BEIRUT — At just four years old, the Turkish defense firm Askeri Fabrika ve Tersane Isletme A.S., known as ASFAT, is already starting to climb the ranks of the biggest defense firms in the world, and making a name as a key player in the Turkish industry’s push to export its defense wares abroad.
ASFAT, a defense contractor affiliated with the Turkish ministry of defense, develops and manages 27 factories for defense production along different sectors from air, to navy, to land as well as three shipyards in Turkey. While much of its biggest projects have come from the naval sector, it is hoping to become a hub in aircraft maintenance and overhaul for Europe, Asia and Middle East countries next.
In addition to working with the Turkish military, the company’s largest ongoing project is with the Pakistani military, a $1.5 billion deal to provide four ships for Islamabad’s navy. ASFAT also has projects with Azerbaijan and Burkina Faso, for MEMATT minesweepers, as well as a transport aircraft retrofit agreement with Airbus. The company has its eye on the defense horizon too, as interest in tech like unmanned systems has skyrocketed.
On Oct. 20, Breaking Defense spoke with ASFAT’s director of strategy and business development, Sinan Topuz, about the company’s ongoing projects and the firm’s role in Turkish defense exports and production.
This interview has been edited for length and clarity.
BREAKING DEFENSE: After delivering the first MILGEM corvette to Pakistan, can you please update us about the delivery timeline of the other corvettes to Pakistan? What is the next step of cooperation?
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TOPUZ: Pakistan MILGEM (PN MILGEM) is one of the most significant projects of ASFAT. Built by Turkish engineers under the MILGEM program, PN MILGEM corvettes will soon be part of the Pakistan Navy inventory with the agreement signed between Pakistan and Turkey on September 6, 2018. This agreement is the highest figure ever signed by the Turkish defense industry in relation to naval projects.
PN MILGEM Program comprises four ships, wherein two will be constructed at Istanbul Shipyard Command and two at KS&EW. The building program started on March 11, 2019. The first ship of the PN MILGEM project was successfully launched in August 2021, followed by the second in May 2022, the third in November 2022 and the last on August 2, 2023. The delivery ceremony of the first of the four corvettes was held in September 2023, and the delivery of the last one is planned for February 2025 to the Pakistan Navy Command.
In the initial phase of the PN MILGEM project, we conducted the design studies together in accordance with the technical requirements conveyed to us by our Pakistani friends. In the project, systems compatible with the Pakistan side’s inventories and weapon systems have been preferred. Many of these have been produced by Turkey’s defense industry companies specifically for PN MILGEM ships.
ASFAT is conducting PN MILGEM project in two countries concurrently and, with its capabilities and eagerness, overcomes the challenges posed by this situation. Despite all the negative effects of the pandemic worldwide, all phases and milestones are on schedule without any delays. ASFAT has the capability to utilize new production processes facilitating faster delivery completion of the platforms in construction.
We are determined to continue and expand our business relations with our ally and friendly country, Pakistan. PN MILGEM Project, I believe, has strengthened this friendship.
Can you tell us more about how and with what particular technologies are you assisting Pakistan in its Jinnah class frigates ? And an update on the project status?
Our technology transfer agreement with Pakistan as part of the PN MILGEM Project highlights Pakistan’s significance in the Jinnah class frigate project. The Jinnah-class frigates, designed and constructed entirely in Pakistan, will mark the country’s first domestically produced frigates.
ASFAT, the primary contractor of PN MILGEM, is cooperating in design of the Jinnah-class frigates. We take great pride in the fact that design activities fall under the offset of the PN MILGEM project and that this capability is being transferred to our esteemed ally, Pakistan. We are confident that the final design of these frigates will be concluded excellently. Our expectation is that a significant proportion of systems and parts from Turkish companies will be used in the Jinnah class frigates for Pakistan, as it is the case in the PN MILGEM project. Therefore, not only for ASFAT but also for the wider Turkish defense industry ecosystem, this project is of great importance.
The company has been growing substantially, can you tell us about that growth, especially in exports?
ASFAT is a result-oriented project management company that can provide any solution specific to the needs of projects in the defense industry. The company has rightfully earned its place [on the Defense News Top 100 list] by managing its human resources efficiently, demonstrating excellent project management skills, and maintaining financial stability.
In 2022, the revenue of ASFAT was $443.5 million. ASFAT has made rapid progress in its journey, which started with the PN MILGEM project in 2018, and has reached a total project volume of $3.2 billion with 44 [projects] completed, 47 ongoing and 12 projects in the contracting phase in land, air, naval and procurement programs.
ASFAT’s project portfolio includes projects in many different areas, from shipbuilding to aircraft modernization, mine clearing equipment development to howitzer modernization, construction projects to factory modernization. A substantial part of our projects is related to the export of products and services and contribute to enhancing of the brand value of the Turkish defense industry in the international arena, especially among friendly and ally countries.
Azerbaijan is a major customer for MEMATT minesweepers, where does ASFAT find major export interest for its systems?
We see MEMATT as a humanitarian commodity, not just a product. Unfortunately, landmines are still a major threat in many parts of the world. The feedback from using MEMATT in the field, which we have exported to Burkina Faso and Togo, as well as to the friendly and brotherly country of Azerbaijan, has been extremely positive. It is a great pleasure for us to be able to help save lives in this way.
Can you update us on the status of aircraft retrofit projects, like A400M? Does ASFAT eye becoming a regional hub for such activities?
After meticulous planning and execution, the 2nd Air Maintenance Factory Directorate upgraded its A400M maintenance activities to EMAR-145 standard, which was verified by Airbus, making the Directorate the first Aircraft Maintenance Centre outside Airbus’ existing facilities to perform A400M retrofits. In this facility, we also provide services for the maintenance, repair, and overhaul of C-130, CN-235, KC-135, T-41D and SF 260-D aircraft.
The retrofit activities for nine A400M aircraft of the Turkish Air Force Command are performed at the 2nd Air Maintenance Factory Directorate facilities, with ASFAT acting as prime contractor under a contract signed with Airbus. To date, four of the nine A400M aircraft retrofits have been perfectly completed and successfully delivered to the Turkish Air Force ahead of schedule, thanks to the detailed and diligent work of our personnel. We are continuing our work at maximum pace to deliver the fifth aircraft.
Many countries in Europe and Asia have A400M aircraft in their inventory. We know that the service we provide for A400M aircraft at a lower cost, in a shorter time and without compromising quality, has also attracted the attention of foreign friends and allies. In the forthcoming period, we will be continuing our business development activities to provide maintenance, repair and retrofit services to other countries also.
In an era that shifts more towards unmanned systems and manned/unmanned cooperation, where does ASFAT fit into this? Are there endeavors in this domain?
ASFAT closely follows the trends in the global defense industry, and in this respect, ASFAT closely monitors developments in the field of unmanned land, sea, and air platforms.
As a matter of fact, MEMATT, one of ASFAT’s most well-known land platforms, is an unmanned mine clearance vehicle designed and manufactured in line with the needs and demands of the Turkish Armed Forces. With MEMATT, the costs of mine clearance operations have been minimized, time savings have been achieved, and productivity has been maximized by eliminating the life safety hazard of the human factor. Turkish military personnel use the system very effectively in the field of operation.
In the design of unmanned surface vehicles, the ability to produce the most qualified vehicles in the world is among the capabilities of many private sector companies of our country. As ASFAT, we are developing specific projects with private sector companies in the defense industry, especially in our international business development activities.
In line with the demand of the Turkish naval forces, we are planning to rapidly bring unmanned surface vessels, specially designed and equipped with weapon systems, into the inventory with the projects we develop in partnership with the facilities and capabilities of the private sector shipyards of which we are the main integrator.
What is your next five-year plan?
In 2023, in the fourth year of its establishment, ASFAT has succeeded in becoming one of the 100 largest defense industry companies in the world and aims to both consolidate and increase its position in the coming period. We plan to increase the size of projects through business development activities that prioritize exports, and to provide the critical investments and modernization required by our military factories and shipyards.
Our objective is to enhance the business models established in PN MILGEM, which enables us not only to sell products but also to transfer technology to friendly and brotherly countries. We have received requests from numerous countries, ranging from Latin America to Central Asia, and from the Middle East to the Far East, wanting to implement this business model.
Considering the needs of the Turkish Armed Forces and future procurement plans, we attach great importance to the indigenization of critical systems. In the coming period, the National Submarine Project (MILDEN), for which we are carrying out critical design activities, and the TF-2000 Air Defense Warfare Destroyer project will be the most prominent projects of ASFAT.