Turkish Defense Company Aselsan Flexes Muscles with New Agreements

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Researched by Industrial Info Resources (Sugar Land, Texas)--Turkey's largest defense systems producer, Aselsan (BIST:ASELS) (Ankara, Turkey), signed a memorandum of understanding (MoU) with Airbus Group (CAC:AIR) (Toulouse, France) to develop civil and military avionic systems, satellite communication systems and secure radio communications with Airbus.

"We strongly believe that both companies have competitive products and solutions, which can be applied to the Turkish and export markets," said Marko Miklis, Airbus Group International senior vice president.

In a statement, Aselsan Chairman Hasan Canpolat said that the company will achieve greater access to global markets through its partnership with the Airbus Group. The collaboration framework will be institutionalized by creating a coordination committee and by setting up working groups represented by both parties, according to the statement.

The company also signed a framework agreement with Rolls-Royce plc (LSE:RR) (London, England) to explore potential collaboration opportunities in engine control systems.

"There are some exciting opportunities around the areas of engine control systems and engine health monitoring that may help us both to grow our business in the Turkish market," said Bob Stoddart, Rolls-Royce's president of customer business and defense, after signing the agreement with Aselsan. "Turkey is an important market for Rolls Royce and offers several exciting collaborative opportunities for our defense business in the areas of combat aircraft, helicopters and transport aircraft, and the provision of support to our expanding engine fleet powering the Turkish Air Force."

"We believe that, through this agreement, Aselsan and Rolls-Royce can create synergies and solutions that will bring benefits both in Turkey and to the wider global market," said Aselsan Chairman Hasan Canpolat at the ceremony.

Separately, Turkish defense company Roketsan has signed a framework agreement with Airbus Defence and Space (Toulouse, France) for future collaboration on military aerospace activities. Also, Turkey's Havelsan signed a cooperation agreement with Anglo-Italian helicopter maker AgustaWestland (Amsterdam, Netherlands).

The Turkish government spent more than $1 billion on defense in 2013. Turkey's defense industry has expanded in recent years with increasing domestic production. According to the country's statistics agency, Turkstat, Turkey's exports in the defense and aviation industries combined reached $1.4 billion in 2013.

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