Turkish armored vehicle industry expanding horizons

Turkey’s armored vehicles exporters, the driving force behind defense industry exports, have sealed a number of international deals, expanding their sales base to both the East and the West, including, for the first time, the United States.

“The making of armored vehicles is one of the strongest sectors in our defense industry,” said Kaya Yazgan, secretary general of Turkey’s Defense Industry Manufacturers Association, or SaSaD, an umbrella group bringing together defense companies.

A senior procurement official with a portfolio to support Turkish arms exports said the armored vehicles manufacturers are now expanding beyond their traditional markets in the Middle East.

“We are happy to see these companies now chasing deals in parts of the Far East they have not yet sold their products to, and there are initial signs of penetration into difficult markets like the U.S. All of that is very encouraging,” the official said on condition of anonymity.

One top manufacturer, Otokar, exhibited the internally commanded armed version of its signature 4x4 wheeled armored vehicle, the Cobra, at the BRIDEX defense fair in the Brunei Sultanate between July 6 and 9. This is the Cobra’s debut in Brunei, the company said. The company later said Wednesday that it had signed a nearly $54 million contract with an unnamed country to export various 4x4 tactical wheeled vehicles, including spare parts and training.

Seven armored vehicles produced in Turkey

Istanbul-based Otokar, which is owned by Turkey’s top business conglomerate Koç Holding, produces a family of seven different armored vehicles. Its sales to both civilian and military clients amounted to 517 million Turkish Liras in 2010. The company won $40 million worth of export deals only in December from unspecified buyer countries, including a $10.6 million order for its new vehicles, the Arma. The Arma, which comes as either a 6x6 or 8x8 wheeled armored vehicle, was designed, developed and manufactured by Otokar.

The Cobra, a 4x4 vehicle, comes in 10 models designed for different missions. Otokar has so far sold its military vehicles to over 15 countries. Otokar is also the prime Turkish contractor for a multi-billion dollar program for the design, development and manufacturing of Turkey’s first domestic main battle tank, the Altay.

Otokar has sold the Cobra to over 10 countries while the vehicle has been used in a number of NATO and United Nations missions. “There is increasing demand for the Cobra from an increasing number of countries,” Otokar said in a written statement.

The procurement official said eastern and south Asian countries are potential customers of Otokar’s products.

New deal with US company to span five years

In June, JWF Defense Systems, a U.S. defense firm, signed a deal with the Turkish Hiscar Automotive Industries to help produce armored vehicles that JWF said could be worth $50 million over the next five years. Hiscar is one of Turkey’s largest manufacturers of tractor cabins and construction equipment.

Under the deal, JWF will develop the armor for the four-wheel drive vehicle called the “Turkar,” which is a light-cargo truck. The firms would market the vehicle internationally and develop a version for military use as well, the companies announced.

$600 million Malaysian deal for amphibious vehicles

Another top manufacturer is the Ankara-based FNSS, which is 51 percent owned by Turkish business group Nurol, with the remaining 49 percent shares held by the American subsidiary of the Farnborough, Britain-based BAE Systems. In February, FNSS signed a $600 million deal with Malaysia for the joint development and manufacturing of 257 8x8 Pars amphibious armored vehicles. The Pars was designed by FNSS, and also comes in 8x8 and 6x6 versions.

İzmir-based BMC, which is owned by industrial conglomerate Çukurova Holding, has also developed two armored vehicles, a 4x4 multi-purpose vehicle, and the Kirpi, a mine-resistant vehicle which can also counter ballistic threats.

/Hurriyet Daily News/