New Era On Uk- Turkey Defence Industry Cooperation

As a recent development the members of the Defence Manufacturers Association (DMA) and the Society of British Aerospace Companies (SBAC) merged under the new umbrella named ADS: Advanc

Issue 20 - January 2010

Both the SBAC and DMA shared a common purpose and the merger was a natural progression from several areas of close cooperation over recent years, especially in the areas of defence and security as well as around the promotion of ethical behaviour within the sectors in particular. Members of both organisations supported the merger with votes of over 90 per cent in favour within each association. The merger, which took place on 1 October 2009, has created A|D|S as the trade body advancing UK AeroSpace, Defence and Security industries. A|D|S will represent Britain’s civil aviation, space, defence and security sectors at every relevant level, both at home and overseas.

Farnborough International Limited – responsible for the world-famous Farnborough Airshow and the inaugural Bahrain International Airshow from 21 to 23 January 2010 - is a wholly-owned subsidiary of A|D|S and the new body also encompasses the British Aviation Group (BAG).

Defence Turkey: In terms of production, investment, export and international relations, what kinds of services will the new organization provide to its members? What are your goals and strategies for 2010?

As a completely new organisation, our main goal is to be driven by our members. What they need we will provide. In essence A|D|S supports members to develop and grow their businesses across all AeroSpace, Defence and Security Sectors. We already have excellent services when it comes to links with overseas partners and we work closely with UK Trade & Investment (UKTI) and their Defence and Security Organisation (DSO) to manage overseas delegations of our members to new markets as well as hosting visits to the UK from overseas companies and officials. The excellent work of DMA and SBAC will continue but we aim to be more than just the sum of the parts of our former groups. With a larger organisation we can become a leading global trade body and our products and services must reflect that ambition. Furthermore, there will be a specific focus on small and medium-sized enterprises (SMEs) alongside the work that we do for the larger businesses. The UK has more SMEs in defence than France, Germany, Italy, Spain and Norway combined and they are a vital source of innovation for our sector. This is one of the key strengths of the UK industry and therefore we will do everything we can to help nurture and grow these members in particular.

Defence Turkey: It is obvious that UK Defence Industry with its technological capability occupies one of the leading roles on international platforms. Could you please assess the position of UK in global markets for our readers? What is your strategy to strengthen your position at international markets?

The UK is, on average performance, the largest exporter of defence equipment in Europe and second in the world, behind only the US. Defence exports are worth on average £5 billion (US$8 billion or 12 billion Turkish Lira) per year. The products that come from the UK are widely-recognised to be of the highest possible quality and meet the needs of our customers very well. UK companies also participate very successfully in international projects with overseas partners, such as the F-35 Joint Strike Fighter as just one example.

A|D|S already has offices in England and Scotland. We are about to open an office in Northern Ireland. Overseas, we have an office in Toulouse, France and we are soon to increase our presence in India with representation in both New Delhi and Bangalore. In the short-term, alongside these offices and our excellent overseas relationships, we will also be examining a presence in the Middle East region. Further into the future we will be examining other markets with large growth potential, such as Brazil, in which to represent out members as they seek new or greater exposure to overseas markets. Our cooperation with UKTI DSO enhances this global presence and, as our members look at further expansion into new markets and to working with new partners overseas, so will A|D|S.

Defence Turkey: Could you please give us more information about mutual defence cooperation between Turkey and UK in terms of investment, joint production, joint research and development programmes? What is your strategy and short and long term plans for coming years to strengthen the defence industry cooperation between 2 countries?

Most UK companies fully recognise that, especially in the modern business world, it is not a matter of trying to do business in another country, so much as doing business with that country. Therefore, many British companies have sought to identify local industrial partners with whom they can do business in Turkey, and to work with them to support potential marketing campaigns in Turkey, as well as assisting the Turkish companies’ own aspirations for doing business back here in the UK, and also jointly developing business opportunities in other, third nations. A|D|S is already looking at ways in which they can assist our Member companies to develop the networks of links that they would need to identify Turkish collaborative partners. We would hope to be able to bring a strong UK national pavilion to the next IDEF exhibition, in Istanbul on 10th to 13th May 2011, but are, additionally, also currently examining a number of other initiatives to facilitate joint venture activities between our two nations.

Defence Turkey: As you are aware that in recent years Turkey has taken significant steps on defence technology. What sorts of business opportunities could be considered for the Turkish and English companies to provide common and mutual interest with each other?

There are almost no technological limitations for potential collaboration between British and Turkish defence companies. The UK MoD already operates one of the most open acquisition systems in the whole World, and is prepared to consider seriously any approaches from any companies, based anywhere in the World in any technological area – for them the key issue is “value for money”, and ensuring that we make the most cost-effective use of our tax payers’ money. Exactly the same policy applies at the Industry level, and UK companies are always on the lookout to try to identify suppliers who can meet their technical needs, in the most cost-effective way possible, without undermining their essential quality needs. Clearly, this should be an area in which many Turkish defence companies could benefit from the opportunities that should arise.

Defence Turkey: Can it be considered that Turkish Defence Industry will be the team player of UK Defence companies to reach the markets around Turkey such as Turkic Republics and Central Asia?

As a well-established NATO ally and future EU member in an important strategic area, Turkey is a natural partner for the UK. As a leader in terms of the global export market, which led the world in 2007 in terms of overall global market share, the UK industry believes that it has expertise that it can share with overseas partners. Furthermore, the UK is well-known to have a strong commitment to operating an open domestic market. Strategic alliances with the Turkish industry in partnership with its British counterpart to reach markets (which would of course require UK Government export approval) are therefore significant in their potential.

Defence Turkey: Would you like to give some additional information and messages for our readers?

The UK’s aerospace, defence and security industry is world-renowned for its excellence, with a global market share of between ten and twenty per cent in each sector, not only from its domestic market but also from its international export base. This situation has arisen thanks to an open domestic market, which has attracted global companies to cooperate in the UK, and high-quality products for export alongside participation in international defence projects. British defence companies do not rely on their past successes and are constantly on the look-out for new potential markets and partnerships. We would urge our friends in the Turkish sector to consider working with us to the mutual benefit of both of us. Contacting UKTI via the British Embassy in Ankara should be the first step towards a lasting and successful partnership.