GENERAL

The first initiative in establishing a defence industry in Turkey goes back to the period of the Ottoman Empire. Defence industry which had a strong position up until the 17th century, stayed outside the technological developments in Europe since the 18th century and has totally lost its impact starting from the Ist World War.

Thus, no significant defence industry infrastructure was present during the first years of the Republic and activities in this domain were limited to the establishment of new facilities near Ankara during the Interdependence War. Having the view that defence industry is a part of the overall industrialization and development, the Republican Administration supported the State’s guidance in industrialization and therefore the defence industry during the first planning period. Despite such activities as the in-country aircraft production, a strong –infrastructure could not be established due to internal an d external conditions.

In the post-IInd World War Period, activities in defence industry initiated during the first years of the Republic were not sufficient due to lack of State support, which came to a halt as a result of the foreign military aid received upon promotion of bilateral relations with the United States and Turkey’s membership of NATO.

However, regional problems Turkey faced in the 1960’s, Cyprus crises in 1963 and 1967, Cyprus Peace Operation in 1974 and the arms embargo following the Peace Operation necessitated the development of a defence industry based on national resources. After 1974 Turkish Armed Forces Foundation were established with this understanding and some investments, though limited were initiated.

Besides the administrative and financial difficulties in maintaining and improving the national capabilities, limited national resources as well as the procurement policies proved insufficient to fill the increasing gap in Turkish Armed Forces defence equipment.

1923-1950

Machinery, craftsmen and workmen transferred discretely from İstanbul and its surroundings at the end of the Ist Worl War played a crucial role in winning the War of Independence. Small scale and simple workshops in Ankara, Konya, Eskişehir, Keskin and Erzurum not only provided light weapons and ammunition but also lay the foundation for a sound local defence industry infrastructure.

General Directorate of Military Facilities was set up in 1921. Establishing and industry of weapons and ammunition was discussed for the first time during the İzmir Congress of Economics. In 1924 a facility for repair of light weapons and artillery and another facility for ammunition and carpenter work in Ankara; in 1924 a new ammunition facility in Ankara; in 1930 a capsule facility in Kayaş; in 1931 a power plant and steel facility in Kırıkkale ; in 1936 a facility for gunpowder, rifle and artillery; in 1943 a facility for gas masks in Mamak were established. In addition, Nuri KILLIGİL facility set up near Haliç region, İstanbul; in 1930 was then one of two private firms producing weapons. Producing pistols, 81 mm mortar and its ammunition, explosives and pyrotechnics, this facility provided support to the Turkish Armed Forces during the IInd World War.

In 1924, Gölcük Shipyard was set up for the maintenance of Yavuz battle cruiser. In 1941, Taşkızak Shipyard was reactivated.

Turkish aviation industry was initiated through the establishment of Tayyare ve Motor Türk AŞ (TamTAŞ) in 1926. The facilities of TamTAŞ established in Kayseri, started production in 1928; until 1939, a total of 112 aircraft –15 German Junkers A-20s, 15 US Hawk fighters, 10 US Fledging trainers, 15 German Gotha liaison aircraft –were produced. After completion of the maintenance of the aircraft in the inventory of the Turkish Air Force Command, TamTAŞ suspended aircraft production in 1939.

24 Nu. 37 aircraft and many gliders were produced in the aircraft facility founded by Nuri DEMİRDAĞ in İstanbul in 1936i but this private firm was out of operation in 1943.

The first major initiative in the aviation industry was the formation of an aircraft facility by Turkish Aviation Association in Ankara , 1941. Starting production in 1944, this facility produced 80 Miles Magister trainer aircraft, two –engine ambulance aircraft THK-10 light transport aircraft, 60 Ugur two-seater trainer aircraft and various types of gliders. The first aircraft engine facility was set up in Ankara, in 1945 and started production in 1948. various facilities were established in Malatya between 1942-43 in order to repair and maintain the aircraft procured from the United Kingdom during the II nd World War.

Foreign military aid that started upon Turkey’s membership in NATO and increased within a short period stalled the development of local defence industry which was at its preliminary stage of formation.

1950-1960

Instead of improving the local defence industry, foreign aid and foreign procurement were practiced during this period. Because of the Cold War and military and political polarization after the IInd World War, Turkey met its defence requirements through and in the framework of the NATO.

Within the impact of the increasing foreign aid in the post-IInd World War period, efforts for the development of local defence industry slowed down; orders of the Turkish Armed Forces from the local suppliers decreased, thus military facilities became a part of the Machinery and Chemical Industry Corporation (MKEK) which was formed as a State Economic Enterprise on 15 March 1950.

Development of, weaponry and equipment in the inventory of the Turkish Armed Forces was kept on the agenda by the Research and Development Department formed in 1954 under the Ministry of Defence in 1970, development studies of defence industry were reactivated.

1960-1970

It was a period regional conflicts and the Cyprus issue. Cyprus crises in 1963 and 1967 and the Cyprus Peace Operation in 1974, the arms embargo imposed on Turkey as a result of this Peace Operation proved the need for a national defence industry. During the crises, Turkey was face with the difficulty of dependence on foreign supply. The deadlock experienced in this period caused to seek ways toreactivate national defence industry. During this period in which investments based on import substitution were common, production of G-3 and MG-3 rifles by the MKEK under German licenses were concrete examples of this policy put into practice.

1970-1980

1970’s have been the period in which solid initiatives were put into force so asto establish a national defence industry. As a result of the national reaction to the arms embargo against Turkey, Armed Forces Foundation were established. Although these Foundations formed enterprises such as Aselsan,Havelsan, Aspilsan thanks to the donations, it was soon realized that the actual need for a defence industry as required by the contemporary age could not be met through the Foundations.

1980-1985

In 1980s, state initiative was undertaken to realize the modernization of the Turkish Armed Forces and the establishment of a national defence industry based on contemporary technology was set as the primary goal.

The first step in this direction was taken by the establishment of defence equipment Directorate as a state enterprise. However, the shortcomings stemming from its state-bound status prevented the success and all the properties of that enterprise were transferred to the Undersecretariat for Defence Industries (SSM) which was established in 1985 under the Law No: 3238

Law Concerning Defence Industry and Undersecretariat for Defence Industries (SSM)

Law No: 3238 concerning defence industry introduced the new principles of defence industrial policy.

The main goal of the law concerning defence Industry is ‘to constitute a modern defence industry in Turkey and to render possible the modernization of the Turkish Armed Forces’.

The main principles in putting into practice the new defence industrial policy as formulated by Law No:3238 are as follows:

• To make maximum use of Turkey’s existing industrial capabilities and potential,
• To provide direction and assistance to new investments that contain high technology,
• To incorporate foreign technologies and to render possible contributions by foreign capital,
• To encourage research & development activities.

With the new policy, the aim is to create a defence industry which is:

• Open to domestic and foreign sectors,
• Dynamic in structure,
• Having export potential,
• Adaptable to new technologies,
• Having flexibility to renew itself,
• Rather than being a potential buyer, enabling Turkey capable of cooperating in pruduction of defence equipment.

The Structuring Brought by Law No:3238

With Law No:3238 ratified by Turkish Parliament in 1985, an institution capable of formulating long-term policies and principles, and supplementing it with a constant flow of financial resources was established. The organization that was engaged to fulfill those functions was the Undersecretariat for defence Industries (SSM), established with the main goal ‘to constitute a modern defence industry in Turkey and to render possible the modernization of the Turkish Armed Forces.’ In order to reach that aim, the main principle is to acquire arms, ammunition and equipment needed by the Turkish Armed Forces from domestic suppliers to the extent that proved to be technically and economically feasible.

In addition to introducing a totally new approach and set of mind to the Turkish defence Industry, the law in question has also established a highly flexible and efficient administrative mechanism. The five main pillars of this mechanism are: Defence Industry Executive Committee, Undersecretariat for defence Industries, The defence Industry Support Fund, Defence Industry High Coordination Council and defence Industry Control Committee.

1. Defence Industry Executive Committee:

The main decision making body of the system, defence Industry Executive Committee is headed by the Prime Minister, and includes the Chief of general Staff and the Minister of National defence as its members. The Executive Committee has been tasked with the critical decisions relating to defence industrial issues and major defence procurement projects. Another responsibility of the committee has been to render possible nation-wide coordination between all entities with a defence industry dimension.

2. Undersecretariat for Defence Industries (SSM):

SSM is the second organ that was established by the Defence Industry Law, and it was given the main duty of putting into effect the decisions taken by the Executive Committee. In this regard, SSM was given a special legal entity of its own, as well as its own extra-budgetary financial resources. Along those lines, the main tasks and responsibilities entrusted upon SSM are as follows:

• Putting into effect the decisions taken decisions taken by the Defence Industry Executive Committee,
• To reorganize existing Turkish Industry in line with the prerequisites of defence industry,
• To plan the production of modern arms and equipment at private and public sector entities,
• To realise research and equipment of modern arms and equipment, to have their prototypes built, to make advance payments, plan advance orders and determine other financial and economic supports,
• To coordinate export and offset trade issues relating to defence industry products.

3. The Defence Industry Support Fund:

The Fund was envisioned as the purpose-built financial instrument to enable SSM to carry out its tasks. A highly flexible and bureaucratic formality free mechanism with a constant flow of financial resources is in full and independent control of SSM itself. Among the main incomes are; allotments from the corporate tax, fees and levies imposed on alcoholic and tobacco products, and all forms of chance games and betting, lottery etc. Since 1986, 80% of a total of US$11 billion was spent in domestic production purposes, 16% on direct procurement projects and 4% on ATIP Project.

Conclusion

With the completed projects, ongoing ones and those that are to be realized in the near future, SSM aims to strengthen Turkey’s defence industry base.

Within the framework of the activities undertaken, SSM aims the continuation with the development of a dynamic national defence industry with the use of existing defence industrial potential and the maximum contribution of private sector, in line with contemporary technologies. In this respect, the requirements of the Turkish Armed Forces is going to be met through domestic sources and the Turkish defence Industry is going to be in a strong position by the 21st century.

A national defence industry with export capability is also a driving force for the other sectors of industry involved in civilian areas. As a result of integration of defence industry to the other aspects of industry, the added value stemming from research and development, international cooperation, offset possibilities and technology transfer is also going to be an impetus for further development of economy.