One of the prerequisites of having a say in the international market is the development of national capabilities in the defence industry. With the increase of competition in the international market, measures have been introduced to protect Turkish national defence companies. The Under Secretariat for Defence Industries (SSM) guides the defence sector in its development of the national defence industry and keeps them advised of changes and technological developments in the international arena. In this scope, the main strategy that is followed for procurement projects are based on the quest for original design and the development of critical technologies and capabilities that the defence industry has, seeking joint development or entering multi-national consortiums in the areas where original development is not cost-effective for the domestic market, and in cases not meeting these requirements enabling acquisition by work share for the Turkish industry through joint manufacturing or by offset.
Opportunities Outside of NATO Countries
Turkey works with various countries in the area of procurement projects. Foreign firms, while on some projects work as the main contractor, on others they work as a subcontractor under Turkish firms providing design or sub-system support. The existence of various alternatives for procurement and technology transfer creates competition, which provides great advantages in significant areas like price, performance and national participation.
The main purposes of the foundation law no. 3238 of the Under Secretariat are the modernisation of the Turkish Armed Forces (TAF) and the foundation of a modern defence industry in Turkey. Consequently, the defence industry is being structured in accordance with the TAF's needs through a careful consideration of the national security policy and the current threat environment, in line with respective laws and the views of the Turkish Military Chief of Staff.
Another important point that should be brought to attention is that Turkey's attitude towards nuclear weapons is apparent when international agreements that Turkey is party to are examined. Turkey, a country which is close to regions that have a high risk of the proliferation of weapons of mass destruction, watches developments carefully and participates in international efforts to control this trend, leading Turkey to attach great importance to arms control and non-proliferation agreements and export control regimes. Turkey became party to the Non-Proliferation Treaty in 1979 and the Comprehensive Nuclear Test Ban Treaty in 2000. Turkey has been party to the Chemical Weapons Convention since 1997 and the Biological Weapons Convention since 1974. Turkey was one of the founders of the Wassenaar Arrangement on export controls of conventional weapons and dual-use goods and technologies. Furthermore, Turkey joined the Missile Technology Control Regime in 1997, Zangger Committee in 1999, Nuclear Suppliers Group, which has similar activities, and the Australia Group, which works for the export control of chemical and biological materials, in 2000.
Turkey's Space Activities
Turkey, which started by receiving satellite communication services through the procurement of communication satellites by TÜRKSAT Corporation's foreign backed projects in the 1990s, moved towards new areas of activity in the 2000s and is working to advance its success in the areas of communication, reconnaissance and scientific satellite programs. With the acquired knowledge from these programs, Turkey plans to participate in other areas of space activity and aims to gain the capabilities listed below.
-Obtaining critical satellite and space technologies and acquiring a share in the global satellite market
-Reaching satellite system integration and test capability
-Developing the technological infrastructure required for establishment and management of ground stations
-Having highly experienced engineers
-Having highly experienced personnel
Consequently, the intermediate term goals for obtaining Satellite Design, Integration and Test capabilities are
-Foundation of a Satellite Assembly, Integration and Test facility in Turkey
-Determination of System and Sub-System producers (National Industry Model)
-The transfer of capabilities obtained by Research and Development (R&D) to the commercial arena
-Establishing an infrastructure that is compatible with the Technology Acquisition Plan
-Providing human resources
-Realisation of Satellite Projects with the participation of designated actors (Firms/Corporations/Enterprises)
The short-term capabilities that are expected to be gained by Satellite Procurement Projects are education, satellite assembly, integration and test facility, ground station technologies, sub-system production technologies and optic advanced load technologies. One of the projects created for the realisation of these aimed capabilities is the Reconnaissance and Observation Satellite (GÖKTÜRK) Project, which has been initiated under the auspices of the Under-Secretariat to meet the TAF's need for tactical satellite imagery. The Reconnaissance and Observation Satellite (GÖKTÜRK) Project, which has been ongoing since 2005 under the Under-Secretariat, plans to provide high resolution imagery for military intelligence from any region regardless of geographical limitation, transfer of imagery real/close to real time to a ground station, the electronic process of gathered imagery, enable storage, evaluation and reproduction and also provide information for civil purposes such as the control of forested areas, observing shanty settlements, the determination of damage in a short period of time following natural disasters, evaluation of production yield and production of data for geographical maps. The satellite system is procured according to the principles of technology transfer, joint development and use.
To this end:
-One electro-optic reconnaissance observation satellite with better than 1 m resolution, which is deployed to low earth orbit, and a satellite ground station will be procured from Turkish companies where possible and a selected firm will deploy the satellite into orbit
-A foreign firm, with the right technological capabilities will be selected through a framework of continued bidding, after which a Turkish Industry Group will be established where cooperation and active participation of national firms in the project's design, integration and testing will be ensured.
-The "Satellite Assembly, Integration and Test Facility" (AI&T Centre), which will enable the assembly, integration and test capabilities for all satellites that are planned to be produced in Turkey, including TÜRKSAT Corporation's planned communication satellites, will be established at Turkish Aerospace Industries (TAI) Corporation facilities.
The meetings between the Under-Secretariat of the Defence Industry and EADS ASTRIUM Ltd. (UK), OHB-System (Germany) and TELESPAZIO S.p.A (Italy) are still ongoing for the GÖKTÜRK project. Another satellite system project under the Under-Secretariat, TAF Satellite Communication System project, is currently in its initial stages and the necessary R&D projects and feasibility work continues. Additionally, as soon as the synthetic aperture radar (SAR) Satellites for Turkey Satellite Road Map and Early Warning Satellite Systems projects are given to the Under-Secretariat, the necessary work will be started.

Attack Helicopters, National Ships and Turkish Submarines
The ATAK contract that was signed between the main contractor Turkish Aerospace Industries, Inc. (TAI) and SSM on 7 September 2007 is a corner stone in the Turkish defence industry's aviation sector. Under the scope of this project, Turkey became a partner of T-129 helicopters; the work share for all sales was determined. Including Italy, all modifications on the helicopter will be done according to the agreed work share.
The goal is that ASELSAN, an affiliated company of the Turkish Armed Forces Foundation, will integrate communication, navigation, mission and weapon systems, AgustaWestland will assemble "airworthy" helicopters that meet performance requirements and TAI will produce the helicopter and integrate navigation-weapon systems to the helicopter.
The MİLGEM (National Ship) project's aim is for the construction of domestically designed Submarine Defence Warfare and Reconnaissance Patrol Ships for the purposes of reconnaissance and observation, target detection, identification and recognition and early warning missions with base and post defence, submarine defence warfare, surface warfare, air defence warfare and operation and patrol activities.
Significantly, the MİLGEM Project national gun control systems and national war command systems will be deployed to ships for the first time, national sonar systems, national underwater phones, infrared trace evaluation and command systems and a "Degaussing" system for suppressing magnetic traces of the ship will be produced with engineering work power and design under the scope of R&D.
This will mean that, the MİLGEM Project, will effectively utilise current accumulated knowledge and experience of military shipyards, to domestically produce sub-systems and materials to international standards, create work and employment for many domestic firms by making design and integration nationally, provide lower lifetime costs and more comprehensive integrated logistics support and create technologically and militarily critical systems nationally. Its various aims are:
-Short term; the design, construction and integration of an exemplary Submarine Defence Warfare and Patrol Boat with the highest possible domestic participation
-Intermediate term; the construction of all ships that are needed by the Turkish Naval Command and Coast Guard at Turkish private sector shipyards
-Long term; the development of a national warship industry that would be internationally competitive by sustaining domestic warship design, construction and integration capabilities.
After the successful completion of the MİLGEM Project, the further development of capabilities that have been gained through warship design, construction of modern platforms for friendly and allied states and the export of ships will be achieved by moving onto designing different warship platforms.
The Gölcük Shipyard Command will have knowledge, experience and know-how for construction of air-independent propulsion systems and develop an infrastructure through investments with the realisation of the New Type Submarine Project. Furthermore, although submarines are designed by foreign firms, domestic firms will construct and integrate most of the material and systems that are required for submarine construction and in this framework, existing domestic facilities and capabilities will be effectively utilised.
SSM is embracing the generally accepted project management approach that depends on a domestic development project model, which has recently been implemented, and is considering increasing project numbers and scope, taking into account criteria like quality, time and costs of the domestic producer. SSM aims to increase the rate at which it can meet domestic defence system needs to approximately 50% in its 2007-2011 Strategic Plan, and a Defence Industry Strategy is being prepared accordingly.
Through these new policies, the size (revenue) of the defence industry exceeded 2 billion dollars for the first time in 2007, an increase of 16.9% compared to last year. The rate of export increased 19.3% from the previous year and reached 420 million dollars. Activities to support advertising of defence products export by SSM continued in 2007, with the hastening of efforts for the foundation of a "Promotion Credit Mechanism" for exporters that work in the defence industry.
The rate of meeting the TAF's needs domestically, which is accepted as the most important indicator for sector performance, showed a 5 point increase by 2007 compared to last year, and reached 41.6%, confirming the expectation that the 50% goal in the Strategic Plan for 2010 will be achieved.
Light Weapon Systems Sale

The policy that Turkish Defence Industry Firms should follow is establishing partnerships with international consortiums in major platforms. In addition, importance should be given to the development of major platform construction capabilities, within existing means. Except for sub-systems that are obligated to be procured externally, all other systems can be produced domestically. Joint productions can be beneficial in terms of technological attainment; the design and original production capability can be developed. Small and medium sized businesses are being considered; technological infrastructure is continuously being developed. The needs for a new system can be met by original development. In fact, projects like National Ship, Unmanned Aerial Vehicle, Mission Computer and Main Battle Tanks are good examples for the matter at hand. The defence sector has its priority set in R&D funding, which is given to TÜBİTAK (Scientific and Technological Research Council of Turkey), and works on approximately 100 defence projects. In every project, for small and medium sized businesses, the efforts for a reasonable supply of workload is determined as 50% in principle by SSM, and the application of this principle is persistently expected.
The continued utilisation of small and medium sized businesses' means and capabilities will enhance the effectiveness of the main contractor, decrease costs and lead to an increase in the competitiveness of the firm in the international market.
According to 2006 statistics, the presence of ASELSAN and TAI in the world's biggest 100 firms, and reaching the same level of exports as developed states like the USA and Holland are significant developments.

*The Under Secretary Of Turkish Defence Industry