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The Message of Domestic Production at IDEF

The Message of Domestic Production at IDEF
Oluşturulma Tarihi: 04.05.2013
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Güncellenme Tarihi: 04.05.2013
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Turkish-made weapons and equipment made a significant impact at the International Defence Industry Fair (IDEF), one of the world's five largest defense fairs. Ostim Defence and Aerospace Cluster (OSSA) participated in the fair with 15 joint companies.

At the 2011 International Defence Industry Fair (IDEF’11), which was opened by President Abdullah Gül and attended by hundreds of companies from various countries around the world, Turkish-made products attracted great interest.

The fair showcased products developed by domestic defense industry companies such as TAI, TEI, ROKETSAN, HAVELSAN, ASELSAN, and MKE, as well as products from domestic main supplier firms.

The Defense and Aerospace Cluster Association, operating in the Ostim Organized Industrial Zone, also participated jointly with companies from the region.

Ostim Board Chairman Orhan Aydın, Vice Chairman Sıtkı Öztuna, Board Members Mithat Ertuğ, Yaşar Özelge, Behzat Zeydan, Ufuk Bayraktar, Ostim Foundation Board Member Sedat Çelikdoğan, and ORSİAD President Özcan Ülgener also attended the opening and first day ceremonies of IDEF 11.

Mithat Ertuğ, President of the Ostim Defense and Aerospace Cluster, stated that the policies and criteria implemented by the Undersecretariat of Defense Industry in recent years have increased interest in the sector. Ertuğ noted that the emphasis on domestic manufacturing at IDEF was a positive development, saying, “By participating here, we showed some people what can be done in Turkey. Some circles were unaware of what could be done in Turkey. This participation sent an effective message to them as well. We plan to have more companies participate jointly in future fairs.”

Mithat Ertuğ

(OSSA Board Chairman)

“Recently, the defense industry has become an area that the private sector is focusing on. Because the high standards make this sector more sophisticated. Companies are trying to adapt themselves to these standards. Main contractors are also trying to improve the quality of their subcontractors. They are providing training accordingly and adjusting their procedures accordingly. Furthermore, the amount of work in the defense industry in Turkey is increasing thanks to the policies implemented by our Undersecretariat of Defense Industry. For example, offset applications have increased job opportunities. As a defense cluster, we are using the advantages of participating together. Our presence at the IDEF fair as OSTİM, as a result of the support we provide to the cluster and the sector, aims to show what can be done domestically. There was a belief that certain things could not be done in Turkey. We are sending the message that everything can be done in Turkey. I hope we will participate in the next IDEF with more than 40 companies. Because many companies we met here say they are willing to do so. I want to emphasize again. With our participation here, we have shown some people what can be done in Turkey. Some circles were unaware of what can be done in Turkey. This participation is also an effective message to them.”

Assoc. Prof. Dr. Sedat Çelikdoğan

(Member of the Board of Directors of OSTİM Foundation)

As a result of its foreign policy efforts, Turkey is seen as a foothold in the Middle East and Africa. Turkey stands out as a country they can talk to, approach, and cooperate with. Developments in the defense and automotive industries are making our country an attractive center. They are coming to Turkey to buy what they cannot get from the West. IDEF 2011 was the most crowded defense industry fair I have ever seen. We see an increase in the product diversity of domestic firms. This process shows that new weapons and technologies will be developed. OSTIM is the only region participating as a cluster. Our location has been somewhat sidelined. We need to come to the forefront and become more visible. This will be an experience. The cluster will attract more attention in the coming period. There are new aviation activities. Contacts have begun that will bring new business to OSTIM. Therefore, I believe that the defense industry cluster will double in size in the coming period.

Behçet Konak

(Chairman of the Board of Directors of ELSIS Inc.)

“In my opinion, the defense industry should be the locomotive of a country's technology. Over the last ten years, it has been encouraged by first creating large main companies, then subcontractors to supply them, and providing support to these subcontractors. The most important aspect of this is igniting the enthusiasm for R&D in the country and helping to create national technology. This is an extremely important factor for a country in international competition, both economically and in terms of security. We are participating in IDEF for the first time. For many years, we conducted our work with ASELSAN through R&D and design-based manufacturing services. However, the products we produce are compliant with international standards. We participated with the hope and enthusiasm of no longer being dependent on them and offering these products to the international market. Since this is our first time participating, we don't know the outcome yet; we will see in the coming years, but I believe it is a beneficial initiative. I am a member of OSSA's executive board. There is a reason for this. As an enthusiastic organization, we support this. We believe that strength comes from unity. Here, services are done jointly. Therefore, the cost to companies is lower. The organization is better.” This organization by OSTİM is very beneficial. I believe that we will be even better organized and take it further in the coming years.”

Ferhat Ünal

(GÖKSER Machinery)

“We were founded in 1987. We serve the defense industry with flexible hose manufacturing and mobile air conditioning devices. Turkey has a slogan: 'A strong army means a strong Turkey.' We can expand on this: 'A strong defense industry means a strong army, a strong Turkey.' If you have a strong defense industry, the continuity of our army's strength will be ensured. Therefore, we are a family of companies that are willing to take on this responsibility. Our goal is to develop the domestic defense industry. We aim to contribute to the country and to open the export doors of the defense industry abroad, proving our country's strength economically. We participated in IDEF with the defense cluster, and one of the requirements of being a cluster is to organize such joint events, and we want this work to continue. In joint participation, the stand designs should also be shared so that it is seen that we, as the OSTİM defense industry, are together, that we meet in the same colors and designs. We must give the image of being a single factory. That's why design is important. IDEF is an organization that improves itself every year. So we are pleased. We see the developments, companies, and products here. This makes us proud and reminds us of our responsibility.”

Ali Khan

(MEGE Technical Founder and General Manager)

“We are a company founded in 2001. This year we will celebrate our tenth anniversary. Our founders are engineers who left leading companies in the sector, such as ASELSAN. We have made significant progress in the aviation sector. Our company currently provides design, prototyping, and production services to companies such as ASELSAN, TAI, RORKETSAN, HAVELSAN, and their foreign partners. Our main focus is communication systems. Our goal is to be present in global markets. We are witnessing many companies turning to the defense industry. Companies sought new solutions during the crises we experienced and saw that the defense industry was a rising trend. With the policy followed by the defense industry, it was decided to produce domestically many products that were previously imported. This was one of the factors that increased its attractiveness. Everyone with capital started to show interest, but it is a sector that requires expertise within itself. Therefore, those who come from within this field will be more sustainable. IDEF is a fair held every two years that highlights the products of the defense industry and is quite useful. Manufacturing companies with whom we do joint business also participated in the fair. They do not want to lose the market. Eastern countries such as the Middle East, Africa, and Asia are also closely watching this. They are also interested in Türkiye.” It's a market. They saw that technology is developing and certification exists in our country as well. For example, our company opened a branch in Saudi Arabia in recent months and we are manufacturing there. Selling products to Europe is quite difficult. Therefore, countries like the Middle East and Africa are our potential markets and those countries should be our target. Companies operating within the OSSA cluster in OSTIM have come together. We are experiencing the advantages of being together. This is our first time participating jointly. We plan to come to the next fair in a more organized way in terms of venue and facilities. Businesses that cannot deal with individual firms are more effective under a cluster.”

Sercan Tuncay

(General Manager of EMD Defense Technologies)

“Our company was established to manufacture products specifically for the defense industry, particularly for flying platforms and fighter jets. Our primary focus is on producing and finishing aluminum without the use of welding. This is a specialized technology, and we have brought it to our country. The defense industry is a significant sector today. This is largely due to past events such as the embargo following the Cyprus invasion. Since 2000, we have been experiencing a period of national self-sufficiency. Instead of manufacturing that was previously done through foreign partnerships, the government, within the framework of its 2023 vision, has prioritized the localization of products previously sourced from abroad. The domestic contribution rate has increased, which has boosted the sector's potential. We participated jointly as a defense industry cluster. Our expectation was to attract visitors and groups to the OSTİM exhibition area. We could be more active in this regard.”

Mustafa Atamtürk Atikcan

(EPSILON Aviation Inc. Contracts and Business Development Manager)

“We work on composite mold design and manufacturing for the aviation sector. We have two factories in Ankara OSTİM. We are also working on investments for a new facility. Our country is one of the few countries in the world that invests the most in the defense industry. We procure equipment through direct purchases and offset applications. Recently, the Undersecretariat of Defense Industry has new policies and directives. It imposes a condition of giving 20% of the work to SMEs. Therefore, many companies are trying to get a share of this pie. IDEF fairs are an environment where many buyer and seller companies come together and offer opportunities to participants. We participated with OSSA because participating alone doesn't give the impression of being a force. It was a collective promotional activity with OSSA, but IDEF is not a platform that directly brings customers, but it can bring business through parallel efforts. We have companies that we have our eye on here, and we will hold bilateral meetings with them.”

MEDSAV

(Dogan Turkmen)

“We are a company based in İvedik and OSTİM. While our main area of activity is the defense industry and technologies, we also provide services in the production of steel, aluminum, and stainless steel machine components, electromechanical design, medical device design, software, and hardware. In the defense industry, we do contract manufacturing for FNSS, ROKETSAN, ASELSAN, and private companies. The defense industry is seen as a growing sector in Turkey, as it is worldwide. The presence of companies like ASELSAN, TAI, ROKETSAN, and others in Ankara leads to an increase in our quality and capacity. We are extremely happy to join OSSA because there is strength in unity. Being under the same roof is beneficial.”

Müge Ertuğ

(EMGE Group Foreign Trade Manager)

“Our company was founded in 1975, and we work on defense electronic and mechanical systems. We have been serving the defense industry for approximately 30 years. We continue our journey as a strategic partner of ASELSAN. In recent years, the sector has developed even faster with the effective work of the Turkish Armed Forces Strengthening Foundation, such as ASELSAN and TAI. The aviation sector is particularly interesting. Subcontractor relationships are developing. All of this makes the defense industry the apple of the eye for companies. We are a company that doesn't participate in many fairs. Thanks to the cluster, we have been present at the last two IDEF fairs. As an Ankara-based company, it is difficult for us to follow these kinds of organizations in Istanbul. However, under the umbrella of OSTİM, we set up our stand without any problems and at advantageous prices. The first point of contact for delegations and visitors is the defense cluster stand. In this way, they also visit the companies included in the joint participation.”

Hamdi Rabbit

(DIGITECH LTD. - Cluster Member)

“Due to regional conflicts, we have started to receive significant demands from large companies. Our country's central location increases the chances for these firms. There is a secure environment. There is more participation in IDEF compared to previous years. We also have projects focused on industrial, scientific, and military solutions. We see that many companies are entering the defense sector. Some are entering because there is money to be made. Others are entering because they now feel competent and confident in their technology and knowledge. This sector could be bright in the next ten years. The important thing is that small fish can swim among big fish. If we solve and understand this, the business will develop. Turkey has a chance to develop in this area. Local companies can then be chosen as solution partners. It is not that easy for cluster companies to directly produce products. The one who makes the final product wins. If you are making intermediate products, if you are working as a subcontractor, you can work daily, your job is not guaranteed. This makes it difficult for you to make a business plan. The right thing is for us to capture the final product. There are many needs and solutions. We need to find that solution, make it, and market it globally. Cluster processes need to come into play at this point. OSTIM The joint participation of companies in the defense industry cluster is an opportunity for companies that haven't participated individually. This will also be a trade fair experience for them. They can observe how things work and have the chance to close business deals here.”

Güner Koçak

(Deputy General Manager of Küçükpazarlı Aviation)

“Küçükpazarlı Aviation was established in 2005, separate from other facilities, to manufacture for the aerospace, defense, and electronics industries. We have experienced significant growth in the past five years. Thanks to the Undersecretariat of Defense Industry's strategy for the development of auxiliary industries, we have been able to improve ourselves and find the right business opportunities. Currently, we are a strategic partner of TAI and the largest manufacturer of complex component products after TAI. We also want to increase our export potential by establishing partnerships with European companies. The Undersecretariat of Defense Industry has a specific goal. Our old defense policy was entirely focused on foreign countries, and resources were being transferred abroad. For the last five years, it has been desired that almost half of this amount remains in Turkey. This has been achieved through the development of the sub-industry and partnerships established through applications such as offset. Foreign companies were not keen on offset. Therefore, the Undersecretariat of Defense Industry focused on developing the domestic industry. Now, foreign contractors can find local partners domestically. Therefore, the activity in domestic companies stems from this. We were established in OSTİM. Later, an aviation company was established. We became a cluster company. When we understood what the cluster wanted to do, we became part of it.” We participated. The cluster's collective action empowers smaller firms against the main industrial companies. Because everyone outside the main industry is very small. There is a need for a larger structure that will give confidence to the main suppliers. The counterparty organization needs to be large. The responsibilities in the sector are very high. However, a large and powerful organization like the cluster, like OSTİM, can give them confidence.”

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