Fourth Industrial Cooperation Days in Defence and Aerospace - ICDDA 2018 Place in Ankara

Tarih: Issue 87 - December 2018

The fourth ICDDA event organized by OSTİM Defence and Aviation Cluster (OSSA) supported by Presidency of Defence Industries (SSB) was held at Beytepe Congress Center of Hacettepe University. This major event lasted for three days where many executive representatives from both public and private sectors attended. A total of 260 national and international companies from 60 countries conducted 5,700 registered bilateral business negotiations. 

Similar to the previous events, many important domestic and foreign players of the industry participated in the event. In addition to the main contractor companies from Turkey such as Altınay, Aselsan, Baykar Makina, BMC, Havelsan, FNSS, Kale Aero, MKEK, Otokar, Roketsan, STM, TEI, TÜBİTAK SAGE, Turkish Aerospace and major international companies such as Airbus, BAE Systems, Boeing, Dassault Systemes, Leonardo, Lockheed Martin, MBDA, Navantia, PTC, Rolls Royce, Selex, Stelia, Sikorsky, Thales, Ukroboronprom also participated in the event. 

 OSSA Chairman of the Board, Mithat ERTUĞ took the floor at the opening ceremony of the event held on October 23rd and underlined that the event aimed to gather SMEs with worldwide giants such as Airbus, Boeing and Leonardo. ERTUĞ stated that delegations from over 50 countries attended the event and the SMEs seized the opportunity to gather with the international companies such as Airbus, Boeing, BAE System, Rolls-Royce and Sikorsky at ICDDA 2018. Delivering information on OSSA as well and also noting that the Cluster had 205 members with AS91000 certification,facility security documents and ERP systems, ERTUĞ thanked all the institutions and associations and especially Republic of Turkey Ministery of Trade (URGE Projects), SSB, SSI that had contributed to this event from the beginning. 

OSTIM Chairman of the Executive Board, Orhan AYDIN pointed to the eco-system emerging as a result of the fact that the main suppliers of defence and aerospace are located in Ankara. Underlining the critical role of the Presidency of Defence Industries in the formation of this eco-system, AYDIN added, “This is very precious and crucial. We extend our heartfelt congratulations to our Presidency that conducted the value chain management of the main suppliers, sub–industry and SMEs regarding industrialization and as a result assumed a critical role in the fulfilment and indigenization of the demands of our country’s defence industry and we thank them dearly.” 

Emphasizing their expectation of similar implementations and industrialization in the civilian sector AYDIN said: “Unfortunately we failed to reach the same level of success that we’ve achieved in the defence industry in other areas. We completely surrendered to the hegemony of foreign companies in these areas. We believe that there is too much work for us to handle in this area. Regarding this point, we deeply believe in the clusters as a method of indigenization and industrialization. We do not consider clusters as structures conducted merely by a company, an institution or a bureaucrat. Therefore, we deeply believe that the formation and realization of an eco-system where our public institutions, private industry and universities are capable of acting together through the management of the whole of the aforesaid eco-system is possible. And we continue our activities in this direction.” Touching upon the importance of the ICDDA event, AYDIN informed the audience of this event’s meaning for their organization and continued: “Here, at this international platform, our SMEs are capable of talking about their products, facilities and capabilities with companies coming from across the globe. And more importantly, we observe throughout the event that an SME in Ankara, Turkey has a lot to offer a given international company. Does a company at OSTİM have a counterpart in the world? Yes, it does. Because, all the companies and main suppliers in the world are in search of talent, innovation, novelties and people for manufacturing. Therefore, the fact that our Presidency of Defence Industries manages the value chain which extends onto the SMEs and ourselves is quite precious in our perspective. Orhan AYDIN pointed out the seven different industrial clusters active successfully at OSTİM and stated that the outputs were clearly observed.  He closed his remarks by thanking all the institutions and associations supporting the ICDDA 

Chairman of the Board of Ankara Chamber of Commerce (ATO) Gürsel BARAN stated that Turkey built a story of success in the defence industry and added, “Ankara is also the capital of the defence industry.” Underlining that Defence industry came on top of the factors determining the economic and political power of the countries, BARAN continued, “This industry bears more importance in our country due to our geopolitical position.” 

BARAN: “Turkish Companies have Won over Thirty Tenders at CERN within the Last Two and a Half Years” 

President of ATO noted that with its development in recent years the industry started to fulfil the demands of the Turkish Armed Forces while starting to enter international markets where competition is at the highest level. Reminding the audience that the four companies remaining on the list of the top 100 Defence industry enterprises in the world were Aselsan, Turkish Aerospace, Roketsan and STM located in Ankara, BARAN continued, “The Defence Industry has been experiencing a golden age that we have not witnessed so far. While 80% of the Defence industry suffered from foreign dependency in the beginning of the 2000s, this percentage decreased to 35%. When the companies offering products and services to the industry as the sub-industry are excluded in Turkey, nearly 300 SMEs are active in the Defence industry area. OSSA is a very critical cluster established with the joint movement of the small and medium sized businesses providing products and services in the Defence industry. It has been successfully conducting a wide variety of activities ranging from increasing the share of domestic production to rendering the Defence industry SMEs capable of competing in international markets, from opening external markets with end products to technology transfer. 30% of the total Defence industry turnover is being covered by the sub-industry mostly composed of the SMEs.” 

Stating that the Chamber of Commerce of Ankara was represented at CERN (European Organization for Nuclear Research), BARAN added, “As the Turkish Union of Chambers and Commodity Exchanges, we follow all the tenders launched at CERN. We are also capable of coordinating the participation of our members. Although this event is generally related to the Defence industry, we organized our two professional colleagues from CERN sourcing group and they will be conducting bilateral negotiations with the companies that are here. Over thirty tenders and direct business were assumed in the last two and a half years at CERN. Conducting business to CERN is an important reference for our members and we really wish their representing us in the foreign markets. I believe that this organization will create great opportunities for our country and I greet you all with respect.” 

Deputy Minister of the Ministry of Industry and Technology Çetin Ali DÖNMEZ said, “As the Ministry of Industry and Technology, we are working intensively to fulfil our obligations. A broad industry has been created with very dynamic companies that are open to innovation and collaborating with our major technology companies. For the seamless functioning of this eco-system, all facilities of our Ministry are being utilized effectively. The role of the SMEs in the industry continues. I would like to thank all our companies providing employment despite all the financial difficulties arising from time to time. Without doubt, as the Ministry of Industry and Technology we will be more rapid in resolving the issues faced by our SMEs. We will be present in the field more frequently. Our contributions in the area of problem-solving regarding financial bottlenecks endured by our companies will also increasingly continue. By gathering together our Defence industry companies and SMEs, our non-governmental organizations and all our governmental institutions - the Presidency of Defense Industries being in the first place and the international companies, this event will increase communication, strengthen cooperation and also pave the way for collaboration. On this note, I wish this event will be effective for all participants and I would like to convey my compliments”. 

President of Defence Industries Prof. İsmail DEMİR stated that Turkey achieved a certain momentum in the areas of defence and aerospace.  He underlined that a series of players, components and factors were influential in this and certain steps have to be taken in order for Turkey to become a global power in the globalizing world, in line with a strategy to be identified in the years ahead. President Prof. DEMİR continued his remark: “We will be underlining the concept of industrial cooperation at this meeting. In order to achieve this, instead of merely Defence and aerospace, our eco-system’s establishment of companies in a broad perspective, in all areas requiring its competencies, competent companies in all aspects of technology, manufacturing and industrial issues, companies that have depth and maintain continuous quality is of great importance. In order to achieve this, it is essential to create an environment of a versatile and multi purposed cooperation within this eco-system. This cooperation and coordination activity should not remain merely in our country and it is quite important to enable our companies and structures that stand out with their competencies to provide services on a global scale with their qualities through building a network in the world. It is required to acknowledge aerospace as a critical factor in addition to Defence. In this sense, the essence of creating a supply chain on a global scale came up on the agenda once more.” 

Reminding the participants of the figures achieved by the Defence and aerospace industry, Prof. DEMİR underlined the role of taking part in the global supply chain in reaching these figures and elevating them. Stating that the competencies to be formed in the industry will be able to provide contributions in a broad range of areas such as energy, transportation, communication and healthcare DEMİR underlined the following points: “Within this process, it is essential to create structures that remain within the leading companies on a global scale in certain areas that maintain quality, constantly work toward achieving technological depth and attach importance to R&D and Product Development. The formation of our companies taking part in worldwide through these types of connections at the cooperation days is one of the essential objectives. We believe that the Industrial Competence Assessment and Support Program (EYDEP) launched within our Presidency will play a crucial role. I invite our industrialists to assess this program in order to take part in the international arena as well. We believe that as a result of this program, many major companies will emerge in the following years and our SMEs will achieve new momentum.” 

Following the opening remarks, the first session of the day was realized under the title “Industrial Cooperation within International Perspective”. In this session moderated by the Central Asia and Far East Director at the Presidency of Defence Industries Ahmet KAYGUSUZ; Vazirov FARRUKH on behalf of the Azerbaijani Ministry of Defence, Head of the General Staff of Logistics of Brazilian Air Forces Lieutenant General Jose Augusto CREPALDI, Bjorn JENSSEN from Procurement Officer,  Accelerators and Technology Section on behalf of CERN, Luis G. LIZCANO the Director General of FEMIA from Mexico, Procurement Director at the NATO Patrick FESQUET, Air Vice Marshall from Pakistan Ijaz Mahmood MALIK and Andrii SYVUCHENKO, the head of Information and Analysis Support Department of the UKROBORONPROM company gathered. 

The second session after the lunch break was executed under the title of “Fields of Co-operation in Aviation” was moderated by Şeref CAN - Head of the Fixed Wing Platforms Department at the Presidency of Defence Industries. Director International Cooperation Turkey & France, Thierry ADER; BAE Turkey Office Managing Director, Martin BENNETT; Boeing Supply Chain Strategy Interiors Organization Leader Doug ACKERMAN, TEI Programs Director Ahmet KAIN and Turkish Aerospace Subcontracts Chief Procurement Seda Nilüfer Tezsezen attended the session as panelists. 

The third session of the day was carried out under the title of “Air Worthiness Certification - Civil and Military Application”. In the session moderated by the Certification Manager at the Presidency of Defence Industries Özden APAYDIN; Tayfun AKPINAR from the Military Factories Directorate General; Head of the Air Worthiness Department at the General Directorate of Civil Aviation Özcan BAŞOĞLU and the General Manager Advisor at Turkish Technics Halil TOKEL participated.  

In the final panel of the day which was moderated by the EYDEP Program Leader Özden ÖZBEN and titled “Cooperation on Defence Industry “, on behalf of Havelsan, Industrial Participation/offset Manager, Dr. Kaan SAKAKLI; Leonardo Offset Director Roberto FOIS; Managing Director of Navantia Pablo Menendez GOMES, Thales Military Aircraft Projects Strategy and Business Development Director Bernard HEPP took part as panelists in the first portion. During the panel held under the same title in the second part of the session after the coffee break, this time Ankara Office Manager at Altınay Company Mahmut BAYRAK, FNSS Strategy and Business Development Leader Bülent ECEVİT; MKEK Deputy Director General Hayrettin ÖZDEN and Roketsan Overseas Purchasing Director Murak DİRİK were in participation on the panel. 

On October 24th, on the second day of the event the following workshops were conducted throughout the day in various halls: “How to do business with Boeing”, Christina WILLS, Supplier Development of Boeing; “Collaboration for Continuous Innovation: Digital Continuity Across OEMs, Suppliers and Institutions by Dassaults Systemes, İlker TARKAN, Client Executive ; “PLM + LoT: Driving Digital Transformation in Aerospace & Defence by PTC”, Sylvine DATRY, Director PLM at PTC; “CERN Procurement Rules & Tender Process”, Nordine AZIZI, Procurement Officer ,Accelerators and Technology Section; “Defence Industry Export Opportunities – Review of NATO NSPA and United Nations Business Procedures by TURITA, Bülent TUDES and “Potential for Turkish Supplier Involvement in the New TF-X Engine Program by Roll-Royce”, Andy JOHNSON, VIP Customer Business. 

The Common Views of the National and International Companies on the Event: “Improving More and More at Every Organization. We are Creating Critical Business Opportunities”

 Making statements to the OSTIM Organized Industry Journal on their opinions regarding the event, the representatives of national and international companies stated that the organization improved every time and that they gained useful results. SMEs pointed out that the doors of the Defence industry opened for them through the ICDDA while main contractors underlined that they conducted useful business negotiations where they relayed their expectations and working principles.

Sharing his views on the event on behalf of FNSS, Public Relations and Publicity Unit Manager at FNSS Cem ALTINIŞIK said, “The ICCDA event is a very genuine organization where we seize the opportunity to gather with our own eco-system and subcontractors and concentrate on them. And therefore it is very useful. Considering the brief amount of time spent on its organization process, executing such a successful event is really the achievement of a team. OSTİM bears extreme strategic importance for FNSS. Our greatest eco-system remains within OSTİM, particularly based on supply. Therefore, we support all events of OSTİM and OSSA with great pleasure”. 

TEI Programs Director Ahmet KAIN said, “We had the opportunity to negotiate with the contacts of the companies of which we are the supplier. We negotiated with many companies in terms of providing support to the sub-industry and developing them. We built a few business connections. It has been quite advantageous in that respect. Since we are both the supplier and the manufacturer company, we face both sides as well. We accomplished fruitful business negotiations here.” 

Speaking on behalf of the Pi Makina in the fair, Necati DAYI said, “We have been conducting significant business towards the Defence industry area for eight years. In the recent period, we covered a good distance particularly in respect to drive trains and additionally the production of 4x4, 6x6 and 8X8 armored vehicle prototypes and their tests accomplished in accordance with standards. A production model regarding this is built in our company as well and we are working intensely. Our aim is to gradually provide the vehicles and their drive trains indigenously to our Defence industry. There is a very serious trend regarding indigenization. Our business is indigenous and we wish to become an alternative. Our broad manufacturing structure has been managing our relations at the point of strategic partnerships. ICDDA event’s taking place in Ankara fills us with pride. We assess this as a reflection of our government’s steps on the path of rendering Ankara as a base of the Defence industry. We are increasing our business network with the contributions of OSSA.” 

Sharing his opinions with the audience on behalf of the TG Defence Industry, Görkem KALENDER said, “We thank this organization which is executed under the auspices of OSSA. The cooperation environment here is truly essential in our ability to gather with foreign companies. With the help of OSSA, we were able to find great cooperation opportunities and markets in places we were unable to reach. I would like to especially underline that we attach great importance to one-on-one negotiations. Spending an hour with a country which could be a potential client will carry us further to better points. We were in search of a market, Qatar being in the first place and we achieved this at the ICDDA. We will be offering Turkish products to the customers”. 

Speaking on behalf of MIA Teknoloji, Gülün ULUĞ said, “This is our first time at the ICDDA event.  We are happy to see such a comprehensive program. Every software company wishes to see indigenous and national products within the Defence industry. As a company, we wished to have our indigenous software recognized in the Defence industry. This has been an event compatible with our marketing strategy. We believe that we will achieve positive results from the negotiations.” 

Country Manager of Dassault Systemes Elif GÜRDAL said, “There are a few industries in which we are quite powerful as a company, in Turkey. In parallel with the investments made in Turkey, our critical customers are from the aerospace and Defence industries. We attach great importance to our existence here as a crucial business partner in the industry. I value OSTİM and OSSA very dearly. The Cluster is crucial and it stands out with its achievements. We are attending this ICDDA for the second time and it is greater than the one we attended in 2016. Ankara is already the center of this business. We are capable of sharing all the added value we achieved with our shareholders.”

Olivia SUNG made a statement on behalf of APEC and said, “This is our second participation in the event. I am very pleased and will be absolutely attending the next one as I find it an opportunity to gather accurate information on the status of the aerospace and Defence industry in your country. We are able to program the things to do in future events in these events. I recommend it to the other companies as well; it is a good event. In my opinion, Turkey’s growth in this area is quite positive.” 

Making statements on behalf of Ivchenko Progress, Seriy V. DMYTRIYEV said, “We are attending this event for the third time. We are here to find business partners and make agreements. We wish to cooperate with more Turkish Companies through the ICDDA. We studied your institution before participating in this event and visited the premises of OSSA when we first arrived to Ankara. Prior to our participation in this event, we read that Turkey’s most crucial main contractors would be attending as well. We recommend the companies in our country to attend the ICDDA as well. We also suggested it to the company executing the design and production of the Engine Control Systems of one of Ukraine’s greatest companies. Besides, we invited the company that owns Ukraine’s greatest aircraft engine manufacturing company to the program.”

The fifth event organized by the OSSA Cluster is planned to be held again in Ankara on 13-15 October, 2020.