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Turkey’s Baykar and Italy’s Leonardo sign MoU for joint development of unmanned technologies

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Turkish drone maker Baykar has signed a memorandum of understanding (MoU) with Italian defense and aerospace company Leonardo for the joint development of unmanned technologies, the state-run Anadolu news agency reported, citing officials from the companies.

The agreement was signed at Leonardo’s headquarters in Rome on Thursday by Leonardo CEO Roberto Cingolani, Baykar Chairman and Chief Technology Officer Selçuk Bayraktar, the son-in-law of President Recep Tayyip Erdoğan, and Baykar CEO Haluk Bayraktar.

The Financial Times was the first to report on the deal last week.

As part of the agreement, the two companies will conduct joint production in both Turkey and Italy. The companies expect the European unmanned aerial vehicles (UAV) market to grow to $100 billion over the next decade.

“Today is a very important day. We are signing a memorandum of understanding with Baykar, and we have defined key milestones with our colleagues from Baykar,” Cingolani said at a news conference following the ceremony.

Calling the partnership agreement a “significant achievement,” Cingolani said he was impressed by Baykar’s facilities in İstanbul and the company’s extensive portfolio of UAVs.

Baykar is one of the world’s leaders in artificial intelligence-enabled drone manufacturing and has exported its drones to more than 30 countries.

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.

Cingolani said the defense industry is facing unprecedented challenges, such as unmanned systems, artificial intelligence, sixth-generation fighters, cybersecurity and space.

“In this context, we are convinced that technological cooperation is both necessary and urgent to accelerate progress and ensure global security.”

The deal comes at a time when European leaders are planning a surge in their defense spending to protect the continent, with America’s long-term commitment to Europe’s security now in doubt following a spat between US President Donald Trump and Ukrainian President Volodymyr Zelensky in Washington last week. As a result, Washington has cut the military aid and intelligence sharing that has helped Kyiv fight off Russia’s invasion.

He said the agreement, the result of five months of intensive work, will be in place for five years but that the companies expect a deeper cooperation.

For his part, Selçuk Bayraktar said the companies had been holding talks for months and were already working together on system integrations.

“Together, we can develop the best systems. We are pleased to embark on this journey and appreciate the spirit of cooperation,” Bayraktar said.

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.

Minister lauds the agreement

Turkish Industry and Technology Minister Mehmet Fatih Kaçır welcomed the deal between Baykar and Leonardo in a post on X, saying it will make a critical contribution to the European defense industry’s becoming self-sufficient.

“Turkey and Italy are two key production powers in Europe and the Mediterranean. The cooperation between our leading aerospace companies, Baykar and Leonardo, in UAV technologies will make a critical contribution to Europe’s defense industry’s self-sufficiency,” Kaçır said.

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 contractors.

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.

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