Turkey loses bid for Indonesia submarines

[Saithan]

Indonesia has informed a German-Turkish partnership that South Korea has won Jakarta’s competition for U209 submarines and that the duo should instead focus on the sale of more-developed U214 subs to the Southeast Asian giant, a senior Turkish official has said.

The message was conveyed during the visit of Adm. Agus Suhartono, the chief of staff of Indonesia’s military forces, to Turkey last week, the Turkish official said this weekend.

Turkey, led by the Undersecretariat for Defense Industries, SSM, and Germany, led by ThyssenKrupp’s shipyard, HDW, entered the Indonesian Navy’s competition of more than $1 billion after it came to an end, effectively ensuring Seoul’s victory.

South Korea’s Daewoo Shipbuilding and Marine Engineering announced on Dec. 22 that it had won the Indonesian deal $1.1 billion for three submarines.

As for Turkey, a $2 billion submarine deal with HDW for the joint manufacture of six U214 platforms formally took effect in July, the German company said. Turkish procurement officials also confirmed the information.
“As a longstanding partner and supplier to the Turkish Navy, ThyssenKrupp Marine Systems can now begin executing the order. The order will contribute to securing employment at [ThyssenKrupp’s] HDW in Kiel, as well as at many subcontractors in Germany and Turkey, for the next 10 years,” it said.

A major loan deal between German banks and the Turkish Treasury rescued the multibillion-dollar submarine contract between the Turkish state and Howaldswerke Deutsche Werft (HDW) on the last day of 2010, Turkish procurement officials said earlier.

“We will try to work hard to meet the requirements for the second competition [for the U214 deal],” said the Turkish procurement official.

The Indonesian side also offered a number of consolations to the Turkish side. The Indonesians will come up with a $100 million Turkish proposal to make military radios produced by Aselsan, the procurement official said.

The Indonesians separately plan to propose a facility to produce Roketsan-made missiles after they sign a contract with the company.

Jakarta will also produce FNSS-made 8x8 vehicles.

Turkey and Indonesia are two of the largest Muslim countries and are keen to develop their defense industries and ties.

February/20/2012

 

[Zulkarneyn]

Nevermind, South Korea is our close partner, so their win is also our win (in a way). Of course winning the bid would mean a lot for Turjey. Turkey considers joint partnership with South Korea and Indonesia on KF-X so let us hope that still stands on the table.
South Korea, Indonesia and Turkey should increase their cooperation into other fields as well (cars, technology etc.) we still got much to learn in those fields.

 

[forummurat]

A UNRELATED QUESTION..!
I wonder that
why we cannot see our ENDONESIAN and MALAYSIAN brothers on net?
We can see every nation on net but they are lost..??
Where this guys?

 

[BordoEnes]

Not Surprizing actually, I mean come on S.Korea is just around to corner for indonesia and they have much more experience then Turkey. However it would be great if the indonesians give the Task of Building there 6 U214s to us, S.Korea will be stuck with making the less advanced and Funded one. Nevertheless i love S.Korea

 

[Cerian]

Not Surprizing actually, I mean come on S.Korea is just around to corner for indonesia and they have much more experience then Turkey. However it would be great if the indonesians give the Task of Building there 6 U214s to us, S.Korea will be stuck with making the less advanced and Funded one. Nevertheless i love S.Korea

We also build our submarines, in Golcuk Ship Yard. Experience wasn't an issue in this deal.

 

[silko]

A UNRELATED QUESTION..!
I wonder that
why we cannot see our ENDONESIAN and MALAYSIAN brothers on net?
We can see every nation on net but they are lost..??
Where this guys?

there are... they just ain't that active here!

 

[God of Death]

How can one have three submarines for just $1.1 billion??????????

Indian Navy's contract for 6 next generation submarines = US$ 10 billion.

 

[BordoEnes]

How can one have three submarines for just $1.1 billion??????????

Indian Navy's contract for 6 next generation submarines = US$ 10 billion.

Damn...... You got ripped-off

 

[Deno]

How can one have three submarines for just $1.1 billion??????????

Indian Navy's contract for 6 next generation submarines = US$ 10 billion.

If I am not wrong, India will buy nuclear submarines... Indonesia will buy German origin U209.

 

[ChineseTiger1986]

Bad decision by Indonesia, since the South Korean sub is just some inferior ripoff of the German sub.

 

[blackops]

How can one have three submarines for just $1.1 billion??????????

Indian Navy's contract for 6 next generation submarines = US$ 10 billion.

That includes infra cost also

 

[Cerian]

Bad decision by Indonesia, since the South Korean sub is just some inferior ripoff of the German sub.

Financial constraints probably played a much larger role in giving tender to South Korea.

 

[emotionless_teenage]

A UNRELATED QUESTION..!
I wonder that
why we cannot see our ENDONESIAN and MALAYSIAN brothers on net?
We can see every nation on net but they are lost..??
Where this guys?

don't know about indonesian but malaysian military is going slow.no new major procurement till next general election

Financial constraints probably played a much larger role in giving tender to South Korea.

i think it's because South korean version are longer and equipped with AIP cell

 

[Nishan_101]

I think the Indonesia should go for the new U-214 and try to built it on their own and buying these old ones won't going to help them in any way.

 

[Saithan]

New developement!!!!!!!!!!!!!!!!!!!!

S Korea’s price hike in sub deal raises Turkish hopes

A German-Turkish joint bid for building U209 subs for Indonesia may revive after the winner Korean firm’s decision to raise the price by $300 million unilaterally
A Turkish U209 submarine surfaces in this file photo. Together with its German partner, Turkey lost a bid to build U209s for Indonesia.

A Turkish U209 submarine surfaces in this file photo. Together with its German partner, Turkey lost a bid to build U209s for Indonesia.
A German-Turkish joint venture striving to win a contract to build submarines for Indonesia is waiting for word from Jakarta after their South Korean rival raised the price for three submarines it has agreed to build for the country by $300 million, a senior Turkish procurement official said.

South Korea’s Daewoo Shipbuilding and Marine Engineering announced on Dec. 22 that it had won an Indonesian deal for $1.1 billion for three U209 submarines. But the company in early February unilaterally told its Indonesian counterparts that the price was too low, and increased it to $1.4 billion.

“Meanwhile, we gave our best offer to the Indonesians on Feb. 7. Now we are waiting for their decision,” the Turkish official recently told the Hürriyet Daily News. “We think we have a chance.”
South Korea won Indonesia’s sub deal last year, but a partnership between Turkey’s Undersecretariat for Defense Industries, its procurement agency, its shipyard STM, and the German shipyard HDW, owned by the German conglomerate ThyssenKrupp, raised a rival bid on the last minute. Still, Daewoo Shipbuilding and Marine Engineering won the bid. Then came the company’s move to raise its price.
Meanwhile, Adm. Agus Suhartono, the chief of staff of Indonesian military forces, visited Turkey in late February. The Indonesian team told Turkey to forget about the U209s and instead focus on the more developed U214 submarines.

Manufacture of U214 subs

For Turkey, a $2 billion submarine deal with HDW for the joint manufacture of six U214 platforms formally took effect in July 2010, the German company announced.

“As a longstanding partner and supplier to the Turkish Navy, ThyssenKrupp Marine Systems can now begin executing the order. The order will contribute to securing employment at [ThyssenKrupp’s] HDW in Kiel, as well as at many subcontractors in Germany and Turkey, for the next 10 years,” it said.

A major loan deal between German banks and the Turkish Treasury rescued the multibillion-dollar submarine contract between the Turkish state and German shipyard Howaldswerke Deutsche Werft (HDW).

“The U209 situation is a complete unknown now, with Daewoo raising its price. We and the German HDW have already given our price. Now we are waiting for Indonesia’s move,” the Turkish procurement official said.

Turkey has a document showing that HDW was given the right to negotiate with third parties to manufacture the U209. It claims the South Korean company does not have the right to build the U209.
Turkey and South Korea are strong partners dating back to the Korean war of the 1950s. Turkey produces howitzers under South Korean license, and the two countries are together building basic aircraft trainers for the Turkish Air Force.