Murad Bayar, Ankara

Turkish defence industries having achieved a global competitive capacity, are now keen to cooperate Right time and proper platform for armament cooperation between Turkey and the EU

by Murad Bayar, Undersecretary, Ministry of National Defence, Ankara

Considering global trends and current challenges, we have to ensure that the technologically advanced capability be impro - ved so as to enable us to operate efficiently in the face of a wide array of diversified threats. A strong and indigenous ca - pability infrastructure will ensure that our national and glo bal interests are secured. This can be interpreted not only as building an indigenous defence industry, but also as deepening international defence integration.

Creating synergies − Turkey is keen to cooperate In addition, taking into account shrinking defence budgets, especially in Europe, co-operation has become indispensible in terms of providing best-value solutions to obtain cuttingedge technologies. The international partnership concept is now being taken more seriously than ever before, as many nations with similar requirements are eager to collaborate to create synergies. Turkey, meanwhile, particularly in the last decade, has made considerable strides towards its goal of modernising its armed forces and creating indigenous defence products in order to reduce arms import-dependency and to cultivate its own ex - port markets. It has been the policy that defence procurement should, through joint ventures with overseas companies, provide the stimulus for industrial development. The Turkish Government has encouraged foreign investment, and there are a number of very significant co-production deals between Turkish and foreign companies involving important transfers of advanced technology to Turkey. Turkey is now keen to export and remain competitive in the defence sector.

The Turkish procurement policy Turkey’s procurement policy is implemented by the Under-Secretariat for Defence Industries (SSM), which undertakes technical, financial and industrial project evaluations. The strategic priorities of SSM are Procurement Management, Industry and Technology Management and International Cooperation. The 2007-2011 Strategic Plan policies published by SSM include: • having 50% of system requirements met through local infrastructure by 2011; • using cost + contracts for R&D and local development; • achieving defence exports valued at $1 billion per annum by 2011.

Murad Bayar Murad Bayar is States Secretary for defence industries in the Turkish Ministry of Defence (SSM) and is in this position the chief procurement official of Turkey since 2004. He is an electronics engineer with master’s degrees from North Carolina University and Yale University. States Secretary Bayar startet his career 1987 with Turkey’s military-owned electronic company Aselsan. He worked for the SSM between 1989 and 1998 and thereafter began working at the international consulting firm Booz Allen Hamiltons in New York before coming to his current function.

Turkey has aimed to conduct effective supply activities in accordance with the expectations of the users, to improve international cooperation in the field of defence and to establish an effective institutionalized structure to realize the above-mentioned activities per our Strategic Plan. A growing trend began in the sector in 2007. $352 million in defence exports in 2006 has gradually increased to approximately $830 million in 2009, and sectorial turnover increased to $2.3 billion from $1.7 billion in 2006. Platforms not produced in Turkey, such as aircraft and submarines, are projects that even leading countries prefer to implement through consortiums. Thus, Turkey should aim at supplying the needs of the Turkish Armed Forces by affiliating our industry with international consortiums for these projects.

Increased competitive capacities of the Turkish defence industry The global competitive capacity of the Turkish defence industry has gradually increased, especially in recent years, and Turkish companies have become contractors in national procurement projects and reliable partners in many respec - table international projects. Thanks to the international projects, Turkish companies have begun to form an effective working culture with the world defence industry for new cooperation opportunities in the future. International defence industry cooperation has a reciprocal triggering relationship. As its technological infrastructure im - proves, our industry strengthens its stance as a suitable can - didate for new partnerships, and as it participates in new inter - national projects, it is able to improve its capabilities. One of

38 Turkish Forces participate regularly in NATO and EU-Missions

the most important features of Turkey’s new international cooperation is the role of not only key industrial institutions, but also of small and medium sized enterprises (SMEs).

Overlapping security goals and defence priorities The issue that primarily needs to be addressed at present is that Turkish and European security goals and defence priorities mostly overlap. This in turn can lead us to try to identify a mutually beneficial forum where procurement and defence industry cooperation in the real sense can be pursued. In parallel with strategies focusing on increasing local capacity to achieve industrial self-reliance, Turkey has considered European countries to be among its preferred partners for major defence systems. These include helicopters, naval platforms and electronic warfare systems. Defence cooperation with Europe stems from common threat perceptions with considerable potential. By being a partner in large-scale European defence programmes, such as A400M, and recent joint initiatives in Advanced UAV, Turkey has been able to enhance its capabilities, integrating them through “supply chains” into the European industrial base. In these projects, the Turkish aviation industry entered into very successful partnerships. The integration of our industry with international industry, its ability to get more business, and improving technology and capability via these projects is still in progress. Similarly, the Turkish aviation industry’s involvement in the A400M Project developed a culture of working with the main players in the sector and created potential for new partnerships in critical activities, both in “joint production” and design and development.

Multinational programmes are mutually supportive It should therefore be underlined that, given the level of experience and capabilities obtained over the last decade through multinational programmes, Turkey’s membership in OCCAR would surely strengthen armaments cooperation between Turkey and the EU. For its part, Turkey has always focused on developing and maintaining strong relations with its European counterparts and would like to see a shift in perception towards the advantages of its industrial capabilities. Currently, SSM carries out large-scale programmes. By 2010, the total contract volume of its 14 naval platform program - mes exceeded $8 billion. The National Corvette (MILGEM), for instance, has been designed to meet va - rious requirements, including reconnaissance, surveillance, target identification, early warning, defence of bases and har bours, anti-submarine warfare, amphibious operations and surface-to-surface and surface-to-air warfare. In context of the programme, ASELSAN and HAVELSAN are responsible for the development and integration of combat systems, whereas the sonar system has been designed and developed by TÜB iTAK (The Scientific and Technological Research Council of Turkey). In that sense, MILGEM is a unique example of cooperation in the Turkish defence industry. Photo: ESDU archive

Turkish security and defence industries are enabled for global export As a result of our continuous efforts to enhance the capabilities of the local industry, fortified with our proven design and sub-system solutions, the Turkish defence industry now has the capability to export various systems to various countries around the world. Yonca Onuk, one of the leading exporters in the area of composite hulls, has delivered improved rapid-intervention crafts and patrol boats to Georgia, UAE and Pakis - tan. ASELSAN has delivered the STAMP to Malaysia and the UAE and signed a contract involving Software Defined Radios with the Pakistani Armed Forces. In the land sector, FNSS, one of Turkey’s leading armoured vehicle companies, has signed a $600 million contract with the Government of Malaysia to equip their armed forces with Pars IFVs. In 2009, 21% of the Turkey’s aviation exports were achieved by Alp Aviation.

Turkey attaches great importance to continuing its enhanced dialogue with the EU, and Turkey’s catalytic role in NATO-EU relations has led to some tangible changes in the European perception of defence and security. In conclusion, all of these accomplishments demonstrate the Turkish defence industry’s competitiveness and reliability as partner in the international field.