Turkey Launches Major Air Defense Investment: $1.5 Billion for Aselsan’s Technology Base

ANKARA, Turkey — On August 27, Turkish President Recep Tayyip Erdogan announced significant plans for the defense sector, revealing a $1.5 billion investment to expand production capacity at Aselsan, the country’s leading defense electronics company. This facility, termed the Ogulbey Technology Base, aims to more than double the production of air defense components and is set to be the largest single defense industry investment in Turkey’s history.

Erdogan stated that the first phase of the base is expected to become operational by mid-2026, which he described as Europe’s largest integrated air defense facility. “The Ogulbey technology base will be one of the region’s most advanced defense technology centers,” he remarked during a groundbreaking ceremony.

The ceremony marked the delivery of components for Turkey’s multi-layered Steel Dome air defense system, which was first announced in July 2024. This system is designed to create air defenses comparable to Israel’s Iron Dome, further reducing Turkey’s reliance on foreign defense equipment.

“These systems are a show of strength for Turkey,” Erdogan said. “In air defense, we are ushering in a new era for our beloved Turkey.” With this initiative, Turkey is striving to bolster its indigenous production capabilities in defense.

Aselsan has previously delivered 47 vehicle-based platforms integrated with Steel Dome technology to the Turkish armed forces. Defence equipment delivered during the ceremony included the SIPER long-range missile system and the HISAR medium-range system, which are part of Turkey’s broader strategy to ensure national security. Turkish officials emphasized that these systems are NATO-compatible.

Ahmet Akyol, CEO of Aselsan, highlighted the project’s importance by stating, “Aselsan serves as the heart of our defense ecosystem, and this investment represents a critical threshold for the entire sector.” The company is expected to receive additional incentives totaling $1.5 billion for these advancements.

The launching of this base is part of Turkey’s ongoing efforts to transform its defense industry, which has evolved from prior reliance on foreign suppliers to an emerging position as a global supplier of armed drones and defense technology. In the past two decades, Turkey has decreased its dependency on foreign defense products from around 80% to below 20%.

During the announcement, Erdogan assured that the technologies developed at the Ogulbey base will not only meet Turkey’s needs but also enhance its standing in the global defense sector, signaling a transformative shift in the country’s defense capabilities.