DEFENCE and AEROSPACE MANUFACTURERS ASSOCIATION

DEFENCE and AEROSPACE
MANUFACTURERS ASSOCIATION
TURKEY
Aziz SİPAHİ
Board Member, SASAD
General Manager, AYESAS and Vestel Defense
ABOUT SASAD
DEFENCE AND AEROSPACE INDUSTRY
MANUFACTURERS ASSOCIATON OF TURKEY
ESTABLISHMENT : 1990
THE MISSION OF SASAD IS TO PROMOTE, ENHANCE THE
SURVIVABILITY AND COMPETITIVENESS OF THE DEFENCE AND
AEROSPACE INDUSTRY OF TURKEY.
SASAD REPRESENTS AVIATION, SPACE, SECURITY AND
DEFENCE INDUSTRIES IN TURKEY AND HAS 151 MEMBERS
PERFORMANCE DATA
1OVERALL
FOR TURKEY D&A INDUSTRY (2013/2014)
Revenue Foreign Sales New Order Import Employement P&T Devolopment 2014 5.101 Million $
1.855 Million $
11.000 Million
$
1.351 Million $
887 Million $
31 242 person
2013 5.076 Million $
1.569 Million $
8.000 Million $
1.327 Million $
926 Million $
32 368 person
REVENUE DISTRUBUTION FOR THE YEARS
2009-2014 (Million $)
2014 5,101 2013 5,076 4,800 2012 4,400 2011 4,174 2010 2009 3,067 163.273 $
Revenue per employee
PROGRESS ON FOREIGN SALES (FSR)
2010-2014 COMPOUND ANNUAL GROWTH
RATE (CAGR): 21%
INCREASE IN 2014 WITH
COMPARISON TO 2013 : 18%
2500
2000
2010
2011
1.855 0
1.570 500
1.100 1000
M$ (million$)
1500
1.626 MILLION DOLLAR 853 TURKISH DEFENCE AND
AEROSPACE INDUSTRY HAS
REACHED 1.855 MILLION $ FSR
LEVEL IN 2014. DIRECT EXPORT
PORTION IS 1.650 MILLION $
AND REMAINING 205 MILLION $
IS SERVICE AND ENGINEERING
FEE OBTAINED BY TU D&A
INDUSTRY IN FOREIGN
COUNTRIES
3000
2012
2013
2014
FOREIGN SALE REVENUE (FSR)
EUROPE OTHER REGIONS 1,855 USA 15% DOWN FOREIGN SALES TO USA IS ABOUT 581 MILLION $ IN 2014.
IN 2013, IT WAS 680 MILLION $.
15% DECLINE.
VETECHNOLOGY
TEKNOLOJİ GELİŞTİRME
PRODUCTÜRÜN
AND
(P&T)
HARCAMALARI
DEVELOPMENT EXPENDITURE
Milyon Dolar 28%
733
220
P.D
72% 887 887
154
BY EQUITY 513 T.D
BY PROJECT SUPPORT MILLION DOLLAR BY 130
EQUITY 84%
%84
24 16% BY PROJECT SUPPORT HISTORICAL RELATIONS
US-TURKEY FRIENDSHIP 1831 (OTTOMAN EMPIRE)
FIRST DIPLOMATIC RELATION 1927
ECONOMIC AND TECHNICAL COOPERATION AGREEMENT 1947
NATO ALLY 1952
WITH HER GEORAPHICAL LOCATION, IS A KEY PARTNER FOR
US POLICY
WHAT IS TURKEY AFTER?
Is Turkey a best value Defense & Aerospace partner for a long term strategic coopera[on (not offset driven only) •  in certain business areas and at certain parts of the world; YES •  if technology and quality level is important, but compe[[veness is also expected; YES •  if you are looking for educated, young, mo[vated engineering force; YES •  if government support and user’s coopera[on is required; YES •  if you want to be at the center of the emerging defense and aerospace market; YES USA COMPANIES OPERATING IN TURKEY
•  JV’s, partnerships: •  BAE (%49 shareholder of FNSS) •  L3 (Ayesaş) •  GE (TEI) •  Sikorsky (Alp Havacılık) •  SNC (Esen Entegrasyon) •  Business coopera[ons: •  Prah & Wihney (Kale Havacılık, Alp Havacılık) •  Boeing (TAI, Alp Havacılık, Ayesaş) •  Lockheed Mar[n (TAI, Alp Havacılık, Ayesaş) •  Raytheon (Roketsan, Aselsan) ISSUES BETWEEN TURKEY AND USA IN DEFENCE
• Marke[ng, sales and transfer of «US origin defence ar[cles» are under US State Department control. • Unfortunately US State Department has a broad defini[on of “US origin”. • Therefore non-­‐US companies opera[ng in other countries are having export diffucul[es due to many bureaucra[c ac[ons required in order to market, sell and transfer of the products manufactured under license and having SME items in their content. ISSUES BETWEEN TURKEY AND USA IN DEFENCE
• State Department, however, made significant improvements on this process over the years. • Standard Agreement formats and online applica[on opportuni[es, now, shorten the approval process significantly. • Also removing numerous items from ITAR list to EAR list made the commercial ac[vi[es move faster then previous years. CONCLUSION AND SUGGESTIONS
• Both countries have common and different interests. It is good to note that there are channels like ATC to speak about issues • Turkish Defense Industry is happy about improvements in USA’s export regula[on process. The progress should be enhanced. • Trade balance between the two countries is in favor of USA. This Trade imbalance should be corrected. CONCLUSION AND SUGGESTIONS
just an example about US export control... Export License Challenge 16/11 KARAYEL – Tactical UAV by Vestel Defense
Payload
: EO/IR Camera with
laser designator
Endurance : 20 hours
Altitude
: 22,500 ft
Radius
: 150 km
Wingspan
: 10,5 m
Length
: 6,5 m
Customer
: Turkish Army
Status
: Flight Tests ongoing
STANAG 4671 USAR Airworthiness Requirements NATO UNCLASSIFIED Export License Challenge Vestel Defense
L3 Com - WESCAM
Export
License
17/11 Signed an agreement on
October 2012
EO/IR with
Designator
An
exception
letter is
required
DOD Policy for Payloads Turkey
is not listed !
Defense Technology
Security Agency (DTSA)
NATO UNCLASSIFIED Export License Challenge 18/11 Turkish
MOD / SSM
Vestel Defence Ind.
L3 Com - WESCAM
Defense Technology
Security Agency
(DTSA)
Challenge:
Who is going to
write whom &
what?
Eucom
ECJ5
SSM
Washington DC Office
US Military
Attache, Ankara
US Embassy
Ankara
ODC, Ankara
U.S. Combatant
Commander (COCOM)
NATO UNCLASSIFIED An
exception
letter is
required
Export License Challenge 19/11 Turkish
MOD / SSM
Vestel Defence Ind.
L3 Com - WESCAM
Defense Technology
Security Agency
(DTSA)
Challenge:
Who is going to
write whom &
what?
Eucom
ECJ5
SSM
Washington DC Office
US Military
Attache, Ankara
US Embassy
Ankara
ODC, Ankara
U.S. Combatant
Commander (COCOM)
Oct’12 17 Months Mar’14 NATO UNCLASSIFIED PEACE AT HOME
PEACE IN THE WORLD
THANK YOU