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Turkey builds domestic defence industry
09 Oct 2013, 09:47 AM
Many countries have tried to use offset programmes to create an indigenous defence industry, but Turkey is one of the closest to succeeding.
Despite persistent doubts about the efficiency of the country's defence industry and the realism of its ambition to be self sufficient, Turkey's 30-year journey has yielded an indigenous capability other developing countries are still far from matching.
Ankara had coveted the ability to rely on its own defence industry ever since it was put under an arms embargo following its invasion of Cyprus in the 1970s. It began the process in 1984 with the purchase of 160 F-16 fighter jets from General Dynamics of the US.
Under the accompanying offset agreement, General Dynamics subcontracted the assembly of all but eight of the aircraft to a newly formed Turkish aerospace company, the Turkish Aerospace Industries (TAI).
TAI eventually grew to about 4,000 employees assembling 46 F-16s for the Egyptian Air Force and upgrading Jordan's and Pakistan's fleet of fighter jets.
TAI's growth has helped spawn other Turkish defence companies co-producing helicopters, armoured fighting vehicles and submarines. "TAI has been a successful investment for Turkey," says Haldun Solmaztrk, a retired Brigadier General of the Turkish Army.
Indeed, in 2012, Turkish defence exports reached $1.2bn, a 35.7 per cent increase from 2011, putting the country among the world's top 20 defence exporters.
But on top of questions that have been raised about whether the huge sums Turkey has spent on military equipment could have been used more wisely, the fundamental issue remains that the country's defence industry can still not sustain itself.
"If you look at Turkish aerospace and defence exports, historically up to 80 per cent of exports are linked to offsets," says Guy Anderson, analyst at IHS Jane's, the consultants. "If you removed all offsets today, it would be like removing life support."
Even more troubling is Turkey's current flirtation with China.
Ankara has risked destabilising its defence relationship with its Nato allies - the very countries that have provided it with defence equipment for the past 30 years - by announcing in recent days that it intends to buy a long-range air defence system from a Chinese defence company subject to international sanctions.
The Turkish government's surprising decision to snub - at least for now - the US and European bidders was said to have been made on the grounds of costs and co-production.
Analysts question whether China's missile technology comes close to that of Europe and the US. Some point out that the deal was made by Turkish prime minister Recep Tayyip Erdogan himself. They note that the catalyst of the decision to even entertain the idea of a Chinese purchase may yet emerge as having been a generous side deal - another offset of sorts.
Financial Times
09 Oct 2013, 09:47 AM
Many countries have tried to use offset programmes to create an indigenous defence industry, but Turkey is one of the closest to succeeding.
Despite persistent doubts about the efficiency of the country's defence industry and the realism of its ambition to be self sufficient, Turkey's 30-year journey has yielded an indigenous capability other developing countries are still far from matching.
Ankara had coveted the ability to rely on its own defence industry ever since it was put under an arms embargo following its invasion of Cyprus in the 1970s. It began the process in 1984 with the purchase of 160 F-16 fighter jets from General Dynamics of the US.
Under the accompanying offset agreement, General Dynamics subcontracted the assembly of all but eight of the aircraft to a newly formed Turkish aerospace company, the Turkish Aerospace Industries (TAI).
TAI eventually grew to about 4,000 employees assembling 46 F-16s for the Egyptian Air Force and upgrading Jordan's and Pakistan's fleet of fighter jets.
TAI's growth has helped spawn other Turkish defence companies co-producing helicopters, armoured fighting vehicles and submarines. "TAI has been a successful investment for Turkey," says Haldun Solmaztrk, a retired Brigadier General of the Turkish Army.
Indeed, in 2012, Turkish defence exports reached $1.2bn, a 35.7 per cent increase from 2011, putting the country among the world's top 20 defence exporters.
But on top of questions that have been raised about whether the huge sums Turkey has spent on military equipment could have been used more wisely, the fundamental issue remains that the country's defence industry can still not sustain itself.
"If you look at Turkish aerospace and defence exports, historically up to 80 per cent of exports are linked to offsets," says Guy Anderson, analyst at IHS Jane's, the consultants. "If you removed all offsets today, it would be like removing life support."
Even more troubling is Turkey's current flirtation with China.
Ankara has risked destabilising its defence relationship with its Nato allies - the very countries that have provided it with defence equipment for the past 30 years - by announcing in recent days that it intends to buy a long-range air defence system from a Chinese defence company subject to international sanctions.
The Turkish government's surprising decision to snub - at least for now - the US and European bidders was said to have been made on the grounds of costs and co-production.
Analysts question whether China's missile technology comes close to that of Europe and the US. Some point out that the deal was made by Turkish prime minister Recep Tayyip Erdogan himself. They note that the catalyst of the decision to even entertain the idea of a Chinese purchase may yet emerge as having been a generous side deal - another offset of sorts.
Financial Times
