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“Local Content in Public Procurement and Offset Panel” from ATO

The Ankara Chamber of Commerce (ATO) organised a panel on local content in public procurement and offset. Local content and offset was put on the table in detail. 

Issue 54

The first Local Content in Public Procurement and Offset Panel organised by the Ankara Chamber of Commerce (ATO) took place in Ankara with many participants in attendance. With participants from public agencies and organisations, universities and private sector representatives the topic of local content and offset was put on the table in detail. 

Speaking at the Panel, Defence Industry Undersecretary Prof. Dr. Ismail Demir indicating that offset had been applied for 25 years in defence industry procurements and stressed that foreign companies need to be shown the way. In his remarks Demir said:  “We need to take stock of our domestic industry and provide guidance to companies that seek ways to use offset. In this sense the more we can show the way, not only will our local content rate of technological weight increase but will also overcome events in the use and exhaustion of offset through ‘made-up’ concepts which we have seen examples in the past. As with offset itself, offset numbers, how it is used, how much it contributes to domestic industry and from where to where it brings our companies are very important. We need to identify the critical areas in the use of local content ratios and undertake our homework very well.” Expressing the view that the said applications must be the beginning for the industry to enter that sector, Demir stated that, “In a sense like the job of the starter to start the car. Later all the parts of our engine must be in place; the process starting with offset should continue by itself through co-operation. This is the main parameter of long-term co-operation. If we included a company with a local content requirement and the work finishes the minute the local content requirement ends this means that we have been unsuccessful. Success involves its continuity.”

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