TUSAŞ Aerospace Industries Inc. (TAI), one of the main industrial firms serving the defense sector in Ankara, hosted companies that are members of the OSTİM Defense and Aerospace Cluster (OSSA) and produce as suppliers to the sector. TAI officials stated that they want to give more work to the subcontractors.
OSTİM Organized Industrial Zone, where companies from many different sectors operate, has recently seen a surge in activity, particularly with its firms serving as subcontractors for the defense industry. The OSTİM Defense and Aerospace Cluster (OSSA), which brings together defense subcontractors, continues its efforts to increase the competitiveness and market share of its members. As part of these efforts, the cluster management recently organized a visit to TUSAŞ Aerospace Industries, one of the leading defense industry companies in Ankara.
The visit was attended by OSTİM OSB President and TAI Board Member Orhan Aydın, OSSA Board Chairman Ahmet Mithat Ertuğ, and representatives from OSSA member companies. The OSTİM delegation was welcomed by General Manager Muharrem Dörtkaşlı, Head of Industrialization Operations Naki Polat, Head of Quality and Certification Ahmet Tokmakçıoğlu, Head of Strategy and Technology Management Yılmaz Güldoğan, and Auxiliary Industry Operations Manager Arif Köksal.
During the visit, OSSA member companies learned about TAI's operating principles and history, and also received information about the conditions they need to meet to work as a supplier for TAI.
Beginning his remarks by stating his pleasure at meeting with representatives of the subcontractors, TAI General Manager Muharrem Dörtkaşlı said that they had held several previous meetings with the OSSA delegation and that they should continue to enhance this cordial working environment. He stated that the company's growth was clearly visible in the figures, and underlined that the growth rate in relations with the subcontractors was even greater than this growth. Dörtkaşlı said that the company had increased fivefold in terms of work done and tenfold in terms of turnover in 5-6 years, and that the work given to the subcontractors had increased 15-20 times even more.
Dörtkaşlı explained what needs to be done to increase this cooperation with the following words: “As TAI, we primarily need to focus on activities that increase the volume of work we do. We mostly give you work related to civilian aircraft. I'm not saying we won't give you work from military projects, but work given from military projects doesn't have much continuity or economic value. The way to get work from the civilian sector is to take advantage of the leverage effect of Turkey's purchasing power. The other procurement authorities or ministries of the state also need to show sensitivity to this. We will also be taking on new work packages, for example, the Bombardier work package… And we will try to grow the pie by increasing the variety of work we can give you. This year, we have outsourced 5 out of 7 units of work that could be given. We are trying to increase this as well. We will try to increase the available work base so that the work we can give you also increases. We need to grow our turnover and increase the work we transfer to you.”
OSSA needs to increase its competitiveness.
Dörtkaşlı stated that they consider the Ostim Defense Industry and Aviation cluster as their next-door neighbor and are therefore more willing to work with them, and continued as follows:
“What OSSA needs to do is increase its 38% share of the business. Therefore, this cluster needs to increase its competitiveness. We see OSSA as a close neighbor. We will get even closer with new projects, but 38% is too little in my opinion. When suppliers in Izmir, Bursa, and Eskisehir offer the work cheaply, the business is lost. For this reason, OSSA absolutely needs to increase its competitiveness. We are sincere about doing more business with you. I would like to say that we are ready for any support you need, especially if it is support that will ensure mutual benefit. We are very eager to do business with OSTIM and our supporting industries in Turkey. We wholeheartedly want to see OSTIM's share here increase. We believe that this share will increase through our mutual efforts.”
Following the talks, the OSSA delegation also toured the TAI production facilities and received information from officials about the production processes.
