m. arif sezgİn, director of sectoral strategies and investment planning undersecretariat for...
TRANSCRIPT
M. Arif SEZGİN, Director of Sectoral Strategies and Investment PlanningUndersecretariat for Defence Industries (SSM) – Turkey
Turkish Defense & Aerospace Industry and Acquisition System
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TURKEY AT A GLANCE
76 Million Population, 25% under age 15
Average 5,6 % growth rate forecastes through 2020
GDP more than tripled since 2002 USD 231 billion to USD 786 billion
16th largest economy in the World, Expected to be among top 10 by 2023.
Sound economic policies, strong financial structure, confident investment environment
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AGENDA
Defense & Aerospace Acquisition System and Players
Industrial Participation & Offsets in Turkish Programs
Turkish Defense & Aerospace Industry Overview
Strategies for the future
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Defense & Aerospace Acquisition System and Players
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Ministry of National Defense – Structure
Responsibilities:
Major Systems Procurement
Industry Policy Making
Localization
R&D
International industrial relations
Undersecretariat for Defence Industries (SSM)1
Responsibilities:
Policy making
Personnel
General procurement2
Logistics
Undersecretariat of National Defence2
Ministery of National Defence (MoND)
1 The Undersecretariat for Defence Industries (UDI) is also referred to as “SSM” in Turkish2 Procurement of off-the-shelf requirements of the MoND and the Turkish Armed Forces
SSM
Other Players – Government, Commercial Aerospace and Air Transportation
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GOVERNMENT REGULATORY INSTUTIONS – (MINISTRY OF MARITIME AFFAIRS, TRANSPORT AND COMMUNICATION)
Directorate General of Aeronautics and Space Technologies (Regional Aircraft Program) (R&D Funding)
Directorate General of Civil Aviation (Local Airwothiness Certification Authority)
DHMI (State Airports Authority – Airports Management and Infrastructure Investments*
PRIVATE; AIR CARRIERS and AIRPORT CONSTRUCTORS & OPERATORS
Turkish Airlines / Cargo – Anadolu Jet -- (Turkish Technic – MRO)
Pegasus, AtlasJet, Onurair, Corendon, Sunexpress ...
(*)Private Contractors of DHMI above
SSM – Legal Framework
• Prime Minister• Chief of General Staff• Defence Minister
Defence Industry Executive Committee
(Decision-Maker)
• Legal Entity• Private Budget
Undersecretariat for Defence Industries
• Continuous Financial Source
• Off-Budget
Defence Industry Support Fund (Source)
Decision
Funding
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Law No. 3238
Governmental Decree 2009 / 15108
Public Procurement Law (exempted by its Article
3.b)
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Major Systems Acquisition
R & D and Technology
Management
Industry Policy Making
IP/Offsets Localization
Credits and Investment Financing
Clustering Activities
International Industrial
Cooperation
Quality, Test and
Certification
.
SSM; MAIN ACQUISITION BODY FOR DEFENSE SYSTEM NEEDS
Committed to make Turkey superior in defense technologies# of
Programs Ongoing :
310
# of Programs
Contracted : 180
$ Value of the
Contracts : 25.3 Billion
SSM, KEY TOOLS AND STRATEGY
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- Industrial Participation in Acquisition Programs
- Offsets (Export / Technological Cooperation)
- R & D Programs
- Musts and Incentives to Use SMEs
- Financial Support (Credits for Investment)
- A Portal for Products and Capabilities
- Supports Clustering Organizations
SSM; Procurement Model Priorities
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1. Local DevelopmentIndigenous design and development of priority systemsEnrichment of the product portfolio and international market share
2. International ConsortiumParticipation in joint development programs when domestic development is not considered cost-effectiveDesign / development of risk partnership potential
4. Direct ProcurementOnly if above options are not feasible
SSM; Program Models Distribution
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8%
44%28%
20%
Direct Procurement International Partnership / ConsortiumLicensed Production / Co-production Local Product Development
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Industrial Participation & Offsets in Turkish Programs
IP/O & OFFSET AND PERFORMANCE CATEGORIES
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Category A • Direct Industrial Participation
Category B • Export of products / services in the areas of defence, aerospace and homeland security
Category C • Gain technology / capability• New investment in the areas of defence,
aerospace and homeland security
Industrial Participation and Offset Definition: Commitments of the suppliers to customer in terms of performing local activities –local content, exports and technology transfer- in specific areas and signing parallel agreements, with this purpose, to main procurement agreements.
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Total Accrued Offset Commitment : USD 17,57 Billion
Realized Exports: USD 5,9 Billion
USD 9,13 BillionUSD 8,44 Billion
(2012-2020)
(1991-2012)
Waited
Realized
ACCRUED AND REALIZED OFFSETS
AEROSPACE OFFSET COMMITMENT
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WAITED REALIZED
2,2 Billion
Aeorospace Offset Commitment (2012-2020)
2,3 Billion
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Turkish Defense Industry
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MILITARY FACTORIES STATE OWNED PRIVATE MAINS* PRIVATE COMPANIES JOINT VENTURES
AIR PLATFORMS ESKİŞEHİR 1. HİBMKAYSERİ 2 HİBM
TUSAŞ BAYKAR MAKİNA;BÜYÜKMIHÇI;
KALEKALIP; GLOBAL TEKNİK
TEI;ALP AVIATION
LAND PLATFORMS ARİFİYE, TUZLA & KAYSERİ FACTORIES MKEK
OTOKAR; BMC;HEMA; NUROL; KOLUMAN FNSS;
MTU-TR
NAVAL PLATFORMS GÖLCÜK, İSTANBUL, İZMİR SHIPYARDS TURKISH NAVAL SEC.
YONCA-ONUK; RMK; ADİK;DEARSAN; ARES YACHT;
ATLAS-MAVİ; MEGE TEKNOLOJİ, ADİKN/A
ELECTRONICS /SOFTWARE
ANKARA 3. HİBMKKK 4. MAINTENANCE CENTERS TÜBİTAK UEKAE;
TÜBİTAK MAM
ASELSAN;HAVELSAN;
GATE; MİLSOFT; SAVRONİK; SDT; VESTEL SAVUNMA; KOÇ SAV; METEKSAN
SAVUNMA; C2TECH; KALETRON; ANTENSAN;
YÜKSEK TEKNOLOJİ; AKSA TEKNOLOJİ; ELEKTROLAND; YÜKSEL SAVUNMA; HTR;
EHSİM, STM; MİKES;
AYESAŞ;SELEX;NETAŞ;
SIEMENS;ESDAŞ;YALTES
ROCKETS-MISSILES-AMMUNITION
KKK 3. MAINTENANCE CENTERKAYSERİ 2. HİBMANKARA 3. HİBM
MKEK;TÜBİTAK SAGE
ROKETSAN; BARIŞ; KALEKALIP; TİSAŞ; GİRSAN; SARSILMAZTAPASAN; STOEGER
LOGISTICS MILITARY CLOTHING FACTORIES
YAKUPOĞLU; ÖZTİRYAKİLER; TARGET; ÖZTEK; TEKSAV; ANEL;
MEGETEKNİK ASPİLSAN N/A
Defence Industry Infrastructure – Companies
SECTOR TURNOVER
18'06 '07 '08 '09 '10 '11 12
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
1,723
2,244
2,8562,529
3,1353,533
3,923
132
194
231 371
572
848833
Defense & Aerospace Turnover($ M )
AEROSPACE OTHER
DEFENSE AND AEROSPACE EXPORTS AND TUSAŞ SHARE (IFRS)
19'02 '03 '04 '05 '06 '07 '08 '09 '10 '11 12
0
200
400
600
800
1,000
1,200
1,400
150290
146261
370451
602 652 639 572656
97
41
50
76
117
164
182180 214
518
606
Defense & Aerospace Export($ M)
AEROSPACE OTHER
AEROSPACE – PRODUCTS & PROGRAMS
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Platform Product Status Highlights
UAV OperationalFirst Turkish MALE UAVTAI design
Satellite OperationalFirst Turkish designed satelliteTechnological partner
Attack/Tactical Reconnaissance Helicopter
OperationalJoint design and development International marketing collaboration
Trainer aircraft Serial production orders
First Turkish Basic Trainer AircraftTo be certified according to EASA standardsTAI design
Utility helicopter for civil & military usage
Contract signed in June 2013
First Turkish design helicopterTo be certified under EASA and military requirements
Trainer / fighter aircraft
Conceptual design completed
Initial study for Turkish Trainer/Fighter Aircraft To be designed by TAI to replace F-16 aircraft
Anka
Hürkuş
TX/FX
Indigenous helicopter
ATAK
Göktürk 2
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HÜRKUŞ – Basic Trainer Aircraft
ANKA – Unmanned Air Vehicle
ATAK – Atack/Tactical Reconnaissance Helicopter
MALE-type UAV for reconnaissance & surveillance
Serial production contract for 10 units signed in [Oct. 2013]
Discussions with several countries
First in its class with both civil and military certification
Strong wing structure enabling different payloads
EASA certification expected in 2015 Exec. Committee decision for
ordering 15 units plus 40 options taken in Oct. 2013
Optimized for firepower, payload and better economics (fuel burn and maintenance)
Joint development, international marketing rights
Interest from a number of countries
AEROSPACE – PRODUCTS & PROGRAMS
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TX/FX Regional Jet
Development of an indigenous fighter for national/international requirements to replace current F-16 aircraft in the inventory
Program to be finalised in several stages. Conceptual design phase completed 3rd quarter 2013
Development of a regional aircraft for international market Modification of an already existing design is also considered TAI to act as a prime contractor for design/development and
manufacturing
Development of an indigenous helicopter of approx. 5 ton MTOW for national and international requirements
Civil and military certification Development funded by SSM
Turkish version of S-70 Black Hawk International TAI expected to manufacture and deliver first batch of 109 units
to seven different end users1 in Turkey Strong export potential especially given worldwide popularity
of Sikorsky’s base model
Light Utility Helicopter Turkish Utility Helicopter T-70
AEROSPACE – PRODUCTS & PROGRAMS
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TAI Satellite portfolio
Capabilities
Göktürk – 1 Project Earth Observation Satellite & Ground Segment Design workshare in project Assembly & testing centre and integration
Göktürk – 2 Project Earth Observation Satellite & Ground Segment (TAI design) Joint development with Tübitak
Göktürk IGöktürk II
In-house capability for satellite and sub-system design and testing Experienced and skilled work force
AEROSPACE – PRODUCTS & PROGRAMS
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Strategies for the future
STRATEGIC PLAN 2012-2016 FOCUS
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• Sustainability of the Defence Industrial Base
• Reaching Excellence in Programme Management
• Developing Technological Competence
2012-2016
2007-2011
• Acquisition Management• Industry Management• International Cooperation
INDUSTRIAL CAPABILITIES AND FOCUS
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Focused sector strategies to develop indigenous capabilities• Land: Armoured wheeled military land vehicles. • Naval: Naval shipbuilding capabilities: goal of design and system integration
work relating to naval ships domestically• Aerospace & C4ISR: Enhancing competencies
Domestic capabilities (design & production of aerospace components and services, modernisation), new indigenous programmes
Experience in major international programmes (ie JSF, A400M, Boeing 787)
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Advanced Jet Trainer
F-X New Generation Fighter
Medium Class Utility Helicopter
UAV Programs (Strategic Combat Rotary-Wing)
Indigenious Mission Computer for Fighters
Cyber Security
Satellite Systems
Electronic Warfare
NEW FRONTIERS: 2015 AND BEYOND...
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SSM’S VISION FOR DEFENCE INDUSTRY
Capable, competitive and sustainable industry
Integration to the global industry
Effective supply chain with technology-intense SMEs
Indigenious solutions for domestic military requirements in
strategic areas
SSM’s International Cooperation Offices
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RIYADH OFFICE March 2011
INDONESIA OFFICE 2012
BRUSSELS OFFICE January 2012
WASHINGTON DC OFFICE June 2011
AZERBAIJANI OFFICE2012
LATIN AMERICA OFFICE2013
UAE OFFICE2012
COOPERATION WITH TURKISH INDUSTRY
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Convenient Investment Environment
• Incentives and exemptions (SSM and Others)• Intensive Government (SSM) Supervision for Enterpreneurs• Low cost land, promising quality and cost effective laborship• A new export hub
Potential Models
• Project & Program Partnership • JV’s
