AN INTERVIEW WITH MR. NOYAN BURÇİN DEDE – GENERAL MANAGER OF ONUR A.Ş.
VOLUME 12 ISSUE 80 YEAR 2018 ISSN 1306 5998
ARES SHIPYARD’S SWELLING WAVE OF SUCCESS WITH DIVERSIFIED EXPORT PROGRAMS TURKISH NAVAL FORCES – DEPENDABLE IN COOPERATION, DETERRENT IN CRISES AND DECISIVE IN COMBAT TAI DELIVERS THE FIRST ANKA-S UAV SYSTEMS TO TURAF PAKISTAN’S SUBMARINES ENTRUSTED TO STM TURKEY CONRACTS EUROSAM, ASELSAN AND ROKETSAN TO DEFINE ITS FUTURE UNIQUE AIR AND MISSILE DEFENSE SYSTEMS DEFENCE TURKEY 6 ISSUE 80/2018
ARES Shipyard’s Swelling Wave of Success with Diversified Export Programs
With unprecedented growth, Turkey’s illustrious shipbuilder reaps the rewards of export programs that provide tailor-made products. Tempered with cautious optimism and well-deserved satisfaction and national pride, Mr. Kerim Kalafatoğlu - Chairman & Executive Director Of ARES Shipyard discusses the company’s high tide of export success and plans for future growth
© ARES Shipyard ISSUE 80/2018 7 DEFENCE TURKEY
Defence Turkey: Mr. Kerim done by then: serial production program brought in a significant Kalafatoğlu, first of all thank of advanced composites military amount of foreign exchange very much for your time. During craft with fully automated vacuum to Turkey, adding considerable the DIMDEX fair in Doha-Qatar infusion technology and use epoxy value to its reserves and creating in 2014, you signed a contract resin. This technology required a employment. On the other hand, with the Qatar Ministry of significant amount of investment even though this program for Interior for the supply of a total in production however at the same the Qatar Ministry of Interior is of 17 Multi-Role Patrol Craft in time led us to deliver the best the largest military ship export 3 different configurations and quality, in 1.5 years ahead of the contract contributing to our export lengths, and you accomplished contractual schedule with flawless figures, ARES has always been the early delivery of 13 boats. In planning, which is quite unusual in an export focused company for December 2017, the handover the shipbuilding business. the last ten years. So, our export ceremony was held for the Defence Turkey: ARES figures not only stem from this ARES 150 HERCULES (QC901) Shipyard – Turkey’s largest record-breaking contract but Offshore Patrol Vessel which is ship exporter - is Europe’s also cumulatively coming from 48 meters in length and the ARES largest composite-hull boat our diversified export programs 110 HERCULES (QC812) Fast manufacturer and the world’s to countries including but not Patrol Boat which is 34 meters biggest composite hull patrol limited to Qatar, Bahrain, Nigeria, in length, with the participation craft manufacturer as well. ARES Turkmenistan, Georgia and of officials from the Qatar Shipyard is the only shipyard Tanzania. Coast Guard Command and the with the capacity to build Defence Turkey: Mr. Ministry of Interior in Antalya. military vessels with full vacuum Kalafatoğlu, in the Qatari Coast You have strong competitors; infusion technology and epoxy Guard Boats supply program, could you please evaluate the resin utilization. What types of you are 18 months ahead of tender process in which you are advantages have you gained as the delivery schedule and this involved? Also, please discuss a result of your know-how in the an unprecedented delivery the preliminary preparation and production phase? In addition, achievement in the defense & mass production processes that what are the capabilities and maritime industry up to now. lead you to success in delivery? advantages brought to the end Here, we are talking about a The tender process for this users? significant supply chain and record-breaking program was Our extensive know-how in finance management modality. certainly a challenge. It took some production led us to build the Your shipyard provides five years from the beginning to largest composite hulls in military flexibility and speed through the point of the award with lots craft production with the highest the supply management and of engineering, marketing and durability and with the longest logistics approach that you have product development efforts. life time which are the biggest established. Could you briefly ARES Shipyard won the tender concerns of the navies and coast tell us about your investments and was awarded in year 2014 guard institutions. Furthermore, and studies in this regard? among a total of 18 international the high quality of these products Today, we are 1.5 years ahead shipyards competing, some of has granted us the freedom to offer of the contractual schedule with them being the giants of the world record breaking warranty periods a flawless planning, logistics at that time with their production to our clients. Regularly proposed and financial management in volume. There was no big secret warranty periods in shipbuilding addition to our investments in behind this success; we proposed is limited to one year where we serial production which is quite the best technical solution with a can provide 20 years of warranty unusual in shipbuilding business. completely cooperative proposal for our advanced composite hull Especially in supply chain and in terms of customization for the structures, and where we believe financial management fields, specific needs of the end users. that ARES is the only shipyard in we have also made significant And therefore, we had an almost the world that can achieve this investments in terms of assets and one-year design consolidation and level of reliability. manpower. To be more specific, we customization phase for the three Defence Turkey: Mr. have changed our management types of fast patrol and offshore Kalafatoğlu, you have signed methodology dramatically with the patrol vessels. At the end of the Turkey’s largest military ship use of a new ERP software, supply critical design review, we had fully export contract up until now chain and finance being the first to customized, satisfactory and state- for the procurement of 17 be integrated in this ERP system. of-the-art products on the table, composite-hull Qatari Coast Moreover, we have invested ready for production. It was time Guard Boats. What do you want in people creating significant for developing the infrastructure, to say about the added value value in these fields. And above investing in the shipyard for and achievements this program all, we have made all these even faster and higher quality has brought to our country? systematic development efforts deliveries. It was time to achieve Considering the current global and manpower work together in something that had not been recession, this huge export harmony. DEFENCE TURKEY 8 ISSUE 80/2018
Defence Turkey: Mr. Kalafatoğlu, the ARES 150 HERCULES Offshore Patrol Vessels bring significant advantages to the user in the operational environment, thanks to the speed over 20% of the contract requirements, superior maneuvering capability in a 74 meter-radius, and an enhanced range. When you compare the ships in this class with your own © ARES Shipyard platform, how do you see your platform in terms of both cost- 34m Length-ARES 110 HERCULES effectiveness and superiority? As a company that attracts However, especially with the The 48m ARES 150 HERCULES attention with the impact and superior success you have OPV is the flag ship of this program difference it makes in the industry, achieved in the Qatar Coast and the Qatari Coast Guard. So, we one distinguishing feature of Guard Boat procurement project, have from the beginning planned ARES is its Integrated Logistics the requirements you receive in and wished to add even more Support (ILS) department. The ILS the international market will value to this craft, to distinguish it department, whose effectiveness certainly increase. In this context, from other offshore patrol vessels and know-how has been certified, could you please inform us about currently in service across the globe. is currently providing training to the projects you follow abroad, Therefore, first of all we offered to 275 Qatari Coast Guard personnel co-operation activities and the the client, an upgrade of the main for almost three years. Thanks to requests you receive? propulsion system (main engines our ILS team, ARES stands out as There are numerous and water jets) to a more improved the sole shipyard in Turkey to meet international shipbuilding / solution on our account. With this all the logistics-related demands acquisition programs to which we revision, we added a 20% increase and requests of customers. have been invited which we are in speed, higher maneuverability Certified by Turkish Lloyd with the either actively following, preparing and then doubled the range (from ISO 9001 Quality Certificate, our for, or are waiting for the outcome 800Nm to 1600Nm) giving the ILS department has experienced of after having already submitted coast guard even more enhanced personnel and know-how to meet our proposal. As you may realize, patrolling capabilities covering all of every kind of customer requirement most of them have military level the Arabic Gulf region with its high at the shipyard or onsite, at any confidentiality; there is also speed and extensive range. What requested location in the world. commercial confidentiality involved we have achieved with the ARES Currently, the extensive training in some others. For these reasons, 150 HERCULES is unprecedented; program for the Qatar Coast Guard we think it would not be appropriate, it is the fastest offshore patrol vessel is on-going with accomplishment as a matter of principle, to mention and largest composite construction of 12 boat crews (approximately any country or project name before for military use in the world. Finally, 170 officers, petty officers and the relevant tenders are concluded. with the addition of stabilization technicians) all in-class, onboard My wish and hope is that we will systems for higher sea states up and tactical/mission training. continue to win new tenders and to and including Sea State-6, two Defence Turkey: During the get orders in 2018, and meet the interceptor boats onboard for special recent period, ARES Shipyard needs of our allied countries with forces missions, new generation has exported military and para- the highest value platforms of electro optic systems and Aselsan’s military ships to countries their class, contributing to export 30mm SMASH (MUHAFIZ) and two like Bahrain, Nigeria, Georgia, incomes of the Turkish Republic as 12.7mm STAMP Naval Weapon Tanzania and Turkmenistan. our usual practice. Systems; the ARES 150 HERCULES is a unique, superior, state-of-the-art craft. Defence Turkey: According to the contract signed with the Qatar Ministry of Interior, when the boats are delivered, the operator and maintenance training will be provided to the Qatar Coast Guard Command staff by the ARES ILS Department. Could you please share with us the latest status © ARES Shipyard of the studies performed in this context? 48m Length –ARES 150 HERCULES OPV DEFENCE TURKEY 10 ISSUE 80/2018
The needs of the Turkish Naval Forces and Coast Guard Command are always a priority for us. Beyond meeting financial targets, and in addition to bringing foreign exchange to Turkey, our biggest goal is to continue and increase our services for the Navy and Coast Guard institutions of our homeland. We are always ready to support all programs of the Turkish Ministry of Defense and Ministry of Interior, as far as our capacity allows us to do. Thus, for © ARES Shipyard instance I’d like to announce here that we will proudly be participating 48m Length – ARES 150 HERCULES - Wheelhouse in the tender for the needs of Ministry Defence Turkey: Mr. that guide us. In this way, we can of Interior, Coast Guard for fast Kalafatoğlu, unlike many provide a win-win solution. As response and control boats recently other producers, you do not the saying goes, rather than an issued by the Undersecretariat for offer commercial off-the-shelf off-the-peg jacket, we tailor one Defense Industries. I’d like to assure products to the market. What for our customer that is made- you that we will do our utmost to advantages does this approach to-measure, so it fits perfectly. present the highest performance bring to you in the market? We call this approach tailor-made and efficiency product in a very Of course, almost all shipyards solutions. As a result, we don’t competitive delivery schedule, being in the industry claim that they offer any off-the-shelf products to aware of the urgency of the need make the fastest delivery and our customers. Instead, and I say especially for the fight against illegal carry out production at the most this with pride, we have a number immigration and human trafficking in reasonable cost, with the highest of solutions we can offer them. our territorial waters. quality and advanced technology Of course, producing tailor-made Defence Turkey: Mr. standards in materials and solutions for customers requires Kalafatoğlu, you had a teaming workmanship. This is indeed a a labor intensive chain of design agreement with Rolls-Royce for common goal for all companies activities. But with our young and the Turkish-type assault boat in the industry. Managing these dynamic design team, we are project. Within this scope, you factors appropriately is essential aiming to pursue this strategy, and have designed your ship on the for the survival of enterprises. to continue serving our customers Rolls-Royce’s patented, tried and In addition to all these factors, with the most appropriate solutions proven P2500 body form. Could and more importantly, I believe by working together with them. you please inform us on the latest that we, as ARES Shipyard, Defence Turkey: Do you have developments regarding this have contributed a different solutions and designs that are platform solution, the partnership perspective to the ship building scaled according to the future and process? industry. Our vision is not limited requirements of our country, I would like to take this to building the best ships; our aim the Coast Guard Command opportunity to underline the fact is to develop our customers’ own being in the first place, in view that we are one of the strongest vision by working together with of the gains this project brings candidates for the Turkish Type Fast them. That is to say, we listen to to you? Could you please inform Attack Craft Program in context of the needs of our customers, and us about the tender you are the modernization of the Turkish value their requests. We never expecting to be issued or the Naval Forces FAC Fleet. We had a offer them a ready platform and tender you have submitted for teaming agreement with Rolls Royce try to persuade them to buy it. your proposal? in order to use their unique very well We evaluate their operational needs by sitting face-to-face and determining the optimum solutions and most appropriate technical features for them. In other words, we offer them a consultancy service, gladly and free of charge, unlike in many other countries where such services are provided to government institutions for considerable sums during the preparation of tender dossiers. At this point, there are, of course, © ARES Shipyard cases where it is our customers DEFENCE TURKEY 12 ISSUE 80/2018
proven P2500 hull form that allows both high performance and speed capability above 55 knots with a steel hull but at the same time achieving very reliable seakeeping parameters at Sea State 6. I can proudly state that we are fully ready for the program even in terms of detailed ship configuration and design. We are fully compliant with the principles previously published in the RFI, and in expectation of the RFP to be issued by Undersecretariat for Defense Industries in order for us to © ARES Shipyard take place in this important program. Defence Turkey: You were Turkish Type Fast Attact Craft – ARES 63 Atılgan ranked as Turkey’s number one fastest growing company with Kalafatoğlu, you have an production area to 40,000 square a growth rate of over 4000% investment plan in 2018 that can meters in less than one year. This according to the industry’s increase the indoor production brand new top-notch facility will be independent assessments made capacity of your shipyard and specialized in aluminum and steel by the Turkey Union of Chambers perform the production of larger production infrastructure and will add and Commodity Exchanges in and tonnage military vessels. What significant value to our country with January 2017. It gives you both do you want to say about this the investment of robotized cutting- great pride as well as great modern facility that will be built? edge serial production capability. responsibility. In this regard, what Our current production facilities Defence Turkey: Would you like are the strategies that you have in Antalya Free Zone currently to convey any messages for the adopted in order for this growth comprise three air-conditioned readers of Defence Turkey? to be sustainable? factories with a combined floor area I would like to take this ARES has achieved tremendous of 25,000 square meters. As well as opportunity to express my gratitude success by growing at astronomic construction facilities for aluminum, to all our staff, from workers to the rates in the last decade. We are steel and advanced composite executive board members, as well certainly delighted and proud of this; hulls and superstructures, we have as our program stakeholders, for but at the same time, we are equally paint ovens; workshops for metal, all the efforts they have put into cautious and careful. We are aware carpentry and composite works, the successful execution of our that while such rapid growth rate can and harbor launch capability. We projects, enabling us to reach these be a source of both pride and self- have also modern offices, and achievements. I also would like confidence, it also carries certain training classrooms for the support to thank the respectable Defence risks. By managing them effectively, of customers in addition to the Turkey team for covering ARES I believe that we have the experience private offices dedicated to our Shipyard in this issue, and for the and vision to turn these risks into customer representatives. We have contribution to raising our existing advantages. As such, rather than recently invested in a new facility awareness and recognition in the comforting us, this growth rate has next to our composite factory industry disciplined us; I can say that it has which will increase our enclosed even inspired and encouraged us to further strengthen our institutional structure. Our biggest goal for the coming period is of course to ensure the continuity of the growth in our sales revenues. Meanwhile, we should also ensure more stable growth rates and strive to eliminate the positive and negative peaks. We have set a modest and feasible target for our annual turnover, 90% of which comes from exports. Our goal is to increase it by at least 300% within next five years, with stable and consistent growth rates. As such, by the end of 2017, we have already accomplished an export value of over $125 million. © ARES Shipyard Defence Turkey: Mr.