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Turkish Defense Industry Prepares for Third Meeting with Giants

The Industrial Cooperation Days in Defense and Aerospace were introduced at a press conference.
Turkish Defense Industry Prepares for Third Meeting with Giants
Oluşturulma Tarihi: 17.05.2016
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Güncellenme Tarihi: 17.05.2016
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The third Industrial Cooperation Days in Defense and Aerospace (ICDDA), organized by the OSTİM Defense and Aerospace Cluster (OSSA) under the auspices of the Undersecretariat of Defense Industry (SSM) and with the support of the Ministry of Economy of the Republic of Turkey, was introduced at a press conference to be held between October 11-13, 2016. The meeting was attended by the Undersecretary of Defense Industry Prof. Dr. İsmail Demir, Deputy Undersecretary Dr. Celal Sami Tüfekçi, Head of Industrialization Department of SSM Bilal Aktaş, officials from the Ministry of Economy of the Republic of Turkey, Chairman of the OSTİM Board of Directors Orhan Aydın, President of the Defense Industry Exporters Associations Latif Aral Aliş, Chairman of the OSSA Board of Directors Mithat Ertuğ, sector representatives, and cluster members.

107% Increase in Exports

OSSA Coordinator Hilal Ünal, who gave the opening speech, provided information about the events held in previous years. Ünal reminded that in 2013, when ICDDA was first organized, there were participants from 20 countries, and in 2014, the number of countries increased to 34. Sharing that a 107% increase in exports has been recorded for its members since the first event, Ünal said, “We participate in both national and international fairs. It is very important for SMEs like us that these turn into business.”

The OSSA Coordinator stated that 4,800 registered and officially conducted bilateral business meetings were held within two days at the 2014 ICDDA event, adding, “It's a cost-effective organization. We did an average calculation; for an SME to meet with this many buyers, it needs to spend approximately 32,000 Euros. We bring all of them to Ankara.”

“Offering Opportunities to SMEs”

OSSA Chairman Mithat Ertuğ drew attention to the developments in the defense industry in Turkey. Emphasizing that the Turkish defense and aerospace industry has reached a point where it can produce its own tanks, helicopters, ships, and unmanned aerial vehicles, Ertuğ commented, “Turkey, which until recently imported almost everything for the defense industry, has now entered a period of maturity. The size of the sector exceeds 3.5 billion dollars, and the employment it creates exceeds 50,000.”

Ertuğ stated that the sector also offers significant opportunities and possibilities for SMEs, saying, "The fact that 30% of the total turnover of the defense industry, defined as defense and aerospace, is provided by the sub-industry, the majority of which consists of SMEs, clearly demonstrates the importance of SMEs in this sector."

“It couldn’t continue if it wasn’t beneficial”

OSTİM Board Chairman Orhan Aydın stated that the clustering activities initiated in the region have gone beyond the borders of OSTİM and Ankara. Aydın said, “SSM has an extremely important role in the formation of ICDDA; their moral support and their ownership of the sector.”

Aydın stated that while discussing the activities of other ministries, they brought up the practices of the Undersecretariat of Defense Industries (SSM), and continued: “We are truly pleased, on behalf of our country and nation, to have an organization that monitors this ecosystem, from its sectors and companies to even the SMEs in OSTİM. We are also making an effort to transfer their activities to other institutions. We cannot implement the Industrial Cooperation Program, which was launched about a year ago, on the civilian side. The SSM's policies on industrialization find us, influence us, and support us. I would like to state that we are pleased to see them by our side in the formation of this ecosystem.”

Aydın explained that the event continues to grow in popularity, anticipation, and impact each year, and noted that OSTİM will continue to support the organization.

“We must reach a point where companies say, ‘I must be in Turkey’”

Undersecretary of the Ministry of Defence Industry, Prof. Dr. İsmail Demir, expressed his great pleasure in supporting ICDDA’16. Reminding that many of the participating companies sell to Turkey, Demir said, “The new dimension we need to reach is this: even if they don’t sell to Turkey, it’s very important that we reach a point where they hear about the competence of our Turkish companies and say, ‘I must be in Turkey.’”

Referring to emergency procurements, İsmail Demir pointed out that intermediary companies and direct sellers are involved, and commented, “We will try to control this as much as possible and direct it towards our sector. Here, a great deal of responsibility falls not only on our Undersecretariat but also on the companies that our Undersecretariat has selected as the main contractors.”

The Undersecretary of the Undersecretariat of Defense Industries (SSM) advised that it would be beneficial to highlight the capabilities of some companies in advance, so that the firms attending the meeting could clearly define the topics and company names in their minds. Demir emphasized the following points: “We are ready to do whatever is necessary for the success of the organization. We will be actively involved in these activities through our Industrialization Department. We will continue to support such activities. When we invite companies here, we need to keep attractive elements on the table. Our industry needs to move from being a second or third-tier subcontractor to becoming a primary contractor. Or, in certain areas, we need to have priority over the companies that come to mind first when various firms look at who is present in the world.”