TR Turkish Defense Industry Companies

[Turkic]

It seems Turkish companies are in trouble, but there were our members who claims economy is doing good.

Didn't any big companies go for bankruptcy in 80's Japan, Germany, today's China (look for mega EV companies going bankruptcy because they couldn't stand in the market) and companies in other mega economies?

Does your point make any sense where more than 1000 of our companies joining IDEF? How many companies do we have in the sector?

You can't expect all companies to survive. Such bankruptcies are expected and it's no sense to use it as an argument unless it has some unusual reasons.

 

[Tornadoss]

Didn't any big companies go for bankruptcy in 80's Japan, Germany, today's China (look for mega EV companies going bankruptcy because they couldn't stand in the market) and companies in other mega economies?

Does your point make any sense where more than 1000 of our companies joining IDEF? How many companies do we have in the sector?

You can't expect all companies to survive. Such bankruptcies are expected and it's no sense to use it as an argument unless it has some unusual reasons.

Turkish companies are struggling due to high inflation, high interest rates, fluctuation of Euro and dollar. There are tons of companies who are declaring bankruptcy, and there are the ones in defense companies seeing effected on this economic situation.

In the first five months of 2025 alone, over 2,200 companies filed for concordat (bankruptcy protection), and nearly 49,100 small businesses shut down—averaging about 325 closed businesses per day . Meanwhile, the business closure rate has surged from 13% in 2022 to 29% by May 2025 . Moreover, around 18–20% of companies are now “zombie firms,” surviving only on subsidies or rollover debt.

Over 49,000 Small Businesses Shut Down in Türkiye Amid Economic Crisis - P.A. Turkey

The first five months of 2025 have laid bare the severity of Türkiye’s ongoing economic turmoil, with 2,235 companies filing for concordat (bankruptcy protection) and more than 49,000 small businesses shutting their doors. That translates to an average of 325 shop closures per day, signaling...

www.paturkey.com

 

[Turkic]

Turkish companies are struggling due to high inflation, high interest rates, fluctuation of Euro and dollar. There are tons of companies who are declaring bankruptcy, and there are the ones in defense companies seeing effected on this economic situation.

Over 49,000 Small Businesses Shut Down in Türkiye Amid Economic Crisis - P.A. Turkey

The first five months of 2025 have laid bare the severity of Türkiye’s ongoing economic turmoil, with 2,235 companies filing for concordat (bankruptcy protection) and more than 49,000 small businesses shutting their doors. That translates to an average of 325 shop closures per day, signaling...

www.paturkey.com

I never said economy is perfect or it is the best ever for companies.

But your argument shows you lack basic economy knowledge. For starters, you can check start-up to bankruptcy ratio in the industry. Which is currently pretty good for our defence industry. If there was a factor big enough to affect all companies in one sector, this ratio would be under 1. Because entrepreneurs see such factors and stop investing until it gets better. Which means current investments has good potential despite any factors.

While the industry is growing damn fast and the ratio I mentioned is far above 1, any bankruptcy that's in the sector can not happen solely on one factor.

 

[Yasar_TR]

There is a big and recurring illness within Turkish business psyche.
If your friend or your neighbour is seemingly making good profit in a specific area of business, you have to invest in the same business. Call it jealousy or copy catting. But it happens and is wrong.

The result of this reflects in the defence industry too. As a consequince, many companies blossom like mushrooms with no real substance, and every Tom, Dick and Harry becomes a defence industry manufacturer.

State defence contracts are very difficult to get as most work with some form of tender system. This involves heavy bureaucracy along every step of the contract procedure. When the tender can also be over ruled by top man in a jiffy, then the whole procedure becomes a real mess. As mentioned above by some of our members, if the important corners of the decision making system are also controlled by a small chosen elite, it becomes even more dire to push along this already choppy waters. There may be just too many so called middleman companies that these new boys have to contend with.

So large numbers of companies, losing or not getting contracts and bankruptcies would be expected.

 

[Tornadoss]

I never said economy is perfect or it is the best ever for companies.

But your argument shows you lack basic economy knowledge. For starters, you can check start-up to bankruptcy ratio in the industry. Which is currently pretty good for our defence industry. If there was a factor big enough to affect all companies in one sector, this ratio would be under 1. Because entrepreneurs see such factors and stop investing until it gets better. Which means current investments has good potential despite any factors.

While the industry is growing damn fast and the ratio I mentioned is far above 1, any bankruptcy that's in the sector can not happen solely on one factor.

My comment was not specific about defense companies, I am just pointing out even big Turkish companies are struggling. I saw during the years a lot of defense companies which popped up with their products and ideas, and then vanished without any trace.

 

[Turkic]

My comment was not specific about defense companies, I am just pointing out even big Turkish companies are struggling. I saw during the years a lot of defense companies which popped up with their products and ideas, and then vanished without any trace.

Overall ratio is also around ~4

Again, I'm not saying economy is good at all. Neither my knowledge in economy is. But such things can't be relied on one reason. @Yasar_TR abi mentioned some.

 

[Saithan]

Contract with foreign countries are as I recall in foreign currency, so there shouldn't be an issue. Let's see maybe the news are an attempt to undermine the company for a swift take over by RTE friends

 

[IC3M@N FX]

That's normal; it's called market consolidation. Just because you're an arms manufacturer doesn't mean you're bound to be successful.

There are approximately 3,000 to 3,500 arms companies in Turkey.

 

[TheInsider]

The economy is bad, and it will be even worse. No amount of fake numbers can save the Turkish economy. Turkey ranked first among OECD countries in terms of food inflation. Unless you solve food inflation, inflation is there to stay. Instead of fixing this, the government tries to fake numbers by giving calculation weight to unrelated goods when calculating inflation.

Food, rent, bills, and transportation hurt the average consumer the most. As you can see, these are basic necessities. There is no such country where the food is extremely expensive but the economy is good.

 

[Sanchez]

That's normal; it's called market consolidation. Just because you're an arms manufacturer doesn't mean you're bound to be successful.

There are approximately 3,000 to 3,500 arms companies in Turkey.

Not every company is equal, 80% of those are workshop level companies, merdiven altı as we say.

ATA and Armsan were pretty solid and large companies, with more than 50 years each under their belts. ATA was spending big and was also trying to enter real estate business to diversify few years ago. Bonuses for the dangerous jobs workers have to do probably shot up with inflation and they couldn't keep up.

 

[CAN_TR]

We have a lot of companies that are competing with each other, that's a waste of ressources.

SSB should immediately intervene and stop them from doing such bullshit investments, they should direct the companies more actively. Who needs 5 companies that produce armored vehicles? USV's? etc.

 

[IC3M@N FX]

Not every company is equal, 80% of those are workshop level companies, merdiven altı as we say.

ATA and Armsan were pretty solid and large companies, with more than 50 years each under their belts. ATA was spending big and was also trying to enter real estate business to diversify few years ago. Bonuses for the dangerous jobs workers have to do probably shot up with inflation and they couldn't keep up.

So if you exhaust yourself with risky business ventures, that's more like mismanagement. You could have also manufactured industrial parts as an OEM to give yourself a second source of income.

To be honest, you could also export cheap security weapons to the Third World for paramilitary forces and armies. Of course, it's easier said than done, but the arms business is huge, and if you don't act stupid, everyone gets a piece of the pie, even if it's smaller than other companies.

 

[what]

ASSAN still shooting back

https://twitter.com/i/web/status/1958523530993102860

 

[Strong AI]

PUBLIC ANNOUNCEMENT

Rooted in a centuries-old heritage and one of the most strategic institutions of our Republic, the Mechanical and Chemical Industry Corporation (MKE) is a state-owned enterprise affiliated with our Ministry of National Defense, with all its shares owned by the Treasury and subject to audit by the Court of Accounts. Its actions and operations are carried out with the seriousness befitting a state institution, in accordance with its Establishment Law, the Turkish Commercial Code, and relevant legislation.

In recent days, despite the ongoing legal proceedings between us, it has been observed that an ex-executive and a company with which we have a commercial dispute have made misleading and legally unfounded public statements through various media outlets regarding matters currently before the judiciary.

No attempts to cause material or moral harm to our institution—one of the nation’s most valued assets—will be tolerated.

We respectfully inform the public that all legal proceedings have been initiated against the said individual and company, and that we will pursue the matter with utmost diligence until the end.

MECHANICAL AND CHEMICAL INDUSTRY CORPORATION (MKE Inc.)

https://twitter.com/i/web/status/1958831914174820703

 

[TheInsider]

I told you. MKE wants Assan dead. This is the core of the drama.

 

[BalkanTurk90]

I told you. MKE wants Assan dead. This is the core of the drama.

But why a state company want 'dead' another private company ?
The fight between companies happens when they are both private ...

 

[TheInsider]

But why a state company want 'dead' another private company ?
The fight between companies happens when they are both private ...

MKE is really concerned about Assan improving at a lightning-fast pace. After Assan acquired Dynaflow, Assan can now produce both the bomb/shell/rocket, filling (RDX, HMX, TNT, PBXN, composite explosives), and fuze. Assan became a vertically integrated company like MKE, and it has serious serial production capability that is ahead of MKE. MKE fears competition and wants to remain a monopoly.


ASSAN Group continues to fill explosive materials for warheads and rocket engines at the Warhead & Rocket Engine Production and Filling Facility (GEPAT) located in the production area established in Bolu/Gerede campus, as well as fuel and explosive development activities in R&D laboratories.

Facilities:
• Energetic Material Synthesis R&D Laboratory
• Large Scale RDX And HMX Production Line
• TNT Filling Plant for MK Series and 155 mm Artillery
• Rocket Engine Testing
• Rocket Assembly Infrastructure
• Environmental Test Infrastructure
• Smart Ammunition Assembly and Integration
• 9&6 MeV X-Ray Non-Destructive Testing Infrastructure

Product Spectrum:
• HMX, RDX, AP (Pilot production started in December 2023 with 60-100 Kg/day and ramping up)
• C4 (60 tons/year)
•850 tons TNT (current production)
• ~500 tons PBXN (current production)

Filling Capacity per year:
• 4 tons per day (cure cast/ PBXN & Thermobaric)
• MK Series Aircraft Bomb Filling (26.000 pcs. /year)
• Artillery and Mortar Ammunition Filling

Future Capacity:
• 155 mm Artillery Shell [360.00 pcs. /by the end of 2025/2026]
• TNT filling capability (2025) (10 tons/day)
• Annual HMX&RDX production (1.250 tons RDX/year, 350 tons HMX/year by the end of 2027). Huge capacity!

This is serious serial production might that is bigger than MKE.

Assan recently won a tender to provide Mk series bombs to the South Korean MoD. Assan is also the prime provider of fighter bombs to BAE and is setting up an ammunition production line. Why did MKE not offer its products in those tenders and why MKE lost those tenders if it offered its products? Assan is also establishing a fighter bomb production facility in Azerbaijan.

Türkiye's Assan to launch advanced bomb production facility in Azerbaijan | Caliber.Az

Turkish defence firm Assan is in the process of establishing an aerial bomb production facility in Azerbaijan, alongside ongoing ammunition sales to the country....

caliber.az

Türkiye, Güney Kore’ye uçak bombası satacak

ASSAN Group, IDEX 2025’te seri üretimi güçlendirme hedefini vurgularken, Güney Kore’ye MK serisi uçak mühimmatı satışı için anlaşma aşamasına geldi.

haber.aero

ASSAN Group, BAE'nin en büyük savunma ve havacılık şirketleri grubuyla sözleşmeler imzaladı

ASSAN Group, Birleşik Arap Emirlikleri'nin (BAE) en büyük savunma ve havacılık şirketleri grubu EDGE Group ve iştiraki LAHAB ile uçak bombası satışından mühimmat üretim hattı kurulumuna kadar birçok sözleşme imzaladı. - Anadolu Ajansı

www.aa.com.tr

Assan catalog

Assan Group | PDF

Scribd is the world's largest social reading and publishing site.

www.scribd.com

MKE signed a contract at IDEF to increase its RDX production 10 times to 500 tons/year. Competition is good for everyone. Without Assan providing real competition MKE wouldn't have signed this contract.

 

[begturan]

Because of MKE, we're at least 20 years behind in barreled weapons technology. ASSAN is the apple of the eye of the Turkish defense industry. The government should continue to support this institution; we're on the right track. Thanks to ASSAN, MKE is also forced to compete and improve, thus benefiting both companies in Türkiye.

In fact, MKE has begun to do well in the last five years. This change is either due to improved working mechanisms or to ASSAN pushing MKE to improve.

 

[uçuyorum]

The impression I get from everyone I listened to is, MKE is like a monopoly on certain munitions and caused us many issues in wars with shortages and quality. Gürcan Okumuş was fed up with SSB and MKE and after being forced to quit SAGE hedecided they will do serial production properly in ASSAN and now are almost humiliating mke with their rapid progress.