Defence and Aerospace Industry: Significant Growth in Exports Expected
Defence Turkey
Mr. Latif Aral Aliş, Chairman of the Board of Directors Defence and Aerospace Industry Exporters’ Association assessed activities that the Association realized during 2014, export figures in 2014, Global Market Strategy and future activities for Defence Turkey Magazine.
Defence Turkey: Mr. Latif Aral Aliş, first of all I would like to thank you for your time. As the Defence and Aerospace Industry Exporters’ Association,has left another year behind, could you briefly inform us on the activities the Association realized during 2014?
The main goal of the Defence and Aerospace Industry Exporters’ Association - SSI is to expand the export potential of the Turkish defence and aerospace industry while increasing its export performance. Our companies are developing, designing and manufacturing products and our Association is striving to assist our companies during the exporting phase of this process. 2014 was an effectual year in this respect. We hosted business delegations from the United States of America and France in Ankara and supported such events, introduced our sector and brought the delegations and our companies together. Fairs are the most important promotion channels for us. In 2014, we represented the Turkish defence and aerospace industry at the fairs all over the world. As the Defence Alliance Group as part of SSI and the National Participation Organization, we participated in the Eurosatory 2014 held in Paris, France on 16-20 June 2014 and in the Indo Defence 2014 Event, that took place in Jakarta, Indonesia on 5-8 November 2014, withan information stand. As the Defence Alliance Group, we represented our country at the IWA Outdoor Classics 2014 Fair that was held in Nurnberg, Germany on 7-10 March 2014 as well. Moreover, in coordination with the Undersecretariat for Defence Industries, we attended the following events as visitors: DIMDEX 2014 Fair in Doha, Qatar on 25-27 March 2014, ILA Berlin Air Show in Berlin, Germany on 20-25 May 2014, Farnborough International Air Show 2014 in London, England on 14-18 June 2014, ADEX Exhibition 2014 in Baku, Azerbaijan on 11-13 September 2014, AUSA 2014 Event in Washington D.C., USA on 13-15 October 2014 and IDEAS 2014 in Karachi, Pakistan on 1-4 December 2014. In addition to the aforesaid, as Turkish Defence Alliance – TDA, we conducted promotion activities. Naturally, we diversified our promotional efforts by appearing in national as well as international press.
Defence Turkey: What are your comments on the achievements of our Defence Industry when 2014 defence industry export figures are considered? What are Turkey’s target export figures for 2015 in defence, aerospace, security and civil aviation areas?
The year 2014 could be regarded as a dynamic period for our country and geography in general. Maintaining the growth rate that we reached in the recent years as the defence and aerospace industry, we achieved an export figure of 1 billion 647 million and 863 thousand US Dollars. Our target for 2015 is to raise this figure to over 2 billion US Dollars.
Defence Turkey: What would you like to say on export increase rate and the added value it broughtif we want to compare the defence industry exports with other locomotive sectors of Turkey?
Turkey’s overall growth in export for 2014 was 4%, where in defence and aerospace this rate is %18.7. Therefore, taking this percentage into consideration, our sector has become one of the sectors that increasedits export the most. Actually, this has been consistently going on over the last couple of years and these rates will allow us to become one of the leading sectors of Turkey. Our companies perform activities in multiple areas in defence and aerospace. Our sector provides employment opportunities to more than 30 thousand people while leading the technological developments through R&D investments. Therefore, our sector with its increasing export performance, growing number of companies, vast employment opportunities, investments and products of advanced technology offers high added value to Turkey. We believe that the added value we offer through our air, land and naval platforms would be favored in the world market as well asthe export revenue will increase in the near future.
Defence Turkey: Mr. Aliş, Turkey has set an export target of 25 billion US Dollars in light of theobjectives for year 2023. In order to achieve this target, the intensive and close cooperation of all governmental institutions and companies performing activities in Military Defence and Aerospace, Civil Aviation, Security and Civil Aviation maintenance and repair fields will be required. In order to follow these developments in the marketson a global scale as SSI, these companies’ membership to your Association will be essential. Excluding the defence area, what are your remarks on the participation of Civil Aviation, Security and MRO representatives to your Association in particular?
Defence and Aerospace Industry incorporates military and civilian elements. Even though it appears merely as an interstate sector, civil companies are amongst the customers of the industry. We attach great importance to the participation of all fractions related to the sector in an area consisting of such dynamics. The Defence and Aerospace Industry Exporters’ Association is a newly established, young association. However, our number of members and sectorial activities are increasing day by day. In this sense, participation of the companies operating in civil aviation, security and maintenance and repair services will surely increase the strength of our Association.
Defence Turkey: Mr. Aliş, we know that Turkey has been conducting studies on buyer’s credit issue in sales from one state to another similar to FMS. With the launching of such a mechanism,in which regions do you think that Turkey would be increasing its efficiency? Which advantages would this bring to our country?
As the one and only Exporters’ Association in the sector, we support all mechanisms that would increase and facilitate our export. Regulations such as credit mechanisms, incentives and business facilities will surely increase our sector’s worldwide market share and efficiency. As the Defence and Aerospace Industry Exporters’ Association, we believe that through such models our shares in all targeted markets would be reaching higher levels. Without doubt, merely development of a product and making it ready for sale is not sufficient for export activities in defence industry bearing critical importance. There is an international relations dimension as well. Different strategies, relations, international connections are affecting such sales. Therefore not only the credit mechanism but also political support has great importance for us.
Defence Turkey: We have been observing that Turkey is increasing its efficiency through the products offered in border security and indigenous armored vehicle solutions in Algerian, Tunisian and Libyan markets that are starting to recover after the Arab Spring. Could you please summarize Turkey’s status in this region? Moreover, which marketing activities should our companies conduct in order to become more efficient in these markets?
These countries leaving behind an unstable period began to recover and started restructuring activities. Here, the needs of the customer and your ability to meet such needs are more important than what you manufacture. As SSI, we believe that by creating a road map from which our companies and sector in general would benefit is important in addition to a market research and a strategy composed of countries, region and requirements and we are conducting studies in this end.
Defence Turkey: What are Turkey’s export activities regarding Sub-Saharan Africa which is regarded as a brand new market for global defence companies? As Turkish Defence Industry, in which countriesin this region do you believe we will be more competitive and with which products and capabilities?
As you also mentioned, Sub-Saharan Africa is an emerging region for the global market. The importance attached by our government to this region is considered as an advantage for Turkish companies. The high-ranking governmental visits and developed commercial relations constitute a basis for our studies conducted for the identification of region’s requirements and the strategies to be implemented. Currently, there are cooperative relations between the African countries and our companiesin the defence area. We believe such relations willalso continue in the upcoming period.
Defence Turkey: What is the status of Turkish Defence Industry’s exports towards the markets of South American countries such as Peru, Uruguay, Ecuador, Chile and Colombia?
South American markets remain among the geographies where we intend to be more active. We observe the tendency towards this region if we take a look at the export figures.
Defence Turkey: We observe Turkey’s efforts towards increasing its efficiency in Asia-Pacific region during the recent years. What are the activities being conducted in order to increase Turkey’s efficiency and competitiveness in this market?
Asia-Pacific region is one of the geographies we consider as brand new markets as the Defence and Aerospace Industry Exporters’ Association. Our Association is conducting severe efforts in increasing Turkey’s participation in fairs and events held regarding the markets of this region.
Defence Turkey: Mr. Aliş, what are the advantages of investing in Turkey for the interested companies?What would you like to say on this issue?
With its targets and economical and political stability, Turkey is a country providing confidence to the foreign investors. It is one of the most advantageous countries for foreign investment with the support given to R&D studies in the recent years in addition to the off-set regulations as well as the investment incentives.
Defence Turkey: What would you like to mention about the activities and cooperation efforts you plan to conduct in Turkey and in other countries as the Defence and Aerospace Industry Exporters’ Association in 2015?
International fairs and expos are still considered as the most prominent activities of the sector. Therefore, in 2015, we aim the worldwide promotion of Turkey’s defence industry together with as many companies as possible. Besides, 2015 bears an extra importance for us, as the International Defence Fair (IDEF) will be taking place in Turkey this year. IDEF 2015 to be organized in Istanbul will be a major opportunity for the Turkish defence and aerospace industry. We have to seize this opportunity together in the best possible way. On the other hand, we have to institutionalize our sector’s promotion efforts while directing the company promotions in a way to collectively contribute to Turkey’s brand. In this respect, we plan to bring together the corporate communication and marketing directors of the companies in the sector and discuss the difficulties of the sector and their suggestions and in accordance with the resulting picture, we plan to offer them training on marketing and promotion issues. Naturally, our promotion studies and media activities will also continue in the international arena.
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