Otokar's Outstanding Achievement in the Uae The

AN INTERVIEW WITH MR. SERDAR DEMİREL – DEPUTY UNDERSECRETARY FOR DEFENSE INDUSTRIES

VOLUME 11 ISSUE 73 YEAR 2017 ISSN 1306 5998

THE NEXT BIG THING: HAVELSAN’S SIMULATORS ARE ATTRACTING THE WORLD’S ATTENTION SSM RELEASES 2016 ANNUAL ACTIVITY REPORT OTOKAR’S OUTSTANDING ACHIEVEMENT IN THE UAE STM CYBER FUSION CENTER INTERCEPTING CYBER THREATS TURKISH DEFENSE POWERHOUSES FNSS AND SSM TEAM UP FOR LOCAL DESIGN AND PRODUCTION TO ZAHA PROGRAM

VOLUME: 11 ISSUE: 73 YEAR: 2017

ISSN 1306 5998 Publisher Hatice Ayşe Akalın Publisher & Editor in Chief 6 Ayşe EVERS a.akalin@defence-turkey.com Managing Editor Cem AKALIN [email protected] Administrative Coordinator Yeşim BİLGİNOĞLU YÖRÜK [email protected] International Relations Director Şebnem AKALIN [email protected] SME’s Advertisement Director Yasemin BOLAT YILDIZ [email protected] 26 Translation Tanyel AKMAN [email protected] Editing Mona YÜKSELTÜRK Robert EVERS Graphics & Design Gülsemin BOLAT Görkem ELMAS [email protected] Photographer Sinan Niyazi KUTSAL Advisory Board (R) Major General Fahir ALTAN (R) Navy Captain Zafer BETONER 42 Prof Dr. Nafiz ALEMDAROĞLU Cem KOÇ Asst. Prof. Dr. Altan ÖZKİL Kaya YAZGAN Philipp REUTER Ali KALIPÇI Zeynep KAREL İMGE Co. Sancak Mah. 596 Sok. 59/7 Çankaya Ankara / Turkey DEFENCE TURKEY Administrative Office Sancak Mah. 596 Sok. 59/7 Çankaya Ankara / Turkey Tel: +90 (312) 447 1320 51 [email protected] www.defenceturkey.com Printing Görsel Grup Basim Tanitim Tasarim Matbaacilik Kağ.Kirt.San.İç Ve Diş Ti̇ c. Ltd.Şti İstanbul Caddesi̇ İstanbul Çarşisi Kat: 2 No : 48 / 64 İski̇ tler - Ankara Tel: 0 312 256 11 88 Fax: 0 312 256 18 88 [email protected] www.gorselbasim.com Basım Tarihi Şubat - Mart 2017 Yayın Türü Süreli İMGE Co. © All rights reserved. 58 No part of publication may be reproduced by any means without written permission. ISSUE 73/2017 3 DEFENCE TURKEY

6 Resolute Commitment with a Common Purpose - 72 STM Published Cyber Threat Report Promoting Turkey’s National Interest with Long Term and Strategic Defense Industry Plans 73 II 26 SSM Releases 2016 Annual Activity Report Turkish Land Forces Inventory Fortified with Cobra- 74 Defense Industry Teknokent Companies Coalesce at 32 Otokar’s World-Class Status Reinforced with ‘Al the TSSK 4th Project Market Jasoor’ - The Gulf Region’s RABDAN 8x8 – A Colossal Deal Brimming with New Market Opportunities 78 Turkish Industry Determined to Stay Competitive OSSA 4th Ordinary General Assembly Convened 36 2016 TOBB Defense Industry Council Assembly Meeting Convened in Ankara 81 Havelsan Develops Unique Products in Cyber Security 42 The Next Big Thing: Havelsan’s Simulators are Attracting the World’s Attention 82 Change Itself is an Opportunity to Bring new Actors together – An Interview with ATC’s President Howard 51 STM Cyber Fusion Center Intercepting Cyber Beasey Threats 85 Harp ArGe Electromagnetic Anti-Drone System 53 Turkish Defense Powerhouses FNSS and SSM Team up for Local Design and Production to ZAHA Program Exported86 New Chairman to Azerbaijan on Aselsan Board of Directors 54 Meteksan Defense Surfacing on the Global Stage with its Damage Control Simulator – Securing a Sale to 86 Havelsan Ordinary General Meeting Concluded the Republic of Korea Navy 87 A New Chairman of the TAI Board of Directors and 55 High Tech Mast Systems Set for Mass Production in New Members Appointed 2017 87 Changing of Hands - Selex ES Turkey Changes 56 Austal -The Australian Shipbuilder with a Proud Management History of Success in Turkey, Positioned for Future Opportunities 87 Companies Submarine Rescue Ship MOSHIP TCG “Alemdar” New Appointment to AYESAŞ and Vestel Defense 58 CTech Introducing its Products and Technologies at Delivered to Turkish Navy 88 Winter Drill 2017 Turboshaft Engine Development Project Contract 60 TAI Awarded Invention Award at the Istanbul Signed Between TEI and SSM 88 International Invention Fair BAE Systems Signs Heads of Agreement for a Future 60 Teknopark Istanbul - The 3rd Golden Cube Award Contract with TAI for TF-X Program 89 Ceremony 61 Nurol Makina’s First Export to North Africa – 89 Ares Shipyard Stride Out in Maritime Industry Markets 90 12th Round of Pakistan-Turkey High Level Military Successful Ejder Yalçın Vehicle Gains Attention in New Dialogue Group Meeting Held in Pakistan 61 Splendid Match worth Millions - TAI and Sikorsky Aircraft 90 Lockheed Martin Introduces Paragon Direct Attack Munition 62 Inauguration of Shooting Range and Test Center 91 Ambitions Soar as Young Ladies from Area High 63 Schools Participate in TEI’s Women of Aviation Tasks The Countdown for Hürkuş-C to Begin Combatant Worldwide Week 64 IDEX 2017 – Dominant Middle East Defense Fair 92 Rolls-Royce Announces Investment in Research & 65 Otokar is now Closer to its Users in the Gulf Region Development for Ship Intelligence 66 93 Lockheed Martin to Deliver World Record-Setting 60kW Laser to U.S. Army 66 SarsılmazAselsan and Ramp STM Up - Contract MPT-76 InkedModern for Infantry an Electronic Rifle Warfare System 93 Raytheon Awarded Contract to Provide the Qatar with Early Warning Radar System 66 Two More Successful Deliveries to Qatar MoI 94 Honeywell Forecasts 3,900 to 4,400 Global 67 Sikorsky Transfers S-70i Helicopter to Aselsan for Helicopter Deliveries Over Next Five Years Turkish Utility Helicopter Program Development 95 F-35 Successfully Conducts First Firings of MBDA’s 68 ASRAAM Physical Security System Project at the Turkey – Syria BorderSignificant Progress Achieved in the Emergency 96 69 Full Steam Ahead – “Korkut” Serial Production 96 SpaceDataHighway to Reach Asia-Pacific Commences the new Aermacchi M-345 Leonardo-Finmeccanica: Successful first Flight for 70 Power Pack Development Contract Terminated

ISSUE 73/2017 5

TF-X Program Gaining Momentum Ayşe Evers Publisher & Editor in Chief

The final decision on selecting a partner was reached within the context of the TF-X program and the contract was signed with BAE Systems. The project setup was built on the philosophy of developing the TF-X aircraft by utilizing BAE’s existing technologies (Background IP) as well and through the collaborative activities of BAE and Turkish engineers based on the domestic joint responsibilities principle. In accordance with the project model, a design organization will be established within TAI’s premises and BAE will conduct the leadership of certain design groups and TAI will be the leader of some other groups. G2G level negotiations between Turkey and the UK played an important role. In this way, the establishment of cooperation at a strategic level through the Exchange of Letters method between both countries at the Defense Ministry level was planned in order to facilitate project activities throughout the project; priorities such as obtaining export licenses and accelerating technology sharing and the obtaining of export licenses. Thus, the risks that may arise as part of the project will be minimized with the support provided by the British governmental authorities and at the same time the infrastructure and facilities. Engine selection is an issue for the next phase. It is stated that regarding the selection of the off-the-shelf engines and indigenous engines, Turkey requires a hybrid solution and many existing off-the-shelf products are not fully capable of ensuring the performance that Turkey desires. It is mentioned that the solution will be jointly developed by Turkish industry and the engine company then it will be submitted to the Undersecretariat for Defense Industries for approval. Within the concept of the TF-X program a significant number of human resources will be required for the following phases. In this respect, with the launch of the project’s design stage, numerous engineers from BAE Systems who are experienced in the design of fighter jets will be coming to Ankara and collaborating with the experienced engineers at TAI. Within the framework of our cooperation with BAE Systems, providing “on the job training” to Turkish engineers is planned as well. In this context, with the launch of the project, numerous TAI engineers will be simultaneously assigned at the facilities of BAE Systems (without being limited only to T-FX) for on the job training purposes and will be performing tasks and gaining experience there. Within the scope of this project, studies are being carried out on determining which requirements would be covered by the available sub systems or off-the-shelf commercial products by projections on technologies which are to be utilized in the 2030s. The in-depth analysis will be made within this context regarding which technologies should be adopted indigenously as Turkey’s main objective is to put forth an Indigenous Fighter Jet designed fully in accordance with the requirements of the Turkish Air Forces.

Enjoy this issue.. DEFENCE TURKEY 6 ISSUE 73/2017

Resolute Commitment with a Common Purpose - Promoting Turkey’s National Interest with Long Term and Strategic Defense Industry Plans

In this exclusive interview, Deputy Undersecretary for Defense Industries Mr. Serdar Demirel shares in

Defence Turkey: Mr. Serdar Demirel first of all we would like to thank you for your time. There have been some changes in the responsibilities and organizational structure of the Deputy Undersecretary for Defense Industries in the recent period. Within this context, could you please inform us on the new structure? Due to the accelerated work pace and increased responsibilities of the Undersecretariat for Defense Industries within the previous year, making several changes became inevitable. The fifth Deputy Undersecretary was appointed © Defence Turkey last summer in order to balance the workload between the Deputy Eagle aircrafts (the initial deliveries of the Command Control Aircrafts Undersecretaries. Within this context, which were made before 2016) were Logistical Support Project, and the Land Platforms Department and accomplished within 2016. Electronic Warfare, Test and Department of Helicopters, where I Within the scope of the auxiliary Training Field (EHTES) Logistical was assigned previously as a Deputy ships program executed by our Support Project were signed Undersecretary separated and Undersecretariat in line with the by the Department of Logistics Deputy Undersecretariat incorporate requirement of the Naval Forces under the auspices of our Deputy in the Department of Unmanned and Command and as part of the Undersecretariat. Presently the Smart Systems and Department of Submarine Rescue Mother Ship activities regarding the Long Horizon Logistics. In this way, our Deputy Project (MOSHIP), the test activities Logistical Support Project, Coast Undersecretariat now collaborates were completed and as you know Guard Boats’ Stabilized Machine mostly with the Air and Naval Forces the vessel’s acceptance was Gun Platform (STAMP) Systems and Coast Guard Commands and the made on 28 January 2017 with a Logistical Support Project, Project for Departments of Land Platforms and commissioning under the name Acquiring Depot Level Maintenance Helicopters which used to generally ‘TCG Alemdar’. Capability for the PT6 Series cooperate with the Land Forces and In addition, within 2016, as part Engines, Project for Acquiring the Gendarmerie General Command are of the New Type Patrol Boat Project, Depot Level Maintenance Capability now under the auspices of another the Final Delivery of the 16th Boat for the Airborne Early Warning and Deputy Undersecretariat. (the last boat) was completed. Control Aircraft, Kornet-E Anti- Defence Turkey: The Within the scope of the 25–Tons tank Weapon System Logistical Departments of Fixed-Wing Coast Guard Boat Project, the initial Support Project, 2nd Lot Tactical Platforms, Naval Platforms, and acceptance of the 17th Boat (last UAV (MALE) Direct Procurement Unmanned-Smart Systems and boat) was accomplished and the Program–GÖZCÜ Logistical Support Logistics are executing critical Final Acceptance of the 13th – 16th Project, New Generation Basic system and platform projects Boats were accomplished. Finally, Trainer Aircraft Hürkuş-B Logistical under your responsibility. In this within the framework of the SAR 33 Support Project, Bora Logistical regard, could you please evaluate Boat’s Modernization Project, the Support Project, Emergency the latest status of the product- Final Acceptance of all boats (five Manned Reconnaissance Aircraft platform deliveries, programs in boats in total) were completed. Logistical Support Project are being the serial production stage and the The Unmanned Air Vehicle conducted. development programs conducted systems developed as part of the As the expert in the areas of in 2016? Bayraktar TB2 Tactical Unmanned effective life cycle and logistics Within the scope of the Erciyes Air Vehicle Development Project management, our Department of Project, in which the avionic were initially delivered to the Land Logistics is providing the necessary systems of the C-130 aircrafts in the Forces Command and in 2016 support to the Turkish Main Battle Air Forces Command’s inventory they were delivered to the Security Tank (Altay) Project, Indigenous were modernized, the tests on General Directorate. Helicopter Development Project, one prototype were successfully The acceptance tests of the KARAOK Short Range man portable completed and its delivery was unmanned air vehicle system in Anti-Tank Missile Project, Anti-Tank accomplished in December operative class ANKA developed Vehicle (STA) Project, AKYA Project 2016. Upon the completion of within the scope of the Indigenous phase-2 and Early Warning and © Defence Turkey the prototype stage, the serial Turkish Unmanned Air Vehicle Radar Systems Phase-1 Projects. modernization activities of the (MALE-Class) Development Project Defence Turkey: Which aircrafts were initiated. Moreover, was also completed successfully. system and product deliveries the final deliveries of the Peace The contracts regarding are planned for 2017 by the DEFENCE TURKEY 8 ISSUE 73/2017

Departments of Fixed-Wing, Naval to designing its own frigate. Development activities and Platforms, Smart and Unmanned The deliveries of 2 vessels as deliveries are progressing for Systems operating under your part of the Landing Ship Tank (LST) diversified requirements of the responsibility? Also, in which - Amphibious Ship Project, the first Turkish Armed Forces for the smaller areas will new procurements and of the 2 ships as part of the Logistical class of UAV programs. new projects be initiated? Support Ship Project are expected Defence Turkey: You always We plan to realize 2 deliveries in to be delivered to the Naval Forces mention that life cycle costs and 2017 as part of the A400M program. Command in 2017. As part of the management should be more The activities for the acceptance 25-Ton Coast Guard Boat Project, effectively implemented in the tests of the first delivery are about the Final Acceptance of the 17th defense systems programs, at to be launched. Moreover, within Boat (the last one) is planned to be the same time claiming that the the scope of the Erciyes Project completed in March. Performance Based Logistics the serial modernization of the Within the scope of the Rescue applications should become more aircrafts and their delivery to the Air and Towing Vessel Project (KURYED) widespread. To this end, within the Forces Command are planned to be being carried out for the Naval preparatory stage, which type of initiated. Forces Command and the Seismic a model is in discussion to guide, On the other hand, I am delighted Research Vessel Project for fulfilling support and encourage the sector to announce to Defence Turkey the requirements of the General in line with the Logistics Road readers that the first armed test Directorate of Mineral Research and Map? Could you please share the flights and launching test of the Exploration, the Harbor and Sea current status with us; its pros prototype of Hürkuş-C, which is Acceptance Tests of the vessels are and cons as well as the ideal the Hürkuş Training Aircraft’s armed ongoing. In this context, delivery of structure? close air support configuration, will the 2 vessels as part of KURYED As the Undersecretariat, our be initiated in April. and Seismic Research Vessel to main approach regarding logistics As you may recall from previous the Naval Forces are expected to is maintaining the support of the years, Baykar TB2 Unmanned Air be commissioned in the first half weapon system in the inventory Vehicle’s entry into the inventory, of 2017. Additionally, we aim to through effective and optimum cost in pursuit of its armed version was finalize the evaluations of the bidding and integrating this into the design rapidly designed, integrated and put regarding the Research Vessel and of the weapon system, thus enabling into service. Based on this, I would Fleet Replenishment Ship Project in the user’s focus on its primary like to underline that the design of 2017 and submit them to the Defense tasks. To this end, we attach great new weapon systems and their entry Industry Executive Committee. The importance to the identification of into inventory require great effort deliveries in respect to the Bayraktar the logistical supportability criteria and patience. Then again, following TB2 Tactical UAV (Pist) Development even from the design stage in order the launch of the first product and Project will proceed throughout the to provide input to the design. As the acquisition of the capability, the year as well. commonly known, the principle of derived products can be rapidly Within the scope of the Mini Performance Based Logistics (PDL) designed and manufactured. In this UAV Project, which is one of our first is to enhance the reliability of the context, I expect that we will see novel unmanned air vehicle systems, system by committing to the user many new and improved products previously entered into the inventory a certain level of combat readiness based on the capabilities acquired of the Land Forces Command and of the weapon system. At this very through the Altay Main Battle Tank new deliveries are planned to be point, we are exerting efforts toward and Indigenous Helicopter programs. accomplished within 2017. the development of the ‘indigenous In respect to MILGEM Corvette, quite Within the scope of the ANKA product support strategies’ some time has passed since the first serial production projects, based which are capable of utilizing the delivery but with the involvement of on the capabilities gained through manufacturer’s knowledge of the the private shipyards in the process the Indigenous Turkish Unmanned system, comprising of the PDL I am confident that soon we will be Air Vehicle (MALE) Development approach as well as the existing able to announce achievements in Project, the air vehicles equipped facilities and capabilities in the export activities. However, it is an with various payloads and the related military factories and our shipyards. undeniable fact that the experience ground systems will be delivered Surely, our Undersecretariat’s role gained in maritime fields are utilized within 2017. here mostly consists of the inclusion ISSUE 73/2017 9 DEFENCE TURKEY DEFENCE TURKEY 10 ISSUE 73/2017

of the system’s supportability to its design and the development of © Defence Turkey contract models in which the system designers / manufacturers will also be in charge of the logistical support of the system. While developing product support strategies, we aim to build a close coordination between the industry, procurement authority and end users, and set up models that analyze feedback from application in the field, breakdown or error frequencies and any other types of data analyses within this process. Consequently, our Undersecretariat works in close collaboration with both the industry and end users as well as the research institutions and is continuing ‘original product support strategies’ Models, either implemented or preparations for the Life Cycle and we are striving to utilize a planned to be implemented, by our Management Conference which logistical support approach designed Undersecretariat are as follows: is planned to be held this May and to combine the capacities of the ›› Industry’s planning towards the which all the related shareholders will public and private sectors allowing supportability of products after the attend. The most important output all the stakeholders to focus on guarantee period and being active in of this Conference is to establish a their own capabilities to achieve the area of logistical support, rather Life Cycle Management Platform in performance targets identified in line than just focusing on the production which all shareholders will participate with a long term product support and delivery, and execute workshops in certain strategy encompassing all phases ›› Regarding the development areas and thus create a working of the project life cycle. projects, transfer of the procurement environment for the activities of The main objective of the authority’s criteria to design in a way this platform and joint actions of Logistical Support Models, also that includes the supportability criteria the shareholders in line with the bearing in mind today’s operations, and building the optimal model by determined targets. I believe that is to provide the availability of the benefiting from the experiences the participation in this conference products and systems in a cost- acquired through similar projects, and platform will be useful in respect effective manner and in line with the ›› Maintaining long term relations to reaching a better understanding performance criteria. PDL’s main -bearing in mind their effect on the of our Undersecretariat’s logistical objective is to maintain readiness. costs- with the subcontractors within support approach and for the Undoubtedly, our companies the supply chain, exchange of ideas with the are expected to establish effective ›› Maintaining the coordination between shareholders directly related with the supply chains, and while developing the manufacturer and the system subject. The essential outcome of the product support strategies, it after the guarantee period, making Conference and the Platform is the is necessary to establish close long term logistical support contracts adoption of decisions concerning the coordination with the industry, the that will enable the execution of the implementation and their realization requirements of authorities and maintenance of the systems in an by all relevant shareholders, our the end users, analyzing data such affordable manner with the desired Undersecretariat being first and as the frequency of failures as well level of performance, foremost. as other valuable feedback and ›› Of course, finally, our companies need Defence Turkey: The information from the field. Within to take an active role in the field of Performance Based Logistics this process will focus on activities logistic support, by taking into account issue has been on the agenda of for developing new technology and the achievements attained thus far, in the Undersecretariat for a long new capabilities. order to further the sustainability of while and we know it is being Defense companies in United our defense industry. implemented in certain successful States, UK and similar countries Defence Turkey: Could you pilot studies under your guidance. don’t position themselves as please inform us on the recent Taking into account worldwide merely system manufacturers, status of the ongoing Hürkuş-B best practices, with the increasing these corporations are eager to be serial production program, A400M popularity of this model, which involved in the logistical support program, retrofit activities of the contributions will it provide to the service required by the system as Peace Eagle Aircrafts, Avionic Turkish Defense Industry together well. Modernization of the C-130E/B with the sub-industry, SMEs, Main Amongst our primary goals within (Erciyes) and Meltem-3 programs Contractors and all supply chains? the scope of the PDL approach and conducted by your Deputy Performance Based Logistics other effective Logistical Support Undersecretariat? (PDL) can be defined as the use of ISSUE 73/2017 11 DEFENCE TURKEY DEFENCE TURKEY 12 ISSUE 73/2017

As known, the serial production activities of the A400M Transportation Aircraft are proceeding. In respect to the Peace Eagle Project, the delivery of the Airborne Early Warning and Control Aircrafts were accomplished and currently our aircrafts are effectively performing their tasks. Within the scope of the Erciyes Project, comprising the upgrade of the avionic systems of our C-130 aircrafts, as I mentioned previously, the prototype development phase has already been completed and modernization activities of the that was signed on 28 January 2017. aircrafts are ongoing. of the contract signed with BAE The parties agreed on conducting As part of the Meltem-3 Maritime Systems, on the business model of the following contract negotiations Patrol Aircraft with Sea Surveillance TAI and BAE Systems companies within the framework of the articles Capability Project, the structural and the structure to be built? of this agreement. It seems that modifications of the first aircraft and When establishing the project the two parties will soon agree ground tests were accomplished at model, our 5th Generation Aircraft upon the entire terms concerning TAI’s facilities and it was dispatched Technologic Readiness Level, the cooperation agreement. With to Torino/Italy in July 2016 for the qualified labor forces, projected the signing of the Cooperation certification tests. The project schedule, Test and Measurement, Agreement, BAE Systems will be activities are proceeding. Production and Infrastructure assigned as the YIF within the TF-X Within the scope of the Hürkuş Requirements, etc. and the output Project. Project, initiated in 2006 by our capacity required for this type of The project setup was built on the Undersecretariat for fulfilling the system’s cost-efficient inclusion philosophy of developing the TF-X requirements of the Turkish Armed in the inventory were evaluated. aircraft by utilizing the YIF’s existing Forces, the maiden flight was As a result of the analysis, the technologies (Background IP) as accomplished in August 2013 and human resources and cost for the well and through the collaborative the final phase of the project, The development of the aforementioned activities of the YIF and Turkish Type Certificate was granted to the complex system were taken into engineers based on the domestic Hürkuş-A Trainer Aircraft in July consideration and it was concluded joint responsibilities principle. 2016 by the European Civil Aviation that the project would not be cost- In accordance with the project Authority (EASA). In respect to the effective if it considered only the model, a design organization will be New Generation Trainer Aircraft requirements of Turkey. established within TAI’s premises and (Hürkuş-B) Project, launched in In this context, the needed the YIF will conduct the leadership December 2013 for comprising to collaborate with a Foreign of certain design groups and TAI will Turkish Air Forces Command’s Cooperation Partner (YIF) that has be the leader of some other groups. requirements for 15 new generation combatant fighter design experience We plan for the participation of trainer aircrafts, the structural and which can readily access new employees of both companies to all integration of 5 aircrafts was alternative export markets. Various be a part of all design groups, a joint accomplished and the assembly of companies submitted bids to the approach regarding project activities, the 6th aircraft is underway as part tender launched for the selection within the framework of collaboration of mass production. According to the of the YIF and upon review of the to accomplish a successful design program schedule, the maiden flight evaluations, BAE Systems was process. is scheduled for December 2017. selected as the preliminary YIF On the other hand, we initiated The first delivery is expected to be candidate. intergovernmental negotiations completed in June 2018 and the final Immediately afterwards, the between the Turkish and British delivery will be accomplished, a year activities known as the “Pre-Contract Government. In this way, the later, in June 2019. Study” (PCS) were conducted with establishment of cooperation at a Defence Turkey: Mr. Demirel, BAE Systems and in addition to strategic level through the Exchange the final decision on selecting a contract negotiations, joint activities of Letters method between both partner was reached within the concerning engine selection, countries at the Defense Ministry context of the TF-X program and review of the conceptual design, level was planned in order to facilitate the contract was signed with the infrastructures, etc. were carried out project activities throughout the British company BAE Systems. with joint working groups. As a result project; priorities such as obtaining In this respect, previously the of these studies, the main principles export licenses and accelerating main contractor contract for the in relation to the cooperation to be technology sharing and the obtaining preliminary design phase was built between TAI and BAE Systems of export licenses. Thus, the risks signed with TAI in August. Could companies were identified through that may arise as part of the project you please inform us on the details the “Heads of Agreement” document ISSUE 73/2017 13 DEFENCE TURKEY DEFENCE TURKEY 14 ISSUE 73/2017

will be minimized with the support engine’s performance to the desired domestic resources and through provided by the British governmental level by using the development ‘reverse brain drain.’ authorities and at the same time the margins of the selected engine and Within the framework of our infrastructure and facilities owned executing serial manufacturing with cooperation with BAE Systems, by the British government will be this engine. providing “on the job training” to available for our utilization. ›› Long Term: Designing more improved Turkish engineers is planned as well. Defence Turkey: Within the engines compatible with the In this context, with the launch of scope of the TF-X program, the interface and sizes with the serial the project, numerous TAI engineers decision was made for the twin- production engines and conducting will be simultaneously assigned engine platform design. Apart from improvements with these new at the facilities of BAE Systems the design solution and platform engines in the half-life modernization (without being limited only to T-FX) performance, to what extent of the aircrafts. for on the job training purposes will the model’s availability for Surely, as I emphasized and will be performing tasks and improvement, cost components previously, these are my own gaining experience there. These and technological gains be in intellectual assumptions. The setup staff will be returning to TAI in the contributing to the development of the project may be different than following phases of the project and of an indigenous engine? What my projection. The original solutions the experiences they gained will be are your comments? for this issue, which may be different utilized in the project. As you also recognize, there from the forecast, are developed Moreover, within the scope of are numerous key factors such as by a business model and related the Exchange of Letters which will technical, financial and strategic cost-effectiveness and analysis are be realized between the Turkish ones, that have an impact on the presented to the Undersecretariat. and British Government, a benefit selection of the company. We are Defence Turkey: A significant is anticipated from the graduate evaluating alternative solutions number of human resources and post graduate programs at the by taking these aspects into will be required for the following British Universities. The technology consideration. To me, the most phases of the TF-X program. To transfer gained through this process, important criteria is the added value this end, what will be the plan the convenience provided by the they will be contributing to the fruitful for creating a team composed itinerary and the technological accomplishment of all these plans of internationally experienced, cooperation between the two and the TF-X program which we seasoned lead engineers, countries within the context of this expect to become the locomotive administrative and technical staff project are planned to be increased of our defense industry in respect to with technical know-how and to the highest level. aviation. experience who will be able to In addition to the fighter jet Regarding the selection of the devote themselves to the project? design, this project requires the off-the-shelf engines and indigenous At this stage, what kind of a role development of various advanced engines, we actually require a hybrid will the Undersecretariat be technology sub-systems. The solution. As you may also appreciate, playing as well as which roles will readiness of similar regulations is the design of a complex platform TAI and BAE Systems have as the planned to be conducted by our such as that of a fighter jet is already main contractors? related companies and if necessary a very challenging task. Conducting As a result of the activities the Joint venture company they will this design for a “tailor made engine”, conducted throughout both the be interoperable with as well as the features and behaviors of which conceptual design of the project between the governments. are not finalized, makes the process and the pre-contractual activities Defence Turkey: BAE Systems even more complicated. On the other executed with the BAE Systems, is a capable of developing and hand, when we analyze the features a need for human resources with manufacturing the Eurofighter of the aircraft that we plan to design, both quality and quantity aspects and the company has significant we come across a different picture; emerged. In order to fulfill this experience in this area. Regarding many existing off-the-shelf products requirement, studies are being the design phase of the program, are not fully capable of ensuring the conducted regarding domestic and is there any solution model on the performance that we desire. Without international human resources for table containing the utilization of a doubt, the solution will be jointly this type of project, meanwhile the off-the-shelf subsystems formerly developed by our industry and the know-how and experience of the utilized in the Eurofighter, and the company that we cooperate with staff already employed at the project critical technologies such as AESA and then it will be submitted to are being enhanced through training. Radar, EW system, communication the Undersecretariat for Defense In this respect, with the launch of system and indigenous weapon Industries for approval. the project’s design stage, numerous integration, etc. that would be Then again, if we are to make an engineers of BAE Systems who are developed by Turkey, and hence intellectual estimation, I think there experienced in the design of fighter Turkey would only focus on critical may be a three-staged plan which is jets will be coming to Ankara and technologies? as follows: collaborating with our experienced Undoubtedly, one of the most ›› Short Term: Initiating the design engineers at TAI. On the other hand, prominent contributions to the TF-X activities by selecting an existing we received unconfirmed news that provided by BAE Systems would engine. TAI will be pursuing a concentrated be the company’s know-how and ›› Medium Term: Increasing the selected “brain hunt” process from the competency in the development of ISSUE 73/2017 15 DEFENCE TURKEY DEFENCE TURKEY 16 ISSUE 73/2017

fighter jets and related sub systems. Within the scope of this project, © Defence Turkey our studies are being carried out on determining which requirements would be covered by the available subsystems or off-the-shelf commercial products by projections on technologies which are to be utilized in 2030s. The in-depth analysis will be made within this context regarding which technologies should be adopted indigenously; the export restrictions that may emerge, risks, cooperation opportunities, technological readiness level and capabilities of our country’s defense industry and decisions on procurement or development will be made accordingly. The model you mentioned is not Under the current situation, United States and partner actually the model we projected. resolution on the procurement countries including Turkey were Our main objective is to put forth an consisting of 2020, 2021 and 2022 complaining about the unit price Indigenous Fighter Jet designed fully delivery terms, which was named of the aircrafts for a long while. in accordance with the requirements the “Block Buy” was made at The reduction of unit price has a of the Turkish Air Forces, instead of the Defense Industry Executive close link with the learning curves manufacturing a domestic improved Committee’s meeting on 28 October in addition to the increase in the version of an already existing 2016. With the adopted committee amount of orders and ramp-up of Combat Aircraft. Within this frame, decisions, the number of aircrafts production. Thanks to this approach, the off-the-shelf systems that are decided upon for procurement within referred to as the “Block Buy” by the considered compatible with our the scope of the project reached up JSF Program Office, a considerable combat aircraft and that do not to 30 Aircrafts. amount of increase in aircraft create foreign dependency regarding Our first two aircrafts, to be orders is expected, in addition to the required sub systems may be received in 2018, will be dispatched a reduction in costs. Currently the utilized either directly or with minor to Luke Air Base for Pilot Training. amount of savings achieved with modifications. Still, in cases where The United States will hand over the Block Buy are surveyed by the indigenous design is essential, most the first two aircraft to Turkey within Program Office, yet the decreasing certainly we would work on the 2019. costs were, actually, the figures we similar development models with our The activities concerning projected with our partners through defense industry companies. the integration of the indigenous analysis and scheduled cost at the Defence Turkey: Could you munitions, which we consider onset of the program. As a matter please inform us on the number important such as the SOM-J of fact, the aircraft procurement of orders Turkey has given so far and HGK to the F-35 platform, are projections were made based on within the scope of the F-35 JSF continuing. If the program schedule these assumptions as well. program, the delivery schedule proceeds on track, we will be enable Furthermore, we are pleased of these orders and on block to launch both munitions from our to see that the ambitious price configurations? Additionally, what aircrafts in 2022. reduction predictions, that we made kind of a schedule do we have Defence Turkey: As the partner years ago, have come to pass. We ahead concerning the integration country, Turkey has a commitment are a program management success of the unique munitions such as of 100 orders within the framework story, an achievement by the 9 the Stand-off Missile (SOM-J) and of the JSF program. The unit cost program partner countries. Guidance Kit (HGK) to the F-35s trend is expected to decline with Defence Turkey: Mr. Demirel, that will be included in the Turkish the gathering of bulk orders given what would you like to say Air Forces’ inventory and their particularly by partner countries regarding the financial volume of certification? in the upcoming period. Most the programs conducted by the At the Defense Industry Executive recently, in February, Lockheed Naval Platforms Department as of Committee’s (SSIK) meeting held Martin went through a serious 2016? For a while, especially due on 06 May 2014, a resolution for overhaul with US orders, and to the slump in oil prices in the putting orders for the first two F-35A for the first time the F-35’s unit world conjuncture in the Military JSF was made and then on SSIK’s price went below $ 100 million. Vessel Construction sector, there meeting on 07 January 2015 an order In this context, how will these is an economic contraction and for additional 4 JSF was decided developments impact Turkey’s the share is shrinking. Assessing upon. The first F-35 JSFs with Block- orders and the requested the current status and the future 3F configuration are planned to be configurations in the near future? of the Local Military Vessels taken over in 2018. ISSUE 73/2017 17 DEFENCE TURKEY DEFENCE TURKEY 18 ISSUE 73/2017

programs together, how do you we cater to all surface military Construction Industry but it is regard the sustainability of the ship requirements either in steel, constantly underlined that acting sector? What would you like to aluminum or composite structure within a consortium is of essence say on the support and incentives through our local resources. At this for them to become a global made to this end? stage, the budgetary size of our brand. How will we establish a As a developing country, we military ship construction projects sustainable and powerful structure are confronting various problems is approximately $ 5.5 Billion. This both in domestic programs and such as terrorism and the conflicts budgetary size will increase with in foreign countries? Which do in the Middle East in addition to the the projects we will be initiating you think the correct setup is for economic recession globally and in the years ahead. Surely, these success? in our country. There has been an figures encompass all prices of the As a result of the projects economic recession in the Military propulsion, weapon and electronic conducted by our Undersecretariat Ship Construction Industry but we systems of a given vessel as well. in recent years, the contracts may still claim that 2016 has not been From this perspective, even if that have been signed, the unfavorable for the military vessel the figure now seems quite high, accomplished deliveries and the industry as a whole. Then again, as the share of the military vessel new tenders launched, the private a result of the negative conditions in construction sector’s remains sector shipyards acquired the the world, there has been a tendency below this figure. Therefore, I regard know-how and experience enabling towards maintenance and repair and the continuity of the increasing them to conduct military ship military vessel manufacturing in the export activities as essential for design, construction, outfitting and Turkish Vessel Construction Industry. the sustainability of our sector. We integration, test trials, guarantee, The Turkish Ship Construction will continue to provide support to integrated logistical support and risk Industry managed to maintain its our companies for export activities. management. existence even in the unfavorable However, in order to conduct export Turkey took its place amongst conditions that we have been activities, a sound infrastructure, the countries having a say in a enduring since 2010 and continued technological know-how and a field as it is capable of conducting its development. Taking a look at qualified labor force are essential. I the design of the ships through its our own particular examples, many believe that the sector has a critical own resources and engineering of our military ship construction role in improving itself as well. acquirements. Our companies in projects’ initial delivery and final As a result, we have confidence the military ship construction sector delivery were accomplished in 2016 in the capabilities of our private have been developing themselves and the construction of our naval sector. We support all types of setups and becoming more robust with platforms such as LST, KURYED, and activities of our private sector each project. Up to 2002, mostly MOSHIP, Logistical Support Ship which gains strength. As long as the package projects were realized and LHD continue in 2017. The our sector enhances its capabilities, in which the design, integration and preparations for new tenders for and reinforces the qualifications equipment support were supplied the Defense Industry are being of its staff and infrastructure, the from abroad, but at the level we have conducted and with the finalization trust of both the Naval/Coast reached, our sector is now capable of these tenders, a significant Guard Command Forces and our of designing and building almost amount of contribution and labor trust in our sector will increase. all types of surface military ships will be provided to the sector in the Taking into consideration the level ranging from corvette-class warship upcoming period. we have reached in the military to landing ships, patrol boats and Despite the decline observed ship construction industry and the other auxiliary vessels in our country. in the rate of defense expenditures existing and potential projects, with However, it is known that the nowadays, the perception of threats the effective utilization of resources sector’s sustainability could not and requirements are changing and investments, the specialization be feasible merely through the and technological development of the shipyards and the philosophy procurement of Turkish Naval is gradually accelerating. The of “building our own ships at our own Platforms Programs. For this reason, efficient utilization of resources shipyards” regarding the products we attach great importance toward and the sustainability of developed with high export potential, the export activities. We are bearing the capabilities stand out in this design and manufacturing in Turkey export initiatives of our companies process and we are monitoring are our main goal, and supporting at all times. Occasionally several the fusing of components such as and paving the way for the sector companies place a bid for the same design, production, engineering are now amongst our main tasks. client or tender within the scope of and financing based on horizontal Moreover, the establishment of our export activities. This is the case and vertical integration; success export potential which we support that defies an easy explanation to in foreign markets is the objective by bringing successful domestic the clients. In order to prevent this instead of competition within the products to the world market plays predicament, we lean towards and domestic market. a significant role in the sustainability encourage consortium models in Today, I would like to express of the sector. which our companies will be able with pleasure in consequence of Defence Turkey: Many of to amalgamate their capabilities the strategies that we have been our shipyards active in building regarding the military ship sector in pursing over the last fifteen years. naval platforms have significant an integrated manner allowing them We have reached a level at which capabilities in the Military Ship to feature their strengths. ISSUE 73/2017 19 DEFENCE TURKEY DEFENCE TURKEY 20 ISSUE 73/2017

When we also analyze the cases defense in the region that they exist. facilities of the military shipyards, dominating the market in respect to On a global scale, it is understood we have a favorable attitude, yet military ship construction, we come that similar platforms are extremely instead of being insistent in this across the utilization of the acquired great programs on which detailed respect, I believe that the industry’s infrastructure and capacities as work is conducted in respect to presentation of its own solutions a whole, creating national brands design, manufacturing and finance. would be healthier and more and giving priority to competition Certainly, at this point, another key permanent. in exports. These national brands factor that needs to be recalled is the Defence Turkey: Could you contain various standardized achievement of a joint operation in please inform us on the latest shipyards that are specialized an efficient manner with other land, status of the MILGEM- I Class in different vessel types and are naval and air military units in the Frigate (MILGEM 5-8), New Type capable of functioning as a whole. inventory, ensuring interoperability Submarine, Fast Intervention In most parts of the export market, in respect to regional air defense. Boat Projects, Turkish Type Fast competition is seen among these Rather than an individual project, Patrol Boat, Landing Helicopter national brands and companies the TF-2000 Anti Air Warfare Frigate Dock (LHD), Off-Shore Tugboat, about to access the market are is a program requiring the realization Amphibious Ship (LST) programs? confronting these strong rivals. From of many disciplines through long Regarding the procurement of this perspective, the Turkish military term and strategic plans in line with a the fifth, sixth, seventh and eighth ship construction industry must use common purpose. Within this scope, ships of our MILGEM Project, we its infrastructure and capabilities various indigenous projects such issued our Call for Proposals in the jointly in order to be able to compete as the Multifunction Phased Array second half of 2016. Our activities in capacity and financial aspects. Radar System (CAFRAD), Surface- for the evaluation of the proposals The precondition of this process, I to-Surface Guided munition, unique of the bidders are proceeding. We believe, is the specialization of the torpedo, adaptation of combat aim to finalize the tender process shipyards which will be selected and management system have been as soon as possible and submit the accomplishment of integration initiated prior to the construction of the project to the Defense Industry between the shipyards to a certain the main platform and they are being Executive Committee. extent. executed in line with their schedules. Regarding the New Type As we recently witnessed at Taking into consideration the Submarine Project, we initiated the the IDEX Defense Fair in the United projects I previously mentioned, construction of the first submarine Arab Emirates, our local private regarding the subsystems towards in the last quarter of 2015 and shipyards assigned to the military the design and construction of the the construction of the second ship construction projects have TF-2000 platform and bearing in one began in the first half of already gathered voluntarily and mind the feasibility study prepared 2016. Currently the pressure hull formed a consortium. When we earlier, we have reached the final construction of the submarines also take a look at the examples in stage of our activities for determining is being carried out at the Gölcük the world, export is indispensable the most optimal project model in Shipyard Command and the factory for a sustainable industry. To this financial and technical aspects, acceptance tests of the sub-systems end, branding and acting unitedly as well as the schedule. We aim which will exist on-board are being is quintessential, a crystal-clear for maximum benefit from the run as well. Our efforts continue with fact. Therefore, they key factor of engineering infrastructure in our navy an intensive pace toward gaining this sustainability and success in exports and from our shipyards as well as important project into the inventory is our country’s private sector the main system suppliers that have every other year starting from shipyards acting as a joint force both been assigned in many military ship 2021; a project in which many of in projects at home and abroad. construction projects up until today. our domestic companies assumed Defence Turkey: Dear Mr. On the other hand, both critical tasks. Demirel, in which direction are concerning the issues in respect to Within the scope of the Landing the design activities proceeding the gathering of our private sector Helicopter Dock (LHD) Project, the and the activities related with the shipyards and the utilization of the construction of the hull has been following stage within the scope of the TF-2000 program, which © Turkish Navy Commander has been on Turkey’s agenda for a long time? Is the implementation of a consortium model in which military and private shipyards work together foreseen in this program just as in the I-Class Frigate program? Could you please evaluate the setup here? The naval platforms having Anti- Air Warfare capability are amongst the primary military forces used for regional defense that plays a key role in the accomplishment of the air F-512 “Büyükada” ISSUE 73/2017 21 DEFENCE TURKEY DEFENCE TURKEY 22 ISSUE 73/2017

of the National Police, when will © Defence Turkey the contract be signed with TAI? Could you inform us on the latest status of the project? The ANKA-S system, which is an operative UAV System with a long endurance capacity at medium altitude, will be utilized by the Air Forces Command. In the current situation, inventories of the Air Forces of many countries in the world have operative class UAV systems. The system deliveries are planned to be accomplished in 2017 and 2018 in line with the ANKA-S Project schedule. Moreover, the initiated and the activities for the Unmanned and Smart Systems Operative UAV system requirement revision of the design in line with Department, could you share of the Security General Directorate the requirements and contract with us the recent status of the is expected to be fulfilled with the execution are proceeding. Tactical Class UAV procurement Operative UAV System Procurement As part of the Amphibious Ship programs of the Security General Project that is planned to be signed (LST), completion of the initial Directorate, Gendarmerie General with TAI in the near future. acceptance activities of the 2 ships Command and Land Forces Defence Turkey: In addition to and their delivery to the Naval Command? the procurement and development Forces Command is planned to take With the Tactical Class UAV of Unmanned Air Vehicles, the place in 2017. Systems included in the inventories Bomb Disposal Robot Project, Within the scope of the Fast of Security General Directorate development activities of which Patrol Boat Project, the proposal Gendarmerie General Command are carried out by Aselsan, is evaluation has been completed and Land Forces Command, again being conducted under the and readiness studies concerning target acquisition and directing the responsibility of your Unmanned the submittal of the project to maneuvers and firing are being run and Smart Systems Department. the Defense Industry Executive with the payloads, additionally these The delivery of the first systems Committee continue. systems are capable of engaging was planned to take place in Concerning the Turkish Type Fast and destroying the targets with 2018. Yet, there is an immediate Patrol Boat, Final Report on Request instant visualization as well as requirement of the Security for Information prepared as a result the limited ammunition capability. General Directorate, so is it of the activities conducted by our Various countries across the world possible to hasten the timeline Undersecretariat was submitted procure these Tactical UAV Systems and make the first party delivery to the Turkish General Staff and and assign them to diverse tasks. in 2017? Could you please the Naval Forces Command. The Delivery of the TB2 systems, elaborate on the recent status of activities are being executed by manufactured by Baykar Makine the activities conducted to this the Naval Forces Command in line A.Ş., to various users as part of end? with the points presented in the the Tactical Class UAV Projects The deliveries of the Light Final Report. Our Undersecretariat executed by our Undersecretariat is Armored Vehicles within the will launch the readiness for the ongoing. The delivered UAV systems scope of the project were made tender when these activities are are providing services with a high in December 2015 and January accomplished. readiness rate. Our assessments 2016, eight months prior to the In respect to the Multi-Purpose for enabling the utilization of project schedule since there was Off-Shore Tugboat Project, the the aforementioned systems in an emergency for the systems. tender has been launched and commercial areas are in progress Currently, the qualification tests the proposals are expected to be and we believe that the unmanned of the manufactured prototypes received by the end of April. We plan air vehicles technology, providing are also being run earlier than the to complete the evaluation of the worldwide high rate of utilization delivery period. As a result of our proposals in 2017. Within the scope opportunities, will be significantly negotiations with Aselsan, we of the auxiliary vessels, we recently demanded in the commercial sector reached an agreement on both initiated our activities for launching as well. increasing the amount of the party a tender for the Shore/Harbor Tug Defence Turkey: What is the deliveries of the Bomb Disposal Project. We aim to issue the Call for project schedule envisioned for Robot and on the accomplishment Proposals for this project in 2017. the system deliveries within the of the deliveries before the delivery Defence Turkey: Within the scope of the Anka-S program? period according to the project scope of the programs conducted In addition, considering the Anka schedule in order to fulfil the under the auspices of your Block-B procurement activities emergency of the Security General Directorate. ISSUE 73/2017 23 DEFENCE TURKEY DEFENCE TURKEY 24 ISSUE 73/2017

Defence Turkey: Mr. Demirel, use and immediately after the target threaten operative units. Micro UAV the feasibility study for the Call for is acquired the UAV completes a systems are convenient for usage Proposals as part of the AKINCI suicide attack to the target with by one-person, team or task force UAV development project is in explosives. The Micro UAV systems have become a standard capability progress. Which type of a project suitable for the utilization of a one- that needs to be included in many model will be formed within the man operation, team and task force operating environments. We plan to scope of this program? This is become a standard capability that deliver the Micro UAV systems that a big platform, very large scale. need to be possessed by military will be supplied for the needs of our Could we speak of a consortium units performing in a close conflict agencies in 2017. model in this project as well as atmosphere. Due to the urgency of Defence Turkey: Finally, would was mentioned for the naval the requirements within the scope you like to give a message to vehicles? of the Striker UAV project, the first the readers of Defence Turkey With the AKINCI Project, we 6 systems are supplied through Magazine? aim to develop the equivalent of the direct procurement from abroad. In these times where the Defense UAV systems in a similar category Simultaneously the remaining Industry is gaining more importance currently possessed by few countries requests for 18 systems will be day by day, as I mentioned previously, in the world, having a high speed covered from local resources. numerous projects are being UAV System with satellite control NANO UAV systems are used accomplished under the auspices capability and payload capacity of by Special Forces and intelligence of the Undersecretariat for Defense over a ton. This project will be a organizations for close range Industries in order to develop our domestic development project that surveillance and reconnaissance. national defense. Informing the requires the development of certain These systems with a very limited public on the developments in the critical sub systems, components task range and endurance capability Defense Industry is as important and technologies (through local provide great advantage especially as these projects on a sectoral resources) which have not reached in the acquisition targets in urban basis. In this respect, the efforts the desired level of maturity under conflict areas and undercover of Defence Turkey Magazine bear the current situation. Within such targets. With the advantages of great importance regarding the a framework, our main objective the Micro UAV systems suitable announcement of the projects and is setting up a project model that for one-man use or at a team level, activities related to our sector. I would minimize the risks by fulfilling their worldwide utilization is rapidly would like to thank Defence Turkey the financial, scheduling and increasing. The procurement of 10 Magazine for their contributions in performance requirements. From systems was completed as part of this area. this point of view, the alternatives the Nano UAV procurement contract. We should keep in mind that a including a consortium are on our Micro UAV systems are being powerful Turkey with a voice in its agenda for launching a phased used for close range surveillance region can only be achieved through project model with the progressive and reconnaissance purposes by a Defense Industry Sector capable capacity increase approach. military units and law enforcement of designing and manufacturing its Consequently, within the context officers, primarily Special Forces own weapons in accordance with of the AKINCI Project, the offers to and intelligence organizations. Micro the demands of the Turkish Armed be received for the Call for Proposals UAV systems with a task range of a Forces. A sound and successful will play a determining role. The Call few kilometers and limited endurance “Defense Industry Sector” is only for Proposals is on track to be issued are capable of close-range possible through our great nation’s in the first half of 2017. surveillance of fixed installations as interest and support. Defence Turkey: What kind of a well as detection of targets that may road map do you have in respect to the procurement programs of the Striker, Micro and NANO UAV systems and in parallel with this, the indigenous development of these systems in the prospective phases? The suicide drone systems are being used for the acquisition and destruction of targets at close- range by military units, primarily Special Force units. These drones with an operation radius of 10km and approximately 15 minutes of endurance with “loitering” capability are able to identify and immediately neutralize targets that may threaten © Defence Turkey the troops in theater. Initially the target is identified with cameras over Mrs. Ayşe Evers, Editor in Chief of Defence Turkey Magazine met with Mr. Serdar the Striker UAV suitable for single Demirel, Deputy Undersecretary for Defense Industries in Ankara ISSUE 73/2017 25 DEFENCE TURKEY DEFENCE TURKEY 26 ISSUE 73/2017

SSM Releases 2016 Annual Activity Report The Undersecretariat for Defense Industries’ Activity Report for the year 2016 was issued in the beginning of 2017. The activity report contais the latest statistics regarding structure, human resources, strategic objectives, main policies and priorities and 2016 activities of the Undersecretariat for Defense Industries as well as the measures and suggestions for a sustainable industry The activities accomplished “Hürkuş” program were finalized; report as well. As part of the in 2016 within the scope of the for the critical design revision New Generation Basic Trainer programs conducted by the stage as part of the Indigenous Aircraft (Hürkuş-B) project, the Undersecretariat for Defense Helicopter program an agreement activities for the development of Industries according to the was reached with the contract, the avionic systems such as the Report are as follows: In 2016 the an understanding based on the Central Control computer, Multi- Qualification/Acceptance Tests military and civil certification was Functional Display MFD and continued as part of the Altay Main also reached with the contractor; digital communication system Battle Tank program, Prototype serial production activities as part were finalized and the tests (PV1) tank and 10.000 km mobility of the “Korkut Project” which is and preliminary acceptance of tests were completed, firing tests a Self-Propelled Low Altitude the equipment will be initiated. of the defined scenarios were Air Defense Gun System were Additionally, the report mentioned executed with the PV1- PV2 tanks launched; Calls for Proposals for that the preliminary activities and the proposal assessment the serial production of Fire Control and certain points concerning report of the proposal within the Radar and Procurement of the 35 the launch test contract for the context of the serial production mm Airburst Ammunition (AIC and Hürkuş-C aircraft were completed period activities were prepared, OMPMT) Procurement Projects and as of November 2016 the and the System Qualification and were issued, the proposals were decision was made to have the Acceptance Tests are anticipated collected and the evaluation Armed Hürkuş-C project launched to be completed in the first quarter process was in progress. In in a manner to support the close of 2017. addition, the Kiev/Ukraine office range air support operation The report also stated that was included as part of the SSM concept of the Land Forces in 2016, within the scope of the international cooperation and Command. Also reported, as “Anka” Development project, coordination offices that were part of the development of the endurance of 21 hours was established for the coordination of landing gear of Hürkuş Aircraft; achieved with a payload of 238 the export and promotion activities the design, development, testing kg; it was accomplished on 14 in various regions. and verification, qualification of October 2016 and the acceptance the landing gear compatible with tests of the unmanned air vehicles LUMTAS – Atak Helicopter the aircraft and readiness of the with Anka-B configuration documentation related to the were completed successfully; Integration Completed landing gear, were targeted and the technical data package Successfully that to this end the Call for Proposal acceptance activities of the Important information on was issued, the bid proposals were Prototype No:1 and Prototype upcoming programs soon to received and that the assessment No:2 aircrafts as part of the be launched were noted in the activities were in progress. ISSUE 73/2017 27 DEFENCE TURKEY DEFENCE TURKEY 28 ISSUE 73/2017

In the report it was mentioned that the deliveries of the Smart © Aselsan Micro Munition (MAM) were initiated and that the utilization of the delivered Munitions by the UAV systems had started within the scope of the Long Range Anti- Tank Missile (UMTAS) project and also the integration activities for the Laser Guided UMTAS (LUMTAS) to the “Atak” helicopter were accomplished. Moreover, it was underlined in the report that as part of the Spacecraft Assembly, Integration and Test (USET) Project, Aselpod ‘‘Advanced Targeting Pod Electro-Optical Reconnaissance, Surveillance and acceptance of a major portion the Targeting System’’ test systems (Acoustic Test System, Operation Center within the scope packages were delivered to the Mass Properties Measurement of the Coast Guard Command’s Leonardo Company. Test System, Mechanical Ground Coast Surveillance Radar Project, Support Equipment) at the USET the procurement activities of SSM is Preparing for the Center was completed and that which are in progress and VHF the final acceptance of the USET Radio Factory acceptances Life Cycle Management Center will be completed within were accomplished, and the Conference in 2017 2017. The report also declared Radar Factory Acceptance Tests The report discussed the that the system development and launched on 20 December 2016 activities conducted as part of Life production stage activities were in were completed on 28 December Cycle Management, announcing progress within the scope of the 2016. that through the PDL approach, Multifuction Phased Array Radar Among the critical technologies EHTES logistical support and (ÇAFRAD phase-1) Project as well. exported abroad last year, the Command Control Aircrafts acceptance of the 2 prototype Logistical Support agreements In 2016 100 Ejder Yalçın and Aselpods as part of the “Aselpod were signed and that project “Advanced Targeting Pod 65 Cobra-II were Delivered to execution activities were in Electro-Optical Reconnaissance, progress. It was stated that the the Turkish National Police Surveillance and Targeting System activities continued concerning the The report also disclosed that development and integration Long Horizon Logistical Support the Micro/NANO UAV procurement program launched for fulfilling the Project, KT-1T Trainer Aircrafts regarding the unmanned smart requirements of the Turkish Armed Logistical Support Project, Coast system procurement was gaining Forces was also accomplished in Guard Boats Stabilized Machine impetus. Within this context, the 2016. Gun Platform (STAMP) Systems procurement of 40 Multicopter The report touched upon Logistical Support Project, Micro UAVs and 10-system Nano the activities conducted under KORNET-E Anti-Tank Weapon UAV was accomplished. the auspices of the Fixed-Wing System Logistic Support Project, According to the report, Platforms Department as well. Airborne Early Warning and as part of Turkish Security It stated that within the scope of Control Aircraft (HİK) Depot Level General Directorate Armored the C130 Avionic Modernization Maintenance Capability Acquiring Vehicle procurement program, project (ERCİYES), the acceptance and 2nd Lot TIHA (MALE) Direct the acceptance of 100 Ejder of the 2nd prototype aircraft was Procurement Project. In the Activity Yalçın vehicles was completed completed and delivered to the Report, it was also disclosed that in 2016 and also the acceptance procurement authority and thus for the implementation of the Life procedures of the 65 Cobra-II the prototype phase had ended. Cycle Management principles at Armored Vehicles were finalized in The report reflected that as part of early stages of the procurement 2016. the system upgrade of the “Peace projects, activities regarding The report also included that Eagle” Airborne Early Warning the establishment of long term in the Three Dimensional Search and Control Aircraft, the retrofit logistical support strategies and Radar project, conducted by the activities of 3 Peace Eagle aircrafts responsibilities within the context MEMS Department, procurement were completed and that regarding of the maintenance - operation and integration activities of 8 Maritime Patrol and Coast period regarding the development three dimensional search radar Guard Aircrafts’ task equipment programs namely the New were completed, the construction procurement and platform Generation Basic Trainer Aircraft and acceptances of the İstanbul integration (MELTEM-3) project, “Hürkuş-B”, Indigenous Light- Identification Center and Ankara three sets from the task equipment Class Helicopter Development ISSUE 73/2017 29 DEFENCE TURKEY DEFENCE TURKEY 30 ISSUE 73/2017

Project, Turkish Main Battle Tank The Project Model Distribution export in 2016 was $ 1.673 billion. “Altay”, Coast Surveillance Radar -based on the contract price- was 23% of this was through off-set and Systems (SGRS) Program, Self- as follows; out of the total amount the remaining 77% was non-offset PropelledLow Altitude Air Defence bound by the contract, 42.74% export. Gun System “Korkut” and Modern local development, 37.4% joint The rate of exports within Submarine Torpedo Procurement production, 8.7% overseas Defense and Aerospace revenue “Akya” Project Period-2 were off-the-shelf procurement, 6% was 33.7%. The rate of local accomplished. international consortium, 2.93% participation within the framework The report announced that local off-the-shelf procurement and of SSM projects was 68.5% and the the activities for the Life Cycle 1.29% R&D. share of the sub-industry within the Management Strategy Document The report announced that 35 revenue was 8%. in which the principles will be contracts were signed in 2016 and Category-A industry identified were being conducted. the value of these projects was participation was identified as It was also mentioned that within 14.9 billion TL (est. $ 4.2 Billion). participation with an off-set liability the context of the procurement of Upon analysis, the breakdown ratio of at least 70% of the contract the defense systems included/to of the projects signed in 2016 price, and at least 30% of the off- be included in the inventory of the demonstrates that the resources set liability from sub-industry. It was Turkish Armed Forces the Life Cycle allocated for local development stipulated that the SME business Management approach would was ascending. According to share and commitment must be at be used, enabling cost-efficient this, 83.7% of the programs with least 15%. In the Activity Report, maintenance and sustainability to contracts signed in 2016 were local it was reported that the industry achieve a high combat readiness development programs, 10.5% were participation / off-set liability to be level. The organization of a Life local off-the-shelf procurement. realized in 30 years period was $ Cycle Management Conference In 2016, the rate of off-the-shelf 10.3 billion. As of the end of 2016, a was planned for the second half procurement abroad was 0.63%. total of $ 1,756 million was allocated of 2017 in order to strengthen the The report mentioned that as of for industrial participation / off-set understanding and cooperation 2016, out of 460 projects conducted liability. between stakeholders reinforcing by the SSM 269 were bound by The report wrapped up the defense industry infrastructure contract, and 191 were in progress with overall remarks regarding through maximum utilization of and that in 2016 Calls for Proposals the superiorities, areas open the national defense industry for 27 projects were issued as well. opportunity and suggestions made capabilities and accomplishment for improvement. Accordingly, of the sustainability of the industry. $ 10.3 Billion Industrial the requirement for increasing the The Report also included that number of personnel due to the comprehensive participation from Participation / Off-Set increase in the number and diversity the Turkish General Staff, Armed Liability in 30-Year Period of the projects was mentioned. Forces, SaSaD, MKEK, Turkish In the concluding sections of It was also stated in this section Security General Directorate, SSM’S 2016 Activity Report, the that communication between the TÜBİTAK and company total defense and aerospace export stakeholders and the revenue of representatives was aimed for the figures were declared as well. The the Defense Industry Support Fund event. total of defense and aerospace needed to increase.

A Total of 269 Procurement Projects Bound by Contracts is Valued at 122.5 Billion TL The report declared that the total value of the 269 procurement projects, that have contracts signed by the Undersecretariat for Defense Industries, was approximately 122.5 billion TL (est. $ 33 billion ) and demonstrated the breakdown of these programs. According to this, 47.58% were domestic development, 20.7% were R&D Projects, 8% local off-the-shelf procurement, 10.8% overseas off-the-shelf procurement, 8.55% joint production, 2.60% service © SSM procurement and 0.74% were Turkish Defense Industry Executive Committee international consortium. ISSUE 73/2017 31 DEFENCE TURKEY DEFENCE TURKEY 32 ISSUE 73/2017

Otokar’s World-Class Status Reinforced with ‘Al Jasoor’ - The Gulf Region’s RABDAN 8x8 – A Colossal Deal Brimming with New Market Opportunities The Al Jasoor (Cesur) Company, founded by Turkey’s greatest defense industry company with private capital Otokar and leading investment company of the United Arab Emirates Tawazun, signed a contract with the United Arab Emirates Armed Forces for the 8x8 tactical wheeled armored vehicle; the deal is valued at an amount of $ 661 million The contract was announced at the preeminent defense event of the Middle East, the IDEX 2017, held in Abu Dhabi. Koç Holding Vice President and Otokar Chairman of the Board Mr. Ali Y. Koç underlined that Otokar took the export of armored vehicles one step further through this contract, now exceeding 30 countries, and added, “In addition to our exports to Gulf countries, we will be initiating production in foreign countries with our company Al Jasoor (Cesur) which we established with our local partner. I regard this development as quite strategic and important with regards to the point at which our country’s defense industry © Otokar capabilities have arrived. If we are assigned for the production of Emirate and Deputy Supreme manufacturing the 8x8 Amphibious the Altay Main Battle Tank, in my Commander of the UAE Armed Armored Vehicles demanded by the opinion, we will be turning a new Forces Sheikh Mohammad bin UAE Armed Forces at the UAE’s page and penetrating new markets Zayed El Nahyan executed the existing production facilities. opening of the ceremony at which beyond merely fulfilling the request Ali Y. Koç: We are Accelerating of the defense industry of Turkey”. the first prototype of the 8x8 vehicle our Defense Industry Exports Al Jasoor (Cesur) established named ‘Rabdan’ was unveiled. through the efforts of Turkey’s Turkey’s Ambassador to Abu Dhabi Koç Holding Vice President and sole indigenous military vehicle Mr. Can Dizdar, Koç Holding Vice Otokar’s Chairman of the Board manufacturer, Otokar and United President and Otokar’s Chairman Mr. Ali Y. Koç stated that Otokar Arab Emirates’ (UAE) leading of the Board Mr. Ali Y. Koç, Koç has a history spanning 30 years investment company Tawazun, Holding CEO Mr. Levent Çakıroğlu, in the defense industry, and has have signed a contract with the Otokar’s General Manager Mr. been providing its services to over UAE’s Armed Forces on an 8x8 Serdar Görgüç, Tawazun CEO 30 countries in 5 continents. He armored vehicle. This is contract H.E.Saif Mohammad Al Hajeri and remarked that with this contract, is Turkey’s greatest defense export senior representatives from the Otokar kicked off exporting contract to date and is worth $ worldwide defense industry sector technology and production abroad 661 million (approximately 2 billion and Turkey attended the ceremony. through this joint venture. Mr. United Arab Emirates dirhams). Al Jasoor - the Joint Venture Ali Y. Koç said, “I consider this The announcement was made at of Otokar’s ‘Otokar Land Systems development as quite strategic the Middle East’s leading defense Company’ established in the UAE and significant in respect to the industry event IDEX 2017 taking and the UAE’s leading investment capabilities attained by the Turkish place at UAE’s capital Abu Dhabi. company Tawazun’s ’Heavy Vehicles defense industry. The development The Crown Prince of Abu Dhabi Industry Corporation’- will be of our country’s innovation ISSUE 73/2017 33 DEFENCE TURKEY DEFENCE TURKEY 34 ISSUE 73/2017

and technology capabilities is run as well. If we are commissioned the signing of this first contract strengthening its position in the for Altay’s serial production phase, for fulfilling the UAE army’s global market. With the award of I am certain that we will also be requirements by the Al Jasoor this contract, Otokar not only stands tapping into new markets beyond Company that we established jointly out with its product but also with its just catering to the requirements of with Tawazun, a contract which is know-how, engineering, R&D and the Turkish Defense Industry.” one of the biggest 8x8 Armored technology transfer capabilities on a Vehicle purchases in the world and global scale in the defense industry. Mr. Levent Çakıroğlu: “Otokar is expected to reach up to 700 units The products designed by Otokar Reinforces its Position in the in the upcoming period.” engineers and our capabilities are World and in the Region” achieving tremendous success in Koç Holding CEO Mr. Levent the international arena. We have RABDAN’ 8X8 Tactical Çakıroğlu pointed out that Otokar, Wheeled Armored Vehicle been through a lengthy, detailed with its technologic superiority, and challenging evaluation and we engineering power, design RABDAN 8X8 tactical wheeled achieved the award of the greatest capability and its experience of 30 armored vehicle will provide single export contract for the years, has been strengthening its services for the UAE Armed Forces. Turkish defense industry. We are position in the worldwide defense It was designed as a modular proud and we aim, as Al Jasoor, to industry sector each and every day, platform to perform various tasks fulfil all land systems requirements and he continued by saying: “The required by a modern army under of the UAE and the region.” defense industry, with the strategic the most challenging land and At the IDEX event, Mr. Ali Y. Koç importance it holds for each country, weather conditions. In addition to its addressed questions on the mass recently is amongst the sectors superior maneuverability, superior production of the “Altay” MBT which our Group also focuses on. mine and ballistic protection and said, “Altay, designed and Otokar has been exerting efforts, features, RABDAN is available for developed under Otokar’s main making investments and reaching medium and high caliber weapon contractor ship, has been subjected achievements for a long while, system integration and the vehicle to challenging tests for two years. in line with the efforts toward attracts the attention with its The final stage has been reached strengthening the defense industry combat weight and large interior as part of the Acceptance Tests of our country. I believe that the volume. Capable of carrying 11 conducted by the Undersecretariat result of this contract will reinforce personnel including the driver for Defense Industries and the Land Otokar’s position in the world, as and the commander, RABDAN’s Forces Command. The acceptance well as catalyzing the development maximum gross weight is 30 tons. tests are aimed to be completed of our country’s defense industry”. The vehicle with its maneuverability, by the end of February 2017. As I independent suspension, locked mentioned previously, Otokar has Mr. Serdar Görgüç: “We are transfer box and run-flat wheels, is all competencies to successfully shooting for the sky with the capable of operating afloat due to fulfil the serial production of the Otokar Land Systems” its amphibious operation capability. Altay MBT which bears strategic The ‘Rabdan’ name comes from importance for Turkey. We are In his statement, Otokar General the thoroughbred Arabian horse ready to be assigned for the Manager Mr. Serdar Görgüç said, believed to have descended from mass production”. Mr. Ali Y. Koç “We aimed to ramp up our overseas the Prophet Mohammad; known for continued to elaborate on this involvement, especially with the its power and speed in the races. significant topic ”The interest of Gulf countries, gaining access to With this awarded contract, the friendly and allied countries, in the new markets and enhancing our production of 400 8x8 RABDAN Main Battle Tank Altay’s prototype, sales with the Otokar Land Systems Tactical Wheeled Armored Vehicles, indicate that this project will provide Company that we established in in various configurations, with an positive contributions to Turkey’s 2016 in the United Arab Emirates. amount valued at $ 661 million, is defense industry exports in the long Our first solid-step to this end was on track for the first stage. ISSUE 73/2017 35 DEFENCE TURKEY DEFENCE TURKEY 36 ISSUE 73/2017

2016 TOBB Defense Industry Council Assembly Meeting Convened in Ankara The 33rd session of the Turkish Union of Chambers and Commodity Exchanges (TOBB) Defense Industry Sector Assembly was held at TOBB facilities in Ankara under the coordination of SaSaD (Defense and Aerospace Industry Manufacturers Association). Presentations were made on the Turkish Defense Industry’s Sector Report for 2015, the search for a model for the Export Credit System, secondary © Defence Turkey legislation considering the R&D Reform package and activities “Taking into consideration the According to the report, if Poland for a reform in manufacturing. fluctuations in the exchange rate, continues this growth, $ 40 Problems within the sector were Turkey does not take part in the billion is planned to be spent discussed at this platform in top 15 on the chart according to on the “Modernization Projects” which the representatives of 146 2015 data. Our budget regarding within the next decades. It Defense Industry companies and defense expenses is constantly was mentioned that Romania, executives of the Undersecretariat decreasing. When we analyze the at NATO’s Eastern European for Defense Industries (SSM) South Korean model, the country front line, increased its defense participated. During the opening allocated $ 36.4 billion in 2015 spending by 53% in 2016 and of the Sector Assembly Meeting, to defense industry spending achieved NATO’s target of 2% President of TOBB Defense and 9.8% of its resources to the of GDP. One of the important Industry Assembly Mr. Yılmaz overall R&D. We observed that details noted in the report was Küçükseyhan shared the Defense North America, Europe and South the steady increase in the defense Industry Sector Report for 2015 America cut back their defense expenditures of other countries in with the participants. expenditures whereas there has the same region such as Slovakia, been an increase of 5.4% in the Estonia, Latvia and Lithuania. The World’s Defense Expenses defense expenses of Asia and report disclosed that as a result, Reached $ 1.773 Billion in 2015 Oceania. A decrease of 5.3% is the overall defense expenses Stating that the world’s observed in the African continent for Eastern Europe increased by defense expenses in the year while a significant increase 7.5%, reaching $ 66.4 billion. 2015 reached $ 1.773 billion, is observed in the defense The total turnover of the 100 Mr. Küçükseyhan mentioned spending of the Eastern European manufacturing companies in the that Turkey allocated $ 14 billion countries.” SIPRI 2016 report , according to to the defense industry in 2015. the figures issued in 2014, reached “Where the average allocation for Poland and Eastern $ 401 billion. The figures of the defense for allies was 2.3% of year 2015 could not be mentioned European Countries Raising in the industry assembly as GDP, Turkey allocates an average Defense Expenditure of 1.8% to the defense industry. the reports for 2015 have not The percentage advised by NATO In light of the information yet been released. Mr. Yılmaz to its allies is 2% however we compiled from the data of the Küçükseyhan stated that the are monitoring that, as in certain SIPRI 2016 report (Stockholm turnover of a 100 manufacturing periods this rate decreases to International Peace Research companies in 2014 was $ 401 the level of 1.3%”, continued Mr. Institute (SIPRI) the particular billion and added, “Turkey has Küçükseyhan. reason behind the increase in the accomplished $ 4.9 billion of this Mr. Küçükseyhan underlined defense expenses was regarded figure which is approximately that Turkey was at the 15th rank as the Russia’s military invention 1%. Our major companies such on the list of countries allocating to Ukraine and Polish defense as Aselsan and TAI exist among the most resources to defense expenses in this period reached these manufacturing companies.” expenses in 2014 and added, $ 10.5 billion, a 22% increase. In the breakdown of the 100 manufacturing countries in ISSUE 73/2017 37 DEFENCE TURKEY DEFENCE TURKEY 38 ISSUE 73/2017

2014 according to regions, it is observed that North America’s turnover was $ 218 billion, Western Europe’s turnover was $ 104 billion, Russia’s was $ 40.8 billion, other manufacturers’ turnover was $ 23.2 billion and rising manufacturing countries such as South Korea, India, Turkey and Brazil had turnover of $ 14.9 billion. Since the data of year 2015 could not be completely collected, SIPRI 2016 export figures were examined in the © Defence Turkey defense assembly meeting with the data of year 2014. The total export amount of the year 2014 area, composing the greatest Turkey Penetrates Middle was $ 94.5 billion. According to slice of the worldwide defense East and Pacific – South this, in light of the data which market, fell behind expectations. Asian Markets had not been declared by China, Similarly, the promising C5ISR th area’s share in the turnover In 2015 exports amounting Israel and England, Turkey took 8 to $ 556.4 million were made place on the list with its $ 1.655 of total sales was merely $ 28 million. In the breakdown of the to North America and exports billion in export sale. The US was to Malaysia were $ 12.6 million, at the top of the list with $ 20.3 technological segments; turnover of the Space industry was $ 900 exports to Saudi Arabia $ 106.6 billion, Russia was second with $ million, $ 103 million in exports to 15.6 billion, France was the third million, Security Industry was $ 550 million, Civil Aviation was $ Germany, $ 88 million in export country with $ 5.1 billion, Italy was sales were made to France, in the fourth place on the list with 503 million, Weapon/Ammunition was $ 318 million, Naval Platforms export sales of $ 76.7 million $ 4.4 billion, Spain was the fifth were made to the United Arab country with $ 4.2 billion, South was $ 170 million, MRO was $ 129 million and other services were $ Emirates, $ 58 million in exports Korea existed as the sixth country were made to Azerbaijan, export on the list with $ 3.5 billion and 756 million. According to Turkey’s export sales amounting to $ 54 million Germany placed 7th on the list were made to Spain, exports to with $ 2.4 billion. data for 2015, 30% of the total sales amounting to $ 1.655 billion Italy were $ 53 million, $ 37.6 were made to North America, 17% million in exports to Kuwait, to C5ISR and IT Turnover to Europe and the remaining 53% England the amount of exports Fall Short the Mark to other countries. When Turkey’s was $ 37.3 million, to Kazakhstan exports were $ 31.8 million, to Turkey’s performance for the services with foreign exchange Pakistan $ 24.6 million, to Bahrain years 2014 - 2015 was declared earnings (foreign modernization, $ 23.4 million, to Tunisia $ 19.6 at the sector assembly meeting. MRO services, etc.) are reflected million and to remaining countries Where Turkey’s total defense to the export figures, then this $ 263 million in foreign sales were turnover was $ 4.908 billion in figure increased to $ 1.929 achieved. 2015, a decrease of $ 93 million billion (these figures could not be The breakdown of export is observed in the total turnover included in the export data as the figures according to regions were when compared with the figures customs declaration forms could as follows: In 2015, 33.6% to of 2014. The sector’s total sales not be prepared). fell by 2% compared to 2014. The Compound Annual Growth Rate (CAGR) was 5% between 2010- 2014 and fell to 3.2% between 2010-2015. The breakdown of Defense Industry Turnover of 2015 was as follows: Where land platforms and systems had the highest sales volume with $ 1.6 billion, Aviation/Aerospace took second place in the ranking of the list with $ 944 million. IT ranked third in the list with $ 900 million © Defence Turkey and it was regarded that this ISSUE 73/2017 39 DEFENCE TURKEY DEFENCE TURKEY 40 ISSUE 73/2017

North America continent, Middle East 14.7%, 14.2% to Asia, © Defence Turkey 17% to Europe, 1.2% to Africa and 15.9% to other countries. It was seen that the exports made to America and Europe was mostly realized through off-set liabilities, and when compared with the previous year the exports achieved particularly to the Middle East increased significantly. The report also displayed a noted increase in the Pacific – South Asian countries as a result of market development activities. could be offering credit funding foreign policy being the pre- According to 2015 data for the contracts approved by condition to conducting exports provided by the SaSaD, an the Undersecretariat for Defense were amongst the issues that important decline in orders Industries. As a result, the list of stood out at the meeting. A special received by sector players was countries from which the credit emphasis was made on the observed compared to the could be provided was submitted necessity of the progress of the previous year. The total order to the Ministry of Foreign Affairs credit mechanisms particularly in value, which was $ 11 billion in by the Undersecretariat, but Air Platforms through government 2014, declined to $ 7.68 billion in following this no progress support and credit mechanisms, 2015 and the Land Platforms and was achieved on behalf of the as it is applied throughout the Air Platforms were the technology Undersecretariat for Treasury. world. The representatives of segments accounting for most of This indicates that Turkey must be Eximbank conveyed to the sector the orders. The orders valued at more creative when it comes to shareholders that there were no an amount of $ 3.67 billion were the various approaches that would restrictions set on the financing made for Land Platforms, $ 1.647 increase credit mechanisms. We of the products with dual usage billion for Air Platforms, $ 1.064 need to increase our exports to such as border security products, billion for Naval Platforms, $ higher level and proceed in a way coast guard boats, radio exports, 1.107 billion for Civil Aviation, for suitable for Turkey.” etc. The institutions to which Security $ 344 million, for MRO $ In the sector meeting, the the sale of the product was 660 million and for other orders $ importance of establishing a made were the most important 910 million. structure which is budgeted in parameters in the utilization of Following the presentation advance each year according to the Eximbank Credit financing. providing insight to the sector’s the projects rather than a “one It was stated that even textile performance of 2015, the time only” approach, especially products were not able to benefit advantages and disadvantages, when forming the export credit from the credit mechanism when the latest developments on the mechanisms, was underlined. It the procurement authority is a agenda and tasks at hand were was stated that the companies Military institution or the Ministry examined under the moderation could not efficiently benefit from of National Defense and it was of Vice President of the Defense the Eximbank Credits due to the suggested that while making Industry Assembly Mr. Haluk condition of not equipping the the preparations, the companies Bulucu on the Model Search platforms or products that are should take this point into for the Export Credit System required to be exported with arms consideration. in Sector Assembly. Bulucu in the meeting and suggestions Upon the completion of expressed that they took certain on the things to be done to the presentations, the studies steps for establishing the Defense overcome these deficiencies were regarding the R&D Reform Industry Export Credit Mechanism conveyed. package, secondary legislation in 2015 in order to especially Views on granting and manufacturing were increase the sales to countries development support during conducted under the moderation with budget problems and added, development activities carried of the Vice President of the “A study was launched with out in line with the demands Defense Industry Assembly Mr. the effort of our Foreign Affairs of the foreign countries, the Yılmaz Güldoğan. Ministry and Undersecretariat export applications regarding Following the aforementioned for Defense Industries in 2015. the modernization of the granted presentation, Deputy Within this scope, as a result products, suggestions of the Undersecretary for Defense of a series of meetings held sector representatives for the Industry Dr. Celal Sami Tüfekçi at the Undersecretariat for export sales through exchanging gave a brief remark to the sector Treasury, it was stated that the methods were shared with the assembly and the meeting was Undersecretariat for Treasury decision makers. Moreover, then concluded. ISSUE 73/2017 41 DEFENCE TURKEY DEFENCE TURKEY 42 ISSUE 73/2017

The Next Big Thing: Havelsan’s Simulators are Attracting the World’s Attention In this exclusive interview Mr. Lütfü Özçakır - Vice President, Training and Simulation Technologies Division, Havelsan - discusses the company’s impressive achievements, current projects and Havelsan’s

Defence Turkey: Dear Mr. Lütfü Özçakır, first of all we © Defence Turkey would like to thank you for your time. You are assuming a significant responsibility at Havelsan as the Vice President of the Training and Simulation Technologies Division. Can you give us an overview of the responsibilities of your division? Our division performs a wide of range activities within the overall structure of Havelsan. Our areas of activity are comprised of the manufacturing of both commercial and military simulators and simulation systems and the provision of all types of integrated maintenance and logistical support following the delivery of the systems to AW 139 Full Flight Simulator the clients. Moreover, through an in parallel with the completion of be unceasingly active and thus initiative that we have developed the ongoing construction of the the training services over the over the last two years, we have Training Center in Doha within the simulator system will be executed been developing virtual and actual second half of December 2016. without interruption. We have integrated training solutions The commissioning is planned accomplished similar simulator in various functional areas to take place in April 2017 upon operation services in South by utilizing our technological assembly completion. Within the Korea, Pakistan and Saudi Arabia infrastructure and offering training framework of the project, the in previous years. Concurrently, services on many subjects; operational services will also be this project generated a close providing these services to both provided by Havelsan for three relationship with the Qatari Air our security forces and to the years following the integration of Forces. Our client was quite friendly and allied countries as the simulators in Doha. During the satisfied with our products and determined by agreements upon realization of this project and at services as well as with Havelsan request. the procurement stage of several in general. I would also like to Defence Turkey: Mr. Özçakır, of the software and hardware announce that we have already you recently delivered to Qatar work packages, we collaborated reached an agreement to extend the AW 139 Full Flight Simulator with many local corporations in the content and period of these which was developed and our business eco-system. Our operational services. manufactured for the Qatari simulator was manufactured in Defence Turkey: Dear Armed Forces. Could you compliance with the standards Mr. Özçakır, Havelsan also please briefly tell us about the having a Level D qualification untertaking the development development, manufacturing which will be granted by and manufacturing of the process, the delivery schedule International Aviation authorities. simulators of the T-129 “Atak” as well as story of this program? Defence Turkey: You will also helicopters as part of the Within the scope of the be providing the operational ATAKSIM program. Could you “AW139 Helicopter Simulator services of these systems for please inform us about the Integrated Training Center” three years in Qatar as part of responsibilities regarding this Project that we launched in May this program. Could you please project and provide a synopsis 2013, the Full Mission Simulator, elaborate upon the content of this of the status of the project? Flight and Navigation Procedures package? Havelsan holds the ATAKSIM Trainer, Tactical Control Center, Havelsan will be procuring project in high regard, it is very Rear Compartment Crew Trainer the maintenance, retrofit and significant for us. This is an SSM and Debriefing System were logistical support services of the project - the Undersecretariat for designed and manufactured for Qatar AW139 simulator for three Defense Industries. The objective the training requirements of the years, similar to the Integrated of this project is to contribute to helicopter pilots and operators of Logistical Support activities that the fulfilment of the requirements the Qatari Air Forces Command. we have been implementing for of Turkish Land Forces As part of the project, the Full © Defence Turkey the existing simulators located at Command in the training of pilots Flight Simulator, the production various military bases and units and technicians through the stage of which was completed of the Turkish Armed Forces. developed T129 “Atak” helicopter last year, was dispatched to Qatar In this way, the simulators will simulators. In general terms, the DEFENCE TURKEY 44 ISSUE 73/2017

enormous contribution to Turkey’s exports, while also supporting Turkey’s reputation as a rising leader in the defense industry. In parallel, we evaluate that if the demand for new ATAK helicopters is increased in the coming period, then the requirement for manufacturing of additional simulators will also appear on the agenda. Defence Turkey: The Turkish Defense Industry Executive Committee decided to upgrade the SeaHawk Helicopters in previous months. How are © Havelsan the HELSIM-Lot II studies Submarine Diving Simulator proceeding within the scope of this program? project consists of one T-129 avionics systems, navigation and There are 17 helicopters Full Mission Simulator (FMS), communication systems and air with LOT II configuration in the one T-129 Partial Task Simulator vehicles and electronic warfare inventory of the Naval Forces (PMS), one Weapons and Avionics system training, utilized particularly Command, and 7 helicopters System Trainer (WAST), Computer by the “Atak” helicopters. with LOT I configuration are being Based Training System, Virtual Regarding the recent status upgraded to LOT II configuration Maintenance Simulator (VMS) of the project; At this time we are within a retrofit program. We and three Debriefing Systems. in the 36th month since our start- attach great importance to this As Havelsan, we are cooperating up phase that began in January as we are making a modification with approximately twenty 2014. We have delivered our on a simulator manufactured by business partners in cooperation first product, the Weapons and our own company for the first with TAI and Aselsan for the Avionics System Trainer to our time. In line with the addendum development of these products. user. Being the very first delivery and amendments on the existing We have a splendid local content within the scope of ATAKSIM, this HELSIM contract, we included rate (80%) within the scope of the represents a significant milestone the simulators with LOT I ATAKSIM project. In this project, for both our company and our user. configuration; these simulators we are indigenously developing We aim to accomplish the delivery were delivered to the Naval Forces all the aerodynamic and tactical of our second product within the Command between 2008 and peripheral software that are coming 3-4 months and then 2010 by Havelsan as part of the of critical importance for the fulfill the delivery of the remaining retrofit program. simulation. products in the following months, As of September 2016, we Our core responsibility within thus finalizing the acceptance of took over the first simulator and the scope of ATAKSIM program all of our products by April 2018. applied modifications and updates is to integrate the products In event of ATAK helicopters on radar, sonar, Link 11, electronic we procured from our solution being exported abroad, we believe warfare, weapon systems and partners with the products that the sale of the simulator auto pilot software and hardware developed by Havelsan and to product abroad would be an (modified consoles and panels). render them as an end product on We took over the second which the users are trained. These simulator in November 2016 products will be delivered as turn- and launched our studies. We key products to the Simulator plan to finally include the motion Training Flight Command premises simulator to the retrofit program. within the Army Aviation Academy In April, 2017 our newly configured Command. Thanks to the simulators are expected to be put simulator to be delivered, TAFF will into training service following the be able to draft and execute tasks Level D qualification test. and flight training with security Defence Turkey: Could and cost-efficiency. In a real- you please provide an update world live environment this type on the current status of the of training is extremely hazardous Submarine Diving Simulator and the financial ramifications (SUDS) program that you have are exorbitant. We consider been conducting for the Gür and that this simulator will provide © Defence Turkey Preveze class submarines? great advantages in weapons, ISSUE 73/2017 45 DEFENCE TURKEY

Following the simulator training solution without any Defence Turkey: Havelsan solutions for the Air and Land security risks, is composed of is developing Armored Vehicle components, Havelsan launched mathematical modelling, motion Simulators. You are also in its first simulator activities for system and a diving cabin in charge of the development maritime, with the Submarine addition to the basic simulator of the simulation for the AV-8 Diving Simulator (SUDS) through hardware. The motion system Armored Personnel Carrier the contract signed with the with two degrees of freedom is manufactured by the FNSS Undersecretariat for Defense a system developed to create a for the Malaysian Army. Could Industries in October 2012. feeling of real submarine movement you please share some details SUDS is planned to be used during training of maneuver room about the current status of this for the training of staff assigned to personnel. Additionally, the program? the U-209 Gür and Preveze class mathematical modelling enables The AV-8 Simulator is one submarine maneuver rooms within the fulfilment of the underwater and of our prominent projects as the inventory of the Naval Forces. surface operations of the U-209 it is the first vehicle simulator It covers the training simulations class submarines while simulating that we have developed. In this regarding underwater and surface the dynamic movements, project, we are collaborating operations and controls during motion and characteristics of the with FNSS - the manufacturer diving and surfacing tasks. With submarine. of the vehicle. This gives us the the utilization of SUDS trainees The Factory Tests were opportunity to get the support will engage in activities such completed in December 2016, we need as we are doing this as orientation to panels and on track within the scope of the for the first time and we are also equipment and underwater project. Completion of the Simulator able to instantly attain all data we dynamics, execution of procedural building is expected within the first require. The experience we gain training and implementation of quarter of 2017; constructed by here is very important for us as reflex development training under Havelsan, the Submarine Training the land operation training center normal and emergency situations. Center Command at Gölcük, is concept, supported with other This Submarine Diving expected to be rendered ready for land components and tactical Simulator, offering a cost-efficient training by the middle of 2017. capabilities, is a requirement and DEFENCE TURKEY 46 ISSUE 73/2017

these vehicle simulators are at Planning, Image Analysis, Vehicle/ through software developed that the very core of this business. Plate and Facial Recognition specifically allows the user to We are working on providing the systems that facilitate the return back to an intended part of infrastructure necessary for the planning and execution of the the training. training of the crew in addition operations, we aim to expand In summary, within the scope to driver training. AV-8 Armored the awareness of the staff who of increasing the efficiency of Personnel Carrier simulators will be active in counter terrorism counter terrorism operations, have contributed greatly to activities in three dimensional Havelsan has developed and where we need to concentrate, virtual operation environments. will continue to develop real the armored vehicle driver and These true to life environments and virtual training technologies tactical training. In a sense, it has are established with the help of which provide support in the broadened our horizons. We will the images obtained by drones execution of operations. It will benefit from the experience in or satellites. Trainees experience also enable training in this area land simulators requested by the conflict training developed in to be conducted within better Turkish Armed Forces as well. line with real-life scenarios. The conditions and in compliance with The factory tests of the project training scenarios are created the determined targets. are being executed and we aim in the developed individual and/ Defence Turkey: You have to complete the installation and or team conflict simulators and delivered the Electronic end user acceptance in Malaysia allow the users experience the Warfare Test and Training within 2017. situations they may encounter in Range (EWTTR) within the Defence Turkey: In an effort an actual operational environment. scope of the Turkish Air Forces to achieve more effective This virtual environment allows requirements in previous years. outcomes by the Turkish Armed users to develop the proper You have accomplished the Forces (TAF) in the fight against reflexes. sale of this EWTTR program terrorism, the Counter Terrorism In addition, the 5-6 configured to countries such as Pakistan, Technology Development spaces in the real training Saudi Arabia and South Korea. Center was officially launched area, created by sampling Within this framework, will with the participation of the the settlement zones in the there be new sales to new Minister of National Defense. southeastern region of Turkey, allied countries in the coming What types of capabilities are are equipped with the interior/ period? Is Havelsan in charge of expected to be acquired in this exterior positioning systems, the operation of other EWTTRs area with the launch of this effect generators capable of that are procured to the Turkish center? Moreover, what will be creating sound, fog, smell etc. Air Forces and exported and the the training process for the TAF effects; laser kits mountable Performance Based Logistical and Security staff active in the over the vehicles, weapons and Support Services as well? fight against terrorism? personnel and imaging systems Could you please share details As you mentioned, within the and thus have been rendered regarding what type of services scope of increasing the efficiency smart. Additionally, as part of and capabilities you provide in of the TAF and our security forces the solution, an opportunity this area? in their fight against terrorism, for the efficient assessment of The Electronic Warfare Test in addition to our solutions the responses and actions of and Training Range (EWTTR) is supporting the real operations trainees following the execution a vital capability as it enables such as SMARTOPS, Operation of the operation is enabled the suppression of enemy air defenses. The verification of the developed Electronic Counter Measures, their optimization and pilots’ experiencing these through the manoeuvers can be achieved with the help of this range. Countries desire to possess a deterrent air force, with an aim to incorporate into these types of ranges to their inventories. EWTTR also bears great importance as it is the first performance based maintenance and repair project we have ever accomplished. While executing EWTTR programs, I would like to emphasize that we have tested © Havelsan numerous EHTES fields so far The Inauguarition Ceremony of Counter Terrorism Technology Development Center and we specialized in this area ISSUE 73/2017 47 DEFENCE TURKEY

by reflecting upon the lessons we visits. Again, we benefit from learned, passing the knowledge our generals/colonels that are gained to our next solution. retired from our Armed Forces in Therefore, we are now introducing our Training Consultation Group the EWTTR with new functions composed of high level staff. and integrated capabilities, and Moreover, within our organic this naturally increases the interest structure we attach special shown in the system. In the near importance to the employment future, we foresee to conduct new of retired military personnel who EWTTR programs, particularly in have served in various levels of the gulf region. the TAF. For instance, the current Since EWTTR contains air Training Services and Integrated defense systems procured from Logistical Support Group Head various sources, the performance is a retired Staff Colonel and based logistical support has our Training Services Business to be innovative as well. The Development Manager is a retired comprehensive operation © Havelsan Land Pilot Colonel. Additionally, and maintenance of systems, F-16 HD 360° Dome Simulator System there are notable retired military designed according to different staff assigned to our projects as maintenance levels and with by the technical staff appointed pilots and technicians. various technologies, require by Havelsan. As part of fulfilling Defence Turkey: Mr. Özçakır, a flexible structure composed integrated logistical services, within this context, can we of methods such as reverse Havelsan commits to executing say that you are adopting an engineering, I can easily say that the update of the systems and to approach of creating new Havelsan has already proved itself constantly keep them active. markets by generating new in this area. Defence Turkey: Within turnkey concepts that fulfill The logistical support the context of the Integrated simulator requirements, in contract, that we have signed Training Centers package, there accordance with training with the Undersecretariat for is a requirement for qualified demands, instead of directly Defense Industries for the EWTTR human resources and training selling simulators to countries? program, is a good example in staff that are trained under the As you also mentioned, this area. Keeping the range auspices of the Turkish Armed without reducement our focus available for training, operation Forces, individuals that are on the simulators and simulation of air defense systems over the competent in their own fields, in technologies, that compose course of the training, conducting order to establish new training our main function area, we are the preventive maintenance concepts. This is especially developing simulators such as for all components, supplying important according to the warfare training center, healthcare the consumable materials and demands of other countries. To training center, maintenance spare parts, are in the charge this end, what is your approach training center, military exercise of Havelsan; the client merely toward gaining qualified human centers, joint warfare centers measures the performance. This resources, such as seasoned in tactical and strategic levels model assists us in becoming industry professionals and and simulation based integrated more competitive, enabling us to retired military personnel, turnkey projects in urbanized apply our own solutions in this to enhance your current terrain by expanding our product area. capabilities? Could you please range further through the Defence Turkey: Dear Mr. share your activities in this experiences we gained here. If Özçakır, how is the operation of respect? requested by clients, we offer the F-16 simulator training and I would like to point out that these concepts by embracing the integrated logistical support we aim to develop all our solutions training services and integrated services proceeding? Could you in diversified areas in accordance logistical support in line with inform us on this issue? with the requirements of the TAF the determined parameters. Not merely the F-16 simulators, and Security Forces. Havelsan Therefore, we tap into the but also the maintenance, repair utilizes all manner of opportunities cumulative technological know- and integrated logistical support to determine requirements in this how that we have acquired to date of the existing helicopters, regard. Our aim is to plan and and we also increase our regional aircrafts and various vehicle/ implement all our projects in line market share by broadening weapon simulators and simulation with the requirements of the TAF our product range. I would also systems deployed in 26 different through periodic visits to the would like to underscore that points at the various bases and troops/headquarters at all levels, we persevere in bringing foreign training centers of our Land, joint project meetings, workshops currency into our country by Naval and Air Forces. These conducted with the participation selling training services to third activities are being conducted of the security forces’ personnel, countries by marketing the workgroup meetings and survey DEFENCE TURKEY 48 ISSUE 73/2017

innovative capacity and value- add opportunity that the TAF flight simulators can provide. Defence Turkey: Havelsan has been gaining impetus in the area of commercial simulators recently, in addition to its services for the military. Within the scope of Turkish Airlines requirements, you plan to deliver the Boeing 737- 800 NG Full Flight Simulator to Turkish Airlines very soon. What would you like to say about the difficulties you have been through during the reflection of the competency © Defence Turkey in the military simulation to the commercial simulation, the these experiences during the in respect of engineering and advantages of the experiences manufacturing process of the operational efficiency in the design and acquirements you gained in Boeing 737 simulator for Turkish of our simulator. We acquired the the military area? Airlines (THY). Manufacturing a opportunity to set up a robust I consider the capabilities that simulator for THY, a company and successful supply chain eco- Havelsan has acquired in the area that is the apple of our country’s system for all our requirements on of the military simulator are top eye and bearer of our flag, was this subject. level. The helicopters and aircrafts of great importance to us. I However, we encountered a for which we manufactured the consider that we are successfully newly developing concept in the simulators and training systems, conducting this project, as a commercial sector; while Boeing particularly within the scope of result of the contributions of was providing a data package military aviation projects, have THY and with the benefit of the containing the flight data for additional operation oriented experiences gained through our the simulator via manufacturing systems such as weapons, military projects. The Boeing 737 companies in the conventional electronic warfare and night vision. simulator is also prominent as it method, now this data is Simulation of these complex is the first simulator in which the supplied to the new simulator systems and enabling these binary data packages are being manufacturers through indirect simulators to conduct their flights used. Hopefully soon we will gain methods. Through the instrument and duties, with interoperability, a simulator with the very superior of past experiences we took up a within a tactical periphery and standards to our THY simulator. challenge. modelling the friend or foe and We are delighted at the excitement Havelsan is entirely in charge other components under such of this process. of the design of the commercial circumstances require sound Defence Turkey: Could full flight simulator. In our design, infrastructure, technological you please evaluate the we attached importance to the knowledge and capability. development and manufacturing creation a large and spacious Over the years, we developed process of the Boeing 737- flight cabin, having an instructor our technological infrastructure 800 NG Full Flight Simulator Console and Observer Seat with the invaluable contributions being manufactured for Turkish that allows the most effective of our highly-sophisticated Airlines? Also, when will this monitoring of training and also customer, having stringent system be delivered to Turkish bringing the maintenance and criteria in this area - the staff of Airlines? operation facilities as well as the Turkish Armed Forces - and Havelsan has achieved great aesthetic appearance criteria into have reached an exceptional level. capabilities with the military the forefront. We assessed our determinations simulator. However, I would like Throughout the manufacturing concerning the problems we to point out that the commercial of the cockpit, we decided that the endured during the management flight simulator is a quite a change, simulated and actual equipment of these projects and in the timely having both pluses and minuses, in would be used with THY in order delivery of our products to target comparison to the military sector. to best fulfil our customer’s destinations, aligning them with The advantages are that one can expectations. In line with THY’s the required criteria and added reach information on the aircraft request, we shaped our design these conclusions to our lessons quite rapidly. While developing based on the content of the learned within the context of our the most proper solution for THY, Boeing aircraft. institutional development. we used the most ideal solutions From the simulator’s We have been implementing ISSUE 73/2017 49 DEFENCE TURKEY

design to its development and Boeing 737MAX simulator. of our leading company THY is manufacturing process, THY Defence Turkey: Meanwhile, imperative for us. Besides, we always guided our path and has activities are being conducted do not wish to remain merely the had a great share in the realization for the development of a full simulator manufacturer for THY. of the best civil full flight simulator flight simulator for the Airbus We are willing to develop and in the world. In this context, I A320 platform. How are the diversify our product portfolio as would like to thank, once more, activities proceeding? Do you well, through co-investment with the THY crew for their support. also plan a similar cooperation Turkish Airlines. In the final stage, the hardware with Turkish Airlines in the Defence Turkey: It is stated installation and integration upcoming period? that by 2035 various airlines activities of our simulator were The Airbus A320 aircraft is will be replace their aircrafts completed, to a large extent, and a platform also frequently used and approximately 40 thousand the simulator became airworthy. by airlines. Generally, half of the new commercial aircrafts will The integration and flight data airlines’ fleets are comprised be put into service. Therefore, verification tests are being carried of these aircrafts. By using the a requirement for a great out and we plan to complete the experience we gained during number of pilots will arise. tests and acceptance activities the manufacturing of the Boeing Considering this data, how do by April 2017 and dispatch 737 simulator and in order you evaluate Havelsan’s future the simulator to the THY Flight to strengthen our relations in the potential flight simulator Training center. with Airbus, which is another market for commercial aircrafts Defence Turkey: Upon this significant aircraft manufacturer, in the coming years? How do agreement with THY, which and toward developing our you plan to position yourself in is one of the most reputable product portfolio, we launched this market? airlines in the world, are the manufacturing of the Airbus The number of airline aircrafts, you receiving new demands 320 simulator through our which was approximately 22,500 from the other international equity capital. The cockpit of as of 2016, is expected to reach operators using the Boeing the simulator as well as the part an estimated 45,000 by 2035. A 737-800 NG? Also, do you have of software and hardware are budget of $ 6 trillion is required new R&D studies to expand ready and we are working on the for the actualization of this figure. your product portfolio for the other software and hardware. We Almost 70% of the aircrafts to be Boeing platforms? will soon initiate the integration included in the new inventory will The Boeing 737 simulator that activities at the place where consist of narrow bodied single we manufactured for THY is a we manufactured the AW-139 aisle aircrafts. Considering the turning point for us. This project is helicopter simulator for the Qatari pilots who will be retiring and being followed with great curiosity Air Forces. the new aircrafts to be included and interest by the airlines that Moreover, we plan to integrate in the inventory, the number of have Boeing airplanes in their adaptive training software based required pilots will be around fleet and by other simulator on big data analysis capable of 200,000. The survey indicates manufacturers. At the training measuring the learning process that approximately 50% of this symposiums where the ICAO, of the trainee and providing the pilot requirement will emerge in FAA, EASA and worldwide leading instructor the information on which the Middle East and Asia - Pacific airlines attended, we are receiving subject should be given more regions. crucial and positive feedback. attention. Thus, more time can be Simulators will play an Our negotiations regarding this allocated toward implementing a important role regarding the cost subject continue especially tailor-made training system in this efficiency and relatively quicker with the gulf and neighboring simulator with an innovative idea. training for this number of pilots. countries. We take stock of the In this way, instead of applying Within the next 20 years, there is a fact that awareness is spreading the same training methods, in requirement for the manufacturing and requests will further increase the same period, to all trainees, of 1300 new commercial airline following the delivery of the enabling the opportunity to train - aircraft simulators worth a simulator to Turkish Airlines. in a short span of time and in an minimum of $ 15 billion. When According to the emergence affordable manner according to the ageing of the simulator fleet and increase of these demands, different learning processes of in the inventory is considered, we consider to expand our trainees. these figures rise to higher levels. product portfolio regarding Our negotiations are continuing The yearly average of airline Boeing platforms. When we with the executives of Turkish aircraft simulators has increased analyze Boeing orders, the Airlines toward becoming the in the world, reaching from 15 to narrow-bodied aircrafts stand manufacturer and service provider 110 simulators in 2016. These out. Representatives of Boeing of these simulators that are also impressive growth figures in the are also encouraging us in this required in this platform in the last fifteen years are a significant direction in our negotiations as upcoming period. Manufacturing indicator of this argument as well. well. Our next simulator may be a the simulators that train the pilots Inspired by experience DEFENCE TURKEY 50 ISSUE 73/2017

spanning more than 34 years, especially with its competence both companies, their mutual the more challenging and in “Image Generation”. As you responsibilities, as well as the successful military projects that know, attaining images with high development of the product range we accomplished, the Boeing resolution constitutes an important and marketing model that would 737 simulators we manufactured phase of the flight simulators’ create synergy. for Turkish Airlines, the resources operation process. Therefore, Defence Turkey: Lastly, is allocated to us by our executives with the inclusion of Quantum 3D there any message you would and our foundation and from to Havelsan, we believe that the like to convey to the readers of the esteemed support of our crucial requirement in this area will Defence Turkey? governmental authorities, clients be easily fulfilled in a cost-efficient Havelsan, as one of and business partners, we are manner. the Turkish Armed Forces eager to be involved in emerging Our expectations from Foundation’s institutions, will markets. As a consequence, we Quantum 3D will not be limited continue to develop the training are penetrating markets in the to this. Particularly, by paving and technology solutions that Middle East and Gulf countries the way for Havelsan’s access would contribute to the effective as well as Asia - Pacific markets. to markets which became less execution of the tasks of the TAF Through the instrumental accessible due to geographical or and our security forces, adding experience and background of political conditions, Quantum 3D momentum to our country’s the Quantum 3D Company that will enable the marketing of not progress towards the export we acquired in the United States, only our simulators but also our targets by marketing these we are concluding an agreement other solutions manufactured in solutions abroad. composed of various business other functional areas in a wide Havelsan closely follows the models with outstanding simulator geographical space. In addition, developments in its functional corporations. Rather than not it will facilitate timely transfer of areas and efficiently conducts competing, we are seizing knowledge, information and the R&D activities by taking opportunity and we are actively latest developments that have global technology trends into engaging in negotiation with occurred in the Silicon Valley to consideration. these companies on cooperation Havelsan. We are aware of our country’s models. Defence Turkey: Do you expectations on our company Catering to the training plan a change in the existing and we have the capacity to fulfill requirements of Turkish Airlines is structure of the company upon these expectations. We are in one of our most important projects. the inauguration of Havelsan a relation network that creates We believe that the successful Quantum 3D? Could you please synergy with our Defense Industry activities we will conduct with share your evaluations? Companies performing activities Turkish Airlines will create very The necessary measures for the TAF’s combat readiness significant opportunities for us in concerning the organization and other functional areas. We other regions as well. of Q3D and the management are ready for the future. My final Defence Turkey: Havelsan processes have been adopted. message is “Keep following us!” officially took over the US- We are continuing to work on and I would like to thank you for based Quantum 3D Company methods of cooperation for this interview. recently. After a year-long acquisition period, the process was completed with the © Defence Turkey approval of the United States bureaucracy and Havelsan Quantum 3D became a local company in the United States. Which capabilities and advantages will this company contribute in respect to both technology acquisition and gaining access to the North and South American markets? As you also mentioned, after in-depth market analysis and a challenging acquisition period conducted with the official authorities of the United States, we quite recently incorporated Quantum 3D to Havelsan. Quantum 3D is a well-known Mr. Lütfü Özçakır, Vice President, Training and Simulation Technologies Division, company in the Silicon Valley, Havelsan met with Mr. Cem Akalın, Managing Editor of Defence Turkey Magazine ISSUE 73/2017 51 DEFENCE TURKEY

STM Cyber Fusion Center Intercepting Cyber Threats The STM Cyber Fusion Center (CFC) is capable of proactively detecting cyber threats, taking preventive actions which protects critical technology and data assets. It orchestrates and coordinates the security functions and information flow from threat intelligence, through security and IT operations, increasing operational effectiveness, improving security readiness by preventing or neutralizing attacks through the timely delivery of tactical cyber threat intelligence with relevant indicators of compromise. The CFC opened its doors to members of the media from the defense industry sector. At the event, STM Deputy General Manager Mr. Ömer Korkut and the executives of the Fusion Center clarified questions from media as they facilitated the tour and showcased aspects of vulnerability management, cyber threat intelligence, threat defense operation, the cyber operation center and rapid reaction team capabilities The center, which was inaugurated on 17 May 2016 as Turkey’s exclusive Cyber Fusion Center, has provided services to approximately 10 public corporations and private institutions to date. The infrastructures of various technologies such as big data, security, malware analysis, monitoring imaging and communication operate in an integrated manner at the center. A variety of complicated processes are monitored by a devoted team with specific skill sets, available 24/7. © Defence Turkey The team is engaged in reacting to threats, analyzing and tracing vulnerability data bases, evaluating devices in cases where remote them in the event of an emergency, the fields where the vulnerabilities intervention is required, and they reporting and evaluation of the are exploited, controlling the convey the information to the proper intelligence. STM Deputy General existence of vulnerabilities in the authorities in the case of emergency. Manager Mr. Ömer Korkut stated systems, and taking the necessary The corner stone of the center, that as it is the sole cyber fusion actions in order to react to incidents the Cyber Intelligence Center, plays center in Turkey and also that there are part of the daily routine of the a critical role in the identification of are very few in the world, the center cyber operation center. The Rapid cyber threats against the institution is a critical investment and added, Reaction Team plays a critical role to which the service is provided. In “STM has been investing heavily in in fulfilling the following crucial this unit, the data existing either in cyber security for almost 5 years, we tasks; they get in contact with data open source or hidden in the deep have been conducting projects and processing unit during cyber-attacks web or dark web where standard reinforcing our human resources”. to systems, block-off authorized users cannot typically access, the data are gathered through software STM Deputy General © Defence Turkey developed by the STM engineers Manager Mr. Ömer Korkut: and evaluated, interpreted and then “We aim to intercept transformed into intelligence. cyber attacks in advance STM Deputy General Manager of the emerging threat” Mr. Ömer Korkut stated that they are able to prevent the incidents The Cyber Fusion Center from occurring in cyberspace at is comprised of three core that point when they turn the data components: the Cyber Operation into intelligence and continued, Center (COC), Cyber Intelligence “Concerning cyber security, if we Center (CIC) and the Malware fuse the intelligence at the right Analysis Laboratory. time with the right resources, we are The operation center monitors able to block the cyber-attacks just the systems on a 24/7 basis. The like the prevention of conventional processes such as the monitoring attacks through intelligence. This is of network traffic, real-time tracking, STM Deputy General Manager Mr. Ömer our starting point in this cyber fusion risk perception, controlling known Korkut center”. DEFENCE TURKEY 52 ISSUE 73/2017

Cyber Intelligence Center Tracks Hacker Groups © Defence Turkey The STM Cyber Security and Big Data R&D Group Manager Dr. Umut Demirezen stated that they gather concepts such as big data and artificial intelligence and deep learning together with the technology they indigenously developed and added, “We are capable of closely monitoring hacker groups, within the big data platform that we enhanced. Hacker groups have to gather their team while in the readiness stage in advance of the attack, and their communication with each other certainly leaves a trace. These traces are pursued and these deficiencies with the clients under the responsibility of the grouped, all the communication with so that they could take measures vulnerability management. One of a similar approach and tendency accordingly. the most important units completing are classified and tracked. In this When the cyber intelligence this cycle is the Malware Analysis way, we are able to figure out turns into a threat, becomes a Laboratory in which the Malware is their methods and this enables cyber-attack and an incident, the analyzed. A biopsy of the detected the advance notification of the Cyber Operation Center steps in at malware is conducted here. When intelligence to clients as well our the center. The data is monitored the malware is identified, removed servers. We have achieved the in real time at the cyber operation from the system and brought to development of unique systems center by the analysts. the laboratory, its behaviors are through software, analysis and Cyber Security and Big Data detected in an isolated environment methods at this center”. Manager Dr. Türker Yılmaz stated or in an environment with restricted Emphasizing that DDOS attacks that harmful traffic as well as traffic internet access. In this laboratory, have become a trend recently, Dr. flow and volume are instantly the static and dynamic malware Demirezen commented that they monitored by the analysts at the analysis of the different operating warded off attacks against clients in cyber operation center and that systems and mobile platforms are the past. They detected in advance they have significant capabilities performed on virtual or physical malware that is procurable on and added, “For instance, if a user platforms. The team assigned at the black market. Such malware in Ankara is logged in at the same the center can conduct specific may leak into systems and could time at another location in the world analysis, over only the code for be used similarly in cyber-attacks then this may mean that his account weeks, determining the intended through the instrument of this unit has been hacked. We are capable purpose of the malware, where it and as such they have successfully of detecting such abnormalities was generated and what kind of generated an antidote for this at the as well. We have graphic screens damage it could cause the system. malware analysis laboratory. through which we monitor the flow If the detected software contains a Upon the question of whether of harmful traffic; from which country zero-day risk or has not been seen any attacks were made to the it flows, into which IP address it before, then the relevant signature institutions that they were providing penetrates, to which port and which generation is again conducted services since the launch of the IP of the customers to which it at this laboratory. The signature center, STM Deputy General arrives. We direct the abnormalities generated is then imported to the Manager Mr. Ömer Korkut remarked, that we detect in this unit by the protection systems of the institution “There are institutions in the way the second level analysts and and this system’s recognition of the Defense Sector to which we provide identify the abnormality. The details malware attack and thus enabling services. The institutions with critical are probed by our analysts at the an automatic block of all traffic. infrastructure become the target of second level. If any malware is in A team of 6 expert analysts are cyber-attacks. Our institutions such question then we dispatch it to the dedicated to the Malware Analysis as the Ministry of Energy, Ministry malware analysis laboratory for work Laboratory of the STM Cyber of Transportation and Ministry of through ”. Fusion Center. For the time being, Health, with massive investments Throughout the screening, the number of employees is 37, and storing of personal information, activities are completed such as: consisting of cyber security experts, are exposed to cyber-attacks. On the identification of vulnerabilities threat analysis experts, legal advisor the other hand, the finance sector of client systems and their for legal transactions, specialists is hanging by a thread. As you periodical reporting, evaluation of for industrial intelligence and may recall, during cyber-attack the identified vulnerabilities and administrators. The number of staff to Estonia in 2007 the financial transfer of the measures required is expected to increase in relation infrastructure collapsed. In regard to to be adopted against the leaks to the needs clients at home and these sectors, we detected critical and penetration test services are abroad in the upcoming period. points in the past and we shared ISSUE 73/2017 53 DEFENCE TURKEY

Turkish Defense Powerhouses FNSS and SSM Team up for Local Design and Production to ZAHA Program Within the scope of the Armored Amphibious Assault Vehicles (ZAHA) Project, carried out by the Undersecretariat for Defense Industries (SSM) for the requirements of the Naval Forces Command, the contract comprised of local design and production, was signed between SSM and FNSS Defense Systems Inc. A total of 27 Vehicles will be produced from the ZAHA project. These vehicles are deployed from the Landing Helicopter Dock (LHD) to ensure secured movement of troops while completing landing operations Commanders hatch, Personnel and Mr. K. Nail Kurt, General Manager in turbulent sea conditions. cargo hatch, Hydraulic rear ramp, and CEO of FNSS, commented on During the landing phase of Propulsion system – 2 ea water jet, the signed contract as follows: an operation, these vehicles are Amphibious capability – Fully sealed “Following the Anti-Tank Vehicles launched from Landing Helicopter hydrodynamic hull design, Gross Project, the ZAHA contract is the Dock (LHD) approaching the coast, vehicle weight – maximum 30 tons, second contract we have signed with and rapidly cover the several Length 8.3 meters, Width 3.3 meters, SSM over the past year. Then there kilometers’ distance in between, Sea state 4, Self-righting capability, is also the “Korkut” contract we have allowing units to land with minimum Water speed – maximum 7 knots, signed with Aselsan. Thus, in addition delay. Once on land, they can Side slope 40%, Gradient 60%, to successfully maintaining our status continue taking part in operations vertical obstacle 90 cm and trench as the largest and most important side by side with other armored crossing 2 meters. local supplier of the Turkish Land vehicles. As vehicles that have a The technical specifications for Forces Command in terms of the dual nature due to their mission the ZAHA project were determined variety of vehicles and the duration requirements, armored amphibious by considering the operational of service, we now deservedly take assault vehicles need to exhibit concept and mission requirements pride in having become a vehicle superior performance both at sea as specified by the Naval Forces supplier for the Turkish Naval Forces and on land. Only a few countries Command. When the primary Command as well. around the world have such vehicles design solutions and requirements The FNSS vehicles currently in in their inventories. Among NATO are considered, the platform is the inventory of the Turkish Armed countries and allies, there is only a intended to be superior to its rivals in Forces, which include the Armored single company other than FNSS respect to the number of personnel Combat Vehicles (ACVs), the “Samur” producing vehicles of this class. carried in the vessel, ballistic and Armored Amphibious Assault Bridge The ZAHA project is composed mine protection levels, and the and the “Kunduz” Amphibious of 23 Armored Personnel Carrier, 2 performance criteria achieved on Armored Combat Earthmover, are Command Vehicles and 2 Recovery land and maritime. performing their duties. Vehicles. The vehicles will be entirely designed and manufactured in accordance with the “Local Development” project model. The vehicle can be utilized as an Armored Personnel Carrier, Command Vehicle and Recovery Vehicle. The following specifications are included in the design: Unmanned turret 12.7 mm MG & 40 mm AGL, Gunners compartment, Power pack – Diesel engine and automatic transmission, Integrated smoke generator, Cathodic protection, Ballistic and mine protection – Aluminum hull, Drivers hatch, DEFENCE TURKEY 54 ISSUE 73/2017

Meteksan Defense Surfacing on the Global Stage with its Damage Control Simulator – Securing a Sale to the Republic of Korea Navy Offering the most state of the art and modern solution in its field, the Damage Control Simulator developed to cater to naval forces worldwide, Meteksan Defense has now added the Republic of Korea to its growing list of clients for its simulator. The tender that the Republic of Korea Navy had initiated to meet its requirements for a Damage Control Simulator was won by Inno Simulation and Meteksan Defense partnership, which managed to outpace its competitors. The project contract was signed on February 24, 2017. The simulator system to be © Meteksan Defense established for the Korean Navy will be a reference for Meteksan Defense. The company will be teaming up with Inno Simulation in the Republic of Korea to ensure the highest level of domestic contribution. As such, under the support of Meteksan Defense, the Damage Control Simulator and its subsystems will be manufactured in the Republic of Korea with local resources. After developing the Damage Control Simulator and performing its first delivery for the Turkish Naval Forces Command, The Royal Navy of Oman has awarded a contract by Meteksan Defense in 2012 and they have successfully delivered the system to this country in 2014 as well. With the contract signed on February 24, 2017, the Republic of Korea Navy is set © Meteksan Defense to become the third user of the Meteksan Defense’s Damage Control Simulator. The simulator is expected to be delivered in 2018. The simulator enables training in a realistic platform in accordance with international and naval standards, such that the crew can intervene against damages on board ships involved in accidents or hit by hostile fire, and carry out water evacuation and isolation activities promptly and effectively. With its modern technological design, suitable for personnel of all levels from basic to advanced, the system offers adjustable difficulty and automation- controlled training options, while its adaptable system reports enable training © Meteksan Defense assessment, comparison and reporting. ISSUE 73/2017 55 DEFENCE TURKEY

High Tech Mast Systems Set for Mass Production in 2017 FİGES Engineering - fulfilling Turkey’s national defense industry requirements preps for new markets meeting international specifications Since 1990, FİGES has been developing electromechanical systems, sub systems and test systems for the major companies of the Turkish Defense Industry and after the 2000s the company began manufacturing the prototypes of these systems and sub systems which it developed as well. With its 27 years of experience and know- © Figes how, FİGES has been providing advanced engineering services to the company’s factory at Başkent mast systems of FİGES have high a wide variety of Turkish industry Organized Industrial Zone in Ankara durability and high stiffness (low companies, focusing importance in its 27th anniversary with the displacement), they are light and on R&D and supporting companies support of the Ministry of Science, conforms the military standards, and in developing and enhancing their Industry and Technology. were designed in order to perform products. Currently, over seventy experts under challenging environmental In 2015, FİGES management specialized in their own fields and conditions. Moreover, new superior adopted a strategic decision trained in a variety of different features are being developed and of executing the development disciplines of physics are employed added as the part of the ongoing and mass production of its own at the facilities of FİGES. Ten percent improvement process. The products products. As a result of the research of these experts have doctoral emerged as a result of the indigenous conducted to this end, the company degrees. FİGES is a leading and design activities of FİGES engineers noticed the great opportunity offered pioneering company in Turkey in the are being registered through patent by the Ministry of Science and fields of mathematical modelling and applications as well. Industry in respect to the support advanced engineering analysis. Initially, the aim was the fulfillment provided for R&D centers and The breadth and depth of of Turkey’s national defense industry technological investments. The engineering offered by FİGES cannot requirements and have expanded to company initially applied for an R&D be matched with any other mast meeting international requirements. center and eventually transformed A mass production line is being into the structure of an R&D center established for the manufacturing of in 2015. Throughout this process, 90 mast systems in 2017 and 450 FİGES examined the specifications in 2018. set for defense industry projects in FİGES High Technology Mast which the company is involved and Systems utilization areas are as conducted preliminary research on follows: critical systems and sub systems ›› Search and surveillance that are not designed and developed ›› Electronic communication and in Turkey at the time, thus making warfare Turkey dependent on foreign trade. ›› Target acquisition devices In early 2016, the R&D Board of ›› Weapon turrets FİGES adopted the development ›› Sensor and radar systems of electromechanical masts as a ›› Fire extinguishing applications strategically critical product. FİGES High Technology Mast © Figes During this period, the activities Systems’ General Features are as conducted for Aselsan’s REHIS follows: and SST sector directorates company in the world. The main ›› Securely lifting heavy loads were considered successful at reason behind the success of FİGES ›› Light carbon composite material with the presentations and the sales is the company’s dedication to focus high stiffness contracts were signed with both on R&D services. This characteristic ›› Automatic lock system with high sector directorates. For 26 years, enables FİGES to work on a ‘Virtual safety FİGES has continuously provided ›› Low maintenance requirement Prototype’ basis in its design and advanced engineering and R&D ›› Ability to perform under challenging development activities, thus allowing services to its customers. The environmental conditions, including the company to keep its prototype company announced that they will high wind speeds costs to a minimum. be stepping into the industry through ›› Compatibility with the military The high technology carbon conducting mass production at standards (MIL-STD-810G, MIL- composite electromechanical STD-1275, MIL-STD-461F) DEFENCE TURKEY 56 ISSUE 73/2017

Austal -The Australian Shipbuilder with a Proud History of Success in Turkey, Positioned for Future Opportunities Austal is the Australian commercial high speed catamaran 2017 o 70m Large Crew Transfer Shipbuilder, defence prime ferries to Turkey since 1995 and is Vessel delivered to Azerbaijan contractor and maritime technology keen to build upon that success in 2016 (DP2 fitted) o 106m partner of choice; designing, and develop new relationships catamaran in design phase for constructing and supporting with operators throughout the European client o Two 58m Patrol innovative defence and commercial region, including the Turkish Navy. Boats for delivery in 2017 vessels for the world’s leading With effective, local representation USA: o Austal USA, the first operators. and a strong understanding of Non-US company to design and Commencing operations in the Turkish defence industry, build warships for the US Navy, Henderson, Western Australia in Austal is well positioned to continues to deliver thirteen 1988, Austal’s vision was to build pursue new naval vessel program Independence class Littoral high quality aluminium vessels for opportunities - and has indicated Combat Ship (LCS) and twelve the commercial market. As more a specific interest in identifying Expeditionary Fast Transport (EPF) innovative vessels were delivered local, existing shipbuilders vessels under contracts worth to clients around the world, Austal that may partner with Austal approximately US$ 6 billion o expanded into both the defence under a technology transfer Following the completion of the and offshore vessel markets arrangement. Austal’s success current LCS and EPF contracts, and has now delivered over 255 in the USA, Philippines and most Austal USA will have delivered vessels to 100 operators in 44 recently in China, demonstrates over 15% of the US Navy’s entire countries. the company’s expertise and surface fleet Following strategic technology experience in developing Philippines: o High speed transfer and international successful in-country partnerships aluminium passenger ferries investments, including the to deliver defence and commercial for operators in the South establishment of a new shipyard in vessel programs. Pacific, Philippines, South Mobile, Alabama, USA in 1999 and Current and Recent Korea and Germany now under a commercial shipbuilding facility Programs Austal’s current and construction o Recent hybrid in the Philippines in 2011, Austal recently delivered programs build of a 70m large crew transfer has grown to become the world’s illustrate the diversity and strength vessel for Caspian Marine largest aluminium shipbuilder, of Austal’s shipbuilding capability Services of Azerbaijan, which saw with the 4th argest shipyard in the around the globe; components and whole modules United States currently delivering Australia: o Two 72m High constructed in the Philippines the Littoral Combat Ship (LCS) Speed Support Vessels for the and transported for assembly and and Expeditionary Fast Transport Royal Navy of Oman – delivered completion in Australia o Recent (EPF) programs for the US Navy. 2016 o Nineteen steel hulled completion of a 57m Large Crew Austal deliveries to Pacific Patrol Boats for export – Transfer Vessel for Swire Pacific Turkey Austal has delivered ten commencing construction April Offshore ISSUE 73/2017 57 DEFENCE TURKEY

Austal’s commitment to innovative vessel design, efficient modular manufacturing and value-adding, ’through-life capability management’ has secured its place as a preferred global shipbuilder and defence prime contractor - delivering customised solutions based on proven platforms ‘on time’ and ‘on budget’. Unrivalled innovation in Defence vessel design and construction In the area of defence, Austal has developed some of the most innovative surface warships ever produced, including the iconic 127 metre frigate-sized Littoral © Austal Combat Ship (LCS), 103 metre Expeditionary Fast Transport (EPF) HSSV platform include; the 103 and remote information monitoring and 72 metre High Speed Support metre Expeditionary Fast Transport system that centralises the control Vessel (HSSV) or EPF developed for the US Navy and management of engineering The LCS was designed with a and the 72 metre multi-mission operating systems throughout the unique trimaran hull form, enabling theatre support vessel, delivered to vessel. it to deliver superior performance, the Royal Navy of Oman in 2016. ›› Ride Control uses computer sea keeping, fuel efficiency and The HSSV’s innovative, controlled motion reduction to survivability with the capacity to ‘open architecture’ design offers create a smoother, more stable carry large, modular, multi-mission multi-mission flexibility and the and comfortable ride for crew, packages at high speed. opportunity to integrate various passengers and cargo. Employing The EPF is a fast, flexible mission packages and systems Ride Control in military ships military catamaran that has that enable additional tasks to be ensures troops have a comfortable redefined naval capability, around delivered from this one versatile journey and arrive for fit for duty. the world. Operated by the US platform, including, for example; Austal’s commitment to Navy, the growing EPF fleet is ›› Mine warfare customer satisfaction includes the delivering fast, flexible sealift and ›› Hydrographic survey and research availability of ongoing support for logistics support to military and ›› Special forces (swimmer delivery commercial and defence vessels, civilian operations from Western vehicles, raiding craft, forward crew and operators through a Africa to the Middle East, Asia and deployed HQ) global network of shipyards and South America. ›› Humanitarian Aid and Disaster service centres. Training, through Austal’s HSSV is a new Relief Austal’s mission proven life maintenance, contracted capability that offers class- HSSV offers prospective operators, support, logistics, upgrades and leading sealift, logistics and such as the Turkish Navy, a cost other services are all available and theatre support, with inherent effective alternative to traditional can be delivered locally in Turkey. multi-mission flexibility. The latest vessels - with the ability to Austal has built a well-earned evolution in effective military deliver multiple missions from global reputation as an innovative catamaran design and technology, the one platform. As Australia’s shipbuilder, delivering high quality the HSSV platform carries troops, pre-eminent patrol boat builder, ships, systems and support - vehicles, equipment and cargo Austal has delivered 72 patrol and is well placed to renew a at high speed between ports or boats over the past 18 years, successful past relationship with other (austere) locations, with including the Commonwealth of Turkey through potential new a fast turnaround (loading and Australia’s entire border patrol technology transfer opportunities, unloading), at comparatively low capability – comprising 30 vessels or the delivery of design and cost. Existing examples of the for the Royal Australian Navy and consultancy services with a Australian Border Force. Systems proven, trusted local shipbuilder. and Support Complementing Austal has built a well-earned Austal’s innovative vessel design global reputation as an innovative and construction are operating shipbuilder, delivering high quality systems that enable vessel control, ships, systems and support and is passenger comfort and information well placed to successfully renew management for operators. an effective, trusted relationship ›› Marine Link is the Austal with Turkey to develop new mechanism to network onboard capabilities for the regions’ naval © Austal operators. DEFENCE TURKEY 58 ISSUE 73/2017

Submarine Rescue Ship MOSHIP TCG “Alemdar” Delivered to Turkish Navy The Submarine Rescue Mother Ship (MOSHIP) TCG Alemdar A-582 was delivered to the Turkish Naval Forces Command on 28th January. MOSHIP will perform critical missions such as recovery of personnel from submarines, rescue, replacement of damaged or broken vessels and deep-water refitting and debris removal The Submarine Rescue Mother Ship TCG Alemdar (A-582) MOSHIP © Istanbul Shipyard was delivered to the Naval Forces Command by Istanbul Shipyard on January 28th, 2017 at Istanbul Shipyard Tuzla with a ceremony. The attendees included the National Defense Minister Mr. Fikri Işık, Naval Forces Command Admiral Bülent Bostanoğlu, Fleet Commander Admiral Veysel Kösele, 1st Army Commander Musa Avsever, Undersecretary for Defense Industries Prof. İsmail Demir, Istanbul Shipyard Chairman Mr. Ertan Şener, Istanbul Shipyard Vice Chairman of the Board Mr. Atilla Çiftçigüzeli as well as many other guests. Mr. Fikri Işık - Minister of Defense The National Defense Minister National Defense Minister Mr. of Shipyards and will maintain to Mr. Fikri Işık made a speech at the Fikri Işık: “Private Sector is the develop and expand our know-how ceremony and said: “The Republic dynamism of our country” by improving and strengthening it as of Turkey is a country that learns well as involving the dynamism of our lessons from history. We are making The National Defense Minister private sector. Our Turkish Defense great efforts in order to not re- Mr. Fikri Işık stated that great efforts Industry will continue to exert all experience the same suffering by are being made in order to make the efforts to provide the requirements taking lessons from our history. Turkish defense industry become of the Turkish Armed Forces through In fact, this ceremony today, is a one of Turkey’s vital export items maximizing domestic and national precaution that we took to avoid and said: “Our goal, together with opportunities.” the submarine accidents like our private sector, is to become one ‘Atılay’ and ‘Dumlupınar’ as well as of the countries that have a voice Admiral Bostanoğlu: “We are preventing the same adversity. If we in the world’s defense industry. In Launching I-Class Frigate had the Alemdar ship in those days, order to accomplish this goal, our Construction soon” the caliber of ship that we delivered private sector shipyards will be The Commander of Naval Forces today, with the technology we our crucial dynamic. We are aware Admiral Bülent Bostanoğlu stated currently have achieved, many of that it is not possible to achieve that they witnessed the launch and the seafarers could have survived. lasting success if we rule out our delivery of many vessels in military Unfortunately, we cannot regain our private sector. We are restructuring and commercial shipyards within losses but we still have a chance our Ministry accordingly. We have 2016 and continued: “In today’s to make the related precautions established our General Directorate conditions it is an inevitable necessity to prevent similar shipwrecks in to have the most modern equipment; the future. We are proud of this © Istanbul Shipyard equipment in underwater rescue, development.” underwater search and rescue and Expressing that many projects offshore towing. Through the rescue have been realized in maritime so systems of TCG Alemdar, in the far, Mr. Işık emphasized the aim event of wreckage and breakdowns of localization and development that may occur in submarines, the of critical technologies as well vessel will be able to be rescued as the fulfillment of the Turkish within a maximum of 72 hours. Armed Forces’ requirements Towing and underwater search and through domestic and national Turkish Navy Commander Admiral Bülent rescue operations will be performed, opportunities. Bostanoğlu for aircraft wreckage through its ISSUE 73/2017 59 DEFENCE TURKEY

diver, remotely operated unmanned for the first time in our defense able to simultaneously implement vehicle and atmospheric diving suit industry at private sector shipyards.” various recovery scenarios requiring capacities. Following the opening speeches, precise planning, coordination and In addition, the vessel will be Minister Mr. Fikri Işık, Commander technological equipment. compatible with the NATO submarine of the Naval Forces Admiral Bülent MOSHIP is able to perform recovery system and the United Bostanoğlu, Chairman of the Istanbul deep-water operations up to a States submarine recovery system. Shipyard Mr. Ertan Şener, Vice depth of 1000 meters. It also has the With these features, TCG Alemdar Chairman of the Board Mr. Atilla capabilities of Active Sonar, Acoustic will also be able to serve as a joint Çiftçigüzeli and the accompanied Monitoring Capture System, submarine rescue ship in international guests examined the vessel. Underwater Telephony System, operations. In the past, there were Remotely Operated Vehicle (ROV) some of the search and rescue and Side Scan Sonar System. operations in maritime territory that MOSHIP Capable of Critical Duty MOSHIP, holding the necessary we could not salvage from deep-sea with Cutting-Edge Equipment equipment to execute recovery and we requested support from allies The initial delivery of TCG- operations at 5 Level Sea State and since such operations were beyond Alemdar, the contract of which was towing at 6 Level Sea State, will be our rescue limits. In order to eliminate awarded in 2011, was made to the able to execute limited recovery this deficiency, with the remote Naval Forces Command following the operation at 6 Level Sea State. The controlled unmanned sea vehicle completion of design, construction, fully equipped 12-ton General Utility “ROV” system, to be supplied, our outfit and test activities. Helicopter, which can be deployed existing deep-water survey and The Submarine Rescue Mother on the flight deck of the vessel, rescue capability will be upgraded Ship will complete critical missions can perform landing and take-off to three thousand meters, currently for personnel rescue and salvage activities 4 Level Sea State. it is one thousand meters.” activities in cases of accidents The vessel is also able to anchor Emphasizing that the Turkish and injuries, and for underwater at 652 meters with an anchoring Naval Forces are making utmost repair and debris removal activities system from four-points. With this efforts to improve the military through its diver, remotely operated feature, it has been documented as a shipbuilding capabilities of private vehicle and atmospheric diving suit vessel that can anchor at four-points shipyards, Admiral Bostanoğlu said: capabilities. at this depth. “Currently, only the corvette, frigate MOSHIP has the capabilities to A total of 125 personnel, 95 of and submarine building activities complete critical missions, locating which are vessel personnel and 30 are being carried out at our military wrecked submarines. It will provide of which are rescue personnel, will shipyards. With the experience medical assistance and ventilation perform tasks on the vessel. The gained from the Ada Class Corvette, support to the submarine personnel, personnel capacity of this vessel can we will initiate the construction of treat the distressed submarine be increased to 137 with an addition “Istanbul” which is the first vessel personnel in constant compression of 12 personnel. of “I-Class Frigate Project” at the chambers for decompression, treat The majority of the shipbuilding Istanbul Shipyard Command. It is the injured-sick submarine personnel materials and services as well as the planned that the 2nd, 3rd and 4th through the onboard treatment systems integrated on the vessel frigates within the scope of this room and transport patients through were provided by local contribution. project will be built by the private the helicopter platform on its flight Within the scope of the project, sector shipyards, thus the frigate- deck. With the latest technology the Turkish Defense Industry type combat vessel will be realized MOSHIP TCG-Alemdar will be participation level achieved is 65%. DEFENCE TURKEY 60 ISSUE 73/2017

Turboshaft Engine Development Project Contract Signed Between TEI and SSM A Contract has been signed design studies of the indigenous between TEI and SSM for the engine and the first design cycle Turboshaft Engine Development was successfully completed. As Project (TEDP), carried out by of the official effective date of the the Undersecretariat for Defense project, the manufacturing and test Industries, in order to domestically structure is aimed to be completed cater to the engine requirement rapidly and moved to the prototype of the helicopter that is being © SSM phase. developed within the scope of the within 5 main phases. According It is envisaged that the Indigenous Light Weight Utility to the project schedule, the gas turbine engine design and Helicopter Program. first engine run-up is expected development infrastructures, to Within the scope of the in the 2nd year and the engine be developed within the scope of project, 2 certified 1400 shp certification is expected to be the indigenous Turboshaft Engine powered turboshaft engines will completed in the 8th year. It is Development Project, will also be be developed and the turboshaft stated that following the award of utilized for the Indigenous Aircraft engine will be integrated on the the contract, TEI had initiated the engine with technological add-ons. indigenous helicopter and certified. In addition, the test infrastructure for the turbo shaft engines with up to 2000 shp and their modules will be established as well as the design and test software will be developed following the establishment of the Material Database for the engines. © SSM The project will be executed BAE Systems Signs Heads of Agreement for a Future Contract with TAI for TF-X Program

In the presence of The Prime Ministers of Turkey - Mr. Binali Yıldırım and the United Kingdom Ms. Theresa May, BAE Systems and TAI signed a Heads of Agreement to collaborate on the first development phase of an indigenous fifth-generation fighter jet for the Turkish Air Force – TF-X on 28 January. q Signing this agreement announcement signals an exciting in Ankara ahead of a planned next step in relations between © BAE Systems contract with a value in excess both Turkey and the UK with of £100 Million, BAE Systems the co-operation between BAE Chief Executive, Ian King, said: Systems and TAI paving the way ‘‘BAE Systems is a leader in for a deeper defense partnership. designing, manufacturing and The agreement confirms ongoing supporting fighter aircraft and is in collaborative work on the design an excellent position to contribute and development of the aircraft.” technical and engineering At its peak hundreds of on the skills, technology and expertise and experience of Turkish and UK engineers will technical expertise required to managing complex projects to collaborate on the TF-X program deliver the program. this key Turkish program. The helping to support collaboration ISSUE 73/2017 61 DEFENCE TURKEY

Nurol Makina’s First Splendid Export to North Africa Match worth – Successful Ejder Millions - TAI Yalçın Vehicle Gains and Sikorsky Attention in New Aircraft Markets The first export agreement tasks abroad. As Nurol Makina, we of the Ejder Yalçın 4x4 Tactical take justified pride of this fact. As Wheeled Armored Vehicle was expected, the crucial point for us signed between the Ministry of now is to maintain this achievement Defense of an undeclared North and to export our vehicles to other African country and Nurol Makina. markets as well. We will continue © TAI This vehicle has a platform with the to offer unrivaled solutions to the A cooperation agreement, that will highest protection level of its class service of security forces and span decades, was signed between and with its unique design is able to armies at home and abroad through TAI and the world’s leading helicopter be effectively operate on any type our engineering capabilities and manufacturer Sikorsky Aircraft of terrain. R&D facilities.” Company at the TAI facilities on 28 The award decision was made The Ejder Yalçın 4x4 stands following the successful completion out as it provides a high level February 2017. of the challenging desert tests of protection. The Ejder Yalçın The signature ceremony of the campaign on the Ejder Yalçın 4x4 4x4, indigenously designed agreement, involving the production during the last few months, with and manufactured by Nurol of structural components for various the participation of rivals. The Makina engineers, has proven helicopter platforms, was held with the Ejder Yalçın 4x4 Tactical Wheeled its superior protection during the participation of TAI President & CEO Armored Vehicles, within the scope explosion and endurance tests Assoc. Prof. Temel Kotil and Sikorsky of the order, will be put into the executed firstly in Turkey by an Aircraft Company President Mr. Dan service of the aforementioned internationally accredited and Schultz. country together with a independent institution. Thanks comprehensive integrated logistic to its payload capacity, the Ejder First Phase of the Project support package. The deliveries are Yalçın 4x4 can be mounted with valued at $ 270 Million scheduled to begin shortly. a vital outfit and be manufactured Regarding this notable success, in diversified configurations such in Production Value Nurol Makina ve Sanayi A.Ş. as Armored Combat, Command While the product delivery is General Manager Mr. Engin Aykol Control, Ambulance, CBRN valued at an amount of $ 270 million said: “As a result of our long lasting Reconnaissance, Armored during the 10-year first phase, the efforts, we have achieved awarding Personnel Carrier, Border overall cooperation between TAI and the first export agreement for the Surveillance and Security, Air Sikorsky is expected to continue until Ejder Yalçın Vehicle. The Ejder Defense and Mine/IED Detection 2044, including the optional period, Yalçın has proven itself within and Destruction vehicles. and the project volume is expected to Turkey and will now assume critical reach at least $ 500 million. Within the scope of the contracts made between the Undersecretariat for Defense Industries (SSM) and the main contractor TAI, the main subcontractor Sikorsky Aircraft and other domestic subcontractors, a new dimension has been attained through this agreement, accelerating cooperation following the approval of US export licenses for the “Turkish Utility Helicopter Program” effective on 7 June 2016. DEFENCE TURKEY 62 ISSUE 73/2017

Inauguration of Shooting Range and Test Center The first 500 lot MPT-76s was delivered to the Turkish Armed Forces (TAF) as part of theMass Production program within the scope of the Turkish Armed Forces’ Modern Infantry Rifle requirements. The Mechanical and Chemical Industry Corporation’s (MKEK) new Shooting Range and Test Center was inaugurated by the Minister of National Defense Mr. Fikri Işık and Commander of the Land Forces General Salih Zeki Çolak. The ceremony for the delivery of the MPT-76 Modern Infantry Rifles to the Land Forces Command and the opening of the new Shooting Range was held at MKEK’s Weapon Factory in Kırıkkale with the participation of Minister of National Defense Mr. Fikri Işık. The Minister of National Defense Mr. Fikri Işık, Commander of the Land Forces General Salih Zeki Çolak, Deputy Undersecretary of the Ministry of Defense Mr. Ali Fidan, Undersecretary for Defense Industries Prof. İsmail Demir and © MKEK many military and defense officials attended the ceremony. Turkey, especially during the foreign dependency to 20% in the In memory of the delivery of struggle against terrorism in the forthcoming period. the first 500 lot manufactured 1990s and the recent regional Commander of the Land Forces and the qualification and incidents verifies that we are on General Salih Zeki Çolak said, “With acceptance tests of which were the right track”. Underlining that the entry of MPT-76 to the inventory accomplished within the scope the Modern Infantry Rifle is a of the Land Forces Command, and of the mass production program, weapon which will be safely used as a force multiplier weapon, we the Undersecretary for Defense by the security forces, Minister assess that we will be using the Industries Prof. İsmail Demir Mr. Işık mentioned that Turkey’s rifle in our operational activities symbolically presented an MPT- foreign dependency was around and planned tasks”. Following 76 infantry rifle to the Land Forces 80 percent regarding the defense the remarks, Minister of National Commander General Salih Zeki industry 14-15 years ago and Defense and the accompanying Çolak. added that today this figure fell to delegation executed the opening Stating that the first completed the level of 40%. Minister Mr. Işık of the MKEK new Range Practice lot of the MPT-76, developed stressed that they aim to reduce and Test Center. through domestic and national facilities, for utilization under all types of ground and weather conditions, was delivered to the Turkish Armed Forces, Mr. Fikri Işık continued: “We have been burning the midnight oil for 14 years, delivering weapons to the TAF developed through our domestic and national facilities and thus minimizing our external dependency. The attitude of our allies during the Cyprus Peace Operation revealed that we should always keep the maximum level of domestic participation rate in equipping TAF. The embargo threat of certain countries on © MKEK ISSUE 73/2017 63 DEFENCE TURKEY

The Longest Indoor Shooting Range in Europe and the Middle East This new shooting range consists of an indoor area of 2400 m2; 1700 m2 of which is at the ground floor and 700 m2 on the first floor. All environmental tests of the light weapons can be executed according to global standards at this center, which contains the longest firing channel in the Middle East and The Countdown for Europe. The facility with two 100 m, one 300 m and one 550 m firing Hürkuş-C to Begin channels, can conduct Functional firings, Null firings, Point Blank test, Kadenz tests, Distribution Combatant Tasks tests and Precession tests as part The first demo of prototype production of the Next Generation of the acceptance tests, design Light Attack/ Armed Reconnaissance Aircraft was unveiled at TAI verification and product qualification and production line qualification Facilities and its photos were shared with the media. tests of weapons. Hürkuş was designed to prepare the request for proposal. Following the opening of support various mission and The negotiations between the the facility, Minister Işık and the operational requirements within Undersecretariat for Defense accompanying delegation examined the scope of the Basic and Industries and TAI concerning the new steel plant which is under Primary Trainer Aircraft by TAI. the technical specifications and construction. MKEK General Hürkuş-C, in addition to pilot job definitions are on-going. Manager Mr. Ahmet Taşkın made a training missions, was developed Hürkuş-C, which has the briefing to the delegation regarding to provide an affordable and high characteristics of an armored the new facility. accuracy solution for light attack structure, self-protection and armed reconnaissance systems, night vision compatible New Steel Plant to become missions. full, digital cockpit, advanced The authorities are working avionic system and armed with Operational in August 2017 on the Project Identification the domestic munitions, will With this new facility, that will Document for the “Armed have 7 Hard Points and a 1500 be capable of producing 120 Hürkuş-C Aircraft Development kg External Load Capacity. thousand tons of liquid steel and Mass Production Project” The launching test of Armed annually, it will produce “qualified launched pursuant to the Hürkuş-C is expected to be steel” that is required by the “Ministerial Approval no. 180 executed prior to the IDEF fair, defense industry, aerospace and and dated 28 November 2016” after the integration of camera machinery production sectors and the Undersecretariat for and weapon system. and it bears strategic importance Defense Industries continues to for weapon and heavy weapon systems production. Upon the launch of the facility, almost one- third of Turkey’s demand will be covered by MKEK Heavy Arms and Steel Factory. Besides, with the help of the MKEK forging facilities which are still a monopoly in Turkey in respect of open die forging, the forged steel demanded by the market will be covered mostly by domestic resources, thus reducing foreign dependency and therefore a significant contribution will be made to the Turkish industry and economy. The New steel plant Construction Project is planned to be completed in August 2017. DEFENCE TURKEY 64 ISSUE 73/2017

IDEX 2017 – Dominant Middle East Defense Fair More than 1,200 companies from 57 countries participated in the IDEX 2017 fair held in the United Arab Emirates on 17-21 February. 82 contracts at a total amount 18.83 billion AED were signed during the fair where technological new products were displayed. While land systems and technologies were at the forefront in the IDEX area of the fair, the military shipyards took the opportunity to exhibit their products and capabilities in the © Defence Turkey NAVDEX area. Turkey has not nationally together with TAIS Shipyard and launcher systems at various participated in the fair since 2013, took place in the NAVDEX. In classes. however the Turkish companies addition, the Nicomatic Turkey Nurol Makina for the first time individually participated in the company exhibited its products exhibited the desert camouflage fair this year. Chief of General and capabilities at the French configuration of the Ejder 4x4 Staff Hulusi Akar’s visit to Turkish pavilion. International SUR Military Armored Vehicle which was Defence Industry companies for company also took its place exported to a North African the first time abroad was one amongst the participants. country recently. The New of the important developments Aselsan displayed its Missile Generation Tracked Combat motivating the Turkish companies. Launching System, Precision Vehicle of FNSS was also at the The most important news of Guidance Kit and Laser Guidance forefront of this fair. the 4-day fair was the award of Kit (developed together with BMC introduced its 5-ton the 8x8 Tactical Wheeled Armored TÜBİTAK-SAGE), Acar Ground tactical wheeled vehicle, Multi- Vehicle contract valued at $ 661 Surveillance Radar, Helicopter Purpose 4x4 Amazon and Vuran million between the United Arab EW Suit, Thermal Camera, Night armored vehicles, Kirpi 4x4 Emirates Armed Forces and Vision, Gergedan Jammer System Ambulance Configuration, 6x6 Al Jasoor (Cesur), which was during the fair, Roketsan exhibited Kirpi MRAP vehicle to the region founded with the initiatives of TEBER-81 and TEBER-82 countries during IDEX fair. Otokar and Tawazun, the leading (Laser Guidance Kit), SOM-J Within MKEK standards contain investment company of the United Configuration the integration and the 105 Boran Air Transportable Arab Emirates. On the other hand, modification studies of which Light Towed Howitzer system Havelsan and Taqnia Aeronautics are still contiuning on F-35 JSF mock-up together with the MK-82 companies signed the Maritime aircrafts and SOM (Stand-off- (Aircraft Bomb), Penetrator Bomb Patrol and Surveillance Aircraft Missile) 2,75’’ Laser Guidance (NEB) MPT-76 Modern Infantry Project. Furthermore, for the “Cirit” Missile and other missiles Rifle, and the Bora Sniper. first time in a fair held abroad, the Turkish Military Shipyards - Sedef, ADIK, Istanbul Shipyard, Sefine and Selah - exhibited their product portfolio under a single roof namely TAIS Shipyard. A total of 12 Turkish Defense Industry companies including Aselsan, Otokar, FNSS, Roketsan, MKEK, Nurol Makina, Yakupoglu, Transvaro, T-Kalıp, Electroland and Makel Technology took their place in the Turkish stand area with their products and capabilities to meet the requirements of the countries within the region. Ares Shipyard © Defence Turkey and Yonca-Onuk companies ISSUE 73/2017 65 DEFENCE TURKEY

Otokar is now Closer to its Users in the Gulf Region Otokar exhibited four vehicles at IDEX 2017, the biggest defense industry exhibition in the Middle East. The vehicles included Cobra- II, Kaya-II, Arma 6x6, as well as the new generation tracked armored vehicle Tulpar-S Personnel Carrier version, which was presented for the first time in the region, on February 19 – 23, 2017 in Abu Dhabi. Mr. Serdar Görgüç, Otokar General Manager, stated that Otokar had established “Otokar Land Systems Limited” in the © Defence Turkey United Arab Emirates in 2016 to strengthen export activities of to strengthen our cooperation and live firing tests have proved Otokar, which has achieved 30 abroad, especially in the Gulf the suitability of our vehicles for years in the defense industry, and region, open to new markets and the hot climate and geographical added: “Today we have developed increase our sales.” conditions.” 30 thousand military vehicles for different needs are being used Mr. Serdar Görgüç: “Armoured Mr. Serdar Görgüç: on five continents in over 30 Vehicle Deliveries Continue” “Technology Investments countries. Otokar Land Systems Mr. Serdar Görgüç informed Continue To Grow” will be our driving force in our that Otokar, as the biggest supplier regional expansion, especially in Explaining that Otokar of the Turkish Armed Forces, the Gulf countries.” continued to invest in new continued to increase its armored technologies with increasing Mr. Serdar Görgüç: “We will be vehicle deliveries in 2016 in line demand for armoured vehicles, more Influential in The Region with user expectations and against Mr. Serdar Görgüç also noted that with Our New Company, current threats, and added: a total of 269 patent applications, Otokar Land Systems” “The success of Otokar’s utility models and industrial armored vehicles was also a design applications, including 37 Mr. Serdar Görgüç, Otokar reference for new orders. In 2016, industrial designs, have been filed General Manager, expressed that we completed the deliveries of for the products and subsystems the IDEX Exhibition is an important armoured vehicles ordered in in the last decade. Görgüç said organization in terms of increasing 2015 by different countries. Last that Otokar continues with its cooperation in the region, “The year, a Gulf country client with investments to provide fast and IDEX Exhibition, which we are Ural armored vehicles already in quality response to the demands of participating for the eighth time, its inventory placed a new order the defense industry, “The Otokar is especially significant for us. for Ural because of the vehicle’s R&D center, one of Europe’s In 2016, we established a new successful performance. We will leading facilities, is equipped with company named Otokar Land complete these Ural deliveries simulators, testing equipment Systems Limited in Masdar within this year. On the other and the latest information City Free Zone in the United hand, we signed the first export systems to create and evaluate Arab Emirates to strengthen our contract for Cobra-II with a South information for the purpose position as one of the world’s Asian country. The vehicles are of testing the manufactured leading players in the defense expected to take part in United vehicles faster and with higher industry. Having accomplished Nations Peacekeeping operations. technology. Otokar’s test center 30 years in the defense industry, As the deliveries continued, featuring a climate controlled test Otokar has nearly 30 thousand user tests of Otokar vehicles chamber with dynamometer, and military vehicles that are being in different geographies were electromagnetic compatibility used on five continents in more conducted throughout the year in (EMC / EMI) testing qualification, than 30 countries. With Otokar our target markets, North Africa also serves as an independent Land Systems, we will be closer and Gulf countries. The testing accreditation center for the to our users in regions where we activities that involved mobility defense industry’s R&D activities.” operate. By following the export in challenging desert conditions activities more closely, we intend DEFENCE TURKEY 66 ISSUE 73/2017

Sarsılmaz Ramp Up MPT-76 Modern Infantry Rifle The MPT-76 Serial-Production Contract, which is being executed © SSM by the Undersecretariat for Defense Industries (SSM) with an aim to fulfill the Modern Infantry Rifle requirements of the Turkish Armed Forces, was signed between Sarsılmaz Silah Sanayi A.Ş. and SSM with the participation of the Undersecretary for Defense Prof. İsmail Demir and the Chairman of Sarsılmaz Mr. Latif Aral Aliş. Within the scope of this Contract, Sarsılmaz will be conducting the manufacturing of 10.000 MPT-76 Modern Infantry Rifles to be delivered to the troops of the Land Forces Command, Naval Forces Command and Gendarmerie General Command.

© SSM All design, development and period, two other contracts were qualification activities of the MPT- signed with the Mechanical and 76 were accomplished through Chemical Industry Corporation national resources and with this for the mass production of latest Contract signed during 20.000 MPT-76 Modern Infantry the mass production period, the Rifles, and with Kale Kalıp for the number of MPT-76 orders reached production of 15,000 rifles. 45 thousand. During the previous Aselsan and STM - Contract Inked for an Electronic Warfare System Leading Turkish Defense context of the agreement signed Industry Company, Aselsan, between Aselsan and STM, recently announced an electronic deliveries will be completed in warfare system agreement valued 2020. at € 115,972,014. Within the Two More Successful Deliveries to Qatar MoI

As of 18 January 2017, ARES contract with Qatar MoI, successfully delivered two more increasing the total number of in fast patrol craft (1-off 24 m and service boats to 5 almost 1 year 1-off 34 m) to Qatar Coast Guard, ahead of the contract schedule. within the scope of 17-vessel ISSUE 73/2017 67 DEFENCE TURKEY

Sikorsky Transfers S-70i Helicopter to Aselsan for Turkish Utility Helicopter Program Development The S-70i aircraft will become the engineering test bed for an avionics suite in co-development by Aselsan and Sikorsky for the Turkish-built T70 utility helicopter Sikorsky, a Lockheed Martin company, has transferred to Aselsan an S-70i Black Hawk helicopter for use as the prototype aircraft for the Turkish Utility Helicopter Program (TUHP). The aircraft will enable Sikorsky to integrate an Aselsan-developed avionics suite into the Republic of Turkey’s new T70 utility helicopter, and later into Turkish- built Sikorsky S-70i Black Hawk aircraft to be sold internationally. The new avionics suite, the Integrated Modular Avionics System (IMAS), is a collaborative design by Aselsan, Sikorsky, Turkish Aerospace Industries (TAI) and pilots serving the Turkish Armed Forces to meet the requirements of Turkish T70 operators and other potential customers. TAI leads a team of Turkish aerospace companies that will build at least 109 helicopters with the T70 designation for the Turkish distinguish this proven platform.” Ankara. Utility Helicopter Program. The The Sikorsky-owned S-70i Aselsan and Sikorsky are IMAS suite is expected in time for aircraft arrived at the Aselsan co-developing the IMAS suite initial deliveries of T70 aircraft to facility in Ankara on February to provide Turkish pilots with Turkish end users in 2021. 25 after nine hours of flight from powerful smart displays, point- “Delivery of this S-70i Sikorsky’s PZL Mielec aircraft and-click functionality to speed prototype fulfills a major factory in southern Poland. During input of pilot commands, and milestone for the Turkish Utility the 930nm journey, the aircraft ergonomic enhancements to Helicopter Program, and signals crossed Slovakia, Hungary, the Pilot Vehicle Interface that our continued close collaboration Romania, and Bulgaria with two will reduce pilot workload. with Aselsan and the other fuel stops along the way. Navigational improvements aerospace companies led by Sikorsky TUHP Program tailored to Turkish requirements TAI,” said Sikorsky President Mr. Director, Mr. Jason Lambert, will include an integrated Terrain Dan Schultz. “The employees presented the aircraft’s keys Avoidance Warning System, of Sikorsky are honored to Aselsan President and CEO an integrated advanced digital that the largest international Dr. Faik Eken during a March 1 map, and coupled flight control industrialization project in our 93- arrival ceremony. Also attending functions for guided approaches year history will help all the end- were officials from the Turkish to landing zones. users fulfill their requirements Government’s Undersecretariat The TUHP program is valued for a modern utility helicopter for Defense Industries (SSM), the at approximately $ 3.5 billion for based on the Black Hawk aircraft, Turkish defense industry, Sikorsky, 109 T70 aircraft, inclusive of the while adding Turkish-developed and an international diplomatic work to be performed by Sikorsky, avionics technology to further delegation with missions in TAI and other suppliers. DEFENCE TURKEY 68 ISSUE 73/2017

Significant Progress Achieved in the Emergency Physical Security System Project at the Turkey – Syria Border The construction of the 383-km long portion of the modular cement wall has been completed, which is part of the Emergency Physical Border Security System Project, initiated in order to set up a physical block against smuggling activities through illegal terrorist crossing The Emergency Physical the responsibility area of the balloon surveillance system that Security Project was initiated 1st and 2nd Border Battalion is capable of reaching an altitude to set up a physical barrier and Command in lieu with the 1st of thousand meters. Through to prevent border crossing Border Regiment Command of the this system, developed through violations. Terrorist-illegal Syrian Border. The border will be domestic facilities, the capacity crossing and smuggling activities uninterruptedly monitored night of surveillance through an aerial at the border between Turkey and and day and minimal motions balloon will accomplish that Syria still progress. The 383-km and changes at the border will be gathering of intelligence, providing long portion of the 825-kilometer- detected through this system. The early warning and border security. long modular concrete block wall initial delivery of the system to be The system with two different constructed along the Syrian manufactured through domestic models namely the “Water border, within the scope of the facilities is scheduled to be Drop” and “Global” is capable of project, has been completed. completed by the end of this year. transmitting real time images. The Moreover, during the mine and night and day vision cameras of grenade clearance conducted as Airship Aerial Surveillance the system are able to display a part of the project in the region, an 360 degree angle the region. area of 41 thousand 197 square System at the Border The unmanned airship meters has been checked and Meanwhile, Turkish Armed surveillance system, launched 415 mines and grenades have Forces (TAF) plans to utilize a with the help of the ground been detected. ‘Blimp’ in order to provide border support equipment and an The activities for the “Border security. anchorage station, is capable of Security System” are continuing The unmanned balloon reaching an altitude of a thousand as well; composed of the cutting- surveillance system developed by meters. The control of the system, edge electronic detectors which Aselsan is aimed to be used for transmitting the images it records will be operating integrated with maintaining the border and patrol instantly to the ground control the Border Physical Security security. The system enables station, is also achieved through System Project, will enable 7/24 close range security surveillance this point. The system capable surveillance of the borderline. and early warning capacities to of resisting high winds is also not The Boundary Security the facilities such as small troops affected by assault from small System will be established along and stationary units. TAF is firearms. the borderline of 122 km within testing the 16 m long unmanned The balloons of the system being developed, namely the “Water Drops”, are able to rise to an altitude of a thousand meters. The 16-meter-long balloon has a volume of 180 cubic meters. The “Global” balloon, with a volume of 35 cubic meters, is able to rise to an altitude of 500 meters. The troop tests of the “Water Drop” have been launched by the Turkish Armed Forces. The system is still going through the development process and has performed a total of 400 hours, especially at the border region and the efforts for its completion © MoD are ongoing. ISSUE 73/2017 69 DEFENCE TURKEY

Full Steam Ahead – “Korkut” Serial Production Commences The serial production phase Weapon System Vehicles trace Vehicle and two Weapon System has commenced for the Self- the target with a fire control radar Vehicles were developed and tests Propelled Low Altitude Air Defense and generates firepower with two were successfully completed, with Gun System (Korkut) following 35 mm guns using fragmentation final acceptance occurring October the successful completion of the ammunition. 31, 2016. design and pre-production phase. Both the Weapon System Production line qualification The project is being conducted by Vehicles and the Command and and serial production activities will the Undersecretariat for Defense Control Vehicles were built on be carried out in accordance with Industries (SSM) together with the ACV-30 chassis, the tracked the Serial Production Phase of Aselsan as the prime contractor and carrying platform specially the “Korkut” Project that started FNSS as the subcontractor, to meet developed by FNSS to carry the on May 19, 2016 with the signing the need of Turkish Land Forces. command and control, large scale of the related agreement between Work on the Serial Production Phase mobile radar, gunfire support, SSM and Aselsan. The systems will of the Korkut Project started after self-propelled artillery and missile be delivered in groups consisting the serial production agreement systems. The ACV-30 is also used of one Command and Control was signed between SSM and in the Low Altitude Air Defense Vehicle and three Weapon System Aselsan, and subsequently a sub- Missile System (HİSAR-A) project. Vehicles. The first group of ACV- contract agreement was signed The most remarkable feature of 30 vehicles to be manufactured by between Aselsan and FNSS on the ACV-30 is its amphibious FNSS are scheduled to be delivered December 2, 2016 for the delivery capability while maintaining high to Aselsan in May 2018. of the tracked platforms. payload capacity, superior mobility Following the Pedestal Mounted The “Korkut” System is performance and a large internal Stinger system, the Korkut Project comprised of a Command and volume. This amphibious feature will be the second air defense Control Vehicle and Weapon distinguishes “Korkut” from all system indigenously developed System Vehicle to complete air other existing medium caliber self- by the Turkish defense industry to defense operations. The Command propelled air defense systems in the be delivered to the Turkish Armed and Control Vehicle detects and market today. The “Korkut” system Forces. The fact that both air tracks targets with its 3D search is able to carry out missions with defense systems and the vehicle radar and while developing a local heavy armored platforms such as to carry these systems were air picture, evaluates threats and the main battle tank and armored developed by the Turkish defense assigns targets to the Weapon combat vehicles, including the industry attracts attention, as it System Vehicles. Meanwhile, the ability to fire on the move, and demonstrates industry progress. maneuver natural obstacles such as © FNSS river crossings, offering a significant © FNSS tactical advantage. In the context of the development phase of the “Korkut” Project, the contract for the development of the tracked carrying platform was signed between Aselsan and FNSS on June 25, 2011. One Command and Control DEFENCE TURKEY 70 ISSUE 73/2017

Power Pack Development Contract Terminated The tender process of the Power Pack Development Program was launched initially by the Undersecretariat for Defense Industries (SSM) in 2011, to be utilized in the Altay Modern Battle Tank and then in many naval and land platforms in various classes and the tender was won by TÜMOSAN in August 2014 upon the resolution of the Defense Industry Executive Committee (SSIK). However, due to the failure in covering the demands regarding the Selection of the Technical Support Provider, the Power Pack Contract signed between the SSM and TÜMOSAN was mutually terminated

Leaving the HEMA and BMC Project and as per the contract of the advance payment obligation, companies behind upon the signed between SSM and the Undersecretariat for Defense resolution of the SSIK in 2014, TÜMOSAN, the Technical Support Industries has granted an extension TÜMOSAN won the Power Provider Contract was signed with of a month starting from 16 January Pack Development Tender the AVL List GmbH company as a 2017.” and with the finalization of the result the negotiations conducted Then on February 24th, another contract negotiations with the with the Technical Support Provider statement was made to the Public Undersecretariat for Defense (TSP) candidate companies on 7 Disclosure Platform by TÜMOSAN Industries, the contract was signed October 2015. According to the and the mutual termination of the between the parties on 17 March contract, the AVL Company had to contract was announced. In this 2015. deliver the governmental approval statement by the company, the Within the scope of the Power after 90 days yet it consecutively process and reasons for termination Pack Development Program demanded extensions and then were summarized as the following: contract, the indigenous design, insisted on an export license “The Power Pack Development development, prototype production, containing conditions enabling the Program Design and Development test and qualification of the power Austrian governments’ interference (Period-1) Contract was signed pack which was planned to be used with the internal affairs of our between TÜMOSAN and SSM on primarily in Altay MBT, through country. The aforementioned export 17 March 2015 and the compulsory the maximum utilization of local license was not accepted by the Technical Support Provider (TSP) facilities and capabilities, with Undersecretariat for Defense contract was signed on 07 October foreign support in required areas Industries, thus the commitments 2015 between TÜMOSAN and by TÜMOSAN, was planned. were not fulfilled and the TSP AVL company. From the beginning Within this context, in line with Contract was terminated and of the Project, it was agreed as the details of the contract signed company’s bond was recorded as a principle that the Contractor between SSM and TÜMOSAN, revenue. Our company evaluated would be able to receive technical the Technical Support Provider the potential problems both support in areas required from (TSP) from a foreign country had throughout the preparation stage of abroad and that there would be a to be included in the program. As the project and after the selection single Technical Support Provider a result of the negotiations with the of the Technical Support Provider in charge of the development of the candidate countries, TÜMOSAN and conducted activities with the complete Power Pack. The TSP announced that they signed the alternative companies and is still Companies which were previously Technical Support Provider contract executing these negotiations. identified by TÜMOSAN and with the Austrian company AVL Recently, due to the sanctions other contractor candidates were List GmbH on 7 October 2015. applied to our country by the negotiated with the participation However, especially due to the EU countries in particular, it is of the SSM representatives restrictions on the export license understood that critical obstacles and all the companies were and as the commitments failed to would be encountered during regarded sufficiently competent be fulfilled, the contract between the transfer of the technologies for developing the Power Pack, the aforementioned parties could regarding both the project and the yet merely the AVL Company not enter into effect. After the sub- components within the scope committed to present an Export intervening 15-month period, a of the project. Within this frame, License certificate which did not critical declaration was made by TÜMOSAN has been continuing set any restrictions on the utilization TÜMOSAN via the Public Disclosure its efforts for the accomplishment and the sale of the Power Pack to Platform (PDP). of the project through the be manufactured in Turkey and The declaration made by utilization of the most possible thus selected. The period for the TÜMOSAN to the PDP on 16 domestic resources and shared its accomplishment of the project with January 2017 is as follows: “Within suggestions with the SSM. In order a single TSP was projected as 54 the scope of the Altay Main Battle for the evaluation of the proposals months.” Tank Power Pack Development made by TÜMOSAN and fulfilment In the ongoing process, the AVL ISSUE 73/2017 71 DEFENCE TURKEY

company, which was obligated offers. It was learned that certain requested for the inclusion of the to present the Export License companies made requests to their critical sub systems to the project by 6 January 2016, insisted on governments regarding the export and receiving of specialist support an Export License composed of license for the serial production only in required areas. conditions interfering with Turkey’s and they would be identifying TÜMOSAN’s requests for sovereignty rights and interior the principles of cooperation in amendments to the contract due affairs that could not be accepted accordance with the response they to force majeure events were by the SSM and then declared would be receiving. During this examined and negotiated by the that it could not deliver the Export process, it appeared that all critical SSM until 24 February 2017, License demanded. Upon these sub systems evaluated within COTS however SSM notified that it would developments, the TSP contract would be subject to their country’s not be legally possible to step out was terminated and company’s export license and that they could of the contract conditions, and bond at an amount of 500,000 € was not be procured and therefore the thus the Power Pack Development recorded as revenue. During the Intellectual Property Rights that are Project Design and Development aforementioned licensing process, the guarantee of the commercial Period (Period - 1) Contract signed all facilities were used through and military independence had to between 24 March 2015 was diplomatic channels via Turkey’s proceed in a way to be owned by terminated mutually. There was no Embassy to Austria, yet it was the Undersecretariat for Defense penalty upon the mutual termination understood that as the technologies Industries in the future. of the contract and all bonds of related with the main battle tank In this respect, excluding the TÜMOSAN were returned. power pack, the ‘National Power Fuel Injection System which could Being Turkey’s single domestic Component’ was perceived as very not be procured as part of COTS, diesel engine and transmission important factors in the international the manufacturing and utilization design and manufacturing company, arena and therefore there was a of the critical sub systems such as TÜMOSAN has been exerting great negative attitude of the countries Hydrostatic Steering Unit, Torque efforts for the accomplishment owning these technologies and Converter, Retarder, Transmission of the Power Pack Development controlling the market in Turkey’s Hull Casting Technology, Project since 2012, created an acquisition of this technology. Turbo Charger, CGI Casting R&D Center complex based on this Both during the preparation Technology, Cooling Package, Project’s objectives and invested in stage of the project and after the ECU, TCU, Hydrostatic Couplings, human resources. All these efforts selection of the TSP, TÜMOSAN Transmission Pumps, Alternator, and investments are the indicators conducted bilateral negotiations Starter Motor, Vibration Damper, of TÜMOSAN’s decisiveness on repeatedly with the companies Brake Lining and Wet Clutches in this subject. TÜMOSAN will be from Germany, England, South the prototypes in parallel with the continuing to efficiently utilize and Korea, Spain, USA, Ukraine, Russia, development of the power pack develop its human resources that Japan and Canada in order to set was considered essential. gained essential experiences in the an alternative, and upon these Upon the European Parliament’s activities so far and its know-how negotiations it was understood that negative attitude adopted towards by taking its investors’ interests into receiving the technical support from our country and after the Austrian consideration. western companies was essential Assembly’s resolution of 25 With the experiences gained as due to technical reasons, that a November 2016 for preventing part of the Altay Tank Power Pack cooperation model based on a their export of military equipment Project, TÜMOSAN will be the most single TSP throughout the project to Turkey indicated that it would be powerful candidate in case there is period was not possible because impossible to receive continuous a new tender for the project.” of political reasons and that the technical support and critical With the termination of the content and term of the support military equipment from the western Power Pack Development Contract, was going to be limited. companies in the future and even it is understood that the domestic Moreover, regarding the critical if it is based on a contract this transmission and the naturalization sub systems that were envisioned support would quite possibly be of the power pack primarily for Altay to be procured Commercial off- interrupted. Main Battle Tank and other Naval the-shelf (COTS) during the TSP Since the execution of the and Land platforms initially in line interview process and at the award contract signed between TÜMOSAN with the serial production process of the contract, the companies and SSM rendered it impossible would not be possible in the short commercially manufacturing the especially due to the restrictions and medium term. The attitude and similar products did not respond set by the western states to receive position displayed by the Ministry of to the calls due to the negative support from a single TSP until National Defense and the procuring attitude of the EU member countries the completion of the project and authority the Undersecretariat towards our country, certain sub to procure the Power Pack Sub for Defense Industries, after this system manufacturers could not Systems within the scope of COTS, important amount of lost time, will provide export licenses to the TSPs TÜMOSAN submitted its requests be shedding light on Turkey’s path and avoided cooperation with our to the Undersecretariat for Defense in this process in which the urgent country because of the incidents Industries on 28 November 2016 for requirements of the country grows occurring in our country and in the the accomplishment of the project considerably. Middle East, also avoided making through national resources and DEFENCE TURKEY 72 ISSUE 73/2017

STM Published Cyber Threat Report In 2017, cyber-attacks zero in on the Turkish banking sector STM, one of the leading companies of Turkey in the fields of Cyber Security and Big Data, published the new Cyber Threat Report. According to the report, an increase in cyber- attacks was observed in 47% of the enterprises during the last 5 years. It was pointed out in the report that cyber-attacks towards the Turkish economy are thriving and that the banking sector in particular is the initial objective. According to STM’s Cyber Threat Report, which comprises the October-December time period, 2016 general assessment and the projections for 2017, Turkey ranks first amongst the countries that are exposed to ransomware and online banking attacks within the European Region in 2016. The harmful software used to seize usernames, passwords, credit card numbers, PIN codes, or phishing attacks mostly by the becoming popular in the industry create a threat by using success- use of links attached to e-mails causes more exposure to attacks based learning ability i.e. artificial are the most common types of with harmful software. In 2017, intelligence applications in order attacks that were encountered an increase is expected in to increase the impact of the in relation to online banking. The attacks against Industrial Control attacks. The experts will also have new version of “Tordow”, the first Systems, and particularly against to use a combination of different harmful mobile software targeting Energy Distribution Systems security solutions to cope with the banking sector, is expected to which largely involve such this threat. affect the world’s online banking systems. At this point, the studies systems this year. In 2017, should be accelerated in order to Cyber Propaganda Threat! particularlly corporate e-mail enhance critical infrastructure fraud and SWIFT attacks are security. The recent increase in Internet expected to increase. With these access also increases the threat of methods, cyber hijackers can cyber propaganda. In the report, follow especially the institutions’ Threats Becoming Smarter it was mentioned that malicious financial correspondence and In STM’s report, the acts and terrorist organizations transfer goods or money to cyber threats expected to be will attempt to direct political and themselves. encountered in 2017 include social events by abusing social DDoS attacks where IoT media. Energy Distribution Systems platforms are used, ransomware, By commissioning the Cyber attacks towards mobile devices, Fusion Center, a product of the on the Target of Hackers! industrial control systems and new generation cyber security In the report, cyber threats especially towards energy approach, and by organizing towards energy distribution distribution systems, information the “Capture the Flag” events systems, especially in the recent stealing through accessing attention is drawn to cyber period, was highlighted and the internal correspondences and security. STM is carrying out Ministry of Energy and Natural attacks aiming at stealing data important studies to reinforce Resources’ statement referenced from closed systems. Another Turkey’s cyber security foreign-based cyber-attacks noteworthy detail in the report is infrastructure and preventing made to electricity transmission that “anthropomorphic” harmful the cyber threats from becoming lines in the last days of 2016. software is expected to emerge more complicated and hazardous. The use of Internet of Things this year. This software will ISSUE 73/2017 73 DEFENCE TURKEY

Turkish Land Forces Inventory Fortified with Cobra-II Performing tasks for the interior security forces, Cobra-II entered into the inventory of the Land Forces Command for the first time. Otokar started the deliveries of Cobra-II orders received at the end of the last year in line with the Land Forces Command’s requirements for reconnaissance and surveillance vehicles The Cobra-II Reconnaissance operation capability as well as high wheeled armored vehicles will and Surveillance Vehicle, developed level of protection provided to the be offered with maintenance and for use by the Land Forces personnel and firepower prowess, support services. Command for Border Security, the number of Cobra-II vehicles According to a report from comprises the integration of the will increase in the interior security Otokar, it was announced that superior technical and tactical operations. Otokar received new orders due to features of Cobra-II vehicle as a The order of 82 vehicles, the the successful performance of the platform with high-performance deliveries of which were initiated Ural Armored Vehicle, which was electronic subsystems designed for in December 2016, is planned to previously sold to a Gulf country. reconnaissance and surveillance. be completed in the first quarter of The delivery of such vehicles is The on-board Land Surveillance 2017. As part of the €106.1 million expected to be completed within Radar and the long-range Electro- order, the Cobra - II 4x4 tactical 2017. Optic Sensor System provide cross-border and long-range reconnaissance and surveillance capabilities thanks to effective software functioning in a wide variety of territorial and climate conditions. Otokar announced in the Bulletin published in 2017 that it started to deliver Cobra-II vehicles, the contract of which was signed with the Undersecretariat for Defense Industries in June 2016, for use in interior security operations of the Turkish Security General © Otokar Directorate. With its superior DEFENCE TURKEY 74 ISSUE 73/2017

Defense Industry Teknokent Companies Coalesce at the TSSK 4th Project Market Accelerating Growth Rate of Turkish Defense Industry Encourages Strategic Partner Cooperation – Higher Expectations with Stringent Criteria ODTU Teknokent Defense Industry Cluster’s (TSSK) 4th Project © ODTU Teknokent Market took place under the auspices of the Undersecretariat for Defense Industries and by the Middle East Technical University (METU), ODTU Teknokent, Ankara Chamber of Industry (ASO) and the Defense Industry Manufacturers’ Association (SaSaD) at the beginning of 2017 at the ODTU Congress Hall. The products developed by the companies operating under the roof of TSSK were showcased at smaller, up and coming players ASO President Mr. Nurettin the 4th Project Market. At the event along with the established great Özdemir: “Ankara’s Share in which large and small scale players in the industry.” defense companies gathered, in Defense Industry Mr. Ünal pointed out their Exports is 20%” new business opportunities collaboration on various were discussed in detail through cooperation models with the Stating that the Turkish bilateral negotiations. other defense industry clusters in Defense Industry has an Taking the floor at the opening the sector as well, said, “Today, accelerating growth rate, Mr. ceremony of the event, TSSK here at this event, we will sign a Özdebir said, “Turkey achieved Chairman of the Board Mr. Fatih cooperation protocol with the exports of approximately $ Ünal stated that presently, with Defense, Aviation/Aerospace and 142 billion in 2016. The overall over a hundred companies Space Cluster SAHA İstanbul that export figures of the year 2016 focused on innovation, ODTU pursues its activities in İstanbul, decreased 1.18% compared to Teknokent Defense Industry Ankara Aerospace Industrial the previous year, however, there Cluster (TSSK) which started- (HAB) and Aviation - Space was an increase in the exporting up its activities in 2010, is now a Cluster and Aerospace Cluster of Defense-Aviation/Aerospace prominent dynamic of the sector Association (HUKD) and we will and Space products by 1.4%. due to its technological solutions carry this cooperation beyond When we examine the export data that contribute toward decreasing expectations.” according to regions and cities, Turkey’s foreign dependency. He President of the Ankara Ankara has a very important elaborated that TSSK formed Chamber of Industry (ASO) Mr. place in the ranking. Since Ankara fruitful cooperation models by Nurettin Özdebir expressed their is the base for the defense attending many organizations sheer delight in having established industry, it alone encompasses and events on a national and such an organization under the international scale. Mr. Ünal auspices of the Undersecretariat © ODTU Teknokent continued, “We are participating and continued, “As a result of in many fairs and events abroad our position, in a challenging within the year. Among these geographic location, we need events, the most important one to possess critical technologies. for us is, without a doubt, is the To this end, we regard that Project Market. For us this event these types of events, gathering is a small scale IDEF where together the sector companies capabilities are displayed. Over the and researchers, are an essential years, the turnout has increased catalyzing element in the with each event. We are striving to transferring of technologies into expand cooperation from the top production.” to the bottom by gathering the ASO President - Mr. Nurettin Özdebir ISSUE 73/2017 75 DEFENCE TURKEY

20% of the high-tech products manufactured in Turkey. Ankara’s © ODTU Teknokent technological competence is far ahead of our other cities, but it is still not enough. It must raise its targets to bring forth its true potential, reaching greater heights and stretching beyond what has already been done to achieve even higher export levels. When we analyze Turkey’s export figures, we observe that Ankara has taken a step back in the overall ranking compared to 2015. This last year 2016, Gaziantep overtook Ankara in exports for the first time.” second area. Toward achieving of the industrial participation Deputy Undersecretary for speed, quality and cost-efficiency, off-set liabilities of our Main Defense Industries Dr. Tüfekçi: productivity has to be supervised Contractor companies to the sub- and monitored well. Within the industry and SMEs as business “We have to increase the scope of the third area that share and at least 15% to SMEs quality of human resources stands out is that we are aiming as business share. We aspire in order to achieve success to combine the technological that the participation of our small in unique projects” novelties with scientific know- companies in programs to not Deputy Undersecretary for how and experience. As the merely be that of supplying the Defense Industries Dr. Celal Sami Undersecretariat we need to be labor but also to be involved in Tüfekçi expressed their pleasure in full harmony and synergy with technology generation. We are in attending the 4th project the industrialists and academia. constantly consulting the SaSaD market this year and said, “In Human resources strategy and and other defense industry the last era, Turkey adopted the strong institutional management clusters on how to expand on this technology developing-producing will be our fourth area. We have and reach new levels. We have an country approach instead of many great projects that we try initiative with Aselsan, Roketsan, the technology using country to realize, and it is not possible to TÜBİTAK and the Undersecretariat approach. It focused its goals see them come to fruition just by for Defense Industries for the over a sustainable industry and imagining them on the paper. We unique design and domestic technological competency. We are striving with great effort in the production of microelectronics. have completed our strategic area of training and developing This is key as microelectronics plans for 2017-2021 within this high caliber human resources. I are one of the critical components context and our strategic goals would like to especially underline of the systems that we procure; entered into effect as of 2017. The that if we fail to enhance the the domestic development of 4 main strategic areas are defined quality of our human resources, the detectors over the cameras in our strategic plan for the new nothing we mentioned could pass which are amongst the most period that focus on the main beyond a dream.” important implementation areas themes of technological depth of these microelectronics. With and global efficiency. Speed, SSM, Aselsan, Roketsan the establishment of such a company, we aim to conduct serial quality and cost-efficiency will and TÜBİTAK are Preparing be our priorities in modernization production of the microelectronics projects. We will be focusing for the Establishment of a that we have supported through on the productivity method for Semi–Conductor Company years of R&D, thus gaining capability acquisition as the in Microelectronics leverage as we achieve yet another level of technological Noting the crucial importance independence.He noted a current © ODTU Teknokent of the development of domestic challenge that must be addressed industry facilities and capabilities “In subsystems, especially when in projects within the scope of the we add intelligence to systems, activities for the development of unfortunately, we cannot integrate SMEs and sub-industry, Dr. Tüfekçi them into our systems and conveyed a striking message mass-produce them. We have to to the sector in this context: change this and we have to create “We attach great importance to production-oriented output.” industry participation activities Dr. Tüfekçi underlined the directed toward having domestic necessity of supporting the system components. We demand Dr. Celal Sami Tüfekçi - Deputy design and production process of Undersecretary for Defense Industry the transfer of a minimum of 30% DEFENCE TURKEY 76 ISSUE 73/2017

systems with the high added value are striving to build companies provided by required testing and focusing on know-how and infrastructure. “To this end, we designs that will generate decided on the establishment of organic growth, and as the the TrTest or Türktest Corporation Undersecretariat, form a structure which will, in particular, establish supporting these companies. and operate the system platform I would like to state that we are level identification and assessment open to the partnership models infrastructures.” said Dr. Tüfekçi. with our main contractor defense industry companies and other Dr. Tüfekçi: “We excluded SME companies.” the requirement of needing to be a staff member of a SSM Deputy Undersecretary: company in order to benefit “120 companies made from the SAYP Program” applications for the Ankara Aerospace Industrial Zone” © ODTU Teknokent Noting that they made severe changes in the Defense Industry Dr. Tüfekçi underlined the ODTU President Prof. Mustafa Verşan Researcher Training (SAYP) importance of the cooperation Kök program in 2016, Dr. Celal Sami protocol to be signed with the SAYP program in 2011 with the Tüfekçi said, “The personnel, ODTU Teknokent and Istanbul Undersecretariat for Defense who would be conducting the SAHA clusters and added that the Industries and ODTU and with research as part of the initial union of the prominent features our major industry companies implementations of the SAYP of the eco-system is of great such as Aselsan, Roketsan, TAI, program, were obliged to be both significance. When compared FNSS, MilSOFT and Havelsan. the staff of a defense industry to the examples in the world, The number of projects company and registered in the typically a cluster’s ability to conducted within the scope of graduate or postgraduate reach the desired level requires these programs reached 25 in programs of the university. In 10 years. However, the clusters 2016 and its economic growth 2016, we made the process in Turkey achieved fruitful results exceeded 7 million TL ( approx. $ more dynamic by abolishing the with their limited budgets in less 2 million).” Mentioning that ODTU obligation of being a staff member than 10 years. In order to raise constantly invests in informatics of a company in order to benefit these achievements to higher and innovation, Kök added, “In from SAYP. levels, we are working on the 2017, we aim to complete the “We implemented incentives establishment of the Ankara informatics and innovation center, and support for the sector which Aerospace Industrial Zone with in which we invested 80 million TL will provide support and relief to an area of over 730 hectares ( approx. $ 23 million)” companies as they endeavor to located next to the TAI facilities. Following the speeches, increase industrial participation in We intend to establish a zone that an agreement was signed projects. We used to grant credits would create synergy between between STM and TSSK for STM to our companies within the scope the universities, R&D centers and academy to provide training for of supporting qualified products clusters by gathering the domestic ODTU Teknokent companies. A and infrastructure through our and foreign companies in the area cooperation protocol was signed Defense Industry Support fund. and enable integration. We are between TSSK and the Aerospace We decreased the interest rate of conducting joint activities with our Cluster Association, Ankara Space this credit on a USD basis from Ministry of Science, Industry and and the Aviation Specialized 2.1% to 1%.” said Dr. Tüfekçi. Technology for the establishment Organized Industrial Zone and Supportive financial investment of a techno-polis within this zone. SAHA Istanbul. models were established to 120 companies have applied for Following the opening promote the realization of new the zone so far. The preliminary speeches, a discussion panel was projects in critical technology appropriation was made nearly to held regarding the procurement areas, fostering a more fertile 70 of these companies. We project selection, procurement environment that would create that approximately a hundred procedures and expectations a sustainable and competitive companies within the zone will be from the suppliers, moderated technology base in the defense constructed during the first stage.” by the Department Head of the industry. Dr. Tüfekçi said, “We ODTU President Prof. Mustafa Industrialization Department of established our Defense Industry Verşan Kök touched upon the the Undersecretariat for Defense Technologies Inc. Company. With important contributions of Industries, Mr. Bilal Aktaş. As this company, we will be launching the TSSK companies that are the initial speaker of the panel, the model of becoming partners conducting actives at the ODTU Aselsan Procurement Manager Mr. with our existing technology campus within the eco-system Ali Rıza Kılıç stated that Aselsan manufacturing companies We and added, “We initiated the achieved cooperation with 37 ISSUE 73/2017 77 DEFENCE TURKEY

universities reaching $ 137.5 million, based on 2015 figures and © ODTU Teknokent added that, in 2016 considering the production and R&D budget, the number of companies that Aselsan procured from was 707, of which 597 of them were SMEs. Mr. Kılıç also mentioned that as of 2016, Aselsan had an open order of 3.3 billion TL (est. $ 900 million) to these companies and that they made a payment of 900 million TL (est. $ 250 million) to domestic companies again in 2016. Mr. Kılıç remarked that where the orders made to teknopark companies remained at the level of $ 5-6 million in 2015, added, “We analyze important collaborate with suppliers active in as of 2016 this figure increased parameters such as the quality micromachining, electronic boxes, to $ 24 million and added that system, management system, radars, turrets, camera systems this increase will be continuing in product costs and financial and insulation materials in the 2017 and 2018 as well. Mr. Kılıç structure of the companies defense industry. specifically highlighted that the wishing to incorporate into our Roketsan Procurement design activities to be outsourced eco-system. During the first stage, Director Mr. Ali Şarlak stated that will become an increasing trend as we made a scoring system with a they achieved procurement of of 2018. preliminary assessment form. A 1 billion 533 thousand TL (est. On behalf of FNSS, Quality company achieving 30 points over $ 430 million) between 2011 - and Business Excellence Manager 100 is able to pass to the next 2016 from suppliers and added, Mr. İhsan Kahraman made a stage. In the following stage, we “Our Procurement Directorate presentation on the systems, conduct a visit and an evaluation analyzes the machinery production and their expectations of activity. We have consultancy proficiency, apparatus-set, labor, from subcontractors and stated companies working for us here production reference list, financial that they plan to focus novel and a technical staff executing structure, reliability aspects of the products in 2017. Mr. Kahraman the technical assessment. We companies in supplier selection. mentioned the difficulties that evaluate the companies regarding We select suppliers through they were facing in acquiring administrative, quality and audits that are supervised by the required level of quality due technical aspects. Companies independent institutions that we to the rare nature of products of scoring 90-100 are defined as outsource. We collaborate with the the subcontractors and technical priority companies in procurement companies that scored over 75 as systems in the sector. “We are and as a competent business a result of the audits.” having difficulties due to the partner. Our suppliers having 70- Procurement and scarcity of the subcontractors 89 are defined in the category of Industrialization Director Mr. capable of creating solutions to a sufficient business partner. In İlhami Tanyolu shared that TAI bring novelty and innovation to 2016, 251 companies applied to works for over 100 programs with products, reverse engineering be included in our eco-system. 97 companies in 11 cities. Noting and design simultaneously. During 72 of these companies passed that TAI’s strategic subcontract special processes in the course several stages and as of today, concept is of great importance of certification we confront a they are included in the category I to them, he said that they do not problem”, said Mr. Kahraman. just mentioned.” pursue tenders in their projects Also sharing their expectations Otokar Procurement Director with their strategic partners, they from the subcontractors in his Mr. Metin Karadaş made a make contracts over a unit price presentation, Mr. Kahraman presentation on Otokar’s instead. Mr. Tanyolu added that underlined that they will surely procurement revenue distribution they expect the subcontractors to be coinciding with the companies and supplier selection process. have an engineering infrastructure, that are particularly investing in Mr. Karadaş stated that their production infrastructure, quality, electronic systems, protection export figure of $ 40 million in facility security and to be capable systems, improved power train 2010 increased to $ 150 million of performing risk management; and C4ISR areas. in 2015 and 2016, noting the companies of this caliber meeting Havelsan R&D and Technology importance of cooperation to be the designated criteria are able Director Mr. Cenk Özen stated created with the suppliers. Mr. collaborate with TAI as strategic that they evaluated many criteria Karadaş stressed that they can partners. when selecting their suppliers and DEFENCE TURKEY 78 ISSUE 73/2017

Turkish Industry Determined to Stay Competitive OSSA 4th Ordinary General Assembly Convened SSM’s steadfast commitment supporting Defense Industry provides confidence. Suggestions abound: bring SMEs into Projects earlier to maximize opportunity, competent companies should be designing instead of contract manufacturing, set determined aggressive goals The 4th Ordinary General Assembly of OSTİM Defense and Aviation cluster OSSA brought together important actors of the sector. The Deputy Minister of National Defense Mr. Şuay Alpay, SSM Undersecretary Prof. İsmail Demir and many OSSA members attended the meeting together with senior representatives of foundations and public companies. The 4th Ordinary General Assembly Meeting of OSSA was held with the participation of © Defence Turkey the Deputy Minister of National Defense Mr. Şuay Alpay, AKP In the General Assembly, the ‘Defense and Aviation/Aerospace Ankara Parliament Member Mr. activities covering the period Industry Days’ (ICDDA 2016) Emrullah İşler, Undersecretary between 1 January 2015 and 31 event, held under the auspices of of Defense Industries Mr. İsmail December 2016 were summarized the Undersecretariat for Defense Demir, Ankara Chamber of by OSSA Coordinator Ms. Hilal Industries and organized by Industry (ASO) President Mr. Ünal (she left her position on 20 OSSA, was completed with 5400 Nurettin Özdebir, Chairman of January). registered bilateral negotiations OSTİM Mr. Orhan Aydın, General Ms .Ünal outlined the following with the participation of 2000 Director of Military Factories Murat issues by saying: “Firstly, we representatives from 200 Akkaya, General Manager of introduced ourselves both within companies and 33 countries. Machinery and Chemistry Industry the country and abroad. We are We expect that the support and Institution Mr. Ahmet Taşkın, TAI giving low-cost training to our incentives we receive from the General Manager Dr. Temel Kotil, companies. We are delighted to government will continue to Aselsan Chairman Mr. Mustafa have the support of our Ministry increase in order to accelerate Murat Şeker, Roketsan General of Economy. We are trying to localization efforts. SMEs are Manager Mr. Selçuk Yaşar and provide training to each and every willing to localize the subsystems.” OSSA members. SME in defense and aviation/ aerospace and are carrying out OSSA Chairman Mr. Mithat consulting activities. We are Ertuğ: “We are strong with establishing ERP systems. These the industrialists devoted are in fact over-cost items for the to manufacturing” SMEs, but we are providing them OSSA Chairman Mr. Mithat with the support of the Ministry Ertuğ stated that Turkey, which of Economy. As OSSA, we had been importing almost participated in important defense everything for the defense industry and aviation/aerospace activities until just a while ago, entered a abroad with our cluster members maturity period and said that the between 2015 and 2016. We are volume of the sector exceeded $ maintaining our lobbying activities. 3.5 billion and the employment We are getting in contact with the it created went beyond $ 50 primary industries. We have a © Defence Turkey thousand. “The sector offers very close relationship with SSM. significant opportunities to the Mr. Nurettin Özdebir- ASO President We always feel their support. The SMEs. 30% of the total defense ISSUE 73/2017 79 DEFENCE TURKEY

industry sector revenue comes from the SMEs consisting of sub- © Defence Turkey industry. This clearly indicates the importance of SMEs within the sector”, said Mr. Ertuğ. “In the inception period when the cluster was established, the business was perceived as ‘acquire the job and distribute it’. It was not so easy to break down the prejudices. First, there was a need to understand what the cluster was and to create a team spirit. The basis of OSSA’s motto -We are Stronger Together- was set in those days. We have industrialists standing behind us that are dedicated to this, and we are strong with them”, said Mr. Ertuğ. in terms of the defense sector’s guy, small business first!’ Here, Emphasizing the warm protection and sustainability.” there is an approach other than relationship with the Noting that the trade. In Turkey, on the contrary, Undersecretariat for Defense Undersecretariat for Defense the ‘Think big, think of the one Industries (SSM), the support of Industries has a trained workforce having minimal risk, go straight to the Ministry of Economy, SaSaD that qualifies the industrialization bigger’ model is adopted at first. and many public institutions, Mr. concept in Turkey, Mr. Orhan Aydın In European Union legislation Mithat Ertuğ said: “I would like to added: “We have to establish an regarding the protection of small thank our industrialists for their equivalent institution similar to businesses, ‘First, think of the participation and for not giving the Undersecretariat for Defense small one! As a second priority, up the love for manufacturing, Industries in other sectors and this prefer the one having know-how!’ regardless of whatever happens.” institution should be in charge of idea is imposed.” the industrialization of Turkey.” OSTIM Chairman Mr. Orhan Mr. Orhan Aydın: “OSTİM Aydın: “We have to establish The OSTİM Chairman stated that they do not find Technology University will be the structure similar to the established in order to meet Undersecretariat for Defense it adequate that the small the needs of the industrialists.” Industries in other sectors.” producers only perform activities OSTİM Chairman Mr. as subcontractors and added: The OSTİM Chairman gave an Orhan Aydin stated that the “We have to transform the SMEs explanation on the question asked Undersecretariat for Defense and the subindustry companies regarding OSTİM Technology Industries is a valuable opportunity into a structure that is capable University: “We, as OSTİM, have for OSSA and the sector and of designing, producing, and been exerting efforts for 2 years. mentioned that the establishment making systems. When we The studies for the establishment of the Undersecretariat is very analyze the practices in the of the University were brought influential in Turkey’s defense world, the following slogan is from YOK to the Council of industry up to the point it has used in America: ‘Think of the little Ministers. OSTİM Technology reached today. We are not University will be established fortunate to find a structure similar in order to meet the needs of © Defence Turkey to the Undersecretariat for Defense the industrialists.” Industries in commercial areas Following the presentation where we spend more money of the Board’s Annual Report than the defense sector such as and operating income- energy, transportation and health. expense account, and the For example, Turkey spends evaluation of the 2017-2018 more on transportation projects activities, the members than defense projects, but there of the Board of Directors, is not a structure where you can Supervisory Board, the Full go and discuss details about your and the Reserve members projects and our productions. For were elected. this reason, I would like to say that After the voting, the the Undersecretariat for Defense Mr. Orhan Aydın- OSTIM Chairman of the deficiencies in the legislation, Industries is extremely important Board the incentives and support DEFENCE TURKEY 80 ISSUE 73/2017

to be made, and the foresights were discussed by the sector © Defence Turkey representatives. The public and private sector representatives attended the General Assembly as guests evaluated the issues regarding the OSSA and their fields. The necessity of domestic and national production was emphasized and the contributions of collaboration with SMEs to the sector were mentioned. At the General Assembly, it was underlined that the physical infrastructure of the SMEs is still inadequate, and the related support was asked from the Industry 4.0 and are launching here. If we had unique products officials in order to reduce the to transfer their investments and if we were working on these physical infrastructure costs to here, especially in Germany novel products at our factories, reasonable levels. On the other having an aged population. Mr. we could sell them ten times hand, the critical importance of Bulucu emphasized that the more. That’s why we intend for the presence of the authorities industrialists, SMEs and sub- each company here to become from the decision maker in the industry companies in Turkey like TAI. “If we can achieve our foreign lobbying activities was should pursue these technologies determined goal of $ 10 million, mentioned. It was underlined that in order not to miss the train. we can certainly become a player the SMEs should be used more Following the presentation on a global scale.” actively in the localization sub- of opinions, suggestions and The General Director of Military systems activities and that the evaluations, speeches were made Factories General Murat Akkaya SMEs should be involved in the by the officials of the Foundation said: “We can define OSTİM as a projects from the very beginning and Public Companies as well big factory. I believe that we will to increase the localization rate in Deputy Minister of National deliver more successful services new projects. Defense and Public Companies with you in my new position. I also Mr. Haluk Bulucu participated officials, Deputy Minister of the believe we will especially achieve in the General Assembly on behalf Ministry of Defense Mr. Şuay Alpay the indigenous engine project of FNSS and underlined that the and Undersecretary for Defense together.” manufacturers in Turkey should Industries Prof. İsmail Demir. The Undersecretary for be transformed into competent TAI General Manager Dr.Temel Defense Industries Prof. İsmail companies that are capable of Kotil: “The goal we set for Demir said that the OSSA cluster designing instead of contract ourselves in order to become a should be an example to other manufacturing. He also added global player is $ 10 Billion.” sectors and clusters and that that the industrialists in Ankara TAI General Manager Dr. Temel their support will continue as the are in need of an evolution Kotil touched upon the importance Undersecretariat. within this frame. Mr. Bulucu of creating companies that will The Deputy Minister of stated that many international replace TAI. “If we are able to National Defense Mr. Şuay Alpay companies in many European make 10 companies like TAI after mentioned that they are aware countries adopted the vision of this meeting, we will grow 10 of the importance of the work times more as TAI. The Americans performed by the industry and © Defence Turkey have this expression: ‘Hey, thanks industrialists and conveyed his if you do the work I’m doing, thanks to everybody who carries because I’ll do something else.’ this heavy burden. We determined our consolidated Following the speeches, the financial statement for 2017 as $ election results were announced. 1.9 billion. According to the 2017 The Board of Directors and forecast, the revenue of our sector Supervisory Board are comprised will reach $ 6 billion. As TAI, we of the following companies: are eager to realize 1/3 of this”, Board of Directors (Full): said Dr. Kotil. Mentioning that TAI EMGE, Küçükpazarlı, Alkan is the number one company that Makine, Dora Makine, Mikron awards the most subcontracts Mühendislik, Skymark within the sector as exports, Dr. Supervisory Board (Full): Tolga Kotil said, “We are carrying out Plastik, Akalın Isıl İşlem ve Çetek export activities at an amount of Makina. Dr. Temel Kotil – General Manager of TAI $ 500 million with our partners ISSUE 73/2017 81 DEFENCE TURKEY

Havelsan Develops Unique Products in Cyber Security The Ministry of National Defense signed a cooperation protocol in the field of information and communication technologies. As a part of the signed main protocol, Havelsan signed a sub- protocol with the Directorate General of Communications, Ministry of Transport, Maritime Affairs and Communications in the field of cyber security. The Ministry of Transport, Maritime Affairs and Communications and the Ministry of National Defense have taken actions in order to enhance collaboration in the field of information and communication Mr. Fikri Işık - Minister of Defense and Mr. Ahmet Arslan - The Ministry of Transport, technologies. At the ceremony Maritime Affairs and Communications held at the Ministry of Transport, and Mr. Ensar Kılıç, General in the field of cyber security, the two ministries crown their Director signed the protocol on will be developed further and intention to cooperate with a behalf of the Directorate General these implementations will be protocol. According to this, of Communications. supported within the scope of both Ministries will take joint the R&D studies of our ministry action in the fields of Cyber Minister Mr. Arslan: “Institutions and also through this protocol, Security, E-State Services, will Reinforce the work areas” a cooperation will be made Cloud Computing, Electronic “We know that ensuring benefiting from the services at the Communication Infrastructure and the security of information and Cyber Security Operation Center, Superstructure, Public Safety and communication infrastructures established within the structure Emergency Communications. especially at the present time of Havelsan.” The Minister of Simultaneously, a sub- affects both our national security Transport, Mr. Ahmet Arslan said. protocol, as a part of the protocol and competition at a significant Minister Mr. Işık: “Havelsan signed by the abovementioned level”. Minister Mr. Arslan said is one of our institutions ministries, was signed between that the institutions could Havelsan and the Directorate find opportunity to reinforce which is performing crucial General of Communications, the cooperation fields and effort in cyber security” Ministry of Transport, Maritime continued as follows “It will be The Minister of National Affairs and Communications ensured through the protocol Defense, Mr. Fikri Işık said the concerning R&D and domestic signed between Havelsan and following, concerning the signed product development in the field of the Directorate General of protocol; “Havelsan is one of our cyber security. Mr. Ahmet Hamdi Communications that the security institutions which is performing Atalay, General Manager signed software, which will be required crucial effort in cyber security. the protocol on behalf of Havelsan We have established the Cyber Defense Technologies Center within the structure of Havelsan. The domestic products such as National Fire Wall, Data Loss Prevention Product, Cyber and Cyber Exercise System continue to be developed. At the same time, Havelsan continues its work concerning our domestic operating system, PARDUS. I gave the necessary instructions © Havelsan for dissemination of PARDUS, our Havelsan Cyber Defense Technology Center (SISATEM) national operating system.” DEFENCE TURKEY 82 ISSUE 73/2017

Change Itself is an Opportunity to Bring new Actors together – An Interview with ATC’s President Howard Beasey Upcoming 36th Annual Conference on U.S.-Turkey Relations, Mr. Trump and Mr. Erdoğan Invited to Attend Ayşe Akalın Evers of Defence expanding business footprints Turkey magazine caught up with into the US.” © Defence Turkey ATC’s President Howard Beasey for an exclusive interview on Change is an Opportunity to 17th February, 2017. Mr. Beasey shared insights from the 35th Bring new Actors together – Annual Conference on U.S.- Building Strategic Relationships Turkey Relations, thoughts on The defense topics on the recent developments and details radar for this year’s event will about upcoming events. include the important U.S.-Turkey strategic relationship. Mr. Beasey Expanding Business reflected upon the whirlwind of recent administrative change Footprints into the U.S. “There is so much change going on The 35th Annual Conference in Washington now with the new on U.S.-Turkey Relations was administration and President Mr. held in Washington, DC, on Oct Trump. Within 30 days he ordered 30 - Nov 1, 2016. This was the a counter ISIL counter terrorism second conference that Mr. strategy review, particularly as Beasey had the opportunity to it relates to Syria. We should run, and he shared that “We felt see something come out on this that it went really well. We had shortly. There have been some The upcoming conference will good participation.” A post visits to Turkey recently. The perhaps be the first time for some conference report was created CIA director Mike Pompeo was individuals to be able to meet their in order to capture and continue here in Turkey, last week.” The Turkish counterparts.” the themes from the conference. visit by the newly appointed CIA The industry topics to be He shared that attendance good, director Thursday, February 9th, discussed this year are not sponsorship was tremendous was less than 48 hours after a necessarily new topics, but there which shows there is still very phone call between Mr. Donald are new and interesting ideas of strong interest in the relationship, Trump and Turkish President Mr. cooperation and joint ventures the economic relationship Recep Tayyip Erdoğan. Marine on the horizon. Mr. Beasey particularly. He said “Of course Corps Gen. Joseph Dunford, the shared “We’ve seen joint venture we did have to touch on the nation’s highest military officer partnerships in Turkey, and to do political environment, particularly as chairman of the Joint Chiefs it in the U.S. would be a whole the July 15th coup attempt, which of Staff is likely to be here this new ball game and would show was on the minds of many of weekend. These meetings are all some maturity in the industry those in attendance. I think we hit talking about where are we going relationship between the two the right tone with this event. I’m in this relationship as it relates to countries. From selling, design, hoping this year’s event will be Syria. R&D, coproduction, we will try even more focused on economic Mr. Beasey touched on the to capitalize on some of those issues. There is a lot of interest in tremendous amount of turn- areas.” Turkish companies investing in the over in Washington saying US, including defense. As we saw “Changes have been made and We’re Going Big – Mr. for the first time ever, last year, the are being made at all levels of Trump and Mr. Erdoğan example of the Turkish company the department of defense, at all General James L. Jones, Havelsan acquiring Quantum3D, levels of the state department. Chairmain of the ATC, has good a company in San Jose. It’s a There’s a whole new set of relationships in the current good starting point. We are seeing key players in Washington. ISSUE 73/2017 83 DEFENCE TURKEY

administration, and according Undersecretary for Defense investment in each other’s to Mr. Beasey a high-profile list Industries, SSM, and Prof. economies, building a stronger of attendees is expected at this İsmail Demir have made good relationship as well.” year’s prestigious event. commitments that they would High level participation like to attend. We always look to Creating a Platform for Dialogue is anticipated for this year’s set the stage for a tangible result conference. Mr. Beasey mentioned to come out of the conferences, ATCs role is that of a platform that President Mr. Erdoğan and some sort of industry cooperation setter, with a number of events President Mr. Trump have not yet or the resolution of a specific that create the opportunity for met in person and this year’s ATC issue.” In addition, Mr. Beasey dialogue. conference is a prime opportunity. noted that Gen. Hulusi Akar of He said “We’re going big. We the Turkish Army and General Chairman’s Trip always go big. It could be an Dunford know each other very We will have our Chairman’s opportunity for the presidents to well. General Dunford was the first “ trip this year. We’re looking meet. We are going to certainly international leader to visit Turkey at leading a Transportation invite the 2 presidents, Mr. Trump after the coup attempt. Technology delegation from March and Mr. Erdoğan. Because of 26-31, 2017. It is a commerce the timing of the conference in “The name of the game certified delegation to Turkey May, we think it might be one of from the US, which is a good the first opportunities for them certainly under Trump is vote of confidence in the Turkish to physically meet.” In addition, going to be Bilateral” economy.” The Transportation Secretary Mr. Tillerson is another Mr. Beasy discussed his Technologies Trade Mission to guest that the ATC would like to thoughts regarding how the Turkey will help facilitate further see in attendance this year. Mr new administration may impact U.S. company participation in Beasey commented that they the ATC. He said “Trump and this market, the U.S. Department “Are excited to hear Mr. Tillerson’s his administration is marked by of Commerce is planning an perspectives. He’s a business tremendous change. A change executive-led trade mission in executive coming to this position, in mindset, a change in people. the transportation technologies so we hope that he will bring a Some have indicated concern sector. The trade mission will stop different perspective on trade laws about the America first, America- in Istanbul, Ankara and Izmir and such as ITAR.” centric approach. As far as trade, will feature U.S. firms that provide Mr. Beasey commented on the name of the game certainly hi-tech equipment, systems and the fact that high level NATO under Trump is going to be technology solutions from the four meetings had recently occurred Bilateral. We can achieve some major modes of transportation (air, “The Turkish Minister of Defense movement with bilateral trade. rail, land and marine). Mr. Fikri Işık and Defense From my perspective, we are the Turkey has long served Secretary Mr. James Mattis had bookends of NATO, (ATC) Turkey as the crossroads between an opportunity to meet this week on the East, the U.S. on the west, Europe and Asia. Utilizing this with NATO.” On February 15, at the 2 largest armies of NATO, strategic geographic location, the NATO Defense Ministerial in two solid anchors on either side. the Government of Turkey has Brussels, Belgium, the secretary Secretary Mr. Mattison recently planned to make significant recognized that contributions underscored that NATO has infrastructure investments, that Turkey has made to the always been the bedrock and the funneling over $ 250 billion into NATO alliance. The Department of best deal that the United States upgrades in roads, airports, and Defense reported that Secretary as ever struck as far as collective other infrastructure by 2023, the Mr. Mattis assured Minister Mr. defense. This recent talk in NATO hundredth-year anniversary of the Işık of the support of the United about the 2% GDP spending founding of the Turkish Republic. States as a strategic partner threshold is nothing new. It’s been It is thus an opportune time in the counter-ISIS campaign, discussed for years. I still think for U.S. companies to seize welcoming transparent dialogue. that the relationship between these opportunities and pursue The secretary and minister agreed the United States and Turkey business development in the to continue their full range of is anchored on our strategic Turkish transportation market. bilateral defense activities and common interests and we need Some U.S. firms have already consultations, and to look for to get back to that. We converge participated in some large ways to further strengthen more than we diverge. It’s ok not infrastructure projects in the past defense cooperation in the future. to have 100% agreement between few years, including the following: Mr. Beasey shared that the allies. Those areas where we can ›› The new Istanbul airport, which ATC has received very good connect, where we can converge, when completed, will be the feedback from Turkey, noting “The we really need to get back to them largest in the world with an Turkish General staff reached out to make this relationship really be anticipated 150 million passengers to us and shared with us who they what it should be. That will allow per year would like us to invite. Turkish more economic engagement, ›› The recently completed Bosphorus DEFENCE TURKEY 84 ISSUE 73/2017

and Gebze bridges in Istanbul made investments there. One have a different risk profile, ›› A two story Bosphorus car tunnel of the keys to investment in the with much less exposure. They in Istanbul that is currently under U.S. is understanding the states. are here for a short while, from construction The states control land policy and airport to hotel and back to the ›› Large scale expansion of the high- tax policy. We’ll culminate the airport. Perhaps there should be a speed rail network Vice Chairman’s trip in Chicago business traveler index that would ›› Planned liberalization of the in September with our summit give a better assessment for the freight rail network series.” business traveler risk profile. In To help facilitate further U.S. order for individual companies company participation in this Summit Series and their security teams make market, the U.S. Department their assessments, they need of Commerce is planning an “Last year our topics were valid information. The business executive-led trade mission in innovation and investment environment is strong in Turkey. the transportation technologies partnerships. This year will be The message needs to get out to sector from March 26-31, 2017. retail and manufacturing in business travelers, they need to The trade mission will stop in Chicago. The way we decide know that it is safe to come, and Istanbul, Ankara and Izmir and on the summit topics is by to tour and see all that Turkey has will feature U.S. firms that provide looking at the stats, surveys, to offer. It’s an amazing country hi-tech equipment, systems and participation feedback, from our for many reasons and people technology solutions from the four conference. We can only scratch need to know that.” major modes of transportation the surface at the conference on a broad array of topics. We (air, rail, land and marine). This IDEF – Networking Reception mission will provide an excellent build the summit series around opportunity for companies to those topics that we think the ATC is organizing a reception meet with Turkish business relationship wants to know more this year at IDEF. On May 11, partners, industry representatives, about.” Mr. Beasey noted that ATC is hosting a reception that Turkish municipal officials, and the ATC wants to expand the will bring the leadership from the government officials. It will also footprint in the U.S. as well, with 2 sides of the industry together include unique one-on-one an intentional effort to go West, in a more casual setting. Mr. meetings, networking events, outside of Washington. They were Beasey shared that he reception and site visits, in addition to in Boston last year, Chicago this is “Not in the hussle and bussle interactions with private industry year. of the IDEF event itself. It’s more representatives and U.S. Mr. Beasey discussed that of an intimate setting to perhaps Embassy specialists. Participants for the ATC to continue to grow discuss potential business will not be limited to the Turkish and to be vibrant, they need get opportunities.” He continued market; participating companies out and explain the opportunities “AUSA decided they could not will also have the chance to that exist in Turkey. He noted attend IDEF this year. We are not meet with U.S. officials from the that this is a subject that comes here to replace them. AUSA is a “partnership posts” of Turkey, up every time, the challenges of big organization and they bring namely Uzbekistan, Azerbaijan, perception. He said “There are a lot of value, we cannot bring Georgia and Turkmenistan. perception problems about what the same resources that they the environment is in Turkey, can, and that is not who we are. political, security investment. We are just focused on keeping Vice Chariman’s Trip We are trying to do what we can things going, to help facilitate the “For the first time we are to present the right perception. relationships. We’ll be at IDEF doing a Vice Chairman’s trip. Certainly, there are challenges. certainly.” At the 35th Annual Conference Elections, referendums, questions on U.S.-Turkey Relations, the around political stability, security. The upcoming 36th American-Turkish Council’s Board The message needs to get out of Directors elected Mr. Tamer that it is safe for business and Annual Conference on Saka, CEO of Kibar Holding, as travel in Turkey. Many companies U.S.-Turkey Relations the new Vice Chairman. Mr. Tamer in the U.S. use the U.S. the state May 21 2017, 4:00 PM - Saka will lead a delegation to the department for their benchmark Tue, May 23 2017. This year’s Midwest. We are planning on a of their security posture and conference venue is new, it will be tri-state tour of Indiana, Michigan travel decisions. The state at the Trump International Hotel and Illinois, traditionally the heart department decisions are made Washington, D.C. It is a beautifully of manufacturing in the US. We entirely on a different risk profile. transformed century-old post will be looking at manufacturing This different risk profile is for office building. With its recent opportunities. The states in this U.S. residents in Turkey 24/7 in Grand Opening on October, 26, area have done a lot to incentivize Turkey. Often times businesses 2016, it is one of Washington’s investments. We’ve already seen use the state department as most talked about hotels. that some Turkish companies their baseline. Business travelers ISSUE 73/2017 85 DEFENCE TURKEY

Harp ArGe Electromagnetic Anti-Drone System Exported to Azerbaijan Established in early 2016, © Harp ArGe the Turkish company Harp Arge developed and produced an Electromagnetic Drone Killer as a result of its research and development studies that had started a year prior, in order to prevent the increasing number of suicide drone threats both in the theatre and cross border. The Drone Killer was initially intended for active used by the Turkish Security General Directorate and Turkish Armed Forces. The Drone Killer system the most effective weapon used to deter drones that can be utilized for attack. The Drone Killer electromagnetic jamming weapon is solely provided to government agencies due to regulations. The Drone Killer, developed drones. Even in the Euphrates air until the battery runs out, or by Harp Arge’s own resources, Shield Operation, ISIS injured it may take down the drone by successfully completed our 3 troops by dropping bombs interrupting the connection with the challenging tests of the with drones. All these events the controller. Azerbaijani Army and started to demonstrate how important the Apart from the Drone Killer, perform tasks in the Azerbaijani Drone Killer technology is,” added which is exported to both Presidency. Mr. Güçlü. Developed and produced by Harp Arge, the Drone Killer is able to capture and neutralize the threatening drone up to 1 km at a certain angle in the air through the jammer frequency spreading by the directional antenna in front of it. According to the target class, the drone systems can react differently. In some classes, © Harp ArGe the system may interrupt the connection of the drone with © Harp ArGe Stating that they achieved a the controller and hang it in the significant export activity, Harp domestic and foreign markets Arge General Coordinator Mr. by Harp Arge, it is anticipated Aytekin Güçlü said that the drone that the Anti-Drone market will market is growing rapidly in the expand further in Turkey. In this world and that an important context, at the recent 3rd High anti-drone market will emerge Tech Port exhibition in November, in parallel with this rise in drone Aselsan launched a prototype of production in the future. “Even the portable IHASAVAR (Man- now, many countries are trying Portable Drone Jammer) system to limit the use of drones through with the IHTAR anti-drone system, legal regulations. Each day our which is able to detect and deter troops are harassed by illegal © Harp ArGe micro and mini UAV systems. DEFENCE TURKEY 86 ISSUE 73/2017

New Chairman on Aselsan Board of Directors Aselsan publicly announced and Mr. Bayram Gençcan were that Prof. İbrahim Özkol - Vice appointed as Board members. Chancellor of Istanbul Technical University and Faculty Member Biography of Prof. of Aeronautical Engineering Department of Aeronautics İbrahim Özkol and Astronautics Faculty, was Prof. İbrahim Özkol was born appointed as the Aselsan in Izmir in 1962. Özkol started Chairman of the Board of Directors his undergraduate education in at the board meeting held on 15 the Aeronautical Engineering March 2017. Department of Aeronautics The Deputy Undersecretary for and Astronautics Engineering Defense Industries Mr. Mustafa Faculty of Istanbul Technical Prof. İbrahim Özkol Murat Şeker, who has been the University and also completed Vice Chancellor of ITU and faculty Aselsan Chairman of the Board his postgraduate degree at the member in the Aeronautical for two years, was appointed as same department. He made a Engineering Department of the Deputy Chairman. It was also pause in his academic career the Faculty of Aeronautics and announced that Mr. Mustafa Murat and worked for the CASA-3000” Astronautics. Performing as an Şeker and Mr. Murat Üçüncü and “CN-235” projects in Spain executive and researcher in many were appointed as the Executive 15 months between 1992 and SSM and TÜBİTAK supported Directors. 1993, since he was appointed projects, Prof. Özkol is one of the Gebze Technical University by the Undersecretariat for promoters of the ITU Air Transport Vice Chancellor Prof. Haluk Defense Industries (SSM). Özkol Management Master Program, Görgün, Ankara Mayor Mr. Ercan returned to his academic career which was the first in Turkish Topaca, Naval Forces Technical in 1996 and assumed the title of universities in 2013. Özkol is President Ret. Emin Sami Örgüç “Professor” in 2005. Prof. İbrahim married and father of two children. Özkol has been serving as the Havelsan Ordinary General Meeting Concluded The 2017 Havelsan Ordinary General Meeting has taken place and according to the results of the General Assembly Meeting, Prof. Abdullah Çavuşoğlu was elected the new Chairman of the Board. Havelsan’s new board consists Electronic Education in 1985. He and at the same time served as of the following individuals: Prof. completed his Ph. D. in Computer the Advisor of the President at Abdullah Çavuşoğlu - Chairman Engineering at the University of the Higher Education Council of the Board of Directors, Taner Sussex in 1993. Having received for nearly 6 years. In 2009, he Düvenci - Vice Chairman of the the title of Professor in 2011, was the Founding Dean of the Board, Assoc. Prof. İrfan Neziroğlu Çavuşoğlu performed duties in Engineering Faculty of Karabük - Member of the Board, Mr. Ahmet academic and administrative University, later served as the Akyol - Member of the Board, Mr. positions at various universities Vice Rector at Yıldırım Beyazıt Gökhan Gökay - Member of the and public institutions. University and as the Founding Board. Having completed fieldwork Dean in the Faculty of Engineering at home and abroad, Çavuşoğlu and Natural Sciences. Resume of Prof. Abdullah served as a Research Assistant, In May 2013, he commenced Assistant Professor, Associate to work as a member of TÜBİTAK Çavuşoğlu - Havelsan’s new Professor and Professor at Gazi Science Board and then served Chairman of the Board University between the years as the Vice President of TÜBİTAK Prof. Çavuşoğlu graduated 1986-2008. He was a member until 2014. Prof. Çavuşoğlu was from Gazi University, Technical of ÖSYM (Assessment Selection appointed as a member of the Education Faculty, Department of and Placement Center) Executive Higher Education Council on 25 Board for 3 years since 2008 July 2014. ISSUE 73/2017 87 DEFENCE TURKEY

A New Chairman of the TAI Board of Directors and New Members Appointed The new Board of Directors member in the previous Board of was elected at the General Directors, also left his position. Assembly held at the TAI premises The TAI Board of Directors on 17 March 2017. A total of 6 is comprised of the following new members were appointed individuals: Chairman Prof. Oğuz to the Board of Directors where Borat, Vice Chairman Ahmet Prof. Oğuz Borat was appointed Bertan Nogaylaroğlu, Board as the Chairman. Only the Member Dr. Celal Sami Tüfekçi, Deputy Undersecretary for Board Member Mr. Nedim Güngör Defense Industries, Dr.Celal Sami Kurubaş, Board Member Mr. Tüfekçi, remained unchanged in Burhanettin Aktı, Board Member the membership of the Board of Mr. İsmail Altınbaş, Board Member Directors. TAI General Manager Ms. Belda Şenel Parlak Dr. Temel Kotil, who was a Changing of Hands - Selex ES Turkey Changes Management

Selex ES Turkey, which has the General Manager since 2013 been involved in the Defense as well as serving as the General Industry as a subsidiary of Manager and Chairman Board Marconi in 1985, announced since 2015. that Mr. A. Ünal Solay, due to Mr. Sinan Şenol, appointed health concerns, handed over his as the General Manager of Selex position to Mr. Sinan Şenol as of ES Turkey, had been working at 1 February 2017. Mr. Sinan Şenol Aselsan in a variety of positions has been performing duties in between 1985-2013 and served various positions since 1995 in at TAI as the Deputy General Turkey and has been serving as Manager between 2013-2016. New Appointment to AYESAŞ and Vestel Defense Companies

In accordance with the resigned his position effective as the acting General Manager of statement made by AYESAS, March 1st 2017. Vestel Defense - the leading UAV joint venture of Zorlu Group and In the statement, it was manufacturer in the defense and L-3 Communications, and Vestel announced that Mr. Levent aerospace sector and of AYESAŞ Defense of Vestel Group, it was Tanrıdağ, who had been the - the leading systems solution announced that Mr. Aziz Sipahi, Deputy General Manager of provider in Turkey, a company who has been the General AYESAŞ and carrying out various which also provides services to Manager of Vestel Defense and senior management positions for many companies internationally. AYESAŞ companies for 12 years, over 25 years, has been appointed DEFENCE TURKEY 88 ISSUE 73/2017

CTech Introducing its Products and Technologies at Winter Drill 2017 The joint live firing military exercise was conducted within the scope of the Winter Drill 2017 at the Akbaba Exercise Field in Kars between 14-16 February 2017 by the 14th Mechanized Infantry Brigade Command with the participation of the Air and Land Forces Commands. With its satellite and wireless communication solutions CTech © CTech Company was involved in the 2017 Winter Drill. The Frequency Hopping X Band Satellite Terminal as part of the products developed within the scope of the Satellite and Communication Systems and the BLOS and LOS Satellite Terminal developed for the Unmanned Aerial Vehicles, Modeo and MOBloT products taking part in the mobile image and data transfer product group were closely examined by the military staff during the drill. In addition to Commander Corps and Garrison Commander 40 counties and many domestic of the Land Forces General General Mehmet Özoğlu, Director and foreign delegations visited the Salih Zeki Çolak, Turkish Armed of the Air Forces Staff Brigadier CTech stand on the distinguished th Forces’ Commander of Training General Kutlay Demir, 25 Border observer day and gathered and Doctrine (EDOK) Lieutenant Brigadier Commander Hasan information on the products of General Tahir Bekiroğlu, 9th Army Kaymaz, Military Attachés from the company. TAI Awarded Invention Award at the Istanbul International Invention Fair

TAI participated in the 2017 Istanbul International Invention Fair (ISIF’17) hosted by the Turkish Patent and Trademark Office between 2-4 March. TAI was granted an Invention Award under the “ISIF 2017 Gold Medals” category. This event shined the light entitled “A Real Time Operation on more than 500 inventions Method” and the invention of and patents that were exhibited. TAI staff member Mr. Özgür More than 300 entrepreneurs Dokuyucu, which is called the and inventors from 32 different “Payload Release Mechanism” countries. Fair attendance were displayed at the fair. The by individuals as well as by inventions were evaluated by institutions was organized under an international jury composed the auspices of the Ministry of of experts in their fields. The Science, Industry and Technology invention “A Real-Time Operation and the International Federation Method” was granted an award of Intersectional Associations under the s”ISIF’17 Gold Medal” (IFIA). category. The award was given The inventions of TAI staff to the TAI representatives by the members, Mr. Aydin Birol Minister of Science, Technology Akdemir and Mr. Kadircan Kopşa, and Industry Dr. Faruk Özlü. © TAI ISSUE 73/2017 89 DEFENCE TURKEY

Teknopark Istanbul - The 3rd Golden Cube Award Ceremony The best of the Teknopark Istanbul ecosystem was determined at the 3rd Teknopark Istanbul Golden Cube Award Ceremony. The awards were given in 13 Defense Industry Company of the Year: Roketsan categories: Executive of the Year, Team of the Year, Company of the Company with the Highest Exports of the Year: P.I. Works Year, Defense Industry Company Company of the Year that Provided the Most Employment Opportunities: Intertech of the Year, Company of the Year Company of the Year that Generated the Most Projects: PavoTek that Benefitted the Most from Incentives, Startup Company of StartUp Company of the Year: YongaTek the Year, Incubator Company of the Company of the Year that Benefitted the Most from Incentives Most: Nubigon Year, Product of the Year, Project Project of the Year: Motek of the Year, Company of the Year that Generated the most Projects, Product of the Year: Altınay Havacılık Company with the Highest Exports Incubator Company of the Year: Optiyol of the Year, Company of the Year Executive of the Year: Yeşim Cöngevel Sonbudak from Intertech Company that Provided the Most Employment Opportunities and University of the Team of the Year: Milsoft Year. Company of the Year: Delta Marine Baykar Makina General Manager University of the Year: Bahçeşehir University Mr. Haluk Bayraktar participated in the ceremony as a guest speaker Mr. Bayraktar noted “We delivered awards in 13 categories. and shared an overview and 12 Unmanned Aerial Vehicles to Teknopark Istanbul performs recent developments of Baykar the TAF and 6 UAVs to the Security its activities as a technology National UAV with the participants. General Directorate. Within this development zone established by Mr. Bayraktar noted that the context, we aim to support 1001 the Undersecretariat for Defense technoparks, R&D centers and technology teams at secondary and Industries and Istanbul Chamber incubation centers are the centers high schools, and universities by of Commerce. It contributes to that will determine the future of 2023 in order to attract the interest Turkey’s technology development Turkey. He stated that from the start of young people.” capacity by local and foreign of their journey 12 years ago, they Following the speeches, the entrepreneurs. As of 2017, are now moving forward with a total awards were presented to the Teknopark İstanbul now hosts 170 of 250 personnel, 140 of which are representatives of the companies R&D companies and 2,750 R&D engineers and 110 are technicians. who were entitled to receive the personnel. Ares Shipyard Stride Out in Maritime Industry Under TOBB’s leadership, Turkey’s fastest growing 100 companies were identified through the cooperation of TEPAV (The Economic Policy Research Foundation of Turkey). The award ceremony was held with the attendance of Deputy Prime Minister Mr. Nurettin Canikli, hosted by TOBB President Mr. Rıfat Hisarcıklıoğlu. Ares Shipyards, an Antalya company which increased © TOBB its sales by 4,473% in 3 years, and took first place. Companies in the Speaking at the awards Turkey between 2012-2015 was top 100 grew 12 times faster than ceremony, TOBB President Mr. 438%, and according to contest Turkey. Most of the companies in Rıfat Hisarcıklıoğlu stated that results, “This is a terrific figure, 12 the list are from Istanbul with the the average growth rate of the times higher than the increase in majority in wholesale trade. 100 fastest growing companies in national income in Turkey.” DEFENCE TURKEY 90 ISSUE 73/2017

12th Round of Pakistan-Turkey High Level Military Dialogue Group Meeting Held in Pakistan Pakistan and Turkey - Working toward a Comprehensive Bilateral Strategic Framework Agreement The 12th Round of the Pakistan- Turkey High Level Military Dialogue © Pakistan MoD Group (HLMDG) was held at the Ministry of Defense of Pakistan in Rawalpindi from 25-26th January 2017. Lt Gen (Retd) Zamir-ul-Hasan Shah, Secretary of Defense led the Pakistan delegation while the Turkish delegation was led by General Ümit © CTech Dündar, Deputy Chief of the Turkish General Staff of the Republic of Turkey. Prior to holding of the Plenary security, counter terrorism and the were discussed. Session, General Ümit Dündar, prevailing regional environment The highlight of the HLMDG had a meeting with Lt Gen (Retd) particularly with reference to meeting was that both sides agreed Zamir-ul-Hasan Shah. During the Afghanistan and the Middle East. In to work toward a Comprehensive meeting, matters of mutual interest addition, delegations took stock of Bilateral Strategic Framework including the entire spectrum of the measures that have been taken Agreement which must encompass bilateral defense cooperation were since the last HLMDG meeting that all facets of cooperation. discussed. Both leaders expressed was held in Turkey in October 2015. Talks were held in a most their concern on terrorist attacks in General Ümit Dündar also held cordial and congenial atmosphere. Pakistan and Turkey. The Secretary meetings with the Minister for Delegation leaders resolved to Defense apprised the visiting Defense, Chairman Joint Chief of work together toward enhanced delegation about the successes Staff Committee, Chief of the Army cooperation in defense and security achieved by Pakistan as a result of Staff and Chief of the Air Staff. In all related fields. It was agreed that military Operation Zarb-e-Azb and of these meetings, matters relating 13th Round of the Pakistan-Turkey the National Action Plan. to defense cooperation covering HLMDG meeting will be held in Both sides deliberated upon training, exchange visits and co- Turkey. various areas of interest, including production of defense equipment Lockheed Martin Introduces Paragon Direct Attack Munition Lockheed Martin has announced the target than other dual-mode or Paragon has been successfully that its Dual Mode Plus laser- GPS-guided weapons.” integrated on the F/A-18. Additional guided bomb (LGB) will be branded Paragon leverages the reliability F/A-18 flight testing continues and Paragon. The Paragon direct attack and affordability of Lockheed F-16 test flights are planned for the munition is an affordable, effective Martin’s combat-proven LGB, second quarter of 2017. alternative to current dual-mode integrating an inertial navigation Effective against fixed, weapons. system (INS)/GPS all-weather relocatable and moving targets, “The new brand Paragon moving-target capability to deliver the Paragon direct attack munition exemplifies a model of excellence, increased standoff, mission flexibility maintains the physical dimensions, and reflects the system’s and reliable performance. mass properties and outer mold performance and capability,” “Our flexible streamlined line of Lockheed Martin’s combat- said Joe Serra, Precision Guided manufacturing enables us to offer proven LGB, and integrates Systems director at Lockheed Paragon as an affordable solution seamlessly with aircraft employing Martin Missiles and Fire Control. to help stretch defense budgets,” LGBs or similar direct-attack “The Paragon direct attack munition Serra said. “Greater capability at a weapons using conventional has demonstrated performance well more affordable price benefits our MIL-STD-1760/1553 or Universal within operational requirements customer by increasing competition Armament Interfaces. and can be released farther from in performance-based acquisitions.” ISSUE 73/2017 91 DEFENCE TURKEY

Ambitions Soar as Young Ladies from Area High Schools Participate in TEI’s Women of Aviation Worldwide Week TEI, Turkey’s leading company in aviation engines, celebrated Women of Aviation Worldwide Week once again, organizing two successful events. High school students participated in shaping their own futures by allowing their dreams and ambitions to soar, fueled by words of encouragement and wisdom from a panel of Women Aviators. On International Women’s Day (March 8th, 2017), TEI organized © TEI a “Model Airplane and Flying Competition” in order to inspire female high school students to imagine and perhaps pursue careers in the aviation sector. During the afternoon event, the students were introduced to the sector and given a closer look at the possibilities that aviation may hold for them. A common thread in the discussion panel from successful women in the aviation field was that an increase in female leaders will be essential of making the most aesthetically ITU Astronautical Engineering in revealing Turkey’s full potential. pleasing airplane model, and Ahi Department’s Associate Professor In commemoration of March 8th, Evran Vocational and Technical Melike Nikbay, Turkish Airlines 1910, the date when the first female Anatolian High School both tied for A320 Co-Pilot Gökçe Kübra Tuğran pilot of the world was licensed, first place in the category of flight Yıldırım and TEI MRO Director Pinar TEI added one more event to the endurance for their airplane models. In the second half of the day, © TEI a panel of ‘Women Aviators’ gathered in a discussion session and shared their motivational experiences with the young ladies in the audience. The audience of high school students listened intently, © TEI participating in shaping their own futures by allowing their dreams successful events it has promoted and ambitions to soar, fueled by the every year since 2010. The week panel’s words of encouragement Günaydın, shared their experiences of March 8th is held in high regard and wisdom. with the students during the as demonstrated by TEI with the The sector was introduced to panel. The panel was moderated events organized each year during students who were interested in by Defence Turkey magazine “Women of Aviation Worldwide aviation during the session held Editor in Chief Ayşe Evers. The Week”. at Hacı Süleyman Çakır Anatolian panelists underlined the fact that 40 students from 20 different High School. General Electric the number of women working in schools attended the Model Aviation Turkey Technology Center the Defense and Aviation sector is Airplane and Flying Competition on General Manager and TEI Board still insufficient and encouraged the March 8th. The event was organized Member, Dr. Aybike Molbay, young ladies to pursue careers in by TEI under the scope of a social these fields. The common message responsibility project, with the © TEI conveyed by the speakers was support of the Eskişehir Provincial that the students need to discover National Education Directorate, their desired profession and to at Sabiha Gökçen Vocational and aspire to further themselves in Technical Anatolian High School. that specific area of focus, thus Prof. Dr. Orhan Oğuz Anatolian playing an important role in sector High School took first place in advancement as a woman. the competition in the category DEFENCE TURKEY 92 ISSUE 73/2017

Rolls-Royce Announces Investment in Research & Development for Ship Intelligence Rolls-Royce has today announced the latest stage in its research and development plans © Pakistan MoD to make remote and autonomous shipping a reality and reap the benefits of increasing digitalization in the marine industry. The company is looking to develop partnerships and opportunities with other organizations around the world to, create the capability, competencies and jobs to supply the technology and components required. Today, the latest part of that program has been confirmed with © Rolls-Royce the announcement, in Finland, of a significant research grant by Tekes currently investing in a range of R&D plan and perform maintenance and – the Finnish Funding Agency for projects, which will include a new repairs on onboard ship equipment. Innovation. The funding will enable Marine Fleet Management Centre in Asbjørn Skaro, Rolls-Royce, Rolls-Royce to invest further in a Aalesund, to allow remote monitoring, Director, Digital & Systems – Marine, research and development center in data analysis, optimisation of ships added: “We are pleased to see the Turku, Finland. The company plans and their on-board equipment. establishment of a center for Remote to carry out further development The center will allow Rolls-Royce Control & Autonomous Ships in projects there focused on the future to extend its ‘Power by the Hour’ Finland, and welcome the continued development of land-based control support from Tekes. We are looking centers, and the use of artificial at further funding and capability intelligence in future remote and opportunities in countries including autonomous shipping operations. Finland, Norway, UK and Singapore Mikael Mäkinen, Rolls- to develop our ship intelligence Royce, President – Marine said: technology and build customer “Digitalization will transform the partnerships worldwide. shipping industry in the years “By drawing on our existing ahead, and the time is now right to capabilities in our Marine business, set out how we are going to make concept, already proven in its together with the global expertise we this happen. Over the coming Aerospace business, to serve the have across the Rolls-Royce Group years we need to invest globally to marine sector. ‘Power by the Hour’ is and our relationships with partners, develop the required capabilities a new service to be delivered from the we believe we can secure up to and to establish a range of market- Marine division of Rolls-Royce which £200m of investment to revolutionize ready products and systems to take makes use of ‘big data’ to monitor, shipping.” advantage of what is a significant global market opportunity. “By combining our world leading capability and knowledge, with a clear plan of where we need to go next, we can work with our customers, governments and our global academic research network to develop and bring to market the advanced technology, products and supporting services needed both ‘on-vessel’ and ‘on-shore’ to make our vision of future remote and autonomous ships a reality.” © Rolls-Royce In Norway, the company is ISSUE 73/2017 93 DEFENCE TURKEY

Lockheed Martin to Deliver World Record-Setting 60kW Laser to U.S. Army The Beam Combined Fiber Laser is the Most Powerful Laser of its Type Yet Demonstrated Lockheed Martin has completed the design, development and © Lockheed Martin demonstration of a 60 kW-class beam combined fiber laser for the U.S. Army. In testing, earlier this month, the Lockheed Martin laser produced a single beam of 58 kW, representing a world record for a laser of this type. The Lockheed Martin team met all contractual deliverables for the laser system and is preparing to ship it to the US Army Space and Missile Defense Command/Army Forces Strategic Command in Huntsville, Ala. “Delivery of this laser represents an important milestone along the that can be made more powerful by According to Afzal, the Lockheed path to fielding a practical laser adding more fiber laser subunits. The Martin team created a laser beam weapon system,” said Paula Hartley, laser is based on a design developed that was near “diffraction-limited,” vice president, Owego, New York under the Department of Defense’s meaning it was close to the physical general manager and Advanced Robust Electric Laser Initiative limits for focusing energy toward a Product Solutions within Lockheed Program, and further developed single, small spot. The laser system Martin’s Cyber, Ships & Advanced through investments by Lockheed also proved to be highly efficient in Technologies line of business. “This Martin and the U.S. Army into a testing, capable of translating more milestone could not have been 60kW-class system. than 43 percent of the electricity that achieved without close partnership “The inherent scalability of this powered it directly into the actual between the U.S. Army and beam combined laser system has laser beam it emitted. Lockheed Martin; we are pleased to allowed us to build the first 60kW- Laser weapons provide a be able to deliver this system for their class fiber laser for the U.S. Army,” complement to traditional kinetic further integration and evaluation.” said Robert Afzal, Ph. D., senior fellow weapons in the battlefield. In Lockheed Martin’s laser is a for Laser and Sensor Systems. “We the future, they will offer reliable beam combined fiber laser, meaning have shown that a powerful directed protection against threats such as it brings together individual lasers, energy laser is now sufficiently light- swarms of drones or large numbers generated through fiber optics, to weight, low volume and reliable of rockets and mortars. In 2015, the generate a single, intense laser beam. enough to be deployed on tactical company used a 30kW fiber laser This allows for a scalable laser system vehicles for defensive applications weapon, known as ATHENA, to on land, at sea and in the air.” disable a truck from a mile away. Raytheon Awarded Contract to Provide the Qatar with Early Warning Radar System

Raytheon has been awarded Contractor will provide an early Work will be performed at Woburn, a $ 1,066,297,129 fixed-price, warning radar system that will be Massachusetts, and is expected to incentive-firm letter contract for a integrated into the Qatar integrated be complete by June 30, 2021. q Qatar early warning radar system. air and missile defense enterprise. DEFENCE TURKEY 94 ISSUE 73/2017

Honeywell Forecasts 3,900 to 4,400 Global Helicopter Deliveries Over Next Five Years New helicopter purchase-plan rates lower than the 2016 survey All regions have lower new helicopter purchase plans in the 2017 survey Increased interest in light single-engine and medium twin-engine helicopters in this year’s survey Highest purchase-plan rates from corporate and law enforcement segments Impacted by a slow global economic growth environment and volatility in oil and gas- related markets, the helicopter industry is reacting with a cautious outlook for near-term new purchases. In its 19th annual “Turbine-Powered Civil Helicopter Purchase Outlook,” Honeywell forecasts 3,900 to 4,400 civilian- use helicopters will be delivered from 2017 to 2021, roughly 400 helicopters lower than the 2016 five-year forecast. “The current global economic situation is causing fleet managers to evaluate new helicopter purchases closely, and that’s why we’re seeing a more cautious five- year demand projection compared with previous years,” said Mr. Ben Driggs, president, Americas, Honeywell Aerospace. “Even in a slow growth environment, Honeywell is well-positioned to help operators keep current fleets lasting longer with aftermarket upgrades and repairs.” Key global findings in the outlook include: ›› The survey showed new purchase- plan rates were lower for the next five years, for all regions, leading to a more cautious near-term outlook. ›› When considering a new purchase, operators’ results mirrored those Latin America, but at a reduced ›› Latin America led all global from last year, with make and rate in Europe. regions in the rate of new aircraft model choices for their new purchase plans, but is down year aircraft most strongly influenced Regional Overview over year and impacted by weak by range, cabin size, performance, economic performance in Brazil Latin America: The 2017 results technology upgrades and brand and Venezuela. show lower fleet replacement and experience. ›› Latin American respondents growth expectations compared ›› Helicopter fleet utilization in currently favor light single- with 2016 results. Still above the past 12 months generally engine models, representing the world average, the purchase increased compared with last year. almost 60 percent of their plans have declined more than 13 Over the next 12 months, usage planned acquisitions, followed by percent compared with the prior rates are expected to improve intermediate and medium twin- year. significantly in North America and engine platforms. ISSUE 73/2017 95 DEFENCE TURKEY

Middle East and Africa: The new purchase plans, and region has the second-highest consequently, intermediate and new purchase rate among the medium twin-engine helicopters regions, with up to 22 percent were the most popular models of respondent fleets slated for in their new aircraft plans. F-35 turnover with a new helicopter ›› India held fairly steady year replacement or addition. over year based on very small Successfully However, purchase plans are sample input. 8 percent lower compared with ›› There are a number of countries 2016 survey results. contributing more relative Conducts ›› Close to 80 percent of planned and absolute new helicopter new helicopter purchases are purchase plans in the region, intermediate and medium twin- including China, Australia, South First Firings engine models. Korea, Japan and Malaysia. ›› Light single-engine models are BRIC countries (Brazil, of MBDA’s the second-highest-mentioned Russia, India and China): platform in the survey by Purchase plans are lower for all operators. countries except Russia in this ASRAAM year’s survey. Overall, BRIC North America: Purchase The F-35 Lightning II stealth fighter plans are down more than 11 expectations fell by more than jet has successfully conducted its first 2 percent in this year’s survey. percent compared with 2016 firing trials of the MBDA Advanced Short The purchase plans are down results. Range Air-to-Air Missile (ASRAAM). for a second year since 2015. ›› Brazilian purchase plans are The trials are the first time a British- ›› • More than 75 percent down significantly, by almost designed missile has been fired from the of planned North American 20 percent in 2017, reflecting F-35 Joint Strike Fighter, and the first purchases were identified as the impact of the economic time any non-US missile has been fired light single-engine models, recession in the country. from the aircraft. while just under 13 percent of ›› Small sample sizes in Russia Conducted from both Naval Air new purchases were slated as and India make it difficult to Station Patuxent River and Edwards Air intermediate or medium twin- draw conclusions. Force Base in the USA, the effort has engine models. ›› Planned Chinese purchase seen both flight trials and air-launched ›› North American purchase plans rates slipped, reflecting near- firings of the ASRAAM successfully take are a significant component of term slower economic growth place. the overall 2017 survey demand, prospects. MBDA is currently under contract, as the region represents more awarded in 2016, to produce the highly capable infra-red (IR) guided than 40 percent of the current Methodology world fleet. air-to-air missile for the UK’s F-35s. ASRAAM’s large rocket motor and clean Europe: Purchase plans The 2017 outlook presents aerodynamic design gives it a high decreased by more than 3 a snapshot of the helicopter kinematic capability that delivers superior percent in this year’s survey, business at a point in time and reflects the current business end-game performance compared with down for a second year in a row. other countries’ in-service IR missiles. ›› The sample of Russian operators and political environment. This year’s survey queried more The trials were conducted by the responding in the 2017 survey integrated test teams at Patuxent and than 1,000 chief pilots and remains small, which continues Edwards, which include Lockheed flight department managers to add some uncertainty to the Martin, BAE Systems, MBDA and overall European results. of companies operating Northrop Grumman. ›› Excluding heavy-twin 3,746 turbine and 362 piston The development trials work is being helicopters, European purchase helicopters worldwide. The conducted under the integration program intentions currently tend to survey excluded large fleet or for ASRAAM onto the UK’s F-35 aircraft. favor all classes in nearly equal “mega” operators, which were This effort is currently progressing to plan shares this year. addressed separately. Input and these integration activities will allow Asia Pacific: Despite solid received from large oil and gas the Initial Operating Capability of the results from these nations, support and emergency medical aircraft by the UK. overall buying plans slipped service fleet operators is MBDA is also under contract for about 1 percent. Operator factored into the overall outlook the ASRAAM Capability Sustainment purchase plans continued to in addition to the individual Program (CSP) to build replenishment drift slightly lower compared flight department responses. missiles for the Royal Air Force’s with the past few years in the The survey detailed the types of Eurofighter Typhoon aircraft. The aircraft operated and assessed CSP effort makes use of ASRAAM’s 2017 results. commonality with the CAMM missile ›› APAC operators tended to specific plans to replace or add to the fleet with new aircraft. family, also being bought by the Royal focus more on corporate and Navy and British Army, to deliver oil and gas end uses for their extensive cost savings across the UK Armed Forces. DEFENCE TURKEY 96 ISSUE 73/2017

SpaceDataHighway to Reach Asia- Pacific Airbus Defence and Space communication link with another real time. The European Union’s announces the kick-off EDRS-D, geostationary relay satellite of the Copernicus Sentinels are the first the third communication node of SpaceDataHighway, in order to spacecraft to benefit from these the SpaceDataHighway. Airbus relay data to the other side of the next generation services. Defense and Space will expand globe, while being at the cutting- The SpaceDataHighway the EDRS-SpaceDataHighway edge of security standards. program is a result of a Public- with a third node, EDRS-D, to be The SpaceDataHighway Private Partnership (PPP) positioned over the Asia-Pacific service will enable rapid near-real between ESA and Airbus Defense region by 2020. This third node time tasking and high bandwidth and Space. The German Space will be the next step towards data download ensuring highest Administration DLR is also a key global optical fiber in the sky reactivity, lowest latency and high contributor. The innovative laser and will support the Pacific Rim volume data transfer for Earth communication terminals (LCT) region, which has witnessed its observation satellite and airborne are developed and built by the communication needs for airborne platforms. This represents a step German Airbus subsidiary Tesat missions rise dramatically. change in the speed of space Spacecom. EDRS-D will include several communications. Ultra-broadband EDRS-A, the first relay satellite major innovations to be developed laser communications and the for the SpaceDataHighway in partnership with ESA. Following geostationary orbit of the relay program was launched on 29 the ESA Ministerial Council in satellites combine to deliver a January 2016. Positioned at 9° December 2016, critical activities unique, secure, near real time East, this first communication dedicated to laser communication data transfer service, making data node offers coverage from the in space are being initiated. latency a thing of the past. American East Coast to India since EDRS-D will be equipped with Thanks to laser technology its start of service in November multiple laser communication the SpaceDataHighway can 2016. A second satellite will be terminals performing optical bi- transfer high-volume data from launched in 2017, which will directional links in order to serve Earth observation satellites and extend the coverage, capacity and a number of satellites, drones airborne platforms, at a data rate redundancy of the system. and aircraft simultaneously. It will of 1.8 Gbps and can transmit up also be able to establish a laser to 40 terabytes per day in quasi Leonardo-Finmeccanica: Successful first Flight for the new Aermacchi M-345 The prototype of the new excellent performance. The engine Aermacchi M-345HET (High in particular demonstrated a Efficiency Trainer) two-seat great capacity to react to regime basic jet trainer has successfully changes, which is a fundamental completed its first flight from characteristic for a basic training Venegono Superiore airfield aircraft.” (Varese, Italy) on December 29. The M-345 is the latest- The aircraft was flown by Quirino generation aircraft from Leonardo Bucci and Giacomo Iannelli from for military pilot training and Leonardo Aircraft Division. provides global Air Forces with Quirino Bucci, Project Test an economically affordable and Pilot Trainers of Leonardo effective solution, thanks to a Aircraft Division, expressed great significant reduction in acquisition © Leonardo satisfaction at the end of the and life-cycle costs compared to avionics systems, the engine and 30-minute flight and said: “The those of powerful turboprop trainer the flight envelope expansion, aircraft conducted itself perfectly, aircraft. The test campaign will be including altitude, speed and meeting the expectations of the completed within 2017. The next maneuverability. design parameters while showing tests will check the advanced

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