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Turkish Army Orders 250 Locally-Made Altay Main Battle Tanks

Isn't labour cheaper in Pakistan? Why can't we outsource some components?

Because there is no justification to outsource a defence contract, which would later benefit your own country's economy. Sure, from a capitalist perspective investing in Pakistan for the Altay assembly line makes sense. But there are some other factors which OTOKAR and MITUP would like to see:

1- Is Pakistan buying it, to make it a business case for outsourcing?
2- Do they have a common stock or pool of components or wherewithal to hold such inventory for third countries? 3- What about the logistics costs associated in terms of transporting the assets even if they are one-time?
4- From industry perspective, what is the IP security cost associated? MITUP put in a lot of effort and I am sure they don't want to let it go; whether by accident or by intention.
5- What regulations would impact military manufacturing in Pakistan, as compared to regulations in Turkey?
6- What is the taxation structure and restrictions on cooperation with foreign countries?
7- Gestation period related costs in terms of human capital and skill mastery..?

These are some of the factors you'd consider if you want to move a production facility to another country which is not a major customer of a common platform. Unless Pakistan buys a minimum of 200-300 tanks, it is just not going to happen as there is no business or political sense.

I dont think its true for now atleast. But could be a great venture for future.

Maybe PA should consider Altays instead of Al-Khalid 2.0 in the future as potential base for armoured vehicle technologies.

Does Pakistan have any special regulatory concessions for JVs with Turkish defence firms?
 
Altay being 65 tonnes could be real issue but we may opt for K2 Black Panther of South Korea which is 55 tonnes. Oman most likely is going to South Korean Tanks really soon
 
Maybe PA should consider Altays instead of Al-Khalid 2.0 in the future as potential base for armoured vehicle technologies.

Does Pakistan have any special regulatory concessions for JVs with Turkish defence firms?
Altay is too heavy for our current infrastructure.
Not at the moment for your second part. Hence "future".
 
There is no problem with the purchase of MTU Engine and RENK transmission for the first phase.

A memorandum of understanding was signed in 2010. However, since 2013, due to the export-preventive measures of the German state, engine alternatives for Phase-2 have been evaluated.

In order to accelerate the process, the first tender was submitted to the requirement of foreign design partner. In 2014, TUMOSAN AS was awarded tender, with its foreign partner AVL. However, the Austrian government has sabotaged the tender by offering unacceptable conditions regarding the tank engines to be produced as interveners. As a result, TUMOSAN's employment contract was terminated, after 2 years.

Then came the joint production proposal from Ukraine about 6TD3 power pack. However, taking into account the necessary redesign processes for this package, a domestic motor production from scratch was seen more feasible. The current engine is far from meeting the requirements of the TSK. Finally, the BMC Motor received the tender, which was opened with the requirement of completely domestic design.

BMC Motor strategically started its design activities much earlier. For this purpose, the engine of the AZRA project for the Civilian heavy vehicle market and the 600-1000hp engine for the New Generation Combat vehicles continue. A total of three main projects were reached with the ALTAY power pack.

As a result, there is no engine problem for T1. For T2, the MTU-RENK package will continue to be used. The real problem is about other countries related to Altay. Because of this, Altay MBT T3 will start using 1500-1700 hp indigenous power pack.

PS: Altay's short story,

Turkey in the 90s, had wanted to buy the M1 Abraams from US, but was canceled because the realization of the desired configuration and financial conditions not happen.Subsequently, all major MBT producers, except Russia, participated in the tender, which was opened at the end of the 90s for the under license production .

Systems participating in the tender:
BMC + GD LS, M1A2
Roketsan + GIAT, Leclerc
Otokar + Kraus Maffei, Leopard2
Asmaş + Ukrspetseksport, T-80D
FNSS + Iveco and OtoBreda, C1 Ariete

The prototype systems came in from abroad and actually competed in Turkey. A comprehensive comparison of climate and land conditions, actual fire tests and defense systems was carried out. But were not satisfied with the performance of the tanks. Nevertheless, the highest score was achieved by the KM Leopard2 system. Otokar KM partnership provided a much more flexible structure regarding the problems and needs seen in the field.

Due to these problems and in order to eliminate the urgent need, some ready-to-use purchase Leopard 2 (298 + 56) was supplied from Germany and Sabra modernization program was carried out for 170 M60 tanks.

After nearly 5 years, almost all foreign military system purchases were halted by the 2004 SSIK (defense industry executive committee) decisions. The systems included tank production with Germans, cobra helicopters from the United States and strategic issues such as the acquisition of Male-UAV. In addition, milgem project was launched which its design activities was began in 90's. In fact, the beginning of production decisions for most of the systems spoken today is based on the 2004 SSIK decisions.

After prelimanary phase , prototype process started with Otokar's main contractor in order to produce a new generation of MBT and was decided to using Hyundai-Rotem's K2 chassis which based on M1 Abraams. However, due to the differentiating and compelling requirements of the TSK during the prototype period, a system which is quite altered from K2 emerged.

In 2014, Altay successfully passed all field tests and completed the protoype process successfully. after this 20 years adventure, now Turkey very close to obtain completely independent, manned and unmanned MBT platform . We are working to overcome this engine problem until the first 250 tanks are produced. In other words, while the urgent need of the Turkish Armed Forces met by T1 and T2 , we will have all infrastructure that will ensure uninterrupted production for the needs of our friendly countries.
 
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