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Turkish Defence Firms Turn to Overseas Subsidiaries

Altınay Defence has established a wholly owned company in the UK, becoming the latest Turkish private defence company to create a corporate presence in a major overseas market.

The company established Altınay Aerospace Technologies International Ltd. as a wholly owned UK subsidiary. Altınay said the operation would provide access to international prime contractors, technology ecosystems and industrial partnerships.

The move comes as Turkish private defence companies increasingly use subsidiaries, joint ventures and acquisitions to establish a presence in markets where they previously operated mainly as exporters.

Turkiye’s defence and aerospace exports exceeded $11 billion on a 12-month basis for the first time in June 2026. NATO countries accounted for 57.3 per cent of sector exports in the 12 months through May, underscoring the growing importance of markets where local industrial participation, supply-chain access and customer support often accompany direct sales.

The UK itself already provides an example of this approach. Samsun Yurt Savunma, the company behind the CANiK brand, acquired an 80 per cent stake in British medium-calibre cannon manufacturer AEI Systems in January 2023. The acquisition gave the Turkish group a UK-based industrial operation rather than solely an export presence.

Other Turkish companies have adopted different structures in European markets.

Baykar and Leonardo established Italy-based LBA Systems as a 50:50 joint venture for unmanned aerial systems. The company, which has its legal and operational headquarters in Italy, covers design, development, production and maintenance and became fully operational in July following regulatory approvals.

Nurol Makina has taken another route in Hungary. Its local subsidiary, Nurol Makina Hungary, joined Rába Vehicle to establish Gidrán Armored Vehicles. The Hungarian joint venture covers production, development and after-sales activities while developing a local and European supply chain.

Otokar has moved further into direct local production. The company completed the acquisition of 96.77 per cent of Romania’s Automecanica in June, gaining a military vehicle production facility in Mediaș. The plant is now producing COBRA II armoured vehicles for the Romanian Armed Forces.

The models differ considerably. Altınay has established a wholly owned subsidiary, Baykar entered a 50:50 joint venture with Leonardo, Nurol Makina combined a local subsidiary with an industrial partnership, while CANiK and Otokar acquired existing companies and production capabilities.

What connects them is a shift beyond conventional exports. Establishing a company in the customer market can provide access to procurement structures, local supply chains, industrial partners and long-term support requirements that are difficult to address solely from Turkiye.

Altınay’s UK subsidiary is currently at the corporate-presence end of that spectrum. The company has not announced a manufacturing investment or a specific UK programme connected with the new operation.

Its immediate significance is therefore institutional. The subsidiary provides Altınay with a platform inside the UK defence market from which it can pursue contracts, partnerships and links with international prime contractors.

Altınay develops motion-control systems and platform subsystems for land, naval and aerospace applications. CEO Z. Burak Mercan described the UK operation as an “export and cooperation bridge” while saying the company would continue investing in research, development and production in Turkiye.

The group has also appointed Stephen Darnell as Chief Growth and Strategy Officer, with responsibility for international growth and strategic partnerships.

For Turkish private defence companies, export growth is increasingly being followed by a local corporate or industrial presence in the markets they serve.

Source: www.turdef.com

Turkish Defence Firms Turn to Overseas Subsidiaries
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