Turkish President Recep Tayyip Erdoğan announced on Wednesday that a $1.5 billion investment by ASELSAN, Turkey’s leading defence electronics firm, will more than double the company’s production capacity through a new advanced technology base.
Largest Defence Project in Turkish History
Erdoğan said the new facility will be:
- “The largest single investment in Turkey’s defence industry”
- “The most advanced integrated air defence complex in Europe”
The first phase of the project is expected to become operational by mid-2026, with the base — called the OBİ Technology Centre — set to become one of the most advanced defence technology hubs in the region.
During the foundation-laying ceremony, officials also announced the delivery of key components for Turkey’s multi-layered air defence system, the “Steel Dome”.
The “Steel Dome” and Turkey’s Strategic Shift
Turkey, a NATO member, first unveiled its plans for the Steel Dome system in July 2024, designed to provide protection similar to Israel’s Iron Dome.
Over recent years, Ankara has reduced its reliance on foreign defence suppliers, emerging as a global leader in armed drone production. The new air defence program is part of a broader strategy to fortify national defence and project technological independence.
ASELSAN’s Expanding Global Role
ASELSAN has rapidly grown into one of the most prominent defence companies in the world:
- In the first half of 2025, the company signed direct and indirect export contracts worth $1.3 billion.
- New contracts rose by 10% compared to H1 2024, reaching $2.8 billion.
- Revenues increased by 11.3% in real terms, totalling ₺53.7 billion (approx. $1.34 billion).
Defence sales in air defence, electronic warfare, electro-optical systems, radar, avionics, security technologies, and weapons formed a substantial share of the company’s income.
ASELSAN also expanded its R&D spending by 42%, reaching $572 million in the first half of 2025. Meanwhile, its net debt fell by 38% year-on-year, bringing its net debt-to-EBITDA ratio down from 1.21 in H1 2024 to 0.57 this year — well below the industry average.
Strategic Implications
This unprecedented investment comes amid rising tensions in the Middle East and speculation of a wider regional war. By expanding its domestic defence industry, Turkey is signalling its intent to secure its airspace, reduce dependency on Western suppliers, and position itself as a regional defence powerhouse.
