Session D1 Bekir Ata Yilmaz

31 ST ANNUAL CONFERENCE ON U.S.-TURKISH RELATIONS
1
Turkish Defense Industry as
a Best Value Partner

‣ Member of NATO since 1952,
‣ Partner of the European security and Defense
Industrial Cooperation since the establishment of
NATO,
‣ Founder member of the former
West European Armaments Group,
‣ SASAD is a member of the
European Association of Space and Defense,
‣ Bilateral defense industrial and technical cooperation
agreements with allied and friendly countries.
31 ST ANNUAL CONFERENCE ON U.S.-TURKISH RELATIONS
2
Turkish Defense Industry as
a Best Value Partner

Comprehensive, competitive, qualified and
capable "Aerospace and Defense"
industrial infrastructure is available in country
and there are many success stories of
cooperation between Turkish and US
companies.
31 ST ANNUAL CONFERENCE ON U.S.-TURKISH RELATIONS
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Turkish Defense Industry as
a Best Value Partner

Customer
Program
Boeing – LM – NG –
Marvin Engineering –
Sikorsky
Boeing – Sikorsky –
Raytheon – BAE – NG –
Midland - Honeywell
Boeing – LM – NG – GE
Energy – Sikorsky - DRS
Raytheon
F-16
Peace Eagle
JSF/F-35
T-70 Turkish Utility Helicopter Program
T-70 TUHP Avionic Integration
MXF-484 Radio
Pedestal Mounted Stinger
SPEWWS
Peace Eagle
JSF/F-35
F-16 Flight Simulator & Avionics
Maintenance
Full Flight Simulation
Patriot Gem-T Missile
Sea Sparrow
31 ST ANNUAL CONFERENCE ON U.S.-TURKISH RELATIONS
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Turkish Defense Industry as
a Best Value Partner

Turkey, a Gateway :
New expansions to emerging markets – Exploring new
markets through enhanced colloboration, joint
development and production, risk-sharing partnership
31 ST ANNUAL CONFERENCE ON U.S.-TURKISH RELATIONS
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Turkish Defense Industry as
a Best Value Partner

TURKEY’S GLOBAL ADVANTAGES
Historic
Returns of
US
Investors
Size of
Economy
Macro
Indicators
FDI* Track
Record
Strategic
Importance
Trade,
Labor and
Population
Dynamics
(*):Foreign Direct Investment
31 ST ANNUAL CONFERENCE ON U.S.-TURKISH RELATIONS
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Turkish Defense Industry as
a Best Value Partner

WHY INDUSTRIAL COOPERATION WITH TURKEY…
‣ One of the World’s Top 20th Largest Economy,
‣ Expected to become the fastest growing economy among OECD
members during 2011-2017,
‣ Young and dynamic population,
‣ Business-friendly political leadership,
‣ Stable and welcoming business environment for investors,
‣ Geographical proximity to several emerging markets in Europe,
Central Asia, the Middle East and North Africa,
‣ One of the priority countries in the National Export Initiative (NEI)
launched by the Obama administration,
‣ Strong support in the US political leadership,
‣ Model Partnership
31 ST ANNUAL CONFERENCE ON U.S.-TURKISH RELATIONS
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Turkish Defense Industry as
a Best Value Partner

‣ Is Turkey getting its fair share of US FDI out flows
Turkey gets a limited share from
worldwide US direct investment ...
Is this Turkey's "fair
share" of US FDI or is
Turkey still
underinvested by US
businesses
1. 2010 US FDI abroad information is provisional
Source: Economist Intelligence Unit, FDI Intelligence
31 ST ANNUAL CONFERENCE ON U.S.-TURKISH RELATIONS
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Turkish Defense Industry as
a Best Value Partner

‣ ... and the analysis revealed that Turkey was "under-invested"
Analysis
Critical Findings
Fair share Analysis
Sectoral Analysis
US company
presence in Turkey
Turkey is not getting a fair share of
US FDI both from macroeconomic
and geographic perspectives
Turkey's key FDI sectors do not
benefit from the large US FDI
inflows –not capturing their fair
share
The presence of US MNCs is
limited in Turkey
Investment climate
for US companies in
Turkey
Source: BCG analysis
US companies are unhappy about
problems "limiting" Turkey's
competitiveness in "doing business"
Source: BCG Analysis
31 ST ANNUAL CONFERENCE ON U.S.-TURKISH RELATIONS
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Turkish Defense Industry as
a Best Value Partner

1984 1986 1989 1993 2003
2012
1984 1986 1989 1993 2003
2012
31 ST ANNUAL CONFERENCE ON U.S.-TURKISH RELATIONS
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Turkish Defense Industry as
a Best Value Partner

BAE SYSTEMS
BOEING
BOMBARDIER
LMAC
LMMFC
MARVIN ENGINEERING
NORTHROP GRUMMAN
SIKORSKY
SPIRIT AEROSYSTEMS
AGUSTA WESTLAND
AIRBUS SPAIN
AIRBUS MILITARY
ALENIA AERMACCHI
EADS-EUROCOPTER
FOKKER
IAMCO
PAG
RUAG AEROSPACE
TELESPAZIO
THALES
31 ST ANNUAL CONFERENCE ON U.S.-TURKISH RELATIONS
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Turkish Defense Industry as
a Best Value Partner

‣ 3 Sample Aerospace Collaboration Areas :
F-16 (Lockheed Martin)
Helicopter (Sikorsky)
JSF/F-35 (Northrop Grumman & Lockheed Martin)
31 ST ANNUAL CONFERENCE ON U.S.-TURKISH RELATIONS
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Turkish Defense Industry as
a Best Value Partner

31 ST ANNUAL CONFERENCE ON U.S.-TURKISH RELATIONS
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Turkish Defense Industry as
a Best Value Partner

AIR-GROUND
AME PYLON
PRODUCTION
(CTOL / STOVL / CV)
COMPOSITE
COMPONENTS
PRODUCTION
(CTOL / STOVL / CV)
INLET
DUCT
PRODUCTION
(CTOL)
CENTER FUSELAGE
& SUB-ASSEMBLIES
PRODUCTION
(CTOL)
–
PERIOD:
2009 – 2036
PERIOD:
2008 – 2036
PERIOD:
2010 – 2014 & up
PERIOD:
2009 – 2036
31 ST ANNUAL CONFERENCE ON U.S.-TURKISH RELATIONS
22
Turkish Defense Industry as
a Best Value Partner

‣ TAI and Pratt & Whitney signed a “Memorandum of Understanding (MOU) for
F135 Engine” in May 11th, 2011 at IDEF – Istanbul (International Defense
Fair) to assess the establishment of a “Joint Venture Partnership” on the
“F135 Engine Program”.
‣ MOU addresses;
“Final Assembly and Check-Out FACO” and,
“MRO - Maintenance, Repair and Overhaul)” work
for the F135 engines.
31 ST ANNUAL CONFERENCE ON U.S.-TURKISH RELATIONS
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Turkish Defense Industry as
a Best Value Partner

TAI Investment Plan
Capacity & Capability Increase (Cum.) 150+ M$
Advanced Composites Manufacturing Facility, Clean
Rooms, Inspection Systems (X-Ray, UltraSonic, CMM),
Ply Cutters, Auto-Claves, Freezers, PMMs, FPMs, 5-Axis
Machine Centers, Assembly Facility, Coating Facility,
ADS, Others…
31 ST ANNUAL CONFERENCE ON U.S.-TURKISH RELATIONS
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Turkish Defense Industry as
a Best Value Partner

• TAI major production ends in 2026.
(400 Center Fuselages)
• TAI should continue production after 2026 thru the end of
the program. Because;
Learning effect will be at the most efficient,
Hourly rates are lower than other source,
No need for additional investment,
Available capacity / infrastructure
• This creates a significant affordability contribution to
entire program.
31 ST ANNUAL CONFERENCE ON U.S.-TURKISH RELATIONS
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Turkish Defense Industry as
a Best Value Partner

Competitive
Price
AFFORDABLE
SOLUTIONS
High Quality
On Time Delivery
31 ST ANNUAL CONFERENCE ON U.S.-TURKISH RELATIONS
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Turkish Defense Industry as
a Best Value Partner

Turkish Defense Industry as a Best Value Partner,
has been providing "Best Value Solutions" for years and
can further add value and contribute to the "Affordability"
expectations of various US programs.
31 ST ANNUAL CONFERENCE ON U.S.-TURKISH RELATIONS
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Turkish Defense Industry as
a Best Value Partner