Turkish drone maker Baykar is finalizing a production partnership agreement with Italian defense and aerospace company Leonardo to enhance Europe’s drone production capabilities, according to people with knowledge of the matter, the Financial Times reported.
The two companies are expected to sign a memorandum of understanding next week, establishing a joint venture focused on developing advanced unmanned aerial systems.
Baykar, which is co-owned by Selçuk Bayraktar, a son-in-law of President Recep Tayyip Erdoğan, is one of the world’s leaders in artificial intelligence-enabled drone manufacturing. The company’s other owner and CEO is Selçuk’s brother, Haluk.
Leonardo is part of a trio of defense champions, along with Britain’s BAE Systems and Japan’s JAIEC, involved in the development of a next-generation fighter jet under the Global Combat Air Program (GCAP). JAIEC is jointly funded by Mitsubishi Heavy Industries and the Society of Japanese Aerospace Companies.
In October Mitsubishi and BAE Systems displayed models of unmanned aerial vehicles that could be integrated into the GCAP.
Baykar’s flagship medium-altitude, long-endurance combat drone, called Bayraktar TB2, is mainly used by the Turkish defense forces. But 90 percent of the company’s revenue comes from exports, according to its website. In 2023 exports to 35 countries totaled $1.8 billion in revenue.
Although details of the Italian-Turkish partnership have yet to be agreed, the combination of Leonardo’s technology and Baykar’s platforms could potentially lead to the development of a high-technology drone that could operate on the sixth-generation platform.
In turn, through the partnership the Turkish family-owned group would gain access to the European market, an expansion it has been targeting for some time.
The Turkish defense contractor in December took over the aerospace arm of Piaggio, the Italian motor vehicle manufacturer. “With this acquisition, Baykar is set to expand its influence in the European aviation market,” the company said at the time. It also said it wanted to expand employment at Piaggio’s Italian facilities.
Analysts saw the takeover of Piaggio Aerospace as a strategic move by Baykar aimed at overcoming the European import barriers faced by Turkish defense companies.
Leonardo and Baykar’s contacts began after the Piaggio deal was close to being finalized, according to one person close to the talks. Leonardo’s chief executive Roberto Cingolani and the Bayraktar brothers have exchanged visits over the past month.
Baykar ranks among Turkey’s top 10 exporters across all industries. According to the Center for a New American Security, Turkey produces 65 percent of global UAV exports, with Baykar representing about 60 percent of Turkey’s share. The company exports more than 90 percent of its products to 35 countries.
Many say the company owes its success to Erdoğan, who personally promotes Baykar drones during his visits to foreign countries, as a result of which agreements worth of millions of dollars are signed.