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Turkey - Land Systems Industry

Realizing around 36% of the turnover, around 40% of the exports, and 33.1% of imports, the Land Platforms sector is likely the strongest sector of the Turkish Defence & Aerospace Industry. The Land Platforms Sector takes the lion’s share in the Turkish Defence & Aerospace Industry’s revenue and is placed second in terms of export rate (after Military Aviation with US$ 693 Million) and imports (after Civil Aviation with US$ 853 Million). All estimates show that the revenue and export figures of the Turkish Land Platforms Sector will grow further in 2019. The Turkish Land Platforms Sector’s revenue has increased sharply during last four years. According to SSB data, the Land Platforms Sector realized US$ 315 Million in revenue in 2010, US$ 394 Million in 2011, US$ 439 Million in 2012 and US$ 518 Million in 2013. According to the Defence Industry Assembly 2017 Annual Report prepared by the Union of Chambers and Commodity Exchanges of Turkey (TOBB), the Turkish Land Platforms Sector realized around US$ 521 Million in revenue in 2014, US$ around 1,606 Million in 2015, US$ 1,702 Million in 2016 and US$ 2,362 in 2017. According to SASAD data the Turkish Land Platforms Sector’s revenue reached US$ 2,428 Billion in 2018. The Land Platforms Sector’s exports have increased steadily during last six years. According to the Defence Industry Assembly 2017 Annual Report the Land Platforms Sector realized US$ 220,497 Million worth of exports in 2013, US$280,285 Million in 2014, US$ 733,205 Million in 2015, US$ 487,661 Million in 2016 and US$522,091 Million in 2017. According to the Turkish Defence and Aerospace Industry 2018 Performance Report, the Turkish Land Platforms Sector has realized a total of US$540,6 Million in exports of which US$528 Million went to Other Countries, US$12 Million to Europe and US$ 0,6 Million in exports to the U.S. According to SASAD data the Turkish Land Platforms Sector has realized a total of US$739 Million in imports of which US$447 Million came from Europe, US$ 180 Million came from the U.S. and US$112 Million came from the Other Countries. The backbone of the Turkish land platforms sector is formed by private companies such as Otokar, BMC, Hema Industries and Nurol Makina, as well as FNSS (a joint venture company between Nurol Group of Turkey (51%) and BAE Systems (49%)), which also undertakes the lion's share in turnover and exports. Military factories operated by the Turkish Land Forces, such as 1st Main Maintenance Centre in Adapazari and the 2nd Main Maintenance Centre Command in Kayseri, are mainly taking a role in Main Battle Tank Modernisation projects such as the Leopard 2NG, Leopard 1T and M60T programs, and providing maintenance services for the tracked and wheeled vehicles in the service of the Turkish Land Forces (TLF).

The M48A5 Tank Modernization program, conducted in the TLFC Tank Plant in Kayseri, modernized over 2,100 M48 tanks by adding a 105mm gun, diesel engine, and other improvements. In addition, 760 of the tanks were further upgraded by providing add-on stabilization, a thermal site, laser range finder, and solid state computer. Of particular note is that 61 percent of the spare parts were supplied by the local market and 24 percent were manufactured on site at the depot. The depot also provided on the job training for apprentices from a local vocational school, adding an additional benefit to the community.

The Armored Combat Vehicles program was SSM’s first major co-production project. FMC, a US corporation, entered into a joint venture with Nurol of Turkey to co-produce 1,698 Armored Combat Vehicles (ACV) of various configurations in Turkey based on an FMC design. Other US companies directly or indirectly supplied parts and equipment in support of the program: Texas Instruments had a contract through ASELAN to produce the optical sights; Alison Transmission and Detroit Diesel are building the power plant; and Cadillac Gage the cupola.

The global military land vehicles market is undergoing a transition. The impact of the 2008 economic downturn on defense expenditure in traditional markets was no surprise. Many countries have been forced to curtail their defense spending and, as a result, vehicle programs in the West are being delayed or facing reduction in procurement numbers. Countries are now focusing on having a lean and agile force that enables rapid deployment.

Turkish defense companies are prominent in the manufacture of wheeled and tracked armored vehicles, and are seeking new businesses that will double their current export figures, with the Middle East, Far East, Africa and Central Asia identified as privileged markets for locally produced armored vehicles. The land platforms sector is the most successful in the Turkish defense market in terms of exports. Realising 12% of the turnover and 19% of the total defense exports in 2010. Turkey traditionally looked to domestic suppliers to meet TAF’s land platforms requirements, enabling the sector to develop a comprehensive range of products that includes tactical wheeled vehicles (4×4, 6×6 and 6×4), tactical wheeled armored vehicles (4×4, 6×6 and 8×8), armored reconnaissance vehicles (tracked and wheeled), armored internal security vehicles, mine-protected vehicles, a mobile floating assault bridge, riot control vehicles, an amphibious armored combat earthmover, armored combat vehicles and the ALTAY Main Battle Tank (MBT), as well as modernisation and upgrade solutions for APCs, ACVs and MBTs.

The total value of the export contracts secured by leading companies FNSS and Otokar during the last 6 months of 2010 were valued at around US$ 1 billion, including a US$324 million M113 modernisation contract (to upgrade aging M113 vehicles into the M113A4/ACV350 APC configuration) signed between FNSS and Saudi Arabia in November 2010, and a US$600 million contract signed on February 22, 2011 between FNSS and DEFTECH of Malaysia at the FNSS facilities in Ankara for the design, development, production and logistical support of 257 wheeled armored combat vehicles, to be based on the PARS 8×8 configuration, for the Malaysian Land Forces.

Otokar, on the other hand, received a US$10.6 million contract from an undisclosed Gulf country in December 2010 for the delivery of an undisclosed number of ARMA 6×6 tactical armored vehicles, to be armed with a 20mm cannon. Otokar also finalised its export sale negotiations with Azerbaijan in December and signed a US$30 million contract for the delivery of an undisclosed number of Cobra 4×4 wheeled armored vehicles in four different configurations, includingWeapon Platform Vehicles, 4×4 Armoured Patrol Vehicles (APV) in ambulance and personnel carrier configurations and tactical vehicles in various configurations, including field workshop vehicles.

The HST Otomotiv Imalat Sanayi Ve Ticaret A.S. factory was founded in 1974 and it is located 55 kilometers from Ankara on Ankara-Polatli highway and covers an indoor area of 70.000 square meters on a land of 310.000 square meters. It started production of complete transmissions, differentials and their gears and shafts in 1980, under Eaton license. The factory has produced more than 400.000 complete gearboxes and differentials for trucks, minibus and buses, millions of different type of gears, shafts and gear systems for agricultural and construction machinery, thousands of automatic cross drive transmissions and heavy duty engines for tracked vehicles to date. HST is the biggest and leader manufacturer with its 500 employees and above 50 million USD turnover in gear production in Turkey. The factory exports its products to USA, UK, Spain, Ireland, France, Italy, Belgium, Brazil, Pakistan, India and Israel since its foundation.

Since the critical components of the land platforms, either tracked or wheeled, such as ballistic armor, diesel engines and transmissions are procured from foreign sources (imported) the local content rate on indigenous military land platforms usually stay at around 55% (could increase to 65% with the use of indigenous turret systems) level. But critical progress has been achieved within the scope of the development of an indigenous power pack and armor steel. For instance, the 560hp diesel engine manufactured by Tümosan will be used in the SPTWAV (Special Purpose Tactical Wheeled Armored Vehicles) to be produced by FNSS. Tümosan is also developing an indigenous automatic transmission with 6 forward gears to couple with its 560hp, 6-cylinders diesel engine.

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Page last modified: 30-06-2021 12:05:57 ZULU