run from the Azeri natural gas field Shah Deniz II straight to Europe.

The country does not produce its electricity from nuclear power yet, but two nuclear power plants are to be commissioned by 2023 in Akkuyun, southern Turkey, and in Sinop on the Black Sea coast. As anywhere in the world, the country will have to face and adapt to the specific security requirements (anti-terrorism, non-proliferation, etc.) of such facilities.

Part of critical infrastructure security management is the need to address cyberthreats. “This is a challenge for a number of local companies and institutions” stated Murad Bayar in his opening speech at the first International Cyber Warfare and Security Conference held in November in Ankara. “Turkey will become a good buyer of advanced technologies to counter cyber threats of various sources […]. Foreign players will be involved in know-how, but

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obviously solutions should be nationalized for best fight against cyber threats” he added. And indeed, “Turkey is among the top 10 countries subjected to cyber attacks” said Professor Mustafa Alkan, chairman of the Information Security Association earlier this year.

It is consequently a rising sector in which Turkish defense industries have increasingly ventured. Intelrad, a national SME offering solutions against malware intrusions, is one of them. Founded by a young Turkish entrepreneur, it was awarded of Grand Champion title in 2011 after the CyberCrime Forensics Challenge held by the US Department of Defense. TÜBİTAK Bilgem, the Informatics and Information Security Research Center of Turkey, is another example of Turkey’s will to be at the forefront of cyber-security. The center, with 1,700 engineers, is the largest R&D center in Turkey and is heavily focused on cyber-security, cryptology and information technologies.

Turkey also has to deal with various risks on its eastern borders with the Syrian crisis, the inflow of refugees and cross-border smuggling.

Even if the country is not directly threatened by any of its neighboring states, surface-to-air defense has become one of the main concerns of Turkish defense authorities. A NATO Patriot battery deployment in southeastern Turkey was requested in 2012 while the country was calling for a tender on its T-LORAMIDS program (Turkish long-range air and missile defense system) won in September by China Precision Machinery Import-Export Corporation (CPMIEC) offering the Chinese HQ-9 system.

Even if this deal has raised multiple concerns over the NATO compatibility of such a system, co-development talks continue for the time being.

In line with its strategic position, Turkey remains more than ever a key partner for the stability of the whole region. In this context, the country has strong plans and capabilities to keep its independence as well as the major geopolitical role it aims to play.

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Atilla Çiftçigüzeli CEO of Istanbul Shipyard Originally founded in the 1980s, the shipyard was renamed Istanbul Shipyard after joining the SNR Holding in 2003. Involved in many commercial shipbuilding programs, Istanbul Shipyard decided in 2007 to diversify its portfolio and target the defense industry. As of today, the shipyard can provide a wide range of ships and is working on some of the landmark naval projects currently underway in Turkey.

We aim to broaden our horizons globally for more exports in order to become a global brand.

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What have been the major changes in the shipyard since it became part of the SNR Holding?

The first stage of our reconstruction process was started immediately after the acquisition of the shipyard and was completed in 2004. Our first floating dock, with a length of 105 meters and lifting capacity of 4,000 tons, was put into operation in 2005. Our metal processing factory, ABS Metal, came into business with a total area of 8,000m2, including 4,000m 2 of closed area, in 2006. Then, the neighboring shipyard, Yildirim, joined SNR Holding in 2011 and was renamed SNR Shipyard. Together with SNR Shipyard and ABS Metal, the total shipyard area has reached 34,500m2 including a closed area of 14,400m 2. It has six slipways for new building and is capable of offering repair and maintenance services to 14 vessels at the same time with its 105 meters of long floating dock, three piers and extensive wharf area. The second floating dock, with a length of 129 meters, will be in service in 2014. During the building period of medium-sized chemical tankers, like many other shipyards in Turkey, we have conducted extensive market research for special projects and this became the starting point for entering the offshore market in 2006.

When commercial shipbuilding reached its peak in Turkey in 2007, we decided strategically to diversify from other shipyards and target naval projects.

Within the scope of focusing on naval and special projects, the second large-scale reconstruction period began during the first quarter of 2011. In this period, a nine-floor administration building with a helicopter-landing platform on the top, two prefabrication workshops, a blasting and painting workshop and a piping workshop were constructed.

Today, Istanbul Shipyard is an outstanding and pioneering shipyard within Turkey with modern infrastructure and international projects reflecting the latest technology. Our vision is to become the preferred shipyard in the world for marine vessels built with the highest standards and equipped with high-tech systems, with continuous improvement in engineering, production quality and customer satisfaction, supplying the necessary information, technology and material from the national resources as much as possible.

What is your involvement in the defense and homeland security industry?

Our shipyard product portfolio covers a wide range of ships including multi-purpose patrol boats, military support vessels, offshore support vessels and commercial vessels. Istanbul Shipyard offers its customers design, new building, repair and maintenance, docking, modernization and conversion services for any kind of vessel. We aim to broaden our horizons globally for more exports and

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PROTECTING global know-how exchange in order to become a global brand, serving the defense industry with patrol boats and support and research vessel projects. The shipyard has a great advantage in being a subsidiary of SNR Holding, which has a strong financial background and decades of experience in marine trade, ship management and ownership. It has the capability of handling turn-key delivery, tailor-made projects covering complete design, construction and outfitting of high technology vessels. For the design, we work with a major Turkish design company, Seft Design, which is also a subsidiary of SNR Holding.

Seft Design employs approximately 45 people and almost 30 of them are skillful and well-trained naval architects and marine and mechanical engineers.

The association of Seft Design and Istanbul Shipyard putting their signatures on unique projects creates a great advantage. After obtaining the national and NATO level security clearance certificates in 2007, our activity in the naval sector began. The Undersecretariat for Defence Industries (SSM) awarded us the contract for the modernization of four SAR-35 boats that belong to the Turkish Coast Guard. The scope included the replacement of the main engines, the propulsion package and the hull optimization. The boats were delivered to the Coast Guard in 2009, before the contractual delivery time, with high performance beyond the requirements of the contract. In July 2010, we signed a contract with the Romanian border police for the turnkey delivery of five 17-meter SNR-17 aluminium river patrol boats. The project was financed by the European Union and the boats have been delivered in the very short period of about 10 months. Finally, thanks to the successful delivery of SAR-35 boats, the shipyard was crowned by SSM with the contract for the second modernization program of the Turkish Coast Guard, consisting of five SAR-33 boats, with a scope of jobs similar to the SAR-35 program in January 2013, after the completion of negotiations started in July 2012. Based on our experience in hull and system design and integration, we can today offer to our customers all over the world a wide range of patrol boats in various sizes from 15 meters up to 85 meters.

Could you expand on the landmark defense projects that you are currently conducting?

The contracts for the supply of one Submarine Rescue Mother Ship (MoShip) and two Rescue and Towing Ships (RATSHIPs), based on the needs of the Turkish Navy, were signed on October 28, 2011 with SSM. Construction of the MoShip is one of the major projects of Istanbul Shipyard. She will be capable of providing emergency life support to the disabled submarine and evacuating the crew up to 600 meters deep. The RATSHIPs will be capable of towing broken-down, wrecked and grounded ships as well as fire-fighting. Moreover, both ships, which will be equipped with modern rescue systems and equipment such as remotely operated vehicles (ROV), atmospheric diving suits, submarine ventilation systems and pressure rooms, can also perform the underwater repair works and wreck removal. The complete design, construction, outfitting and integration of the MoShip and RATSHIPs will be performed by Istanbul Shipyard. In this scope, the total industry participation and offset percentage of 65% will enable the utilization of Turkish industry capabilities through the acquisition of the construction material and services as well as most of the systems to be integrated on the ships.

In addition to these unique projects, the tender for supply of one Scientific Research Vessel (SEISMIC) for the Turkish General Directorate of Mineral Research and Exploration (MTA) had been awarded to the Istanbul Shipyard and the contract was signed on April 24, 2012 with SSM. The SEISMIC project is another critical milestone in our ship building process. Within the scope of the construction the ship will carry out scientific studies in addition to seismic research. She will be a multi-purpose vessel and, with her two and three dimensional seismic research capacity, the scientists will have the opportunity to perform geophysical, geotechnical, bathymetric, hydrographical, oceanographic and hydro-acoustic research. They will be able to carry out sampling studies in the fields of earthquakes, general geology, applied geology, environmental geology and earth sciences with respect to other sciences. Within this framework, in order to realize the aforementioned activities, the ship will be equipped with streamers, air guns, seismic processing units, seismic record units, seismic navigation unit, sub bottom profiler, marine magnetometer, marine gravimeter, oceanographic measurement equipment, geological sampling equipment and a remotely operated vehicle. The complete design, construction, outfitting and integration of the Scientific Research Vessel will be performed by Istanbul Shipyard. In this scope, the total industry participation and offset percentage of 50% will enable the utilization of Turkish industry capabilities through the acquisition of most of the systems to be integrated on the ship, construction material and services as well as the integration of seismic and research equipment and systems. As of today, one unit Submarine Rescue Mother Ship, two units Rescue and Towing Ships and one unit Scientific Research Vessel are at the completion stage, completely designed and being outfitted by our own team. All of the projects mentioned are unique and complicated projects and we are proud to be the only shipyard the Turkish government awarded three shipbuilding programs at the same time in the history of the Turkish shipbuilding industry.

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Ekber I.N. Onuk Vice Chairman of Yonca-Onuk Yonca-Onuk is the story of a Turkish company that saw many shortcomings in the boat industry compared to the automotive manufacturing processes. The two partners built their first boat in 1988 and decided to use composites to do so. Thanks to that innovation, YoncaOnuk achieved results that were not reached by any of the other existing shipyards before.

We are the world technology leader in fast patrol boats.

Nobody in the world is able to reach the same performance levels.

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How did you enter the boat business?

In 1985, my old friend and future partner, Şakir Yılmaztürk, came to me with the idea to build boats.

We had no background, no idea about boats, but only the Şakir’s passion for boats. We started to study and to learn. To our surprise, we saw that the boating industry was not “rocket science”. With my experience from the automotive industry, we progressed rapidly and decided to adopt advanced techniques and materials for our projects. In 1989, we launched our first boat, the YONtech45. The results that we obtained encouraged us to push the boundaries further. In 1992, we had a High Performance YONtech45 that reached 57 knots. In 1990, we had a contract to build a 31-meter yacht for a Turkish customer. The M/Y Motali was an advanced composite motor yacht with a styling by Nissan Design. This is the boat that had the Industrial Design Excellence Award from IDSA in 1992. In 1994 my son Kaan came up with the idea of developing a fast patrol craft, the ONUK MRTP15. In 1996, we lost Kaan in a tragic accident and stopped all our operations. In a strange coincidence, the Turkish Coast Guard, through the Undersecretariat for Defence Industries (SSM), came with a request for proposal (RFP) requesting exactly the boat that my son had designed. At that time, we had no more team so I gathered six of the classmates of my son who were 22 or 23 in those days and had no experience.

Together with our managing director, retired admiral Mehmet Ali Güler, we started this operation. We were the only shipyard with a Turkish design and Turkish construction and we obtained the contract beating some well-known international competitors. So this is how the ONUK MRTP Program started. We delivered our first MRTP15 in 1998. Now, the kids who were just juniors at that time are the directors of this company.

The Turkish Navy and the Turkish Coast Guard named these boats after my son’s name so they are called Kaan Class. And this is something that means a lot to me and to my team.

How do you explain that you won this tender despite your lack of experience of the boating industry?

With our background from the automotive industry, we were technically superior. We had innovative ideas and it paid off in the end because we were able to get performance levels that nobody else was able to offer. Frankly speaking, almost nobody has sound technical experience in boat building. So in less than 10 years, we were able to gather some

engineering experience which was much beyond everything that was available in the world. This was because we were (and are) using the technologies from the automotive and aerospace industries. I might say that we were probably the first shipyard in the world to use Catia V5 and we are one of the first to use the Enovia so we are seeing things from another perspective.

What made your boats so successful on the Turkish market as well as on international markets?

With our design philosophy, we were able to achieve very high speeds with excellent sea keeping.

We also had good control of the composite structure.

But we didn’t stop there, we tested our boats with our own resources and we were able to develop a source code that became the pillar of our design team for the following years. Today, we can claim that we are the world technology leader in fast patrol boats. Nobody in the world is able to reach the same performance levels. However, a product is not to be judged by a single aspect. It is the harmony and the vision of the design team that makes a product the leader in its field. Our boats are not only successful because the composites, but also thanks to the dynamics of the hull, the propulsion systems and our ability to cooperate with many sub-suppliers who are experts in their fields. This is exactly the same thing that happened in the automotive industry in the early days. The composite technology is still a major advantage and the fact that composites are used in the new Boeing 787 or the Airbus 350 shows that we were right.

What makes you different from your competitors today?

The boating industry is a rather mediocre industry and you very rarely have repeating projects so the chances of feedback from your results are very small. Today, we have 136 ONUK MRTP patrol boats in service around the world. These boats have been in service since 1998. We are receiving feedback from them, we have just four different models and we are continuously monitoring the feedback and improving our products. As Aries De Geus, who was the vice president of strategic planning for Royal Dutch Shell wrote in his book Living Company, “the only sustainable competitive advantage is learning faster than the competition”. This is a very important issue to us and key to our company’ success.

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How do you maintain such a high-level of technology?

The technical requirements of the customers are never considered as high as our objectives. If we had designed and built the first boat to the RFP that we received, Yonca-Onuk would never have existed. So we are always trying to be better and superior to everything that we know, everything that is available in the market and everything we know is on the drawing board. We are gathering intelligence and aiming to make our boat ready and above the competition by the time it will be launched. We do not mind challenges and that is why we selected DNV, the Norwegian classification society, because it is the most knowledgeable and the most demanding of the classification societies for high performance composite boats. We are continuously improving our standards. The RFPs that we are receiving are sometimes 10 years behind our own targets and objectives.

What are your views on the potential of Turkey’s defense industry?

The potential for the country is great because Turkey has a very high-level of engineering capability.

The team I came from, the Ford Otosan engineering team, which had only 25 engineers at that time, now employs around 1,800 engineers in their R&D work and is one of the top design centers for Ford. So, the Turkish defense industry is very promising. My one very important critique of the Turkish defense industry is that the aim of the industry should not be to only satisfy the requirements of the Turkish Armed Forces, but also to be able to provide toplevel products to ensure qualitative superiority on the battlefield for all customers. Then, the Turkish Armed Forces will be the first ones to take advantage of this. When we design a special operations craft at Yonca-Onuk, we make sure that we satisfy the requirements of the Turkish Navy, of course, but we also make sure that we are designing and building a boat that will be faster, better at seakeeping and

The requests for proposals that we are receiving are sometimes 10 years behind our own targets and objectives. of higher technology than any existing or plannedto-be-built boat in the market. This is our approach, otherwise you cannot keep your leadership and survive in export markets.

Can you tell us more about your export markets?

Our first international contract was with Pakistan.

We have boats with the Pakistani Special Forces and two missile capable ONUK MRTP33s in Pakistan.

Then, we had a contract with Georgia for two boats and, almost at the same time, for the United Arab Emirates with the Abu Dhabi Critical Infrastructure and Coastal Protection Authority. They were planning to establish a new force to protect the offshore oil installations, which are vital. We were able to obtain this project without any tender because we were the only shipyard to demonstrate a more than 65 knots capable platform: the ONUK MRTP16. In 2008, we also sent a boat to Malaysia as a demonstration.

The Malaysian Maritime Enforcement Agency then opened a tender and they gave this project to two companies. We were one of them and delivered 10 ONUK MRTP16.

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10 Onuk MRTP16 delivered to Malaysia

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Kerim Kalafatoğlu General Manager of Ares Shipyard Ares Shipyard was established eight years ago in the Antalya Free Zone on the southern coast of Turkey. The first projects that the shipyard undertook were leisure-based motor vessels, but Ares quickly realized the potential for patrol vessels and entered the sector very successfully, supplying its vessels in Turkey and abroad.

When did Ares Shipyard enter the defense and coastal security sector?

Our first major breakthrough came when we fitted out one of our projects as a patrol boat, and sold this to the Turkish Marine Police. We recognized at that time that there was very little competition within Turkey for builders of small, fast patrol craft up to about 40 meters in length. There was a clear gap in the market for high quality, well-designed, innovative and functional performance craft for the military and civil enforcement markets being built in Turkey. In many ways, it was this realization that set the direction of Ares. Being located inside a free trade zone effectively puts us outside of Turkey in terms of certain taxation and customs requirements. This does give us a market advantage in many areas for supplying to the end-user. Our product base, as I already mentioned, is for the military, paramilitary and civil enforcement sectors and we have accordingly supplied small patrol boats to navies, coast guard services and other civil enforcement authorities like the Istanbul and

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Izmir Harbor Masters, for instance. Additionally, our portfolio has extended beyond this and now includes crew boats for the oil and gas industry, wind farm support vessels, pilot craft for harbor duties, ambulance vessels for emergency response and disaster relief operations and commercial ferries for both functional personnel movements and the more luxury requirements of five and seven star hotel clients. Since the company began, the one “constant” has been that we continually evolve and develop our designs, our methods and our culture to both reflect and benefit the market and our customers. We now have a broad range of traditional patrol craft, all of which can be tailored to suit any exacting customer requirements. Indeed, we recently developed a new design for an 18 meter patrol vessel, maximizing the internal living space, but also enhancing the patrol characteristics with performance and speed improvements, all of which went well beyond the customer’s initial requirements. The progress and development of the company with this approach has led us to the position we are in today, working in collaboration with the premier and innovative

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PROTECTING suppliers of marine equipment and machinery in the world. With a growing reputation, we are now actively engaged in programs developing vessels up to 70 meters in length for the Turkish Naval Forces and a number of other countries’ naval forces in the Middle East region and Africa.

How important is innovation for Ares Shipyard?

We are determined that every project we supply a vessel for meets and exceeds the clients’ own requirements and, more importantly, their needs.

Our partnerships with prestigious suppliers is a testimony to our commitment to deliver quality vessels at the cutting edge of design and innovation.

We have adopted an approach of continuous development in every project that we work on and every boat that we build. A natural progression of this is to develop new and innovative designs and arrangements before the client enquiry, based on market trends, analysis and general sector enquiries.

However, our prime motivator when beginning any project is the inclusion of all interested parties, be that the customer, the designer, suppliers or, most importantly, the end-user. We are determined that every project we supply a vessel for meets and exceeds the clients’ own requirements and, more importantly, their needs. The vessels should function in all likely operational conditions, maintaining performance and operational effectiveness, as much as possible, even considering the worst, adverse weather and climatic conditions. This approach requires a close collaboration with a few specialists within their own field of expertise and we are currently working on the development of a new design for a very fast hull form, capable of maintaining performance in rough weather.

clearly providing innovative designs for all defense markets, to promote exports and overseas sales.

The importance of this to Turkey should not be underestimated, especially when cross-referenced with the geographical location and ease of supply from Turkey to most parts of the world. In the current climate, and with a reasonably mature development of relationships, identity and brand awareness, Ares is focused largely on the MENA regions. This focus is realistically centered on the Gulf Cooperation Council (GCC) countries, but with a growing and gradual expansion into existing territories such as the surrounding countries of the Black and Caspian Seas. Like most companies in the defense market, we have experienced an increase in enquiries from all corners of the globe, and whilst much of this will be speculative and concerns intelligence gathering, it does demonstrate an upward trend in the market.

A well placed, experienced and organized Turkish defense industry will be a direct beneficiary of this.

Could you expand on your production facilities in Antalya?

What is your expansion strategy for the coming years?

Success in any endeavor is always gratifying, but it often comes with its own additional problems and issues. Rapid expansion through repeated success must be approached with a level of caution to avoid over-committing and under-delivering. In the growth and expansion of Ares, there have been a number of occasions where the company has been on the verge of committing, but without having the capacity to begin building. This type of issue is something that Ares manages well and we have potential resources available to call on in such cases. We are able to expand our capacity and facilities using short-term rental of property close to our existing premises, allowing projects to proceed uninterrupted and segregated by the type of material construction. This flexibility in our capacity allows us to schedule work on a parallel basis, rather than causing blockages in the workflow. We are now on the verge of a step change to our capacity and looking to expand our own premises on a permanent basis, rather than renting properties. Our intention is to bring our production facilities up to over 22,000m 2 of segregated, covered and climate controlled facilities.

We have been fortunate in the announcement, timing and delivery of the projects under construction at our facilities in Antalya. This has enabled us to operate at a largely 100% capacity and maintain an almost full utilization record in our premises. The overlap generated by these projects means that our own planning and work scheduling has had to be accurate, not only in timing, but also in all of our available resources. Aligning the varying phases and stages of these multiple projects has presented challenges, but the development and fruition of these projects without complications demonstrates our own success in this. Outside of the projects that I have already mentioned, we are also currently building two 30-meter fast patrol boats for the Nigerian customs service. These vessels are due for completion and delivery in the middle of 2014.

Beyond that, we have just begun work on a highprofile, short lead-time project for eight 18-meter catamarans for the hospitality market in Qatar. This is to supply vessels capable of high speeds and high-levels of comfort, delivering staff and guests on a daily basis to a new island resort to be opened off the coast of Doha. The first vessels are due to be delivered in the middle of February, to coincide with the opening of the resort. Looking further into the future, we have been developing a number of programs that we believe will take us through 2014 and forward into the next four or five years, with some capacity to spare. Ultimately, the biggest challenge we believe must be faced, as the company develops and grows, may be developing into a larger, more corporate organization yet remaining true to our values of evolution and customer focus.

Which export markets hold the most potential for Turkey in general and, more particularly, for Ares Shipyard?

As a company set up and located inside a free zone, we are principally focused on exports. We have noticed over the last few years that programs from within Turkey are increasing numerous and these are predominantly developed and then sold on to other governments globally. In developing the defense sector and its product base, the country is

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Metin Kalkavan CEO of Sedef Shipbuilding Sedef Shipbuilding was established within the STFA group in 1972 at İzmit Diliskele. At the end of 2000, Sedef Shipbuilding separated from STFA group and was incorporated into Turkon Holding. Beginning in 2004, the shipyard started an investment process to increase its market share in the international shipping industry.

What have been Sedef’s main investments since 2004?

We have made several investments since 2004 to increase our competitiveness on the international markets. Firstly, in 2005, Sedef completed the construction of a semi-wet skid construction of 41.2 x 250 meters with a capacity of 120,000 deadweight tonnage (DWT) and equipped with gantry cranes which have a lifting capacity of 400 tons. A year later, in 2006, we established an environmental friendly automation aided panel line of construction quay.

In 2007, we built social facilities and workshops in the shipyard and commissioned two more units of gantry cranes. Then, in 2008, we commissioned Turkey’s largest dry dock, measuring 310 by 50 meters, a fully automatic second panel line and a new gantry crane with a 550 ton lifting capacity.

In total, Sedef has delivered 156 ships, including container ships with capacities ranging from 7,000 DWT to 26,200 DWT, chemical tankers, asphalt tankers, fishing vessels, general cargo ships and the supply and support vessel TCG Kudret Güngör

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for military purposes. We also produced bridge steel fabrication, structural steel manufacturing workshop of 80,000m2 and a floating power plant.

Sedef Shipbuilding also focused on manufacturing a series of five floating power plants capable of producing 1,190 Megavolt Ampere (MVA) electrical energy. In addition to our Tuzla shipyard in Istanbul, a 36,000m 2 satellite shipyard was established in 2008 in Orhanli.

What is your assessment of the Turkish shipbuilding industry’s potential?

As part of the “Type Ship” defense industry sector strategy (2009-2016), seven private shipyards have been identified as potential candidates and invited to regroup to apply for tenders. Indeed, the Undersecretariat for Defence Industries (SSM) had announced that the number of shipyards was too large to preserve the competitive environment. In in its vision, some could unite to continue working without making new investments and, at the end, the number could be reduced to two with the capacities DEFENSE LEADERS • TURKEY 2014

PROTECTING preserved. SSM forecasts that with the military ship platforms targeted to be completed in the next 20 years, the market size is expected to be around 700 million dollars. After the crisis, European shipyard headed to Far Eastern countries, but are now coming back to our country due to rising labor prices in Asia, lack of quality and all sorts of problems experienced, such as high numbers of ships given for repair/ maintenance. Therefore, the Turkish shipbuilding industry began to recover in 2013 and I believe it will steadily increase in the next few years.

As of today, what are your competitive advantages?

Sedef Shipbuilding is able to build dry cargo ships up to 180,000 DWT and tankers up to 120,000 DWT. Since it was founded, 156 ships have been delivered and various industrial structures, fabrications and installations were successfully carried out. Sedef Shipyard can provide any type of naval services including repair and maintenance and conversion work. Furthermore, we are located both on the Black Sea and on the Mediterranean, which gives us the advantage of being close to the ship supply industry and to high traffic maritime routes. Last but not least, we benefit from the quality of the Turkish labor force.

How do you explain that Sedef was chosen for the Landing Platform Dock (LPD) project?

27,000 tons. Four large helicopters will be able to land and take off at the same time, and the LPD, as a helicopter carrier can hold up to 12 helicopters, with vertical landing and take off capabilities. A floating pool, by taking in smaller crafts, will perform evacuation operations and the ship can carry up to 1,400 soldiers or 700 amphibious marine commando battalion staff. It can also accommodate, including battle tanks, around 90 various types of vehicles and will be able to perform a speed of 16 miles per hour expeditiously, with a range of 9,000 nautical miles. The vessel will be able to stay at sea for 60 days without being connected to the mainland. Apart from military tasks, it will also be able to take part in humanitarian relief operations for disasters such as earthquakes, tsunamis, armed conflict and civilian evacuation, transport of aid, etc.

With its high speed, it can rescue simultaneously 4,000 civilians repeatedly. The LPD will also be fully equipped with a 30-bed hospital, and will be able to look after hundreds of people during their treatment.

By delivering this project, we believe our shipyard will be amongst world brand shipyards, as there are very few shipyards in the world that can provide the high technical requirements, the technology, the design and the space needed for a LPD. As Turkon family, our goal is to achieve and deliver the desired ship in a modern and well equipped shipyard (without needing any additional infrastructure) with lower cost than expected and on time.

The Defense Industry Executive Committee announced its decision to open negotiations with Sedef Shipyard for the Landing Platform Dock (LPD) project on December 26, 2013. At Sedef Shipyard, winning this tender has been a great pride for all of us as the Turkish Navy’s biggest ship will be built at the country’s largest shipyard. We would like to take this opportunity to thank everyone who has contributed to our success on this tender. We are confident that thanks to successful operations, we will deliver it at the desired time. After delivering our first military ship (TCG Kudret Güngör) built in our civil shipyard to our navy in 1995, we restructured our activities in 2006 with technological developments and revised legislation to become the industry’s largest shipyard. We started to work on the LPD project at the beginning of 2009. The decision announced by the Defense Industry Executive Committee is the harbinger of the good days as we enter 2014 after five years of effort, economic difficulties and long adversity. Our offer from May 2011, was examined under the headings of technical, economical and local contribution rate and the tender was given to Sedef Shipyard, which is thought to deserve it with regards to all these criteria. Our ship will be built with 60 % of local content with the design received from Spanish firm Navantia. The ship will have better assets, capabilities and features than what SSM requires. From this day, all our work will be under the supervision and control of the Ministry of National Defense with the obtaining of the facility security certificate. The ongoing investment being made to our shipyard since 2000; with 310 x 50 meters dry pool, 250 x 41 meters semi-wet pool, 330 meters and 218 meters long indoor workshops, 230,000 m² area (56,000 m² indoor), capability of lifting 1,050 tons block, capacity to process 100,000 tons of steel and two high-tech panel line with robotic makes our shipyard one of the few in the world with the capacity to manufacture such a high-tech ship.

The LPD ship’s main features are 230 meters long, 30 meters wide, 50 meter high, and it will weight THE EXECUTIVE GUIDE OF THE GLOBAL DEFENSE AND SECURITY INDUSTRY

By delivering the Landing Platform Dock, we believe our shipyard will be amongst world brand shipyards.

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Fatih Ünal Managing Director of SDT Space & Defence Technologies (SDT) is a privately-owned Turkish company operating in the Turkish defense sector and dealing with high technology software, hardware development and systems production. SDT’s facilities are located in the leading technology park of Turkey, ODTÜ Teknokent (Middle East Technical University) in Ankara.

Largescale companies should go one scale up and should utilize SMEs like us.

R&D 25%

of turnover

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How important has the Turkish defense industry become in Turkey’s global economy?

The Turkish defense and aviation industry is very important in terms of economic value, but more importantly, the systems developed and produced by the Turkish defense and aviation firms that create this defense turnover was mostly the market share of foreign defense companies only about 10 years ago. Now, the share of Turkish defense companies in the Turkish market has increased from 20% to 54% over the past decade and the added value in this 4 billion dollar turnover sector is huge compared to most of the other sectors that do not have many indigenous products designed in Turkey. Obviously, various countries in the Middle East, Far East and South America are important export market areas for the Turkish defense sector and SDT is also trying to enter these markets with its own products, which are already developed, produced and sold in the Turkish defense market.

applications, visual modeling, tactical environment simulation and sensor simulations. We would like to offer simulation and modeling applications in the local market, as well as in the international ones.

Our advantage in both Turkish and export markets is that our products utilize new technologies. In terms of the company structure and main objectives, we are a product-focused company rather than projectfocused company and our products are costeffective and provide a high-level of performance.

What are SDT’s main areas of expertise?

SDT is specialized in certain areas such as radar and electronic warfare signal processing, image processing recognition, embedded software and systems, satellite technologies and related simulation and modeling systems and has a variety of products in these areas. To name some of these, we have airborne digital data recorders, airborne moving map computers, airborne data acquisition equipment, airborne video symbol generation computers, video multiplexing units, missile launcher control systems, system solutions on synthetic aperture radar technologies, system solutions on electronic warfare signal analysis systems, automatic target recognition software based on high resolution satellite images, geospatial intelligence management systems, embedded training systems for sensors and missiles, tactical environment simulation software and 3D visual models. I could also add services like the ruggedization of industrial electronics units for military conditions and electronics cards and unit production. SDT’s ongoing R&D efforts and its growing capability have resulted in qualified military electronics products and high technology remote sensing applications.

It has expanded its technological base, especially in sensor signal and image processing applications on airborne platforms, UAVs and satellites. SDT has also been developing various simulations and modeling applications, concentrated on embedded simulation

What is your assessment of the government’s support for innovative defense SMEs? The Undersecretariat for Defence Industries (SSM) has implemented some new regulations in terms of inciting the large-scale companies or integrators who are directly getting contracts from SSM to give a certain of their work to SME’s. This was just enacted in 2011, but we have not seen the results yet. The relations between SMEs and large corporations can be difficult sometimes, like when an SME develops a product, some large corporations feel threatened.

Actually, those large-scale companies should go one scale up and should utilize SMEs like us. Also, there is a gap between the SMEs and the large corporations as there are almost no mid-size companies. If you look at the top of the SSM Defense 25 list for the last three years, it starts with foundation companies with revenues ranging from a couple hundred million dollars going up to a billion dollars. There are some platform companies and ship-producing companies near the top of the list and some private electronics and software companies are in the lower part of this list, in which SDT is also ranked. When you go down the list and you get to the 15th or 16th company, the revenue goes down to the 15-20 million dollar range. There is almost nothing between the 200 and 20 million dollar range. That is not healthy and there should be some local companies in the mid-range DEFENSE LEADERS • TURKEY 2014

PROTECTING revenue band and that is what SSM is targeting. It is moving positively but slowly.

How important is innovation for an SME involved in the defense sector like SDT? It is very important. That is why SDT has been investing in R&D and product development ever since its establishment and it is critical for SDT’s strategic plan to develop indigenous products both for the defense and aviation areas. Some of SDT’s indigenously developed products have been produced with SDT’s own money and some are funded by SSM, the Turkish Ministry of National Defense R&D department and the Turkish Scientific Research Agency (TÜBİTAK). The ratio of SDT’s R&D expenditures to its turnover was roughly 50% of its turnover in the early years of the company, but, since indigenously developed SDT products are in the field and some are already in serial production now, the R&D expenditures are currently along the lines of 25% of its turnover.

the Turkish Armed Forces on UAV’s and aircraft for cargo, training and jet types. SDT has also developed various simulation and modeling applications, concentrated on embedded simulation applications, visual modeling, tactical environment simulation and sensor simulations.

Could you highlight some of your projects?

SDT has an important role in the Anka’s Synthetic Aperture Radar (SAR) sensor.The SAR sensor provides Anka with the additional capability of obtaining intelligence data under all weather conditions.

Anka’s SAR sensor was indigenously developed by SDT and Aselsan as a result of an R&D program funded by TÜBİTAK and managed by SSM for the Turkish Armed Forces. SDT’s role in the SAR sensor includes the development of SAR signal processing algorithms, onboard real time software, high-speed digital data recorders for SAR data and end-to-end SAR engineering simulators. Flight test programs of the sensor have been successfully completed and its integration into Anka is ongoing. Moreover, SDT is also tasked with implementing Inverse SAR (ISAR) mode on this sensor to fulfill Turkish Navy needs. Under the SDT’s vision to concentrate on sensor signal, image and data processing, SDT has extended its product and technology base towards imaging sensors and image processing applications.

Within this context, SDT is currently tasked, as a subcontractor to Aselsan, with developing the ground station user service subsystem to implement image exploitation, archiving, user interface and order management functionalities in the Göktürk-1 high resolution Electro-Optical/Infrared (EO/IR) military observation satellite program of Turkey. SDT is also under contract for automatic target recognition algorithm and software development based on SAR images for the Turkish Armed Forces. Moreover, SDT is a partner in a European Union Framework Program (FP7) project called ALICIA (All Condition Operations and Innovative Cockpit Infrastructure) to improve pilot’s situational awareness in the cockpit by utilizing sensor image processing and data fusion technologies to enable a civilian aircraft to land, take off and taxi under bad weather conditions.

SDT has developed indigenous defense products with its own financing in the airborne digital data or video recording area and created a product line called the DDR product family by applying and improving that know-how through various military aviation projects in Turkey. SDT also developed digital moving map applications, missile launcher control electronics, a video coding and decoding system for missile seekers and airborne digital data acquisition devices to be used for military platforms.

Many of SDT’s products are already being used by THE EXECUTIVE GUIDE OF THE GLOBAL DEFENSE AND SECURITY INDUSTRY

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Hakan Karalar President of Global Teknik Global Teknik was established in 2004 and has since then conducted many high technology projects in Turkey. Thanks to a very strong focus on R&D and expertise in mechanical engineering, electronics, electrical engineering and manufacturing, the company is able to deliver very innovative projects from design to testing and end manufacturing.

We are one of the few participants in the mini locallymanufactured UAV tender that was issued by SSM.

What are the core activities of Global Teknik?

We started the company in 2004 with a strong focus in the fields of defense, security and automation. Even though Global Teknik was founded 10 years ago, we have participated in many highvolume tenders in these fields, for border security, homeland security and defense customers.

Global Teknik is also an R&D company and one of the unique companies in its field dealing with unmanned systems in sea, land and air platforms at the same time. As of today, Global Teknik is able to manufacture around 15 different unmanned systems, such as small helicopters, quadrotors, mini Unmanned Aerial Vehicles (UAVs), tactical UAVs, sea applications and land applications. One of our latest projects is the second version of our unmanned surface vehicle for the sea. The first version was supported by the Scientific and Technological Research Council of Turkey (TÜBİTAK). Recently, a new version of this Unmanned Sea Vehicle (USV) was designed by Global Teknik. The new model will be seven meters long compared to the previous USV, which was four meters long. This new model is also more adaptable for customization, especially for bad sea conditions. As for the land application, a four-wheel drive autonomous ground vehicle has been developed at Global Teknik facilities.

What is the potential of unmanned technologies for the future of Global Teknik?

We believe that this market will increase tremendously both in Turkey and worldwide within the next few years. That is why Global Teknik plans to reinvest into its core business to develop its own design, R&D and manufacturing capabilities. Global

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Teknik is a company with high adaptation skills and a large range of expertise in different fields based on our past experiences. Those fields, namely mechanical engineering, electronics, composites and software development, are interconnected to each other. All this combined know-how is a true differentiator on these kind of projects and explains our success in unmanned systems.

How can you compete against large corporations in Turkey that are also developing UAVs? Indeed, there are extremely capable companies in this field in Turkey. Specifically, there are three or four large corporations in Turkey that have this capability to produce unmanned air systems. However, we are the first private company concentrating on unmanned systems. Furthermore, we are one of the few participants in the mini locally-manufactured UAV tender that was issued by the Undersecretariat for Defence Industries (SSM). That is why we also concentrate on some other applications for unmanned systems, namely sea and land applications.

How important is R&D for a company like Global Teknik?

We are taking advantage of all the support programs available such as government incentives.

Global Teknik is one of the best examples for this because we have already received governmental and agency support from the SME Development Organization (KOSGEB), TÜBİTAK, the European Union and we are also currently applying for Ministry of Transportation programs. It is due to these kinds of incentives that we have been able to take on so many projects. We also invest nearly 10% of our turnover for R&D programs, which is very high with respect to other comparable companies. Thus, we can participate in some of the tenders for international projects and we can also support some other defense companies because we have a very good expertise in this field. For example, Aselsan markets an inflatable boat, but we have a seven meter long boat made of composite material. Maybe we could give them the boat and they could integrate their payload and some electronic systems on it. This boat is completely Global Teknik’s own R&D production.

On the other hand, we have finalized our simulation program, which is also supported by KOSGEB, for the firefighting MI-17 helicopters.

DEFENSE LEADERS • TURKEY 2014

PROTECTING

Fotoniks Military Electronics & Electro Optics Industry 2010 Headquarters: Ankara Established:

Sales & contracts:

$11.3 million

Staff:

35

Investment in R&D:

40% of turnover

Fotoniks, a 100% Turkish-owned company, is one of the up and coming SMEs in the high-tech defense industry. The owners of Fotoniks have been active in the sector for over 14 years and have successfully combined their experiences in the research, development and manufacturing of electronics and electro-optics to serve the military and law enforcement markets in Turkey and the surrounding region.

Fotoniks is also working on a smart helmet, which is an add-on capability to the helmets as a direct view screen for the dismounted soldier (near eye module) that enables night time imagery feeds and an information flow superimposed to the soldier in the field. Fotoniks R&D is also working on different application heads-up display designs for aviation applications.

Fotoniks specializes in advanced electro-optical systems for different mission needs and budgets. Fotoniks is striving to become a onestop-shop for tactical Electro-Optical and Infrared (EO/IR) products for soldiers and law enforcement officers. The company’s spectrum of solutions covers the entire range of EO/IR products that the dismounted soldier can use on his rifle, helmet or in his hand while in the field, as well as EO/IR products for use in armored vehicles and combat outposts and bases.

At this time, Fotoniks is one the main after-sale support and maintenance organizations for sustaining EO/IR equipment in the Turkish Armed Forces’ inventory, which is valued at approximately 40 million dollars. Fotoniks has also been contracted by undisclosed clients for the supply of mobile advanced EO/IR sensor systems, precision fire guidance and support equipment and weapon sights, delivery of which will be completed in 2015.

R&D is also an important activity of Fotoniks, which strives to turn information into combat power by providing image and data to soldiers that will enable them to have superb situational awareness, correct aiming and firing and connectedness and make the right tactical decisions for desired outcomes in any potential situation. In the information age of the 21st century, it is only natural that electrooptical and information systems combine their output to provide informative superiority, whether in the field or in a strategic command room.

Fotoniks, headed by Mr. Cem Yazıcıoğlu (who is also the majority shareholder), drew attention to itself when it launched the ATLAS modular surveillance system, which is a common configuration base line intelligence, surveillance and reconnaissance (ISR) system that can be cost efficiently tailored in accordance with the performance requirements of a given client. Fotoniks’ engineers believe that almost any new EO/IR ISR system requirements can be built based on existing systems by re-doing most of the work in a different program, but if they are able to make a common configuration instead of re-doing everything, it saves a lot of time and money, ending in a “Lego-like” system whose performing sub systems can be changed according to the requirement at hand.

Cem Yazıcıoğlu, General Manager

On the tactical side, we must combine the visual and metaTHE EXECUTIVE GUIDE OF THE GLOBAL DEFENSE AND SECURITY INDUSTRY

data information into a format that will become second nature to the soldier, a part of the human body, and enable them to use this

as an advantage on the battlefield that will lead to their superiority.

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Turaç 1987 Headquarters: Ankara Established:

$27 million Employees: 85 Turnover:

Largest contract: million shells for the Turkish police

10

Turaç was founded in 1987 as a retail store, but later grew to a wholesaler in the 1990s. In the early 2000s, Turaç became one of the largest marketing companies in Turkey for the hunting and fishing industry. A first turning point for the company came in 2007 when Turaç started to build a factory to create explosives in Cilderesi, just outside of Ankara. The factory was completed in 2009 and the company was able to start producing emulsion explosives, detonators and fuses among other products. It is a NATO standard facility comprised of 11 buildings, but all are separate and there is a certain distance between all of the buildings in order to prevent any explosion contagion.

After that milestone, Turaç started to expand internationally and began visiting international trade shows as exhibitors in Germany, Abu Dhabi, Russia and the US. The next milestone for the company was the approval of their license to produce metallic ammunition. In 2010, Turaç started to produce 9mm Lugers and made the move to the defense sector to become a supplier of the police and armed forces around the world.

It thus became the first private company in Turkey to hold a license to produce metallic ammunition. Indeed, until the company had its license, only MKEK had the right to supply police forces and armed forces with ammunition. The license became one of their greatest competitive advantages. When they first applied for it, there was a strong reluctance from the Ministry of National Defence. The government did not see the need to have another supplier because they did not believe there was enough demand.

Time proved the strategy to be right, however, as the Ministry of National Defence realized that MKEK alone could not meet the Turkish demand. Turaç won its first tender with the Turkish police for 10 million shells thanks to good quality, good pricing and to the fact that 100% of the production was manufactured in their Turkish facility. Turaç is now expanding its production line. The 9mm line is finished, but the company is now looking to manufacture more calibers over the next five years. Turaç plans to produce from 6.35mm to 12.7mm and is also looking at 37mm, 38mm and 40mm.

Cem Altunbaş, CEO

We have exported our goods to 24 different countries and our aim is to emulate that same

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success in the metal ammunition business.

I am hoping to get to nearly 30 countries for the shot shells and metallic ammunition.

Our new production

line will be set up in 2014 increasing our total capacity up to 140 million units, nearly equal to Turkey’s total demand.

DEFENSE LEADERS • TURKEY 2014

PROTECTING Tisaş

Girsan

Ahmet Alemdaroğlu Chairman

Murat Cürgül Chairman

Tisaş is a government project coordinated by KOSGEB and MKEK manufacturing handguns for the Turkish market and for Turkish military and police requirements. The company also exports around 80% of its industrial output, with the US being the largest export market.

Girsan is a Turkish firearms producer mainly focused on manufacturing pistols.

Year of establishment: 1993.

Facility: 11,000 m² in Arsin/Trabzon Organized Industry Zone.

Manufacturing capacity: 45,000 pieces per year.

Year of establishment: 1994.

Number of employees: more than 200.

Main domestic customers: The Turkish Armed

Forces, Gendarmerie General Command, Security General Directorate, Ministry of National Defense, State Airports Administration and Ministry of Forestry, as well as private companies.

Future projects: After having reorganized the

International customers: Malaysian Special

Quote for 2014: “We are manufacturing 1911

Quote for 2014: “I am sure that with its admirable

production area for increased productivity and expanding its machinery, Tisaş plans to expand its production line step by step and will upgrade its R&D department. model handguns with different calibers, especially for the US market. We have very good quality products and affordable prices for both the domestic and global markets”

Forces Command and Malaysian Security Organization, Colombian Air Force, Georgian Police and Syrian Army. Girsan currently exports to the US, South American countries and Eastern and Middle Asian countries.

and continuous effort to increase quality by enabling productivity and using the latest technologies, Girsan will continue to preserve its pioneer image in gun production sector.”

Sarsılmaz Latif Aral Aliş President Sarsılmaz, is one of the leading light pistol manufacturers in Europe today and is also the sole private corporation in Turkey that can manufacture pistols, military weapons and hunting shotguns

Year of establishment: Late 1800s.

Manufacturing capacity: The factory is located

in the Düzce Organized Industrial Zone where the manufacturing processes are performed by means of fully automated technology in integrated facilities extending over 100,000m2 with 36,400m2 indoors.

Main clients: Sarsılmaz exports a significant

quantity of its products to 72 countries and continues to be the first choice of domestic arms users.

Because of the high performance of its products in the Ministry of National Defence’s tenders, all units of the Turkish Armed Forces use Sarsılmaz firearms.

The company is also deservedly proud of providing the Turkish security organizations with staff pistols for a number of years.

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Engin GĂźndoÄ&#x;du Vice President of Pi Makina Pi Makina started operating in Turkey in the 1970s to provide the country with the heavy machinery equipment necessary for modern construction projects. Considering the difficulties of importing these types of equipment, the company decided to produce them domestically and it proved to be a huge success. Pi Makina is now investing in the defense sector for its future growth.

Why did you decide to enter the defense sector?

The defense industry in Turkey is a very dynamic and fast-growing sector and, at the same time, very well ensured against economic crises. So, this ever-developing sector is very attractive for all the companies seeking to enter new ventures. Pi Makina is a subcontracting company and we have not yet created an indigenous product that would belong completely to us. So far, we have manufactured different sub-systems for Roketsan, FNSS and Aselsan. The percentage of our turnover coming from the defense industry is increasing every year and currently stands at approximately 30%. We started from zero so we have received a good increase in our defense contracts. We are still working very hard in the sector and it is very promising for us. We are looking forward to being a solution partner for companies like Aselsan and Roketsan.

The percentage of our turnover coming from the defense industry is increasing every year and currently stands at approximately 30%.

What are the main challenges of working with defense corporations?

The most challenging part is the negotiation process. Regarding security clearances, technology or capital, we do not have any issues. It is very hard to compete, since there is always someone with a lower price for some parts. In general, Aselsan and Roketsan are working very professionally and overall we are happy to work with them. It happens that we may be failing with our pricing parameters or with our products but these are minor aspects. We have a very open, transparent and efficient communication.

They have set up clear-cut policies that are changing the Turkish product vision. They are also encouraging local Turkish companies to enter the market, so it is a good collaboration. There is a good climate in Turkey’s defense sector and that also has to do with the highly skilled people that are working in this sphere.

Why do you believe the defense industry is critical for Turkey?

Due to our geographical location, the defense industry is key in helping provide stability in the region. We are one of the most important defense industry providers and we invest a lot in defense, which is not something that will change overnight.

So, this is a fast-growing market and we want to expand our business in this sector in the future. At the same time, the Turkish government has a policy that encourages the local defense industry and prefers local over foreign providers. This is an advantage for us and we are preferred by government agencies as well.

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Besides being a subcontractor, we also want to be a technology provider. Our eventual goal is to be a complete solutions partner and subcontractor for major companies such as Aselsan and Roketsan.

What can Pi Makina bring to Turkish defense corporations?

Is there any project in particular that you would like to highlight?

We have been involved in the Assault Amphibious Bridge System for FNSS. We manufactured some of their first gearboxes for that system and also did sand blasting and painting. The whole body of the first prototypes was manufactured here at Pi Makina.

When they entered the serial production phase, FNSS unfortunately preferred other companies, but we were involved in the first rounds of the program, which was a great experience for us. Later on, we provided sub-systems for Roketsan for launching equipment that are produced in our factory. We also produce several different sub-systems for Aselsan and we want to continue in this direction.

Besides being a subcontractor, we also want to be a technology provider. Our eventual goal is to be a complete solutions partner and subcontractor for major companies such as Aselsan and Roketsan. As a matter of fact, we are already one of the preferred partners of these companies. Therefore, we are considered as a solutions partner because of our high-quality offers and facilities.

Regarding the defense sector, we aim to become an exclusive provider for Roketsan for some subsystems and we hope that, one day, they will come to us directly. We proved our proficiency in that area and they rely on us very much. We are very good at welding and machine production for defense, which, technically, is a very demanding sector.

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SERVICES Birom Engineering

Oznur

Burçak Özses General Manager

Durali Ekiciler General Manager

Birom engineering was established by Burçak Özses to better serve the need of the Turkish defense sector in terms of transmission and gearbox technology and is the only company in Turkey to be capable of designing gearboxes.

Birom started working for Aselsan and is now providing some of the most prestigious defense corporations in Turkey.

Oznur was established to serve in the machining and milling industry. The company began working for the medical industry and changed its focus in 2000 to cater the needs of the defense sector.

Year of establishment: 2010.

Number of employees: 7.

1975.

Facility: 2,000m2 in Ostim, Ankara.

Manufacturing capacity: 50,000 products per year.

Clients: Aselsan, Otokar, MKEK, FNSS.

Clients: Aselsan, TAI, Roketsan, MKEK, FNSS, Mikes.

Turnover 2012: 500,000 euros.

Future prospects: Oznur is planning to open a

Quote for 2014: “There is a large market for the Turkish defense industry and I believe that there are synergies between the subcontractors to better serve the large exporting corporations of Turkey involved in the defense sector.”

new state-of-the-art facility of more than 10,000m2 in 2014 to meet the demand of its clients.

Quote for 2014: “We are opening new facilities

because we would like to have a better base and foundation to work with international companies such as Boeing andSikorsky. I would like to multiply our production by five in the coming years.”

Tektronik

Armelsan Defence Technologies

Halit Hakan Yavuz General Manager

Yüksel Yıldız General Manager

Tektronik was founded in 1994 and focuses on embedded electronics, software and their integration. Tektronik has a sister company Tektronik Inc., in Princeton, New Jersey to source products. In 2010, it created Tektrosoft for the IT part of their business. Tektronik is also involved in medical and railway electronics.

Armelsan is a recently formed company specializing in underwater technology. It was created by a team of navy experts and academics to provide engineering services and maintenance for military naval vessels, and is now developing indigenous underwater technology.

Year of establishment: 1994.

Partners: Wind River, Esterel, RTI, Curtis Wright Controls, Hartmann, MEN Mikro, Micrium.

Turnover 2012: 10 million dollars.

Year of establishment: 2012.

Employees: 24.

Latest project: Ultra deep side scan sonar for the

Submarine Search and Rescue Mother Ship (MoShip) project

Employees: 13.

Turnover 2012: 10 million dollars.

Clients: All major Turkish defense and telecom

Quote for 2014: “We want to use our experience

companies.

Quote for 2014: “Tektronik was awarded the fast-

est growing software company in Deloitte’s Technology Fast 500 EMEA (Europe, Middle East and Africa).

Tektronik grows by added value of embedded hardware-software integration.”

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Year of establishment:

and create new echo-sounders, electromagnetic log, mine hunting sonars and autonomous underwater vehicles for navy requirements. There are huge opportunities for underwater technology in Turkey, in the Middle East and CIS countries for the future.”

DEFENSE LEADERS • TURKEY 2014

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Luc Buys Chairman of Reus Turkey Reus (Rational Energy Use and Solutions) Turkey was created by Luc Buys to target the energy management market in Turkey. Mr. Buys was then contacted by Axon Cable, as he had a very good knowledge of the Turkish market, to be their representative for Turkey. Reus won its first contract in 2005 with Aselsan and has since expanded its operations.

What is Reus’ involvement in the Turkish defense sector?

How do you see the potential of the Turkish defense sector in the coming years?

One of our most successful contracts in Turkey is for the Milgem naval project with Aselsan. Aselsan was looking for a high quality, high-speed Ethernet connection cable for the ship working on long lengths and flexible to install everywhere. As it was on a ship, the lighter it was, the better it was too. So, it had to be light, small and flexible to install. We developed a very special construction of Ethernet cable (with a patent on it), which was 30% smaller than the standard one. After qualification of this cable, it went in all vessels. This specially developed cable was then used in other projects, even outside of Turkey. To date, we have delivered about 35,000 kilometers of this cable in Turkey. This has been one of our largest projects over the past four years, bringing in about 900,000 euros in total. The second important project we did was with TAI on the T129 ATAK project. The technology we used for this project was first used in the 1990s on the Ariane 5 European launch system. We introduced this product, together with the sales manager of Axon Cable, to TAI because they were experiencing a lack of space on the attack helicopter. They liked the technology so much that we went together to France. Finally, we designed for them the cabling for the complete navigation system, the communications system and the weapons system. In every aircraft, circuits are double, one to the left and one to the right, so we designed and provided eight system networks for four applications. We are also involved in the Altay main battle tank project with Otokar to supply some of the high quality cabling.

The Turkish defense sector is growing, but it has to be careful not to go too fast and miss important steps. I see this as a big risk for the country. Turkey can keep on growing, or it can end rapidly if they do not take care. On the other hand, they began selling patrol vessels to neighboring countries, but for very high technological projects such as attack helicopters, there are not any signed contracts with foreign countries yet. They were close with South Korea and the United Arab Emirates, but it did not materialize. Otokar is exporting to many countries, but for the rest, there are still many projects which remain domestic like the Milgem frigates, as it is not easy to convince another country to choose such costly platforms. So, the future remains in domestic sales and this will depend on how the government continues to support the sector. Regarding exports, if they want to stay strong, they should remain open to cooperation with foreign manufacturers and foreign suppliers, which can bring Turkey to a very high-level of manufacturing. Turkey should not look only at prices because it is too much of a risk in a high-tech market, such as defense, to choose the cheap one.

What are the main challenges of working in Turkey?

The main challenge is to convince the Turkish people that you can upgrade the knowledge on certain disciplines in which you are a specialist.

There is, for example, no real specialist on cabling in Turkey. So, if you commit a very high-quality cable and high-tech products, you can bring Turkey to a higher level. Some people understand this, but some others do not. With the former, who are open to listening, you can build really successful projects in Turkey because they are so numerous. There is a huge potential for defense projects in Turkey because they have a military at least as big as France.

35,000km

of Ethernet cable delivered to Turkey to be integrated on indigenous projects

One of our most successful contracts in Turkey is for the Milgem naval project with Aselsan.

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Verisis 1988 Headquarters: Ankara Established:

$10 million Employees: 22 Turnover:

Verisis is a 25-years old company that in the past 10 years has mainly focused on software development of criminal solutions, for post-crime applications. The company decided to focus on this niche market and to become a world leader in the domain when they were looking for a new area to develop their activities. They already had a very strong experience in computer technologies and in software, due to the IBM background of their workforce. Having this expertise in terms of dealing with software, with mission critical projects and valuable data, its founders had the idea to use this in a niche area, with high potential for development. They gathered this know how with the police, and their solutions came out. The new face of Verisis was born.

The main focus of the high-technology SME is crime forensic solutions. Verisis aims high and has the main objective to become a leader in after crime forensic solutions in Turkey and in the world.

They can provide a wide range of DNA matching solutions as well as a unique narcotics solution that can determine the geographical origin of drugs, thus providing critical maps and statistical data for the narcotics division of a forensic laboratory. Verisis is also currently

AydÄąn Kolat, General Manager

Our main purpose is being a leader in after crime forensic solutions in Turkey and in the world as our solution fits perfectly the police and gendarmerie 132

R&D investment:

30% of turnover

Main contracts: Turkish police and gendarmerie, Saudi police.

expanding its portfolio and working on a social responsibility project, using their expertise in DNA profiling for civil application, helping to find lost people.

The main strength of Verisis is in its flexibility in the design of their solutions, where all the source codes are developed in-house and owned by the company. Their star product, the Criminal Laboratory Information Management System (CLIMS), is a perfect example as it has origins in traditional LIMS software, and was tailor made for forensic applications. It has been improved, thanks to their expertise, with maintenance management, human resources, asset management, and consumable management.

Last but not least, Verisis is currently focusing on international markets after their success with the Saudi police. The project was originally just a software project, but after analyzing the requirements of the Saudi police, they even had to do some construction work for the specific requirements in terms of hardware, that needed to be on-site in order for the Saudi police to easily trace up the chain of custody.

requirements. Our top priority is selling CLIMS to other countries with a first focus in the Gulf Region and then North Africa and Europe. We are extremely proud of our solution because the Turkish police and the Turkish gendarmerie

are actively using it for several years and also all the countries that we demonstrated CLIMS to, are immediately convinced that our solution is the best that they have ever seen.

DEFENSE LEADERS • TURKEY 2014

29– 30 APRIL 2014 | OLYMPIA, LONDON

WORLD – INTERNATIONAL SECURITY FOR AN EVOLVING WORLD – INTERN

Counter Terror Expo offers the most comprehensive display of technology, equipment and services alongside a high level education programme designed to protect against the evolving security threat.

9,500 attendees and 400+ exhibitors will participate in multiple show floor workshops, new show feature zones, IEDD demo area, high level conference streams, behind closed door briefings and networking events in one secure environment.

CTX 2014 is a must attend event for professionals within; Banking / Finance, Border Control / Immigration, Communications / IT, Emergency Services / Ambulance Services / Fire Brigades, Energy / Oil & Gas / Nuclear, Government / Intelligence Agencies, Health, Logistics / Supply Chain, Maritime / Anti-Piracy, MOD/Military / IEDD Regiments, Police / Gendarmerie, Private Sector, Security Companies, Transport Security, Utilities / Water Visit the event website to discover why you should attend CTX 2014

Register for Your FREE Exhibition Pass Today www.counterterrorexpo.com/register Co-Located with

Lead Media Partner

Integrated Security Sponsor

Scanning & Screening Sponsor

Supported By

SAMI www.seasecurity.org

SERVICES

Media Relations Improve as Turkish Defense Industry Becomes a Global Player Turkish people have always been interested in military issues and military technologies. The main motivation for developing a defense industry in modern Turkey was the arms embargo put in place during the Turkish intervention in Cyprus. Since then, the development of indigenous defense systems has become one of the Turkish daily press’ favorites topics. As with other sectorial initiatives, the Undersecretariat for Defence Industries (SSM) has been the forerunner on media relations, establishing the Corporate Communications Directorate. SSM is also working on a strategy document on corporate communications.

relations. The growing interest in military technology in Turkey is no match for export markets. The Turkish defense industry will need different strategies for media relations in foreign markets.

The MSI Defence Review has been supporting the industry with its services in both local and international events and exhibitions since its foundation in 2004.

Our experience with media relations in the industry has led us to make several important observations: Most of the firms do not have a media relations strategy or a department for corporate communications; Media relations are usually handled by top level management.

Therefore, media relations compete for the managers’ precious time and divert attention away from other top priority tasks; When compared to other departments’ human resources, there are a few experienced and skilled employees working in media relations.

The customer’s understanding about secrecy can be counted as an external factor that should also be taken into account. Indeed, contracts usually contain extensive clauses limiting the disclosure of information.

The Turkish defense industry has also fully embraced media relations in recent years and awareness about its importance is growing. For example, many companies are conducting well-organized ceremonies for important milestones in their projects. These ceremonies are attended by large groups of media participants. The ceremony organized by TAI for the roll-out of Hürkuş tops these efforts. As export initiatives begin to multiply, the scope of the ceremonies has also expanded to foreign countries. In 2013, STM and Aselsan organized two such ceremonies and invited media members. Another front embraced by the industry is reputation management. Meteksan is the leading company in this field, being one of the sponsors for the 2nd International Reputation Management Conference, held on October 3-4, 2013 in Istanbul.

Exports Will Drive Change Without a doubt, as exports and the effort to sign new export contracts increase, the industry will need to better handle media

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In this context, the Turkish defense industry must improve its media relations in a short period of time. This process has already started with the efforts of SSM. We should expect that the industry will follow SSM and establish departments for corporate communications followed by media relations strategies. Another enabler will be public offerings. Currently, Aselsan and Otokar are the only major companies whose shares are traded. TAI is expected to join them soon. As the number of such companies increases, transparency and media relations will benefit them.

The Way Ahead The MSI Defence Review frequently performs a self-assessment of its work and the way forward. During various interviews, we find the opportunity to discuss industry-

DEFENSE LEADERS • TURKEY 2014

SERVICES media relations. As a result of these assessments and discussions, we have been able to put together a picture of the level that must be attained: Each company should have a strategy for media relations and a division for corporate communications; Companies should be well-known by national and international media, with reliable contact points; Companies should regularly publish updates about their contracts and projects, such as important milestones; As the Turkish defense industry reaches technological maturity, the technical depth of the news relating to the projects will also increase. As is the case with the MSI Defence Review, technical detail-rich news and articles will be written by domain experts. Companies will thus need to disclose more technical information; The Turkish defense industry will realize the importance of public relations in export markets and will need media partners who not only publish press releases or commercials, but also create value for them.

The MSI Defence Review is actively working with the Turkish defense industry toward these goals. Each month, we publish the latest news with technical expertise. As a value-creating partner, the MSI Defence Review will continue to work with the Turkish defense industry both in Turkey and in the foreign markets. Today, past issues of the MSI Defence Review provide researchers with a reliable source to assess the last 10 years of progress in the Turkish defense industry. In the future, we hope that we will be in the same position in order to tell the success story of the industry’s export drive.

Naile Bayraktar General Coordinator MSI Defence Review

The industry will either strengthen its relations with current partners or seek new media partners;

iSentinel is a business intelligence agency with a strong focus on the emerging Web (BRICS and Middle East).

Combining digital expertise, knowledge of emerging markets and a mastery of online influence, we help companies and institutions follow strategic issues on key markets.

We are capable of working both in a context of crisis and in the longer term, to monitor an environment, detect opportunities or implement influence strategies.

Our working languages are French, English, Chinese (Mandarin), Arabic, Russian, Portuguese and Spanish.

THE EXECUTIVE GUIDE OF THE GLOBAL DEFENSE AND SECURITY INDUSTRY

www.isentinel.org

135

SERVICES

Patrick Colas des Francs General Director of COGES - Eurosatory Eurosatory, held biennially in Paris, is the largest international exhibition in land and airland defense and security. More than 450 new products were unveiled during the 2012 edition by the 1434 exhibitors and 152 official delegations from 84 countries visited the exhibition. In 2012, 70% of exhibitors and 48% of visitors were foreigners.

+9.3% 2012 exhibitors

More than 50% of exhibiting companies’ chairmen or CEOs attended the show.

What are the main new features of the 2014 Eurosatory?

also exhibit by themselves with their own stand in the exposition, which can also be beneficial for them.

Session after session, Eurosatory develops new concepts and opportunities, as much for exhibitorssellers as for visitors-buyers. As organizers, we also compare the various offers available in our business.

This strategy allows us to have a full knowledge of the global land and air-land defense and security market.

As a result, keeping in mind our will to help SMEs enjoy higher visibility, we created two new technology clusters: civil security and emergency relief and infrastructure and critical facilities protection. These clusters will be added to the existing ones, including CBRNe, training and simulation, measurements, tests and testing centres, embedded electronics and UAVs/ UGVs. To help visitors organize their visit, we also provide thematic visitor flyers focused on each of the above topics.Therefore, if visitors would like to meet all companies exhibiting in a specific field, they can use our dedicated flyers or the smartphone application we will put in service for them. Eurosatory is also famous for being a great platform for networking. Every two years, a vast defense and security community attends its conferences, exhibitors’ workshops, one-to-one business meetings, business consulting meetings, “do business with” conferences, etc.

Why should Turkish people visit Eurosatory 2014?

How are Turkish companies represented on the exhibition floor?

It is still too early to give a list of the 2014 Turkish companies, but we are confident regarding the number of exhibitors. When we compare the last sessions, we see growth in the number of Turkish companies. In 2010, they were 11, in 2012 they were 17 and, for 2014, we have very good contacts from the land and air-land Turkish industry. As the Turkish industry is increasingly growing, we expect that the Turkish pavilion will increase too. Companies can

136

In 2012, exhibitor numbers have increased by 9.3%. 53 countries and international organizations (EU, NATO) were represented. More than 50% of exhibiting companies’ chairmen or CEOs attended the show. With visitors from 130 different countries, 152 official delegations from 87 countries, the attendance of 684 journalists and 3,589 visitors from the top management levels, the exhibition clearly attracted a high-level worldwide audience. Regarding the official delegations (ODs), all continents were represented, not only the western countries (57 ODs), but also emerging countries (Asia with 27 ODs, South America with 11 ODs) and developing countries (Africa with 15 ODs). All this data contributed to consolidate Eurosatory as the industry’s reference event. Our event must indeed meet the needs of manufacturers, governments, institutions and private firms, whatever their requirements and ambitions are in terms of equipment. The exhibition will endeavor again to cover the full spectrum of defense and security equipment in all price groups: from new, complex and high-tech advanced technology systems to more affordable solutions. Some of these products are presented during the live indoor and outdoor demonstrations, which are held twice a day during the whole week of the exhibition. In fact, the show does succeed in offering the broadest response to the various public and private needs in land and air-land defense and security. For all these reasons, we look forward to welcoming many Turkish people as well as visitors from all around the world at the coming Eurosatory exhibition from 16 to 20 June 2014!

DEFENSE LEADERS • TURKEY 2014

SERVICES

THE EXECUTIVE GUIDE OF THE GLOBAL DEFENSE AND SECURITY INDUSTRY

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EXECUTIVE GUIDE

Business Accommodation Elite World Elite World business hotel is located close to Atatürk International Airport. You will enjoy extensive accommodation facilities at Elite World Hotels with high quality standards for your business travels and leisure getaways. You will find comfort, elegance, security and modern technological infrastructure all in one.

Rooms and guest services: 1 presidential suite • 3 corner suites • 7 connected rooms • 2 rooms for disabled guests • 232 deluxe rooms • cabled and wireless hi-speed internet • interactive TV • jacuzzi.

Business services: 9 different meeting rooms • total capacity of 1,200 people.

Dining: Elite Restaurant - Lobby lounge - Lobby bar - the Brasserie - the Coffee Company - the Vitamin bar.

Sehit Muhtar Caddesi 42 34435 Taksim - Istanbul Tel. +90 (212) 313 83 83 www.eliteworldhotels.com

Mövenpick Voted “Turkey’s Leading Business Hotel” by World Travel Awards in 2012, this 5 star hotel in Istanbul combines contemporary style with flawless service. Experience unique gastronomic highlights and the latest technology created for the discerning traveller in mind.

Rooms and guest services: 249 rooms, including 45 executive rooms • 21 suites as well as the Skyline Deluxe suite • spa, swimming pool • sauna • wellness centre.

Business services: 11 conference rooms • state-of-the-art AV technology • highspeed internet access.

Dining: AzzuR restaurant • BarAdoX • GourmeT • Skyline club lounge • Vitamin bar.

Büyükdere Caddesi, 34330, 4 - Istanbul Tel. +90 (212) 319 29 29 www.moevenpick-hotels.com

Sheraton Maslak In Sheraton Maslak Istanbul Hotel a friendly smile and a warm welcoming is waiting for you.

You will enjoy the ease of dealing with your work without getting tired in our hotel which is located at the new business locality of the city.

Rooms and guest services: Deluxe, Superior, club superior and club deluxe rooms • LCD television • high-speed internet access • luxury bathroom • clubpeb fitness and spa • indoor swimming pool • largest jacuzzi • 2 saunas • relaxation rooms.

Business services: 3 meeting and banquet rooms, 3,500m2 • PC workstations • internet access • conference concierge.

Dining: Lobby bar • Café 333 • Qubbe bar.

Büyükdere, 233 Maslak - Istanbul Tel. +90 (212) 335 99 99 www.sheratonistanbulmaslak.com THE EXECUTIVE GUIDE OF THE GLOBAL DEFENSE AND SECURITY INDUSTRY

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Business Accommodation Sheraton Ankara Perched above glamorous city lights, the Sheraton Ankara Hotel & Convention Center is an architectural marvel and the landmark of the capital city. Our endless amenities fuse Turkish traditions with contemporary ones.

From the moment you enter the finely constructed and modern spacious lobby, a mystifying wave of opulence and grandeur will transport you to a world of the finest luxuries.

The hotel is in the heart of the city within walking distance to many local attractions, as well as the business and embassy districts.

311 rooms: Classic and club rooms • Executive suites • Diplomatic suites • Presidential suite • non-smoking floors • Club lounge on the 20th floor.

Health Club: Sheraton fitness by core performance • in-door swimming pool • 655m2 fitness area • covered with glass top • whirlpool • sauna • steam room • weight training • certified trainers • massage service • roof-top • illumintaed tennis court.

Bars & restaurants: Brasserie-one all day dining • Sunday brunch • Local flavors • Copper bar • 24 hour in-room dining.

Conference and meetings: total of 20 function rooms including two ballrooms • exhibition hall • total meeting space 5,000m2.

Sheraton Ankara Hotel & Convention Center - Noktali Sokak Kavaklidere 06700 - Ankara Tel. +90 (312) 457 60 00 ankara.reservations@sheraton.com www.sheratonankara.com

Rixos Rixos Grand is located on the Atatürk boulevard, which is the most prestigious area of the city. It shares the same location as important institutions such as the grand national assembly of Turkey (TBMM), embassies and ministries.

The pleasure of the Rixos experience will refresh you after an exhausting day. It is not a coincidence that businessmen, statesmen, celebrities and stars prefer our service for accommodation and meetings.

For any guests that want to keep up with current affairs, there is TV footage to follow up news reports. Local and foreign daily newspapers are also delivered. For our guests staying on the15th floor in our Premium Lounge we provide a Butler service.

Rooms and guest services: 217 rooms • mini bars • satellite channels • wireless internet access • IP phone • internet on TV • shower and bath • shoebox • hair dryer • automatic air conditioning system.

Business services: 17 convention rooms • 4,310m2 of total meeting space.

Dining: Cafe @ Bulvar • 24 hours Lobby bar • Brasserie restaurant.

Atatürk Bulvarı, 183 Kavaklıdere 06680 - Ankara Tel. +90 (312) 410 55 00 www.rixos.com 140

DEFENSE LEADERS • TURKEY 2014

Business Accommodation Swissotel The Swissotel Ankara is a boutique luxury hotel located in Çankaya, an exclusive area that is also home to the Presidential palace and many embassies.

Rooms and guest services: 147 stylishly modern guest rooms and suites • 106 Swiss advantage rooms • 27 Swiss business executive rooms • wireless internet access • working desk • gym with state-of-the-art equipment • half olympic-size indoor swimming pool • Sauna.

Business services: 8 meeting rooms • 1 ballrooms • state-of-the-art equipment WiFi and broadband.

Dining: Cafe Swiss • Swiss Gourmet • Energia Cafe • the Ambassador Bar.

Yildizevler Mahallesi, Jose Marti Caddesi, 2 06550 Ankara Tel. +90 (312) 409 30 00 www.swissotel.com

JW Marriott Experience a unique combination of comfort, value and service at the luxury 5 star JW Marriott hotel in Ankara.

Rooms and Guest Services: 24 floors • 345 rooms • 68 suite • marble baths • daily room service • Karma spa wellness • fitness club.

Business Services: 17 meeting rooms • 10,107m2 of total meeting space.

Dining: Fires & Flavors Restaurant • JW Steakhouse • Velocity Sports & Entertainment • Skye Vue Lounge & Terrace • JW Lounge • Karma Kafe.

Kizilirmak Mah. Muhsin Yazicioglu Cad. 1 Sogutozu - Ankara Tel. +90 (312) 248 88 88 www.marriott.com

Crowne Plaza Crowne Plaza Ankara is located at the heart of cross-roads which surrounds Ankara.Its location allows you to reach embassies, business district ,fair area, Congressium and ministiries fairly. Only few minutes far from Arena Spor Complex and 19 Mayıs Stadium.

Rooms and Guest Services: 177 standard rooms • 3 rooms for disabled persons • 20 double queen rooms • 20 junior suite rooms • 42 club rooms • 1 presidential suite • interactive TV-satellite • massage • pilates • free internet access.

Business Services: 11 halls • audio and visual equipment • video conference system • fast Internet connection.

Dining: Brasserie restaurant • Cafe @ Bulvar • Lobby bar.

Mevlana Bulvarı, 2 06330 Akköprü - Ankara Tel. +90 (312) 303 00 00 www.cpankara.com THE EXECUTIVE GUIDE OF THE GLOBAL DEFENSE AND SECURITY INDUSTRY

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Business SERVICES Airlines Turkish Airlines

www.turkishairlines.com

Turkish Airlines (THY) is the national flag carrier airline of Turkey, headquartered on the grounds of Atatürk Airport. It operates scheduled services to 41 domestic and 202 international airports in Europe, Asia, Africa, and the Americas. With 243 destinations, the airline is the fourth-largest carrier in the world by number of destinations. Turkish Airlines has been awarded Best Airline in Europe at the 2011, 2012 and 2013 Skytrax World Airline Awards.

Atlas Jet www.atlasjet.com

Pegasus Airlines www.flypgs.com

Onur Air www.onurair.com

SunExpress Airlines www.sunexpress.com

Airports and Lounges Istanbul Ataturk Airport +90 (212) 465 55 55 The 3,000m2 and 2,000 guest capacity Turkish Airlines CIP Lounge at the International Terminal offers a comfortable pre-flight environment for passengers.

Istanbul Ataturk Airport

Istanbul Sabiha Gokcen Airport Ankara Esenboga Airport

Izmir Adnan Menderes Airport Istanbul Sabiha Gokcen Airport +90 (216) 585 50 00 The Special Terminal with its two large lounges is decorated in a convenient and useful manner, it is located near from the Terminal A and it offers a private access to its guests.

Ankara Esenboga Airport +90 (312) 590 40 00 The lounge entertains Turkish Airlines’ First and Business Class passengers 24 hours a day, seven days a week by offering light snacks and delicious beverages by BTA Catering Services.

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Izmir Adnan Menderes Airport +90 (232) 275 64 64 The Millenium Lounge hosts first and business class passengers of contracted airlines as well as Is Bank credit card holders.

DEFENSE LEADERS • TURKEY 2014

Business Accommodation

Business SERVICES Emergency Services There is no guarantee that any English will be spoken on any of these emergency telephone numbers. Calling the following emergency numbers is free of charge and the lines are available 24 hours a day.

Health emergency................................110 Police..................................................155 Fire......................................................110 Emergency...........................................112 Tourism info (all over Turkey).................170

Corporate Law Firms Ankara:

Business, Legal and Simultaneous Translations Ankara: Çankaya Tercüme www.cankayatercume.com.tr +90 (312) 466 66 85 ct@cankayatercume.com.tr Istanbul: Alafranga Ceviri Hizmetleri Ltd. www.turkishtranslationagency.com +90 (216) 549 23 74 info@alafrangaltd.com Turkish Translation Office www.turkishtranslationoffice.com +90 (212) 280 86 36

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Kasaroğlu Law Office www.kasaroglu.av.tr +90 (312) 428 40 82 info@kasaroglu.av.tr Aranci&Dora Law Office www.arancidora.av.tr +90 (312) 441 91 81 info@arancidora.av.tr Ongur Ergan Law & Consulting Office www.ongurergan.av.tr +90 (312) 426 39 94 info@ongurergan.av.tr Çelebi Law Office +90 (532) 549 14 83 www.celebiavukatlik.com info@celebiavukatlik.com Istanbul: Koç Law Office www.koclaw.com +90 (212) 227 02 01 info@koclaw.com

DEFENSE LEADERS • TURKEY 2014

Ranks and insignia of officers

NATO Code OF-10

OF-9

Mareşal General of the Army

Orgeneral General

OF-8

OF-7

OF-6

Korgeneral Tümgeneral Tuğgeneral Lieutenant Major Brigadier General General General

OF-5

OF-4

OF-3

OF-2

Albay Colonel

Yarbay Lieutenant Colonel

Binbaşı Major

Yüzbaşı Captain

OF-1 Üsteğmen First Lieutenant

Teğmen Second Lieutenant

Turkish Land Forces

Turkish Air Force

Turkish Naval Forces

Ministry of National Defense Millî Savunma Bakanlığı 06100 Bakanlıklar - Ankara +90 (312) 402 61 00 www.msb.gov.tr

Land Forces General Command Kara Kuvvetleri Komutanlığı 06100 Yücetep - Ankara +90 (312) 411 11 18 www.kkk.tsk.tr

Undersecretariat for Defence Industries Savunma Sanayii Müsteşarlığı İnönü Bulvarı, Süleyman Emin Caddesi, 6-7 06490 Bahçelievler - Ankara +90 (312) 411 90 00 www.ssm.gov.tr

Naval Forces Command Deniz Kuvvetleri Komutanlığı 06100 Bakanlıklar - Ankara +90 (312) 417 62 50 www.dzkk.tsk.tr

Turkish General Staff Genelkurmay Başkanlığı 06100 Bakanlıklar - Ankara +90 (312) 402 61 00 www.tsk.tr

THE EXECUTIVE GUIDE OF THE GLOBAL DEFENSE AND SECURITY INDUSTRY

Air Force Command Hava Kuvvetleri Komutanlığı 06100 Bakanlıklar - Ankara +90 (312) 417 21 50 www.hvkk.tsk.tr

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ACKNOWLEDGMENTS

Defense Leaders would like to thank the following companies, government entities and their executives for their participation, support and photographs.

Alp Aviation......................................... www.alp.com.tr

Oznur.................................www.oznursavunma.com.tr

American Turkish Council................... www.the-atc.org

Pi Makina................................... www.pimakina.com.tr

Ares Shipyard.....................................www.ares.com.tr

Reus Turkey......................................www.reus-int.com

Armelsan Defence Technologies....www.armelsan.com

Roketsan..................................... www.roketsan.com.tr

Aselsan........................................ www.aselsan.com.tr

Saab........................................... www.saabgroup.com

Ayesaş...............................................www.ayesas.com

Sarsılmaz......................................www.sarsilmaz.com

Birom Engineering........................... www.birom.com.tr

SaSaD...............................................www.sasad.org.tr

Bites.................................................. www.bites.com.tr

SDT......................................................www.sdt.com.tr

COGES - Eurosatory.................... www.cogesevents.net

Sedef Shipbuilding............ www.kalkavanshipyard.com

Eutelsat........................................... www.eutelsat.com

Simsoft.......................................... www.simsoft.com.tr

FNSS.................................................. www.fnss.com.tr

SSI................................www.turksavunmasanayi.gov.tr

Fotoniks.........................................www.fotoniks.com.tr

SSM.................................................... www.ssm.gov.tr

Gate Elektronik.................... www.gateelektronik.com.tr

STM.................................................... www.stm.com.tr

Girsan.............................................www.girsan.com.tr

TAI........................................................ www.tai.com.tr

Global Teknik.......................... www.globalteknik.com.tr

Tektronik...................................... www.tektronik.com.tr

Havelsan.....................................www.havelsan.com.tr

Tisaş..........................................www.trabzonsilah.com

Honeywell....................................www.honeywell.com

Thuraya............................................www.thuraya.com

Istanbul Shipyard............... www.istanbulshipyard.com

TÜBİTAK........................................... www.tubitak.gov.tr

Istanbul Teknopark..........www.teknoparkistanbul.com.tr

TÜBİTAK Bilgem.......... www.uekae.bilgem.tubitak.gov.tr

Karel...................................www.karel-electronics.com

Turaç................................................ www.turac.com.tr

Koluman...................................... www.koluman.com.tr

Verisis...................................................www.verisis.co

Meteksan..................................... www.meteksan.com

Vestel..................................... www.vesteldefence.com

MKEK.................................................www.mkek.gov.tr

Yaltes................................................. www.yaltes.com

MSI................................................. www.milscint.com

Yonca-Onuk................................www.yonca-onuk.com

Nurol Makina......................... www.nurolmakina.com.tr Office of Defense Cooperation......................... ww.turkey.usembassy.gov ODTÜ................................................. www.metu.edu.tr ODTÜ Teknokent...................www.odtuteknokent.com.tr OSSA.......................................www.ostimsavunma.org Otokar.............................................www.otokar.com.tr 146

DEFENSE LEADERS • TURKEY 2014

Index AgustaWestland................18, 60, 62, 93

International Golden Group...............69

SaSaD.................................. 24, 25, 75

Airbus Defence and Space. 55, 60, 62, 64, 69, 108

Istanbul Shipyard.................... 112, 113

Savronik......................................... 94

Airbus Helicopters...................... 18, 67

Istanbul Teknopark................. 11, 42, 89

SDT........................................120, 121

Karel...................................... 106, 107

Sedef Shipbuilding................. 118, 119

Kazakhstan Aselsan.................... 69, 90

Sikorsky.. 18, 21, 47, 60, 62, 64, 69, 82, 83, 102

Alpata.............................................69 Alp Aviation.......................... 69, 82, 83 American Turkish Council................. 46 Ares Shipyard.......................... 116, 117 Arianespace...................................108 Armelsan Defence Technologies.......130 Aselsan............................ 10, 21, 37, 38, 39, 41, 67, 68, 69, 73, 75, 89, 90, 91, 94, 100, 104, 121, 122, 127, 128, 130, 131, 134 Aselsan Middle East.................... 69, 90 Aspilsan......................................... 68 Axon Cable.................................... 131 Ayesaş................................. 64, 65, 69 BAE Systems...............................69, 74 Bell........................................... 21, 53 Birom Engineering......................5, 130 Bites...................................... 102, 103 Boeing...52, 59, 60, 62, 64, 82, 83, 93, 108, 114, 130

Koç.......................................... 69, 144 Koç Bilgi..........................................69 Koluman.................................... 78, 79

Loral.............................................108 MEN Mikro.....................................130

STM........54, 65, 68, 94, 95, 100, 104, 134

Mercedes-Benz......................68, 78, 79

TAI.10, 16, 18, 21, 28, 39, 55, 59, 60, 61, 62, 69, 82, 130, 131, 134

L-3 Communications.................. 64, 69 Lockheed Martin.46, 60, 62, 64, 67, 82, 93

Meteksan.................................96, 134 Micrium........................................130 Middle East Aselsan.........................69 Mikes.................................. 68, 94, 130 Mikroelektronik............................... 68 MKEK......59, 68, 70, 71, 73, 124, 125, 130 MSI........................................ 134, 135 MTU...........................................20, 32 Netaş............................................. 68

COGES - Eurosatory........................136

NK Kazakhstan Engineering...............69

CPMIEC.................................... 55, 111

Northrop Grumman......................60, 62

Curtis Wright Controls.....................130

Nurol Makina..............................76, 77

Daimler...........................................79

ODTÜ............ 36, 38, 39, 40, 41, 104, 120

DNV.............................................. 115

ODTÜ Teknokent... 38, 39, 40, 41, 104, 120

Esdaş............................................. 68

Office of Defense Cooperation.......... 50

Esterel..........................................130

OSSA............................................. 56

Eutelsat.........................................108

Otokar.....18, 54, 69, 72, 73, 130, 131, 134

FNSS.......54, 69, 74, 75, 76, 127, 128, 130

Oznur........................................... 130

Fotoniks.................................. 86, 123

Pi Makina.............................. 127, 128

Gate Elektronik................................ 98

Pratt & Whitney.......................... 82, 83

General Electric..........................64, 69

Reus Turkey.................................... 131

Girsan.......................................... 125

RMK Marine.....................................69

Global Teknik................................ 122

Rockwell Collins............................. 64

Havelsan...39, 55, 59, 68, 92, 93, 100, 102, 104

Roketsan............................................ ...32, 35, 39, 55, 59, 66, 67, 68, 73, 89, 104, 127, 128, 130

Honeywell................................. 84, 85 Indra...............................................77

SSI.........................25, 28, 30, 31, 55, 75 SSM.......................12, 16, 17, 20, 24, 28, 30, 37, 38, 39, 41, 42, 43, 46, 53, 54, 55, 59, 60, 64, 65, 73, 74, 75, 76, 77, 81, 86, 89, 93, 94, 96, 102, 103, 107, 113, 114, 118, 119, 120, 121, 122, 134

KOSGEB........................ 38, 39, 122, 125

Bombardier..................................... 60

IGG Aselsan............................... 69, 90

Simsoft.........................................104

TEI........................................54, 69, 84 Tektronik........................................130 Telespazio.....................................103 Thales..................... 56, 64, 98, 100, 108 Thales Alenia Space.......................108 Thuraya.........................................109 Tisaş............................................ 125 TÜBİTAK. 34, 35, 36, 37, 38, 39, 66, 89, 111, 121, 122 TÜBİTAK Bilgem.................... 35, 36, 111 Turaç............................................ 124 Turkish Aeronautical Association....... 68 Turksat..........................................108 UTC Aerospace Systems................... 83 VakifBank....................................... 68 Verisis...........................................132 Vestel Defence................................ 64 Wind River.....................................130 Yaltes............................................100 Yonca-Onuk............................. 114, 115 Zodiac Aerospace.............................56

Saab..........................................80, 81 SAP................................................ 93 Sarsılmaz..................................... 125

Photo credits: Alp Aviation • American Turkish Council • Ares Shipyard • Armelsan Defence Technologies • Aselsan • Ayesaş • Birom Engineering • Bites • COGES - Eurosatory • Crowne Plaza • Elite World • Eurosatory • Eutelsat • FNSS • Fotoniks • Four Seasons • Gate Elektronik • Girsan • Global Teknik • Havelsan • HellArmy • Honeywell • Istanbul Shipyard • Istanbul Teknopark • JW Marriott • Karel • Koluman • Meteksan • Metziker • Mikes • MKEK • Mövenpick • MSI • NATO • Nurol Makina • ODTÜ • ODTÜ Teknokent • Office of Defense Cooperation • Optmistdergi.com • OSSA • Otokar • Oznur • Pi Makina • Ralfmax • Reus Turkey • RMK Marine • Roketsan • Saab • Sarsılmaz • SaSaD • SDT • Sedef Shipyard • Sheraton Maslak • Sikorsky • Simsoft • SSI • SSM • STM • Swissotel • TAI • Tektronik • The Ritz-Carlton • The Sofa • Thuraya • Tisaş • TÜBİTAK • TÜBİTAK Bilgem • Turaç • Turkish Airlines • Verisis • Vestel Defence • Yaltes • Yonca-Onuk THE EXECUTIVE GUIDE OF THE GLOBAL DEFENSE AND SECURITY INDUSTRY

147

DEFENSE LEADERS DISTRIBUTION Government and Military Authorities

Prime Ministers • Ministers of Defense • Deputy Defense Ministers • Ministers of Interior • Chiefs of Homeland Security • Chiefs of Defense • Chiefs of General Staff • Chiefs of Naval Staff • Chiefs of Army Staff • Chiefs of Air Staff • Chiefs of Training and Simulation • Directors of Planning • Heads of Defense Contracts • Military Advisors.

Defense Procurement Agencies including United States of America - Under Secretary of Defense for Acquisitions, Technology and Logistics (OUSD(AT&L)) • India - Defence Acquisition Council (DAC) • China - People’s Liberation Army General Armaments

Department • Pakistan - Directorate General Defence Purchase (DGDP) • South Korea - Defense Acquisition Program Administration (DAPA) • France - Direction Générale de l’Armement (DGA) • Saudi Arabia Procurement and Contracts Administration, Ministry of Defence and Aviation • United Arab Emirates - Tawazun Economic Council • Japan - Equipment Procurement and Construction Office • United Kingdom - Defence Equipment and Support (MOD’s(DE&S)) • Brazil - Secretaria de Produtos de Defesa (SEPROD) • Argentina - Servicio Logístico de la Defensa • Peru - Directorate General of Defence Material Resources • Sweden Försvarets materielverk (FMV) • Taiwan - Armaments Bureau, Ministry of National Defense • Greece - General Directorate for Defense Investments and Armaments • Israel - Ministry of Defense Directorate of Procurement & Production (MANHAR) • Czech Republic - National Armaments Directorate • Kazakhstan - General Logistics of the Armed Forces of the Republic of Kazakhstan • The Netherlands - Defensie Materieel Organisatie • Georgia - The Ministry of Defense Department of Public Procurement • Jordan - Directorate of Procurement • United Nations - UN Procurement Division Peacekeeping Procurement Section (PPS) • Azerbaidjan Central Procurement & Marketing Office • NATO - NATO Support Agency (NSPA) • Belgium - Directorate General Material Resources • Portugal - Direção-Geral de Armamento e Infra-Estruturas de Defesa (Dgaied) • South Africa - Armaments Corporation of South Africa (ARMSCOR) • New Zealand - Acquisition Division, Ministry of Defence • Italy - Segretariato Generale della Difesa, Direzione Nazionale degli Armamenti Ufficio Generale del Segretario Generale (DNA) • Finland - Materiel Unit • Malaysia - Procurement Division, Ministry of Defence • Turkey - Undersecretariat for Defence Industries (SSM) • European Union - European Defence Ageny (EDA) • Egypt - Armament Authority • Spain - Dirección General de Armamento y Material (DGAM) • Russia - Military and Special Equipment and Material facilities Procurement • Nigeria - Defence Industrial Corporation of Nigeria (DICON) • Iraq - Directorate General of Armament and Equipment (DGAE) • Indonesia - Komite Kebijakan Industri Pertahanan (KKIP) • Austria - Direktion Rüstung und Beschaffung (BMLVSDionRB) • Mexico - Secretaría de la Defensa Nacional (SEDENA) • Algeria - Direction centrale du matériel • Chile - Consejo Superior de Defensa Nacional • Ukraine - Tender Committee of the Ministry of Defense • Norway - Forsvarets forskningsinstitutt (FFI) • The Philippines - Undersecretary of Finance, Munitions, Installations and Materiel • Denmark - Forsvarets Materieltjeneste • Colombia - Ministerio de Defensa Nacional, Unidad de Gestión General • Singapore - Defence Science and Technology Agency (DSTA) • Germany - Bundesamt für Ausrüstung, Informationstechnik und Nutzung der Bundeswehr (BAAINB) • Hungary - Deputy State Secretariat for Defence Economy • Poland - Inspektorat Uzbrojenia • Oman - Logistics of the Royal Army of Oman • Canada - Public Works and Government Services Canada (PWGSC) • Thailand - Directorate of Armament • Switzerland - Armasuisse • Qatar - Logistic Department of the Qatar Armed Forces • Australia - Defence Materiel Organisation • Kuwait - Logistics & Supply Authority.

Defense Associations including

Asociación Bonaerense de la Industria Naval • Aviation/Aerospace Australia • Austrian Aeronautics Industries Group (AAI) • Austrian Defence & Security Industry Group • Belgian Security & Defence Industry (BSDI) • Flemish Aerospace Group (FLAG) • Associação Brasileira das Indústrias de Materiais de Defesa e Segurança (ABIMDE) • Associação das Indústrias Aeroespaciais do Brasil (AIAB) • Bulgarian Defence Industry Association (BDIA) • Aerospace Industries Association of Canada (AIAC) • Canadian Association of Defence and Security Industries (CADSI) • Aviation Industry Corporation of China (AVIC) • Croatian Marine Equipment Manufacturers (CMEM) • The Association of Aviation Manufacturers in Czech Republic • Defence and Security Industry Association of the Czech Republic (DSIA) • Defence & Aerospace Industries Association in Denmark (FAD) • Danish Maritime Authority • Association of Finnish Defence and Aerospace Industries (AFDA) • Groupement des Industries de Construction et Activités Navales (GICAN) • Groupement des Industries Françaises de Défense Terrestre (GICAT) • Groupement des Industries Françaises Aéronautiques et Spatiales (GIFAS) • Bundesverband der Deutschen Luft-und Raumfahrtindustrie e.V. (BDLI) • Deutsche Gesellschaft fur Wehrtechnik (DWT) • Verband für Schiffbau und Meerestechnik e. V. (VSM) • Hellenic Aerospace & Defense Industries Group (HASDIG) • Aeronautical Society of India • Society of Indian Aerospace Technologies and Industries (SIATI) • Confederation of Indian Industry (CII) • Federation of Aerospace Entreprises in Ireland (FAEI) • Israeli Association of Electronics & Software Industries (IAESI) • Federazione Aziende Italiane per l’Aerospazio, la Difesa e la Sicurezza (AIAD) • Society of Japanese Aerospace Companies (SJAC) • Federación Mexicana de la Industria Aeroespacial (FEMIA) • Netherlands Aerospace Group • Netherlands Defence Manufacturers Association (NIDV) • New Zealand Defence Industry Association (NZDIA) • Norwegian Defence and Security Industries Association (FSi) • Stowarzyszenie Polskiego Przemysłu Lotniczego (SSPL) • Associação das Empresas de Defesa, Armamento e Novas Tecnologias (DANOTEC) • Portuguese Aerospace Industry Association (PEMAS) • Organizatia Patronala din Industria Aeronautica Romana (OPIAR) • Romanian Business Association of the Military Technique Manufacturers (PATROMIL) • Union of Aviation Industrialists (UAI) • Association of Aerospace Industries (AAIS) • South African Aerospace Maritime & Defence Industries Association (AMD) • Korea Defense Industry Association (KDIA) • Spanish Association for Defence, Security and Space Technologies (TEDAE) • Asociacion Española de Industrias Maritimas (AEDIMAR) • Swedish Aerospace Industries • Swedish Security and Defence Industry Association (SOFF) • Swedocean - Swedish Ocean Industry Group • Groupe Romand pour le matériel de Défense et de Sécurité (GRPM) • Taiwan Aerospace Industry Association (TAIA) • Defence Industry Manufacturers Association (SaSaD) • Advancing UK Aerospace, Defence, Security & Space Industries • Society of Maritime Industries • Aerospace Industries Association • National Defense Industrial Association (NDIA) • Slovenian Defence.

Companies

Orlando Engineering • Marinette Marine • Ansul • Cybernetix • Heynen • Afriso Eurogauge • Numerate Consultants • Navantia • Hawkeye Security and Surveillance Systems • Cannon Tri-Laminates • Messier-Dowty • Greene Tweed • Wood Harris • Spitz • Rutter • Myanmar Daewood Electronics • Decatur Electronics • Qantas Defence Services • Cohu • B A Tubes • Data Device • OMT • Vincent • Electus Recruitment Solutions • Expro Technologies • Baotou Bei Ben Heavy-Duty Truck • Xanalog • BMS Trading • Fibertek • Veridian Engineering • Mifram Group • MiG Russian Aircraft • Textron Defense Systems • Sandow Technic • Fahrion Engineering • Thwaites • Butyl Products • Engel Ballistic Research • Schmid Telecom • Vishay Measurements Group • Michelin Aircraft Tires • Dycor Technologies • Telesat • Tracerco • Penny & Giles Aerospace • Sunco Plastics • 40 Seven • Amphibico • Technomad • Factair • Yarwood Leather • GMV • Kanematsu • MAN • Odyssea Submarine • Regional Council • Aerotest Operations • Evac Vacuum Systems Shanghai • Vanwell Distribution Services • Gentex • Franz Achleitner Fahrzeugbau und Reifenzentrum • TerexLift • Aeromot Industria Mecanico-Metalurgica • Kembrey Wiring Systems • Trac Global • DSB Deutsche Schlauchboot • Tadiran Electronic Systems • Langa Industrial • EPS • VT Aerospace • Cummins • Technip Germany • Ahlmann Baumaschinen • Colorado Molded Products Company • 4H - JENA Engineering • TBV TechnoConsult • McGean Rohco • Hydra-Electric • 3D Perception • ITRES Research • Feteris-Ilto • i-sft • Tomar Electronics • ILEE • EnerSys • Miltope • Ingalls Shipbuilding • Redcom Laboratories Incorporated • Pennant Australasia • IDE Canarias • STIDD Systems • Omori Seikoki • Anonymizer • Argo Vehicles • ESG Elektroniksystem und Logistik • AAF International • Anadolu Isuzu Otomotiv Sanayi ve Ticaret • Korry Electronics • Vision Base International • SAIC • FC Business Systems • Checkmate Flexible Engineering • Rodriquez Cantieri Navali • EOD Solutions • Monbat • Teksam • URS-Apptis • TNT Tools • CodaOctopus Products • Transas • Schopf Maschinenbau • Weihai Donghai Shipyard • Institut Dr Foerster • Radiation Sciences • Lamperd Less Lethal • Catsclaw International • Alcatel-Lucent Deutschland • Demil Metals • Estonian Air Force • Versaform Canada • Astrolab • Cleaford Services • AB Connectors • Roe Aviation • Toray Industries • Sunrise Airlines • Killick Agencies and Marketing • Techtest • Trompeter Electronics Online • Ceradyne • AOR • Med-Lab • Karl H Hoie • Coherent Beijing Commercial • MSI-Defence Systems • Velltec Communication Technology • Hemec • Centron Industries • Servicos Especializados de Abastech DSC • MUGGIANO SHIPYARD • Allison Transmission • Arab British Engine • TRB Lightweight Structures • Andax Industries • Sargent Fletcher • MDI Canada • Ludlum Measurements • Power Dynamics • Astraguard • Terrafix • Detica • Arva Industries • Lufkin Industries • ASM Group • Piller France • ILOG • Atlas Elektronik • University of Central Florida • Vammas Defencetec • Kata Vitec International • Helmet Integrated Systems • NIMR • Intek Adhesives • Kamov • Teledyne • Xpect Software • CW Headdress • Reflex Advanced Marine • Bumar Ammunition • Bally Ribbon Mills • Unicorn International • H A Guden • Wiltshire Ballistic Services • Blauer Manufacturing Company • Impact Science & Technology • Longwater Systems • A4S Security • Panasonic Business Systems • VDC Display Systems • Beit-Alfa Technologies • Shaw Aero Development • Globalstar • Perceptics • DAF Trucks • CEFA • Sapa Mass Transportation • Koden Electronics • Sensormatic Electronics • RAF Strike Command • JFE Shoji Trade • Hsing Hua Electric Machinery • Nautronix • Spinneybeck • Stork Bronswerk • Kerametal • Kaba Benzing America • Daewood Electronics Europe • Zycomm Electronics • Ansonics • Despatch Industries • Argon • Anax Trading • Aegis Engineering • Sak Engineering Consultants • ICP Solar Technologies • CM BEASY • SESP • Turkish Aerospace Industries • SpacioTempo • MBDA • Mist Mobility Integrated Systems Technology • Posco SS • Jamar Technologies • Savit • AVS Europe • Airside GSE • Freeflight Systems • Welwyn Components • RENK • Doron Precision Systems • Baugh & Weedon • Hugo Marom Aviation Consultants • Aeroflex • BlueFinger • Symmetricom • Superwinch • Wind River • LFD • Aydin Displays • Labinal • NSF Controls • Danner Shoe Manufacturing • Total Aviation • Chrysler Group Egypt • Bircher • Rafael Advanced Defense Systems • Raymar Telenetics • Continental Datagraphics • Newco Safety Technologies • Japanese Ground Self-Defence Force • Totalis Engineering • Angelo Podest • VITRONIC Dr Ing Stein Bildverarbeitungssysteme • TE Connectivity • Roder Prazision • Delta Components • Transvaro • Lenco Industries • M/S Altaf • GKB Security • TEK Microsystems • Inicom • Dialight • STX Europe • IndigoVision Group • Hesco • Tata Consultancy Services • SyQwest • Icarus Training Systems • UTC Aerospace Systems • Companhia de Instrumentos de Navegacao Aeronautica • Lumidigm • Vislink • Volvo Defense • UXB International • Roda Computer • Igman International • SensAble Technologies • Stellex Precision Machining • Ensco Extreme Forecasting • ASTA Components • Interspiro • Panoscan • Dectel Security • Protec Composite Technologies • Irving Shipbuilding • Adga Group Consultants • Detyens Shipyards • Wilhelm Winter • Verkehrsblatt-Verlag Borgmann • Trowin Industries • Erdas • ABI Electronics • Groban Supply • Desarrollos de Automatizacion • FHP Engineering Services Solutions • Arme Marin & Flygfilm • DRS C3 & Aviation Company • IFI • CableTest Systems • Vacco Industries • Comm Innovations • Natural Speech Communications • Curtiss Wright Controls Defense • Rocky Mountain Arsenal • Rheinmetall • Mega Tech Devices • CompAir • Aeromaritime America • Manthorpe Group • SPG • Rencol Component Sourcing Solutions • Dietzel • Inver Hills Community College • Omnipol • Lanx Fabric Systems • Furuno Electric • Brimar • Dako EDV-Ingenieur und Systemhaus • Metallisation • Universal Aircraft Parts • Skedco • Stresau Laboratory • Acutronic Deutschland • Oracle Telecomputing • Tritech Group • Cleveland Crystals • Consult-Mar • Magna BSP • Nikon • EDM • Exensor Technology • Symetrics Industries • Survival-One • Reade Advanced Materials • Hughes Network Systems • Metropole Products • BNFL Instruments • Kearsley Airways • Sensortec • Jiujiang Yinxing Shipyard • Teknoflex • RPM International • Clearview Communications • Cnpep Radwar • Panda Electronics Group • Microbus • Raytech Vertriebs • Genencor • Datasound Laboratories • Turner Virr • Tecmotiv • Palestinian General Delegation • CMI Defence • Restraint System Technology • CSC Australia • Terem SHC • Zotefoams • Sensor Technologies and Systems • NIMR Automotive • Goliath Hollinda • GEZE • Dymeq • dpiX • Edsys Consultancy • Renesas Semiconductor • CZ-USA • Medway Optics • Wuhu Xinlian Shipbuilding • Hadi Maschinenbau • Allsopp Helikites • Bydgoskie Zaklady Elektromechaniczne • Keytracker • Rangemaster Precision Arms • TW Metals • Adam Smith Institute • Berkeley Nucleonics • Overall Forge • Preston Aviation Solutions • Silent Partner Body Armor • Engineered Fabrics • Hellenic Aerospace Industry • SCS Consultancy Services • Aeroteh • Sea Bird Electronics • Commerciale Avio Marina • Aviall Australia • SecuriGuard Services • Setcom • NDI Recognition Systems • C4i • Cathelco • Nortek • Servicios Logisticos a • Ambu International • Miller Weblift • Alelo • Leninetz Holding Company • KeTech Defence • Makita • AEP Networks • Pro-Safe Fire Training Systems • Mul-T-Lock Technologies • Rome Metals • Aeromiltec • BRE Aviation • Hitzinger • Ecovault • Moog • Cranfield Aerospace • ESD Partners • Iridium Communications • GE Aviation • Sener Ingenieria y Sistemas • Flakt Woods • Goodridge • ManTech International • RDL Technologies • Linos Photonics • AT-Marine • Aerotechnica • Imagenex Technology • RPS Consultants • Allegheny Ludlum • Shanxi Xinhua Chemical • Meuse & Sambre • Kyokuto Boeki Kaisha • Electro-Science Laboratories • J & D Wilkie • Powdersafe • Rand • Medital Hi-Tech -1992 • Turbomeca • Trek Aerospace • Bruce Aerospace • Allocate Software • Aprel Laboratories • CMC Electronics • CDI Marine • IFAD TS • Nallatech • Meridian Knowledge Solutions • Ferro-Ceramic Grinding • Winnebago Industries • Airtronic • Excalibur Miretti Group • Quadrics • Schonstedt Instrument • Terma • Thomas Bertiea • G-NIUS Unmanned Ground Systems • Telesteps • Mediworld • Drewry • Gobler Hirthmotoren • ALL Magnetics • HuberSuhner • Guildline Instruments • Diagnosys Electronics • Frazer Nash Consultancy • Mediospital • In-Q-Tel • Brenneke • Girsan Makina ve Hafif Silah Sanayi • Canadian Coast Guard • AD Aerospace • US Air Force Materiel Command • Masten Space Systems • Alkan • Spectra Group • Allen Vanguard • SafetyTech International • BAE Systems • Andrea Systems • Aeritalia • Eskan Electronics • Dr Ing Forster • CDS Analytical • Davall Gear • Azonix • Kazan Aircraft Production Association • Racor Village Marine Tec • Wojskowe Zaklady Elektroniczne Spolka Akcyjna • Keyper Systems • Fairbanks Morse Engine • Zetron • Hau and Watls • Magnaflux • Normanxelrod Associates • Advantor • Virtalis • Cybernet Systems • Microway Systems • NIC Instruments • Detex Company • Allied International • Schwien Engineering • Cintec International • Saft • Frasca International • Howa Machinery • Alidaunia • Keela International • Adams Electronics • Esterline Defense Technologies • Strainstall • Korr Datwylt • Eberspacher • Bluelite Graphics • Jyonan Unyu • Broadcast Electronics • NEC • Speednews • Fourth Element Technical Clothing Solutions • Symtx • AD-S&Co • Microdata Telecom Innovation • Hansch Warnsysteme • Schmidt & Bender • Microkim • Disposals Services Authority • Buck & Hickman • Bental Industries • TQ Education and Training • Golan Industries • Pfisterer Kontaktsysteme • Cheltek • Premaberg Manufacturing • Clark Masts Systems • Anite Group • Magnesium Elektron • MarineSafety International • Rotundus • Alloy Surfaces • Denel • Gifas • Imex Group • Nederlandse Instrumenten Compagnie • B/E Aerospace • JCB Sales • Envitia • Nightforce Optics • Sectra Imtec • Hydroid • JVC Professional Europe • SPS Technologies Group • Mobile Services • Amesys International • STL Technologies • Gamma Technical • Mushko Electronics • Skoda Holding • Perey Turnstiles • Geographic and Demographic Analysis • FCX Systems • Freudenberg Nonwovens LP • Kopex International • Specialist Electronics Services • Chief of the General Staff • Metso Drives • Rosoboronexport State • Duracote • Hexcel • Nucsafe • Paragon Precision • IKA Works • Atec • Spur Electron • Spirent Communications • Dodaam Systems • Kraneks Machinery • Overseas Development • Musto • Autoliv • Mazagon Dock • Tech Comm • EON Development • Aish Technologies • MCT Industries • Allstar Knowledge Systems • Cascade Aerospace • Bair Software • Stemco • Transac International • Sanken Electric • TEAM • Eflare • FNSS Savunma Sistemleri • Pursuit Dynamics • Stemat • Delaire • Military Sealift Command Headquarters • Limco Airepair • Akzo Nobel Aerospace Coatings • Belgacom • Aspen Aerogels • Guartel Technologies • Whiterock • Unisys • Milkor • MeteoGroup • QinetiQ • Opiar • Evonik Foams • Heras • Hangzhou Dongfeng Shipbuilding • Kenure Developments • Federation of Greek Industries • Directorate General of Sea Communications • Aerodata • Royston Marine • Savox Communications • Explorocean Technology • Communicaid • Sonaca • inTest • SSS Clutch • SGC • Unithai Shipyard and Engineering • Firmin & Sons • KHI Dalian Computer Technology • Eutelsat • P & S Shipyards • Simsmart Technologies • Tetra Tech • Almaz-Antei • GL Noble Denton • Enidine Aerospace Division • Isola • Oceaneering International • CeoTronics • Technisonic Industries • Array Systems Computing • Holmatro • Egli FischerAG • SKL Motor • Trelawny Surface Preparation Technology • Systema • HTSPE • Southwest Microwave • Presscut Industries • Syborg Information Systeme • Opamp Labs • Hans Wrage • NATS • Microsat Systems Canada • Imagebase Technology • SARMA • Monnet International • Air-Parts • LexiNexis Risk Solutions • Blackhawk • Immersion • Flexisolutions • Hainan Sundiro-Kawasaki Engine • Contralco • RUAG • Implant Sciences • Miltech Hellas • Sunair Electronics • Insis • IMSSCO • Superform Aluminium • Stottler Henke Associates • LFV • Atlantas Marine • Swintek Enterprises • RAE Systems • Lafon • EMX • Sonatech • Konecranes • Kaha Company for Chemical Industries • Lyncole XIT Grounding • Kokes Marine Technologies • KBM Affilips • Kustom Signals Incorporated • Brimotor • Heliflite • Genieview • Oran Safety Glass • Etienne Lacroix • E-Z-EM • Custom Concealment • IFEX • Europa Novamarine • Radiosound • Chiron America • Mercedes-Benz Military Vehicles • GWC • OptiMetrics • Brugger & Thomet • Cressall Resistors • Diamond Point International • Vantron • APPH Bolton • Dynamic Research • Vapormatt • Ballistic Recovery Systems • URS • Armtrac • Intermap Technologies • Proxy Aviation Systems • Gazprom Space Systems • Tripwire Operations Group • Lopac • Swarco Traffic Systems • Ternion • Arktronix Private • Lynden Incorporated • Carleton Technologies • Superior Uniform Group • Ceag • Contraves Advanced Devices • Solar Turbines Incorporated • Idealsoft Incorporated • Ecolog International FZE • Electromechanica Kymi • Respirator • PF Distribution Center • Kogun • Polhemus • Thermometrics • TigerLight • Sonalysts • Amper Programas • Crystal Group • TAP Publishing • Autoclear • E Com • Digitach • Tupy American Foundry • Clearswift • CMH Lahore Medical College • Fleming Steel Company • Fiore • Ideal Aerosmith • HM Currus Godollo Harcjarmutechnikai • Tennant Europe • Saint-Gobain • Smartronix • MSA Britain • Truck-Lite • Algeco • Lurssen Rendsburg • Schuberth • Dynamit Nobel Defence • Repairtech International • Fondazione Eni Enrico Mattei • Aastra Intecom • PAutomobile Company Bogdan Motors • Quirepace ltd • Pitney Bowes • Copybook Solutions • Poeton Cardiff • SAFRAN • Mullins Ammunition • AME Systems • Measurand • Logistex • Wyman-Gordon Forgings • Colonel Military Supplies • Technoport • Kadet Defence Systems • EMS Aviation • Sirtrack • Versitron • Aanko Technologies • Mils Electronic Gesmbh • Martin International • CorActive High-Tech • Carat Duchatelet • Nuctech Company • Denel • Aepos Technologies • Eurimage • Visteon • Hydroacoustics • CVDS • Peoples Republic of Bangladesh High Commission • Ricardo • Scitronix • Koito Industries • Devore Aviationof America • Seamap • Conder Allslade • ELTA Marketing and Business Development • Orion Electronics • Versatech Products • Plextek • Fiskars • Easat Antennas • Rohm and Haas Company • Adelco Elektronik • OPS • Carl Bro International • Carrozzeria Chinetti • ATM Computer Systeme • Martyn Fiddler Associates • Becker Avionics • Ogier Electronics • Pilotwise International • Brodogradiliste Kraljevica • RSL Electronics • Metallwerk Elisenhutte • Semmco • Federation Aeronautique Internationale • Insopack • Scintec • Cambridge-Lake • Trijicon • Astrophysics • Inchcape Shipping Services • Koenig Verbindungstechnik • KDDI R&D Laboratories • Satcom Global • Cyclomedia Technology • ACIES Kommunikation • Bluetronix • Laweco Maschinen- und Apparatebau • Helicentre Blackpool • Northern Airborne Technology • Dunlin Manufacturing • Marine Advanced Research • STR - Speech Tech • Clucas MOE • MDA Access BC • Hittite Microwave • Airwave Solution • ABSG Consulting • Capita Secure Information Systems • BMT Argoss • Flowserve Flow Control • Severn Trent De Nora • Optima Defence and Security • Staubli • Inductotherm Heating & Welding • Strategic Communication Laboratories • Cicare Helicopteros • Vernadero Group • DynCorp International • Nimda • Tupolev PSC • TracStar Systems • Zanzottera Technologies • Meggitt • Maxam • Awaron • Irvine Sensors • GSE Trieste • Vecna Technologies • Ameriel Airport Systems • Electricars • Record/Play Tek • Euromap Satellitendaten- Vertriebsgesellschaft • Westair Defence • Breeze Eastern • Telegenix • MBDH • Alcore Technologies • Bovis Lend Lease • CNES • Optimal Synthesis • Aearo Company • Deloro Stellite • Cisco Systems • UAV Engines • Aerochem Herbert Lettko • Assystem • Nightsearcher • Shalon Chemical Industries • Seacon Europe • Jepico • Daveed Enterprise • Quik Trak Networks • Istrazivac • Thyssen Krupp VDM • Brasilsat Harald • Tactical Aerospace Group • SFP Services • Maskpol • Poly Glass Fibre Industries • Tait Electronics • Pullmaster Winch • NIPPI • MMC Defence • RTF Industries • Aeroquest Sensor Technologies • Helopoint Advanced Systems • Virginia Harbor Services • Link Aero Trading Agency • Mettler-Toledo • Concord Express • Duro Dakovic Special Vehicles • Glowlink Communications Technology • World-Check • Axsys Technologies • CEP • DMD Group • Artemis International • Antrix • TagMaster • Royal Aeronautical Society • IHC Hytech • CGB Precision Products • Liman Shipbuilding Yard • NGRAIN Canada • Spacesaver • NGV Tech • Mack Trucks Defence - Volvo Commercial • Center for Defense Information • Clearway Explosives Services • Somerdata • Fraunhofer-Institut fur Informations-und Datenverarbeitung • German Aerospace Center • Superchip • Contract Data Research • Honeywell • Channellock • Zodiac • L D Travocean • Cliff Funnell Associates • Ronco Consulting • Mohammed Jalal & Sons • Fabricom GTI • ITS Electronics • Ashok Leyland • Wamco • Velan Valve • Refugees International • MicroStrain • Vcom3D • Cargotec Sweden • Iveco Defence Vehicles • Tongfang Jiangxin Shipyard • DNV Petroleum Services • Transaero Asia West Aerospace • Whitehead Alenia Sistemi Subacquei • Interdive Services • Ifanger • Camlite • RDT • xit2 • Cote DIvoire Air Force • Carley • Powerhaul International • Thorn Airfield Lighting • Anticrime International • Kanagawa Kiki Kogyo • Bennex Aberdeen • Ibis Aerospace • FLSmidth MAAG Gear • Hanscomb Faithful and Gould • Smith Engineering GB • Advanet • SSZ Camouflage Technology • Friedrich Graepel • Gumarny Zubri Incorporated • Essegi • Spencer Moulton • Sagem • Freebairn • Vitec Group Communications • Feodosia Shipbuilding Company Morye • Criminalistics • ATS • Acrowof America • Sloane Helicopters • Weltronic • Sensitised Coatings • Vandeputte Safety • Paper Pak Industries • Salies • Boeing • KBK • Belgian Advanced Technology Systems • AVIOGEI-Airport Equipment • Linatex • Brookx Company • QinetiQ • Aleris Aluminium Koblenz • Agencija Alan doo • ITO Frankfurt Hans Gerzymisch • UTM • Thermoanalytics • Kaliber • Technique • SafeNet Government Solutions • Lista International • Specmat Technologies • Genie Australia • Hatsan Arms Company • CarlisleIT Jerrik • Consilium Marine Italy • Ampel Probe • Skurka Aerospace • Helicopters Magazine • Indra • DYNAenergetics • Shri Lakshmi Cotsyn • Prestolite Electric • Sykes • BBA Aviation • Bereta Trading • Millimeter Wave Technology • AristaTek • Tognum America • Wireless CCTV • Metra Martech • Sherwin • Corrintec Marine • Servotronics • Hellfire Systems • Takata CPI Singapore • Scotty Group Austria • ELP • CHC Helicopter • Lightfield Ammunition • Plascore • Miltra Engineering • Simulavia • Harland and Wolff Heavy Industries • Ascom Schweiz • Industrias Tecnosde • Timothy Graul Marine Services • Vaisala • XPI Simulation • Ultra Dynamics • Oritest • Didsbury Engineering Company • Armaq • Lektro • Deutz • DSIT Solutions • Corus Engineering Steels • Shenzhen Qili Technology Development • Aptima • Sickinger Holstermanufactory • Philotech • Air Affairs Australia • Mechdyne • Intermas Consultants • TeleMedic Systems • Panama Shooters and Arms Supplies • Roballo Engineering • Panoram Technologies • Gefco • NSC Training Systems • Manroy Engineering • Ballonfabrik See und Luftausrustung& • Utva Aircraft Industry • HID • Fujikura Europe • MAFI Transport Systeme • Zi-Techasia Solutions • MAT Mondial • Cincinnati Gear Systems • Polaroid • Novatron • Leyland DAF Trucks • Dutch Space • Land Instruments International • Precimetal Fonderie de Precision • Primetake • Twinwill Optronics • Evogen • Chemforce • Don Hume Leathergoods Incorporated • Australian Aerospace • Intoximeters • Capgemini Nederland • RomArm • Palfinger Europe • Starnex • SmartWater Technology • Crimson Trace • Presagis Europe • Volvo Group • Xian Aero-Engine • Clary • Wolfson Unit for Marine Technology & • New Horizons Telecom • Niigata Machine Techno • SciSys • ShotSpotter • Netline Communications Technologies • Exlogs Canine Services • Wartsila Colombia • Prooftag • Thales • Furneaux Riddall • Marktec • Americom Government Services • Systecon • UKI Workboat • Cose • Sukhoi • Parvus • TST Biometrics • Microturbo • Bruntons Propellers • TCI International • LOMOcean Design • Boker • Intelysis • ALS Technologies • Umeco • Airspan • Sogitec Industries • Weald Electronics • Gaci • Telefunken Radio Communication Systems • McMillan Firearms Manufacturing • Control Products • e2v Technologies • Geoquip • ALSTOM Energie • Brittain Engineering • Squitter Electronics • Exhibition & Marketing Wehrstedt • Remontowa • EA Technology • Cassidian • Globecomm Systems Incorporated • Luxell Technologies • Romaero • Helisota • Toyon Research • Wyle • EnviteC Wismar • Heroux-Devtek • Brocks Explosives • Snecma • Plettac Security • Securiton • Sigma Bauchop Services • Adolf Thies • EADS • NHIndustries • Innotech Products • MTI Engineering • Catcon Airground Technologies • Neutronics • Elno Societe Nouvelle • Divex • Consultair • Adept MobileRobots • LG Chemical • World Aviation Associates • Kemet Electronics • Aerocentro de Servicios • Optech • WFEL • Maccaferri • EFT Holdings • ASI Robicon • NearShore • Magnet-Schultz • Bergen Group Bmv • CASA • Parkx Engineering • Defenshield • Reinhard Oil • ASL Aircraft Services • Electro-Tec • Eye Safety Systems • Kaitech Trade • Sodit • HDL Research Lab • NYF • Radamec Control Systems • AML Oceanographic • Avigilon • Istec Services • Modec • Photo-Sonics • Hawker Beechcraft • Silicon Light Machines • Tecalemit Garage Equipment • Tex-Shield • Hako • Explosivos Alaveses • VIP-Polymers • A&P Falmouth • Broady Flow Control • Andrich International • Scanna MSC • Redondo Systems • Intermark Sistemi • Kester • Oerlikon Contraves • Oboronprom United Industrial • HR Wallingford • Pacific Air Forces • Lockridge Mapstrap • Ceska Zbrojovka • Tamar Explosives • Capo Rueff Textil • Unilink Software • Kent Invicta Chamber of Commerce • CFM International • Ohotnik na Golowinskom • Kronshtadt • NCI • HDE International Robots • Kawasaki do Brasil Industria e Comercio • Gamatronic • Birns • Worldwide Business Research • Seatronics • Westmont Industries • Downer EDI • RWM Schweiz • Turbocam • MLB Company • Canaxa Target Systems • House of Assembly • Miles-Samuelson • Hitachi Cable • Infrared Systems Group • InterSense • DongFeng Motor • Hapson Consultancy • Oto Melara • Star-Pack • URO Vehiculos Especiales • Hawkmoor • Berico • BAS Trading Group • VegaStream • Ashtead Technology • Carel Components • Schwarze Industries • Paulstra • Acromag • Drallim Telecom • Rojone • Kowave • Gusstechnik Peter • AeroSpace and Defence Industries Association of • Spatial Integrated Systems • Aerosonde • Manitowoc Crane Group • Pantheon Chemical • Oreet International Media • Deenside • Microgenix Systems • Steatite Blazepoint • Jaguar Cars • Fuji Electric Systems • Robowatch Technologies • Magellan Aerospace • BQT Solutions • Industria de Fundicao Tupy a • Multidrive Tractors • Nilsen SA • Wildcap • Yuasa Battery Sales • Drager Safety • Credowan • ID-interlink • Vacuum Brazing Consultants • Sturm Ruger • Larranaga y Elorza • ZF do Brasil • Giat Industries • Technofan • Aersud Elicotteri • EchoStar • Mabey & Bridge • TTI • T S Space Systems • VEAM • Vidisco • Cargo Aids • DRB HICOM Defence Technologies • Sonardyne Brasil • Introtec • Babcock & Wilcox • Lifetek Armor • Chengdu Aero-Instrument • Special Metals • Covertex • Nal Von Minden • Tandberg Television • Street Crane • Piasecki Aircraft • Sefac • LBA International • Whelen Engineering • Dar Al Bayan Trading • Philippine Air Force • Remtech • Timoney Technology Group • Device Technologies • Lisnave-Estaleiros Navais • Field Aviation East • SNC Lavalin Defence Contractors • Microsensor Systems • Hont-stav • Farsound Engineering • IAC Boet Stopson • Cunning Running Software • Pronor • Eve Trakway • LRAD • Minilampe • Sikorsky Aircraft • BCO • Thermoteknix Systems • Selin Sistemi • Virgin Islands National Guard • Torc Technologies • Zylab • Dart Aerospace • Comtronics • NAIAD Dynamics • BlastGard International • AQL EMC • NorLense • CIMSA Ingenieria de Sistemas • Johnson Controls • Simulator Systems International • FN Herstal • Scanmatic • Koni • Flometrics • Telephonics • Delegation of the European Commission • MTG Marinetechnik • Sisdef a • Yuhe Group Company • Revue Thommen • Disti • Conrac Asia Display Products • United Technologies • Databac Group • Rockbestos-Surprenant Cable • Gun Parts • Technodata Gesellschaft fur Technische Dokumentation • Aimil • Druck Italia • Mechtronix Systems • Omnitecnica • Securicor Datatrak • Tynemount • Cargosur • PCB Piezotronics • CATIC Representative Office Zambia • Glenair • Foremost Industries LP • Optical Cable • Brahmos • Rybro International • Elbe Flugzeugwerke • AVT Verpatec • UI Defence • HOBI Labs • Davis Aircraft Products • WDSL Aerospace • Aircelle • Medacx • Balfour Beatty • Arctech • Octatron • Chongqing Tiema Industries • Alrad Instruments • Radio Tactics • Sanyo Sales & Marketing Europe • Pilatus Aircraft • Barr Associates • Weilburger Coatings • Newman and Spurr Consultancy • Enstrom Helicopter • Stolar Research • Metocean Data Systems • Aeronca • Interclean Equipment • Ritec International • Naniwa Pump Manufacturing • Purex International • Milpress News Agency • GAF • Arithmetica • Manfred Vetter • Geosystems • Drytech • AlliedSignalAerospace Equipment Systems • TSI Incorporated • John Bean Technologies • Saredon Steel Buildings • Casella Measurement • Quintec Associates • Avicraft • Magnevolt • PPS Group • Technical Airborne Components Industries • Inter- Coastal Electronics • INC Engineering • Novatech Measurements • Moked Engineering • Shenyang Aeroengine • ADB Airfield Solutions • Telonic Instruments • Akorn • Jotun • Central Europe Pipeline Management Agency • IrisGuard Europe • Tetracore • Kyushu Yusen • Tyco Electronics • Army Air Corps Headquarters • STA Investment • Vista Systems • Innovative Solutions and Support • Elliott Hire • Logiser • Scanjack • Kellstrom Industries • Anco • Transfield • Empordef - Tecnologia de Informacao • Tribon Solutions • Scot Track • Exide Technologies • NSAF • JRA Aerospace • Cheoy Lee Shipyards • Polymathic Trucks • Danyard Aalborg • Panhard General Defense • Matra Australia • Gutling Wassertechnolgie • TFC • Damen Schelde Naval Shipbuilding • KAPL • Phazotron - NIIRand Joint • MHD Nacelle Systems • Fujitsu • Fiber Materials • EDAK • Masco Service • Bruker Daltonics • Caparo Industries • JDR Cable Systems • AEI Cables • Corys TESS • Indala • Elbit Systems • Entrak • Symetry Medical • Samsung Electronics • Abex Data Systems • Homeland Security Strategies • Prioria Robotics • Golden Gateway Security Aviation Services • Titan Electronic • Phase Matrix • Sonatest • Tethers Unlimited • Piaggio Aero France • Accu-Counter Technologies • ARH • CHQ Software • Barcom Electronics • OWR • Vysionics ITS • P&WC CSC Africa • Insitu Group • Nowatron Elektronik • Mubadala • Euromissile • Safway Services • Dynasound • Altran • Cubewano • CMS Strategic • Trimble Italy • Serco Group • Aerotecdata • Ball • ExchangeMonitor Publications • Forjas Taurus • Elkosta Security Systems • GreenChem Holding • BiP Solutions • Futron • SAA International • ESL Defence • Vectronix • Daimler • Andor Technology • Kannad Aviation Incorporating Sarbe • Konstruktorskoye Byuro Mashinostroyeniya • RSDecon • Norimar Technical Services • SVT Associates • Nortronicom • Eurocopter • Sygnus Technology • Junghans Microtec • PB Clermont • Optix • Synectic Systems Group • LCR Electronics • Ridgeway International • Photonic Optische Gerate • Secomak • MAST Technology • Selig Flexibles • Romtes Technologies • Rantelon • iRobot • National Aeronautics & Space Administration • Mercantile Italo Britannica • Prodata Systems • JS • George E Failing Company • LPA Channel Electric • Zarges ApS • Equipe Electronics • Elcometer • Holyhead Marine • Brush Electrical Machines • Bang & Bonsomer Group • SMD • Laurus Systems • Sanam Industrial Group • Havis-Shields Equipment • Remec Defense & Space • Codascisys Group • DMS Technologies • Kokusai Cable Ship • Pyser SGI • Telmaco • ESW • PNI Sensor • ATG Access • Micco Aircraft Company • Howaldtswerke-Deutsche Werft • Elan • Sarco • Intermed Video Technologies • UTC Aerospace Systems • Schlage Recognition Systems • Marsh McBirney A Hach Company • Sitec Aerospace • Spectronix • PMG • Huntington Ingalls Industries • FIC • Meccanica per lElettronica e Servomeccanismi • Honourary Consulate of France in Barranquilla • Beretta • Aurora Bearing Company • Wavecom Elektronik • Alvarion • Automatika • Object Raku Technology • AdronitSicherheitssysteme • GMD Solutions • Renful Aviation Security • S & P Simulationstechnik • Hertel Integrated Services • Ernst & Engbring • Evologics • Puget Sound Naval Shipyard and Intermediate • Sotera Defense Solutions • Leafield Engineering • VectorCommand • Codetel • DT Media • GUD Automotive • Excelerate Technology • Burkan Munitions Systems • Switlik Parachute • AgustaWestland • Redflex Traffic Systems • IBM • Camfil Farr • Datalux • RP Aero Systems • Pentland Systems • DSM Corporate Communication • Bombardier Aerospace • W & J Knox • TAF Helicopteros • Poongsan H K • Haix Schuhe Produktions und Vertriebs • Fisher Labs • Service de la navigation aerienne de • Protective Products Enterprises • PhaseSpace • Agilis Engines • Performance Technologies • Anaren • KMW Schwei√ütechnik • Luvo Prague • Activu • Alpha Zaicon Technology • Secret Intelligence Service • Thrane & Thrane Aalborg • MIZ International Logistics • Willburger System • Nurad Technologies • Agilent Technologies Canada • Astilleros de Santander • BrainLAB • FSP-Tech • Action Systems • Mecar • Bosco Storage Solutions • Korth • Bihrle Applied Research • Hydro-Bios Apparatebau • PDK Technologies • Blundell Harling • PGM Precision • STV Architects • Suffolk Chamber of Commerce • Faure Herman Meter • Newage Fire Protection Industries • Vires Simulationstechnologie • Bristol Aerospace • Minebea Hong Kong • Navair • Stone Foundries • Spiral Tool • Logica • Leoni Studer • Defense Leaders Distribution Mayday Manufacturing • Qioptiq • Parasense • Mindsheet • Polymath Technology Development Xiamen • SensoMotoric Instruments • Stewart Filmscreen • Aqua Chem • ADS Group • Lewicki Microelectronic • HCC Industries • FK Consult • AxleTech International • Horstman Defence Systems • OTT Technologies • Yaroslav Radioworks • Varta Batteries • Sennheiser ASG Government • Taurus Systems • Schmeisser • Wuhan Kawasaki Marine Machinery • Ansaldo Energia • STS • Robert Bosch • Colson British Castors& Flexello • Pratt & Whitney • Panduit • Aircraft Accessories • ILC Dover • L-1 Enterprise Access Division • Orbital Sciences • Coldstream Associates • Cyberware • Vmetro • Rotzler • Promtechnologies Group • Nikol • Tuthill • Mipha International • Geier & Bluhm • Kvaerner • Ageotec • Score Group • RollaPropellers • Newport • Aker International • Liquid Waste Technology • Milsearch • Anacapa Sciences • Atis • Starport International • Aereon • Haacon Hebetechnik • Tectran • TOKIMEC Construction Systems • Taiyo Nippon Sanso • Armament Technology • Ericsson Australia • TACM III • Albacom • Obzerv Technologies • Pyrotechnic Specialties • Rovtech Systems • Figes • Artus Meggitt • Eliticino • Vantage Composites and Thermoforming • China Aero Technology Import & Export • CENTA • GET Engineering • WTI Fasteners • Alcoa Corporate Center • InceInternational Law Firm • Rockwell Automation • Joyce Telectronics • PEI-Genesis • Aalco • Plath • Speedtwin Developments • Magam Betihut • Xetron • Pioneer Aerospace • Petans • Coda Octopus • Hansen • Indian Ordnance Factories • Houchin Aerospace • BMW • Chemetall Australasia • AvroraScience and Production • Safetalks Group • Wibu Systems • Eldec • Tiodize • Gates Hydraulics • Wear-Cote International • Cyberflight • Wartsila • Storebro Bruks • TeLeCom • TAT Technologies • MK Technology • Measurement Devices • Industria de Turbo Propulsores • Morgan Marine • Haskel International • Certified Alloy Products • Elektrobit • Cloud Cap Technology • Calzoni • Forensic Technology • Macmet Technologies • Interoperability Systems International Hellas • Broco • Hytek Finishes • Samgong Industrial • Toyo Communication Equipment • Euroheli • MindBox • Noble Denton Associates • Spectrum Sciences Institute • Sachsische Spezialkonfektion • Dynalec • Novatel • Lechmotoren • Giltech Enterprises • Niles-Simmons Industrienlagen • Laserpath Technologies • Zaklady Mechaniczne Bumar-Labedy • GSI Lumonics • 3M • TDI Arms • Teltron Technologies • Jetview Electronics • AeroTek Manufacturing • RAFI • Polimaster • EducExpert • DuPont • Controp Precision Technologies • Tafonco • Integrain • Minuteman Aviation • Austal • Saia-Burgess • Italdata Ingegneria dellIdea • Aerosystems International • WIDE • AWC Systems Technology • Sumidagawa Shipyard • EPI Europrop International • Elron Electronic Industries • Kagiso Exhibitions • Equipos Industriales de Manutencion • Videotec SPA • Imtech Marine & Offshore • Antwerp Space • Geonovo • INFA Systems • Interad • Brite-Strike Technologies • TUV Product Service • Emtek Services • VSE • Simtec Simulation Technology • Comoros Military Aviation Command • Bennett Safetywear • Stemmer Imaging • Intelect Technologies • Norpak • Champlain Cable • Zachry Nuclear Engineering • AMEC • Ziegler and Associates • Navistar Defense • Noratech • Mouchel Consulting • MirsandBrasov • Anatronic • Helsa • Barber-Nichols • Sypris Data Systems • Princess Interactive Software • Technograph Microcircuits • Cyber Site Europe • Intelek • Komatsu Diesel • Bruel & Kjaer Sound & Vibration • DHS Systems • Sabreliner • Wolverine World Wide • Still • Compucorp • Avionicare • Consolite Technology • Monogram Systems • Border Barrier Systems • Georgetown Chamber of Commerce and Industry • Sociedade Zickermann • Sematron • Barrett Communications • Racal Acoustics • Schurter Holding •

148

DEFENSE LEADERS • TURKEY 2014

DEFENSE LEADERS DISTRIBUTION Blucher • Helios • Rafaut • Deerempany • Cenco • Magal Security Systems • Bren-Tronics • Pelmec Industries • Enpar Sonderwerkstoffe • Costain Energy and Process • MVA Consultancy • Avibank MFG • Temet • Paradise Datacom • Dassault Aviation • Midwest Aero Support • ETS-Lindgren Ray Proof • ECA • EOS Space Systems • Digent • Calbrooke Marketing • Wellco Enterprises • MEL Systems and Services • Daloc • Electromech Technologies • Deschamps Mat Systems • Munters • Hanshin Diesel Works • Hellan Strainers • Connex Italiana • Garlock Sealing Technologies • Ziilabs • Adventure Lights • Pitch Technologies • Ministry of Defence • Xcel Power Systems • Trelleborg Dunlop GRG • Physical Sciences • Electronintorg • Couach • Durr NDT • RAM System • Defex • Sankhya Infotech • Lhotellier • Communications-Applied Technology • Xiamen Saosa Technology • Southcombe Brothers • Unmanned Systems Technology • Tamuz Control Systems • Midtec Associates • Jenoptik • ST Aerospace Engineering • Sun-Foil Aircraft Sun Screens • Sestri Cantiere Navale • Council of Defense & Space Industry • HS Marston Aerospace • ITI • C&R Developpement • Noske-Kaeser • Cuesim • Holden • Elfa Elektronikk • Kawasaki Heavy Industries • FTL Seals Technology • Sabiex International • Ripple Systems • College of William and Mary • Albashow • Gisma Steckverbinder • Fonix • Turbomecanica • Fleetway • IPL Information Processing • EPC Group • PT Dirgantara Indonesia • Hydro Fitting Manufacturing • Integral Systems Europe • Aerial Services • Aurimpex Technologies • Winradio Communications • Apache Aviation Combat Air Training Support • Aage Christensen • WEW Westerwalder Eisenwerk • Pathway Polymers • MTH • ICS Group • Deutsche Elno Societe Nouvelle • Satlantic • Dukane Seacom • Mnstar Technologies • RCV Engines • Optotek • Browning International • CATI Training Systems • SAF Group • Mestel Safety • Ultralife Batteries • Sattler • Securit World • Shimadzu • Eickhorn Solingen • Jettron Products • AAR • Unipar Services • Emder Werft und Dockbetriebe • Verres Industriels • Avox Systems • SFA • Neue Jadewerft • Intertechnique • Miteq • Scotland Office • Commerce International Group • Pulse-Drive Systems international • Rohn Products • SRA International • Multitone Electronics • SRB Technologies Canada • Nautel • Opgal Optronic Industries • Matrix Systems • Mughal Engineering Works • FR Aviation • PCC France • Simmel Difesa • Angelus Research • LUBAWA • Geomet Technologies • Falck Schmidt Defence Systems • Cortech Developments • Abelia • Norsonic • Dage • Visualization Sciences Group • Vazovski Mashinostroitelni Zavodi • Aquasium Technology • Maryland Aerospace • Eptheca Global • Pressure Systems International • Metron Aviation • Pittards • Kornylak • Sascal Displays • Lytron • United Aircraft Corp. • Heins Balancing Systems • Navtech Radar • Carba Fire Technologies • Sifam Instruments • Sundance Asia • DPM Systems Technologies • ABG Shipyard • PDQ Precision • Geometrotec • Frequentis • Kirintec • Farnborough International • Cellcrypt • Avionic Instruments • Hypercoat Enterprises • Mercury Air Group • Finca Consulting • Minelab Americas • BSL Express Services • Jana • TECS • CACI • Katadyn Products • Northstar Technologies • Atkins • Masson Marine • Global Aeronautica • Ets Mesureur • Shenzen LYD Technology • Squad-Fitters • Peerless Electronics • Roanwell • Flatirons Solutions • Herley Industries • Aramsco • Hyder Consulting Australia • CSSC Guangzhou Huangpu Shipbuilding • Pgam Advanced Technologies • Sicong Group • Imco Industries • Harley Davidson • Imes • CECA • Kangnam • Nedaero Components • SFIM Industries • Vibro-Meter • Voller Energy Group • AIT-Atlanta • Veem Engineering Group • Cetc International • Phillips & Smith • Howden Sirocco • Optra • Cv International • Weir Canada • Dometic • Foster-Miller • Heli Gotthard • Brownells • Lyncolec • Interorbital Systems • MFC Survival • ACAL BFi • Geislinger • Nova-Tech Engineering • ITL Optronics • Wescan Systems • Siemens • Lindstrand Technologies • Walter Mader • Pentagon Protection • Pelco • Science and Technology • RUAG • Modular Devices • Irkut • Nobiskrug • Fujifilm Switzerland • Heil Trailer International • Guarnicioneria Roal • Amroha Engineering • HNE Vetriebs und System • Trinidad and Tobago Coast Guard • Reynolds Boughton Devon • Hamilton Hall Consultants • Dunlop Aerospace Services • Adacel • Icom • Pelichet • STM Defence Technologies Engineering • Hetek Hebetechnik • Thern • Cronenberg • PCI • Minnesota Department of Trasportation • Tecnica Industriale • Carmenta • 27th Fighter Wing • Zareba Security • F H Bertling Logistics • Cortana • Liteye Systems • CDTDistribution • CEIA International • RT Logic • Froude Hofmann China • Porvair Filtration Group • MS Instruments • Du Pont • Aeromaoz • CMP Batteries • Kempsafe • Business Information Centre • Ortivus • Thielert • Zargal • Capral • STG Aerospace • Kirasa Joint-Stock Company • PAI Systems • Przemyslowy Instytut Telekomunikacji • Svenska Skum • Delvag Luftfahrtversicherungs • Premier Deep Hole Drilling • Dorma • Core • VDT Direct • Avibras Aeroespacial • Heli-Linth • Imtradex Czech • Anjani Technoplast • Norbain SD • Eberle Design • Cameron Balloons • RLC Engineering Group • Kockums • SPX PE • CQC • Prosig • Grupo Edefa • Italtel • Lycoming Engines • Somers Forge • Aero-Equipment & Agencies • BrahMos Aerospace • Raritan Computer • Cubic Defense Applications • Manitou Asia • CKD Blansko • Savi Technology • Sofema • Rofi • Dalic • Aggreko • Metro Eyewear • Real Time Consultants • Hydrema • Khitkan • GEM Elettronica • Ingrassia and Sons Jewelers • HKC • Powertech • BHI Energy • Fukuvi Chemical Industry • Emcel Filters • Doppelmayr Seilbahnen • Armourshield • Personakey • Ansys • USA Environmental • Proprietary Software Systems • Energetix Solutions • Lunor G Kull • MT Aerospace • HP Enterprise Services • Metters Industries • Tangmere Military Aviation Museum Trust • Visionair • API Systems • Tensator FZE • Telerob Gesellschaft fur Fernhantierungstechnik • Fitzroy Engineering Group • OEM Components • VIT Innovation • Nordam • Aviapribor • Ecoprotect • Exel Composites • Kalamazoo Secure Solutions • BSI Group • ABE • SAPL Intervention • ADC Telecommunications • Labuan Shipyard and Engineering • Rangeresqe Tactical Warfighter • FXC • Nachshol Electronics • Atech Negocios em Tecnologias • Locust • Roke Manor Research • MCL • Label • Talcomp Security Systems • Euro-Composites • Turbo-Union • Mancom Manufacturing Incorporated • FTI • Turchan Technologies Group • Krauss-Maffei Wegmann • Otto Fuchs • Tenmat • Rocketbox Studios • Danish Container Supply • Cutter Aviation • TT Electronics Integrated Manufacturing Services • EADS • Metalite Aviation Lighting • Viewpoint • Donald L Blount & Associates • MTL Group • Protecop • Communications- Electronics Security Group • Tokyo Keiki Aviasion • SKF Aerospace France • Abacus Technology • ISO Group • NPK/ZUIR • Mackay Consolidated Industries • Countermine Engineering • Wormald • NVIS • Larsen & Toubro • Permaswage • MPAK Technologies • Volpi • Sekai Electronics • Ammunition Industries Group • Meccania per lElettronica e Servomeccanismi • NZ Guide • State Enterprise Malyshev Plant • Revision Military • Euro Aircraft Services • DDC-I • Bul Transmark • Windy-Aire • Laben • Kimber • Silvercrest Submarines • Sichuan Aerospace Industry • Earle Trading • Owlstone Nanotech • Sony CNCE • Spantech • Spanish Association of Manufacturers of Defence • Dumur Industries • HMS • Ortec Advanced Measurement Technology • Industrias Nacionais de Defesa • Genesis • Helitune • Eastar Offshore • RSI Visuals • Bulow Air Target Systems • Joint Rescue Coordination Centre • Chandak Instruments • Compagnia Importazioni & Esportazioni Rappresentanze • FAAC Incorporated • Aerco • Tenix Alliance • AIT • Machine Specialties • Velcon Filters • Western Star Trucks Australia • Duke University of North Carolina Oceanographic • Com Dev Europe • Omnitech • Rogerson Aircraft • Elektroland • HAL Communications • Anritsu • Combitech • Helicopteros do Brasil • NextComputing • MET Laboratories • CDK Mobile Systems • Raven Industries • Vertolety Rossii • Logic Instrument • Nicolas Industrie • Poynting Antennas • Braemar Howells • Silynx Communication • Park Air Systems • Secretariat General for Security • Woldtare Export • Vosper International • UNICAT Fahrzeugbau • LaBarge • Industrial Acoustics • Mardec Polymers • Aerosim Technologies • Amptek • Evergreen Helicopters • Sakr Factory for Developed Industries • Bridgestone • Vitrociset • Fuchs Lubritech • Spacenet • PerkinElmer • Helio Aircraft • Timmann Tele Security • Silva Deutschland • STSE Engineering Services • Storacall Voice Systems • Cambridge Consultants • MEO Products • Matisec • Blumenbecker Teknik • Eurovinil • Plasan Sasa • Kemijoki • Dillon Aero • Bosch Rexroth • Hardigg Canada • DCS • MTU Aero Engines • Kelly Space & Technology • Force Development Services • ANT Applied New Technologies • Comsol • Westminster Dredging • IMP Aerospace Repair & Overhaul • Omnisec • AAA Surveillance • Ocea • Artevea Digital • Tenebraex • Hagenuk Marinekommunikation • Spectro Incorporated • Sero • Laird Technologies • Sasebo Heavy Industries • Aerocopter • Scott Bader • FNH • Germa • BarcoView Texen • Labtec 3D Motion Control Technology Group • Folknoll • MTS Systems • Protechnik Laboratories • Arzamas Research and Production Enterprise Temp-Avia • Sofrance • SM&A • CFD Research • Renault • Guyson International • RDM Submarines • Datacard Group • Acuity Technologies • Crane Aerospace & Electronics • Feuchter • Bermuda Chamber of Commerce • Brownell • ABB • Navantia • Amdac Carmichael • Nvidia • Boon Edam • RMT • GTE Spacenet • C N RomArm • Morita • Aerostar International • Vievu • Kallax Flyg • Thompson Valves • Binz • Ness Technologies and Systems Group • Northrop Grumman • Alford Technologies • Chiorino • ATK • Day & Zimmermann • Bomco • Microhard Systems • ECC International • Flowmaster • Protronix • RUD Chains • Avon Engineered Fabrications • Rotran Simulator • Environics • Senstar • Cockerill Maintenance and Ingenierie • Emergent Space Technologies • Emisens • Timken Aerospace • Stella-Meta • Titan • TDC Acquisition Holdings • Real-Time Innovations • Spec Tool Company • HGH Infrared Systems • NICE Systems • SIUS • SAM Electronics • Analytik Jena • Astron Wireless Technologies • DMG Darstellungsmittel • Cadmus Technology • Vallon • Boldman • InnoSysTec • The Aeronautical Research and Test Institute • Chenega Integrated Systems • Prexer • Infodoc • TFL Defence • Codeguard Security • Dynex Semiconductor • Vesta Antero Wilenius • Reunert • Habia Cable • Kalmar Industries • Sperry International • Martin-Baker Aircraft • Teracom • Telestar • Alutiiq Oilfield Solutions • TeleCommunication Systems • ALMI • Florida Atlantic University • Arcus • Tatra • Crestchic • Fucine Umbre • Swindens Patents • Israel Aerospace Industries • Hoyos Group • Birdon • Haztec International • Stonehaven Engineering • BEML • Russkie Mashiny Trading House • ORBIT/FR • Gallay • Jena-Optronik • BHP Billiton • Melrose Industries • Gaymarine • Aeronautical & General Instruments • Cytec Engineered Materials • Couthars • High Commission for Grenada • Barnes Advanced Technology • Keppel Batangas Shipyard • SkyNet London • Regulateurs Europa • GAZ Group • Christie Division of MarathonNorco Aerospace • Kasco • AeroSoft • Mako Group • Raydon • AEROQ • Friskem/Infinetics • Meller Optics • Mason and Hanger • Redislogar • BML Benfield Marketing • Benntec Systemtechnik • Defense Contract Management Agency • C&F Millier • ACC La Jonchere • Mahle Behr Industry • President Titanium Company • Cenzin • Spyderco • Nuclear Regulatory Commission • Vocality International • AM General • Flagship Training • RPC Technologies • Worldscout • Isuzu Motors • ETC PZL Aerospace Industries Sp • Fellows International • Woojoo Aerospace Industry • Farallon • Export Consultants • 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