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TURKISH DEFENCE INDUSTRY IN 2009

As in previous years, Defence Industry Manufacturers Association (SASAD) collected, evaluated and published a survey undertaken by about 100 firms on the basic financial data of the Turkis

Date: Issue 22 - September 2010

This number – as in previous years – encompasses delivery of completed products and services of the industry and excludes sales by industry members to one another. In the light of the general performance of the Turkish industry in 2009 with total sales on a dollar basis remaining at the same level as in 2008, it can be said that, at a minimum, defence industry kept its position.
If we look at the distribution of total sales by sub-sectors, the electronics constituted 27 % of the total; aerospace 22 %; land vehicles 17 %; naval platforms 16 % and weapons/ammunitions-rocket/missiles 12 %.

The most interesting development in the defence industry in 2009 is the increase in exports compared to 2008 (Figure 3). Despite the global financial crisis, exports of the Turkish defence industry reached 669 million USD. We believe that this is the result of the extensive efforts conducted by state institutions and manufacturers in overseas markets

A large part of the exports that took place in 2009 aside from the Middle East (27%) was to the USA (35%) and Europe (21%) and this in itself can be considered as interesting data. Even if the offset applications can be considered as one of the reasons, it indicates that Turkish defence manufacturers can produce at compatible technological levels with credible deliveries.

In looking at exports by sub-industries, it can be seen that land vehicles with a share of 38 % and aerospace with 31 % are leaders in this field.
We consider R&D expenditures in the defence industry in two groups. The first one is R&D with funds allocated from companies’ own assets. The second group R&D projects funded by external institutions. Data for the first group in 2009 is 319 million TL (206 million USD) and indicated and a decline of nearly 10 percent on a USD basis compared to 2008 On the other hand if we also consider R&D projects funded by external institutions we arrive at 500 million USD which is kept at the same level as 2008