The Industrial Cooperation Days in Defence and Aerospace 2016 (ICDDA’16), organized to bring together giant global firms in the defense and aerospace sectors with Turkish firms in the sector and conduct bilateral business meetings, opened its doors for the third time.
Organized under the auspices of the Undersecretariat of Defence Industry, with the support of the Ministry of Economy of the Republic of Turkey, and hosted by the OSTİM Defence and Aerospace Cluster (OSSA), the event took place in Ankara between October 11-13, 2016. Over 5,300 business meetings were held during ICDDA’16. In addition to previous years, this year's event focused on Homeland Security, attracting numerous purchasing representatives. The large-scale event, which also saw full participation from various international clusters in the defence and aerospace sectors, garnered significant interest.
On the first day of ICDDA’16 at the ATO/Congresium Congress Center, invited guests and participants attending the conference titled ‘Panorama of the Defense, Aerospace and Offset Market in Turkey’ also held bilateral business meetings. Workshops on original equipment manufacturers' purchasing processes and supply chain policies were also organized at the event.
INVITATION TO INVEST IN TURKEY
The opening of ICDDA’16 was attended by OSTİM Board Chairman Orhan Aydın, TAI General Manager Muharrem Dörtkaşlı, Ankara Chamber of Industry (ASO) President Nurettin Özdebir, Undersecretary of Defense Industry İsmail Demir, Deputy Minister of National Defense Şuay Alpay, civilian and military officials, company representatives, and numerous guests. In the opening speeches, confidence in Turkish industry and SMEs was emphasized; global actors were invited to invest in Turkey.
“IT HAS BECOME A MEETING POINT FOR THE SECTOR”
OSSA Coordinator Hilal Ünal noted that ICDDA has become a meeting point for the defense and aerospace sector, bringing together East and West, South and North. Stating that this year they are focusing on ‘Homeland Security’ to create safer living spaces, Ünal said, “We thank our biggest supporters: the Undersecretariat of Defense Industry, the Ministry of Economy, the Defense Industry Exporters Association, the Ankara Development Agency, especially the OSTİM Organized Industrial Zone, TAI, ASELSAN, HAVELSAN, Roketsan, FNSS, OTOKAR, Dassault Systems, as well as Boeing, Airbus, Sikorsky from various countries, and all the companies in the sector.”
“INDUSTRIAL CONTRIBUTION MUST BE INCREASED”
Orhan Aydın, Chairman of the Board of Directors of OSTİM (Ankara Exporters Association), reminded the importance of the main supplier companies in the formation of Ankara's ecosystem. Aydın stated, “Thanks to them, such an ecosystem has been formed in Ankara, such a cluster in OSTİM, and such a sector in our Ankara. There are high long-term expectations from this sector. Currently, we are talking about $2 billion in exports, but since the main targets are $10 billion, how will we achieve this? We will all work together to develop this by bringing together our businesses, main suppliers, and solution partners abroad.”
Orhan Aydın, noting that Turkey is a significant customer with substantial purchasing potential in defense and aerospace, said, “We believe that our purchasing power should not be wasted and, especially, that it should be managed. In this sense, the aircraft purchase by Turkish Airlines, the most important institution in our country, concerns all our companies and our sector very closely. We, as all SMEs, subcontractors, and main industries, attach great importance to increasing the industrial contribution in the aircraft they will purchase. This is a very important opportunity for the development of the sector.”
“OSSA IS OUR MOST IMPORTANT PARTNER”
TAI General Manager Muharrem Dörtkaşlı also reminded everyone of the role of clustering in the sector. Explaining that they did not experience any disruptions in production after the July 15th coup attempt, the TAI General Manager emphasized the following to foreign customers and stakeholders: “Following the July 15th coup attempt, there was no interruption in our exports or production. We received strong support from our government, primarily from our Ministry and Undersecretariat, and from the very next morning, as we say internally, our system was working ‘smoothly.’ We did not delay any of our commitments; we fulfilled them all on time.”
The experienced manager, noting that work continues with increasing motivation alongside TAI suppliers, the majority of whom are OSSA members, stated that they currently receive materials, equipment, services, and subcontracting services from around 1500 domestic firms. Dörtkaşlı provided the following information: “Over 900 machines are used in 100 domestic subcontractor firms, 12 of which are strategic. OSSA is our most important partner, and approximately 45% of our domestic auxiliary industry firms are OSSA members. We consider clustering to be important. I would like to point out that 20 of our OSSA member firms have received Airbus approval and 12 have received Boeing approval in the last two years. Nine of these firms are also able to do direct work for Boeing and Airbus abroad.”
“LOCOMOTIVE IN TECHNOLOGICAL DEVELOPMENT”
ASO President Nurettin Özdebir pointed out that the development of the domestic defense industry is of great importance not only for the independence and security of the country, but also for the global competitiveness of the economy. Describing defense as an area where competition between countries takes place in the most open and ruthless way, Özdebir said, “The level of development of the defense industry is of great importance for our country due to its geopolitical and geostrategic position. The defense industry also plays a locomotive role in technological development. It is clear that technological advancements in our defense industry will make significant contributions to increasing the competitiveness of our entire industry.”
The President of the Ankara Chamber of Industry (ASO) stated that Ankara is a prominent city in the defense industry, explaining this with the following words: “The leading companies in the defense industry are located in Ankara. Currently, almost every aircraft used in civil aviation has a part manufactured in Ankara. Many SMEs that are members of the Ankara Chamber of Industry, especially in OSTİM, have found opportunities for growth by supplying finished and semi-finished products for our defense industry. In recent years, our defense industry has made great strides. Exports in the defense sector are increasing day by day.”
“WE TRUST SMES WITHOUT HESITATION”
Deputy Minister of National Defense Şuay Alpay stated that, considering the progress our country has made in the aviation and space sector in recent years, Turkey has become a significant player in the world. Alpay said, “When we came to power, the domestic production rate in defense was around 20%, and we have now increased this rate to over 60%. With the determination we have maintained from day one, we aim to reach 80% in the defense industry.”
“We are aware of the importance of the sub-industry”
Touching upon sectoral collaborations, Şuay Alpay stated that they were pleased to see the private sector making a very serious effort together with the public sector. Alpay continued: “Turkey has shifted from a technology-using mentality to a technology-producing mentality, and has based its goals on sustainable industry and technological competence. We are aware that the sub-industry is very important for the sector. We are also following this carefully. We can build the aircraft. But we have to go into every detail, from the composite material on the aircraft to the carbon fiber inside, in order to talk about a real industry. We have unwavering confidence in Turkey's industry, sub-industry, and SMEs.”
At the end of his speech, the Deputy Minister invited major defense and aerospace companies to invest in Turkey.
Ismail Demir Undersecretary of Defence Industry: “ICDDA IS MAKING A SIGNIFICANT CONTRIBUTION TO TURKEY”
We are honored to be with you at ICDDA – ‘Industrial Cooperation Days in Defence and Aerospace’ – which we believe will make a significant contribution to Turkey with its superior experience in the defence and aerospace industry.
With professional coordination, this event, which creates a business-focused platform for local and international suppliers and manufacturers and also offers opportunities for future collaborations, will make a significant difference in the Turkish defense sector.
Bilal Aktaş Head of Industrialization Department, Undersecretariat of Defence Industry: “WE ARE PROUD TO SUPPORT”
We are proud to support the Industrial Cooperation Days in Defence and Aerospace, which is being held for the third time this year and will be repeated every two years thereafter. I sincerely believe that this event, which I think will make significant contributions to increasing the effectiveness of our developing homeland security, defence and aerospace industry in national and international markets through domestic and foreign partnerships, will lead to important collaborations, as was the case in 2014.
OPINIONS
Levent Kaymaz Kaymazlar Makina
I would like to thank OSTİM and OSSA for the organization. We are happy to be a part of such an event. This is our second time participating as a company. Thanks to ICDDA, our horizons have broadened, and we have obtained AS9100 certification. We have learned how to work with companies like Airbus and Boeing. In the 2016 program, we aim to expand our customer portfolio and increase our trade accordingly.
Mehmet Baş YEPSAN Group of Companies
We are participating in ICDDA for the third time. Each participation brings even greater excitement. I see that people who love this country are increasingly committed to national causes. I would like to emphasize that the enthusiasm of our national companies here is at its peak. I attended presentations and made contact with companies. All of our collaborations in the defense industry have been realized through communication established at events like this. We hope to see more of these events.
Elif Gürdal Dassault Systems
We are a company born within the defense and aerospace industry. Defense is one of our strongest sectors. Being present at this event is particularly important for us. Some of the participating companies are our clients. Being together with representatives of the sector is a good opportunity for us. We are increasingly investing in and supporting the initiatives of OSTİM and OSSA within the ecosystem in Turkey.
Ibrahim Keskiner Ankara Aerospace and Aviation Specialized Organized Industrial Zone
This organization definitely plays a catalytic role in bringing together small and large companies. Small firms have the opportunity to meet with each other and with top-level suppliers on a one-on-one basis. The main players in the sector also take these events seriously and get closer to their supporting industries. You might not be able to schedule appointments due to the workload when you're at your local office. When you come here, they find you, they meet with you, and they get what they want and leave.
Mustafa Hatipoğlu Bursa Aerospace and Defense Cluster
The defense and aerospace industry is developing in Turkey. We need to ensure that our companies participate more in this sector. This event is very important for companies to meet with customers, for developing cooperation between clusters and companies, and for them to get to know each other. More support should be given to subcontractors and SMEs. These types of events increase awareness.
Kim Jinhyuk Korea Aerospace Industries
We have been doing business with Turkish industry since 2007. We work with large companies in Turkey such as TAI. By coming to ICDDA, we want to establish cooperation with more Turkish companies. We have held meetings for this purpose. I would like to state that if the event had not taken place, it would have been difficult for us to find new companies from Turkey with whom we could cooperate. We receive support from OSSA in identifying the companies we will work with; they guide us.
Yener Okcuoğlu OTOKAR
It's great to meet new suppliers and learn about their capabilities. We discussed what we can create together in the future and what areas we can work on. There are potential suppliers at ICDDA. Good business partnerships could form in the future. It's a useful organization; we were pleased to be there.
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