Orhan Aydın, Chairman of the Board at OSTİM: ICDDA is neither a repetition of nor anything similar to any event held in Turkey

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1 MSI INTERVIEW All photographs: MSI TDR Orhan Aydın, Chairman of the Board at OSTİM: ICDDA is neither a repetition of nor anything similar to any event held in Turkey The third Industrial Cooperation Days in Defense and Aerospace, one of the most successful events held in recent years with the objective of increasing exports and creating a business share for Small and Medium-Scale Enterprises (SME), will be held in Ankara between October 11 and 13. With only a few months to go to this event, which is jointly organised by OSTİM Defence and Aviation Cluster (OSSA) and BCI Aerospace, we interviewed Orhan Aydın, Chairman of the Board at OSTİM, and Hilal Ünal, Coordinator of OSSA, who shared with us general information about the event and the latest situation with regard to preparations. Şebnem ASİL / s.asil@milscint.com Vehbi TUNCA / v.tunca@milscint.com MSI TDR: What would you like to say about the support OSTİM is giving to OSSA? Orhan AYDIN: SMEs operating in the defence and aerospace industry are mainly concentrated in OSTİM, within our area. Over time, we realised that our companies are not sufficiently communicating and interacting with one another, and so we established OSSA. The cluster has helped foster a cohesion between its members, which in turn has increased communication and interaction. Thanks to OSSA we can see very clearly that we are in a much better position than we were before. Although OSSA s name includes the word OSTİM, OSSA has expanded far beyond OSTİM or even Ankara. Under the umbrella of OSSA, our companies can discuss problems, talk about how they can do better, and how relations with abroad can be developed. OSSA is not the only cluster in OSTİM; we have six in total. We are working to support these clusters so that they can improve their businesses, and will continue to do so in future. To make clusters work, you need a driving and supporting force. When we look around the world, we see that this driving force may include municipalities, chambers of industry and commerce, public institutions or development agencies. At OSTİM, we didn t have time to wait for a similar understanding or approach to develop in Turkey; so we took matters into our own hand and established OSSA, as well as other clusters, of our own. MSI TDR: Can you share with us your thoughts about the development of the ICDDA? Orhan AYDIN: The beginning of this event dates back to the times when the Mexican Model first came onto the Turkish aviation industry s agenda. At the time, it was said that Mexico 24 - September 2016

2 has an industrial zone that generates a business volume of $8 billion. The idea of applying a similar model in Turkey was being discussed. So we, as the OSTİM delegation, paid an inspection visit to this zone; however, we realised that the structure of this zone was hardly comparable to a cluster. Proximity to the USA, NAFTA regulations that facilitate trade, and a cheap labor force had created a unique structure. During our inspection, we noticed that an event similar to ICDDA was being held there. Since we are all entrepreneurs, we realised the potential advantage of such an event, and immediately started working on organising something similar over here. This year, we ll be holding this event for the third time. The participants, attendees, and companies are all satisfied with it. The event is generating a value of its own. That is very clear. I would like to say that we are very pleased with this event. If the event didn t generate any value, we wouldn t have been able to continue holding it. ICDDA s position is different from all other organisations held in Turkey; it is neither a repetition of nor anything similar to any other event held in Turkey. It is an activity that has a special place in the ecosystem, and which supports other activities. Our approach towards friendly competition among institutions and organisations is that it should be complementary and constructive rather than destructive. We will continue to support the development of the Turkish defence and aerospace industry through the ICDDA and other activities. Emphasis on Homeland Security: MSI TDR: Will there be any changes or some new activities in this year s Industrial Cooperation Days in Defence and Aerospace, ICDDA? Hilal ÜNAL: As you already know, we are about to hold the third ICDDA event. Just as in 2013 and 2014, when the first and the second events were held, this year s event will also last for three days. On the first day, participating local and foreign prime contractors will make presentations on the theme of How to be our subcontractor, and instructive conferences will also be held. On the second and third days, the participating companies will hold business to business (B2B) meetings at their stands. Unlike previous years, one of the subjects to be covered at this year s ICDDA 2016 will be homeland security, with the support and contribution from the Turkish National Police (TNP). As such, we will allow SMEs operating in the field of homeland security to come together with foreign companies, so that they can discuss the current state of the industry and hold meetings to establish new business relations. During our event in 2014, 4,800 registered business meetings were held. This year we expect this figure to be much higher. With this goal in mind, Prof. Dr. İsmail Demir, the Undersecretary for Defence Industries, also gave a speech during the opening of ICDDA we are continuing to work and hold meetings in order to ensure a higher level of participation in our event by both local and foreign companies. MSI TDR: Can you give a rough idea of what percentage of the Turkish defence and aerospace industry will participate in this event? Do you have a target for covering the entire sector? Hilal ÜNAL: Nearly 90 percent of local prime contractor companies operating in the defence and aerospace industry are participating in our event. Furthermore, companies providing services to the defence and aerospace industry in other areas, such as finance and software will also be taking part in this year s event. To enable our SMEs to grow further and to make a name for themselves in foreign markets, we are doing our best to involve all the institutions and organisations associated with the industry. MSI TDR: In your view, why should a subcontractor or an SME participate in ICDDA? How would you list the advantages offered by the event to such companies? Hilal ÜNAL: With regards to the participators and the opportunities offered to them, ICDDA is the most important event of our region in this field. The most important factor behind this is that the participants of ICDDA include only purchasing experts from local and foreign key industry companies, September

3 MSI INTERVIEW and the business development departments of supplier companies. Since it is a closed event, ICDDA is totally business-oriented. In ICDDA 2014, a total of 270 companies participated from 34 countries. Business meetings with foreign key industry companies are of great importance for SMEs, in line with their objectives such as opening up to foreign markets, making exports, and achieving their growth targets. According to our calculations, an SME would have to spend over 34,000 to have the opportunity to meet with such a high number of purchasing experts and to take part in various exhibitions held abroad. What s more, key industry companies coming from abroad are represented by officials who are authorised to assign work to the defence and aerospace industry of our country. In brief, the representatives of these key industry companies coming from abroad attend our event exclusively to meet with Turkish SMEs and to give business to the Turkish defence and aerospace industry. While SMEs participating in overseas exhibitions have to compete with other foreign participants, ICDDA focuses on enabling only Turkish SMEs to develop business relations with the foreign key industry companies. Thus, our event plays a significant role in the development of the industry in our country. The goal of key industry companies in attending the event is definitely not to sell or promote their products; they come here to find subcontractors for their respective areas of business, and to purchase products. In this sense, ICDDA provides an unmissable opportunity for SMEs wishing to become subcontractors. Also, by participating in ICDDA 2016, subcontractors and SMEs have the opportunity to meet not only with the key industry companies participating from abroad, but also with the local key industry companies operating in the field of defence and aerospace in our country. Considering that there are subsidiary industrial companies that have recently joined the sector and which conduct similar activities, we think that it will be extremely beneficial for SMEs to show other companies that they still have a presence in the domestic market. MSI TDR: Along the same lines, what are the advantages offered by ICDDA to a prime contractor? 26 - September 2016

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5 MSI INTERVIEW Hilal ÜNAL: ICDDA is extremely important for prime contractor companies, since it offers them the opportunity to get to know about the SMEs serving the industry and to learn about their potentials and capabilities. By showing how qualified they are in carrying out works for the industry, the certificates and machinery they have, and their ability to perform precision workmanship even for the smallest parts, SMEs will be able to increase the level of trust that key industry companies have in them. In addition, this will also help SMEs find the opportunity to offer their services under more favourable conditions in a national and international competitive environment, compared with other subsidiary industry companies operating abroad. SMEs that currently do business for Turkey s leading key defence and aerospace industry companies, are competent enough to meet the needs of the key industry companies abroad. MSI TDR: What kind of feedback do you receive from abroad about the ICDDA? Hilal ÜNAL: We receive very positive feedback from abroad regarding both the quality and the potential of the event. Many companies tell us that they would like to take part in it, and that the previous events have been extremely productive. At every opportunity, they also express their satisfaction that the event is conducted by professionals. MSI TDR: Due to the recent incidents in Turkey, the subject of security has become slightly more important than defence and aviation. In this regard, can we expect a rise in securityrelated cooperations during ICDDA? Hilal ÜNAL: Homeland security was selected as the theme for ICDDA In this context, due to the tragic incidents that have occurred both in Turkey and in various other countries, homeland security will be addressed during the event and, just as you have also mentioned, we anticipate that a number of cooperation agreements will be signed in this regard. There will be a significant level of participation in our event from the TNP and the companies operating in the field of homeland security. Furthermore, we also expect attendance from homeland security-related units of the Undersecretariat for Defence Industries, in addition to its relevant departments on defence and aerospace. MSI TDR: Are there any plans to have contracts or cooperation agreements signed during the event? What are your expectations in this regard? Hilal ÜNAL: Of course, we expect cooperation agreements to be signed during the event. However, this doesn t mean all of the participants will be signing agreements throughout the event. It is very important for our companies to follow up on the meetings and agreements reached during the event, and to make sure they maintain their relations and connections with the key industry companies. All in all, there are many companies operating in the industry both domestically and overseas, and ICDDA should be seen as an instrument for building cooperation with key industry companies. SMEs should, in brief, keep in touch with the companies with which they established relations during the event. This is of great importance for ensuring the realisation of the topics discussed and agreed on during the meetings. OSSA Keeps Growing MSI TDR: Can you tell us about the current status of the OSSA by giving some figures, such as the number of members, number of employees, turnover, and R&D expenditures? Hilal ÜNAL: Our mission at OSSA is to increase the share of domestic production in meeting the needs of the defence and aviation industry, and our vision is to render firms in the cluster competitive on international market. We are a team working to increase the workforce of SMEs operating in the defence and aerospace industry, and to help them make exports and become competitive in the market. Currently, we have 170 member companies under the umbrella of OSSA, which employ approximately 7,500 personnel. Of this number, 817 are university graduates, and 545 have foreign language skills. The average total annual turnover of our member companies is around 700,000,000 TL, and the total number of R&D personnel employed by these companies is 415. MSI TDR: How would you list the advantages of being an OSSA member company? Hilal ÜNAL: We can list the activities caried out by OSSA as follows: n Promotional activities, n Training activities, n Consultancy services, n Meetings with the key industry, n Participation to events, and n Relations with the government and other institutions September 2016

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7 MSI INTERVIEW Within the context of these activities, we, as the representatives of OSSA, promote our companies at every defence and aerospace event we attend, and inform foreign companies about their skills and potential. By preparing a matrix that includes all OSSA member companies and their fields of operation, we have compiled all the necessary information about our companies in a single document. Thanks to the OSSA Cluster Management System we established, we can immediately communicate with our companies through the Internet and promptly inform them about any opportunities and requirements. In addition, our search engine optimisation (SEO) training makes it easier for our member companies to be found in the Internet environment, and our enterprise resource planning (ERP) training helps our member companies use materials, machinery and workforce in a more productive manner. We also support our country s leading key defence and aerospace industry companies in providing technical training for our SMEs. Furthermore, we ensure that our companies can receive consultancy services during their certification processes. In recent years, we have helped many of our companies to get the AS 9100 certificate. Additionally, we visit our member companies to obtain information about their status; we listen to their opinions and suggestions and try to meet their requests. MSI TDR: OSSA has been carrying out significant activities to promote its members abroad. Can you tell us something about this? Hilal ÜNAL: We are trying to take part in all the leading events of our industry. At the exhibitions we take part in and in the business meetings we hold, we share our cluster matrixes - both in Turkish and English - with the company representatives we meet, that includes information about the OSSA member companies. At our stands, we also tell these representatives about our members capabilities. In addition, through the presentations we make during the events in which we participate overseas, we brief foreign companies about the capacity, potential, and products of our member companies. In our biennial ICDDA events, we try to bring together foreign key industry companies with SMEs, so as to enable Turkish SMEs to make a name for themselves and become competitive in foreign markets. MSI TDR: Can you tell us about the future plans of OSSA? What kind of novelties do you plan to bring to the industry? Hilal ÜNAL: We aim to diversify our activities on the way to strengthening our SMEs and increasing their competitive power. We will particularly accelerate our efforts in the indigenisation of sub-systems. MSI TDR: Is there anything you would like to add? Hilal ÜNAL: Among the industrial events held in the last six years in both Europe and America, ICDDA 2014 was the one that attracted the highest number of purchasing experts. We expect a large increase in the number of purchasing experts participating in this year s event. For this reason, we invite all the SMEs in our industry to our event, as they will be given the opportunity to make exports, increase their export capacity, and become competitive in foreign markets by meeting with new companies and establishing collaborations. We also would like to thank TAI (Turkish Aerospace Industries Inc.), ASELSAN, HAVELSAN, FNSS, MKEK (Mechanical and Chemical Industry Company), ROKETSAN, TEI (TUSAŞ Engine Industries, Inc.) and Dassault Systems, the leading companies of defence and aerospace industry, for their support for ICDDA On behalf of our readers, we would like to thank Orhan Aydın, Chairman of the Board at OSTİM, and Hilal Ünal, Coordinator of OSSA, for taking the time to answer our questions and for providing us with such valuable information September 2016

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