Page 76 - Global Power Turkish Defence Industry

Transformation of the Turkey’s decisive policies have yielded significant results in transforming the defense industry..
Defense Industry

Local Content in Turkey’s Defense Procurement

68.5%

24%

2002 2016

Source: SSM

Transformation of the Turkey has introduced industrial participation (IP) / offset (O) policies in order to facilitate long-term
Defense Industry cooperation with international partners in the field of defense, aerospace and homeland security..

BASELINE CATEGORIES MULTIPLIERS

Indicator Requirement Category A Transaction Multiplier

Threshold to Require Offset $5 Million Design & Engineering Works 2
Performed by SMEs (Cat-A)
At least 70% of the Contract Direct Industrial Participation
IP/O Commitment All other IP Works (Cat-A) 1
Price
30% of the Category-A IP&O
Subcontractor / SME Portion Export of Platforms 4 - 5
15% of SME share Category B
Domestic Net Added Value Export of Systems / Subsystems 3
Crediting Basis Export of products/services in
(DNAV) Export of Structural Parts 2
Separate IP&O Agreement the areas of defense,
Type of Agreement aerospace and homeland
with the Contractor SME Portion in Export (+ 1)
security
Bank Guarantee 6% of IP&O Commitment
Export to Prior Market (+ 1)
Period of Performance Program Duration + 2 Years
Category C Technological Collaboration (Cat-C) 3 - 5
6% of Unfulfilled
Penalty Enabling technology/ability that is
Commitment ▪Acquire technology / capability requested particularly by SSM (Cat-C) 6 - 8
Temporary Crediting Allowed (Conditional) ▪New investment in the areas
of defense, aerospace and Foreign Direct Investment (Cat-C) 4
Banking of Credits Allowed (Valid for 5 Years) homeland security Transfer of Hardware / Software
to University / Research Institute 3
Transfer of Excess Credits Allowed (Causality) (Cat-C)
Source: SSM

76 TURKISH DEFENCE INDUSTRY