Turkish Baykar to invest about $100 million in the production of drones in Ukraine

Turkish Baykar to invest about $100 million in the production of drones in Ukraine

Baykar to launch production of Bayraktar TB2 and Akinci strike drones in Ukraine, with investment in plant construction totalling nearly $100m

The Turkish company Baykar has been given the go-ahead by Ankara to produce the Bayraktar TB2 and Akıncı drones in Ukraine, according to a report by the Turkish media company Yeni Akit. The Baykar CEO, Haluk Bayraktar, confirmed they have received the necessary licensing permits for the full-scale production of unmanned aerial vehicles (UAVs) in Ukraine.

"We have obtained the appropriate license permissions from Türkiye for the full production of Baykar TB2 and Akıncı unmanned aerial vehicles in Ukraine," Yeni Akit quotes Haluk Bayraktar, Baykar's CEO.

The production plant is scheduled to be operational by 2025, marking a significant milestone in the bilateral agreement. The construction of these facilities is estimated to require a total investment of $95.5 million.

Baykar has set up a subsidiary company, Avia Ventures, to realise the goal. The limited liability company was registered in Ukraine in 2019 and received an export-import licence for military products in early 2022. Avia Ventures has become one of the first companies in Ukraine with a defence systems licence to have a foreign founder in its structure.

Haluk Bayraktar noted that preparatory work has already started at the site. The site will be provided with electricity next month.

The project has been facilitated by a framework agreement signed in February 2022 between the governments of Ukraine and Turkey, focused on fostering collaboration within the aerospace industry.

The agreement aims to stimulate direct investment in this sector, create favorable conditions for technology transfer, and utilize aerospace products. It further offers Turkish investors in Ukraine's aerospace sector special tax and customs benefits until January 2035.

The Bayraktar military unmanned drones have demonstrated their effectiveness against Russian forces in its illegal war against Ukraine. Despite Russian interest in purchasing Turkish drones, Baykar has declined any potential sales to the Kremlin, maintaining its stance.

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