[Federal Register Volume 77, Number 16 (Wednesday, January 25, 2012)]
[Notices]
[Pages 3739-3742]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-1435]
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DEPARTMENT OF COMMERCE
International Trade Administration
Executive-led Aerospace and Defense Industry Trade Mission to
Turkey--Notification
AGENCY: International Trade Administration, Department of Commerce.
ACTION: Notice.
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Mission Description
The United States Department of Commerce, International Trade
Administration, U.S. and Foreign Commercial Service (CS) is organizing
a U.S.--Turkey Aerospace and Defense Industry Trade Mission to Ankara
and Istanbul December 3-7, 2012. This mission will be led by a Senior
Commerce Department official. The mission's goal is to introduce a
variety of U.S. aerospace and defense industry manufacturers and
service providers to end-users and prospective partners whose needs and
capabilities are targeted to each U.S. participant's strengths.
Participating in an official U.S. industry delegation, rather than
traveling to Turkey on their own, will enhance the companies' ability
to secure meetings in Ankara and Istanbul. Trade
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mission participants will have the opportunity to interact extensively
with CS Turkey officers and specialists as well as State Department and
U.S. Office of Defense Cooperation personnel to discuss industry
developments, opportunities, and sales strategies.
During the mission, U.S. delegation members will learn about
policies and opportunities in Turkey's aerospace and defense industry.
Most industry manufacturers and component suppliers, distributors and
agents are based in Ankara or Istanbul, offering the opportunity for
good matchmaking and networking. In addition to government briefings,
matchmaking and networking opportunities, the trade mission will
include three site visits to company facilities and production centers
in both Ankara and Istanbul.
Commercial Setting
Turkey is at the crossroads of Europe, between the Middle East and
Asia and an emerging aerospace and defense hub for markets in Europe,
the Caucasus, and the Middle East and North Africa (MENA). With a
population of over 70 million people, it has the world's sixth largest
army with 720,000 soldiers. This is the second largest army in NATO
after the United States. The Turkish Air Force (TAF) is the world's
third largest operator of the F-16, following the United States and
Israel.
Turkey's defense industry is financed primarily by the national
budget and Defense Industry Support Fund, and partially by military
loans. In Fiscal Year 2011 over $11 billion was allocated to the
Ministry of Defense (MOD) spending, 47.5 percent of which was allocated
to procurement of goods and services. There is an emphasis on R&D
capabilities and the advancement of the national industrial capability.
Joint production and technological cooperation are preferred to foreign
military sales (FMS) and off the shelf procurements.
The Turkish market is particularly promising for U.S. suppliers
seeking joint-venture opportunities. There are increased opportunities
for U.S. small- and medium-sized enterprises within a Turkish
partnership framework to enable the modernization of the Turkish Armed
Forces. Within the next 25 years, a large portion of the Turkish Armed
Forces `combat weapons and equipment will need to be replaced or
modernized.
A focal point of the trade mission will be the Turkish Armed Forces
Foundation (TuAFF). Created after the 1974 US embargo over the Cyprus
issue, the TuAFF enables a defense base for Turkey that creates
indigenous or partnered projects, ensuring an independence from a U.S.-
only defense environment. It is critical therefore to work with Turkish
partners and with the TuAFF where U.S. projects are concerned. The
Commercial Service and the Office of Defense Cooperation can assist
with appropriate commercial access to assist U.S. companies
participating in this partnering endeavor.
The TuAFF is managed by a Board of Trustees consisting of the
Minister of National Defense, the Deputy Chief of the General Staff,
the Undersecretary of the Ministry of National Defense and the Minister
of National Defense Undersecretary of Defense Industry.
Opportunities with the major TuAFF affiliates and subsidiaries will
be a primary point of interest for mission participants. The major
TuAFF affiliates and subsidiaries are:
ASELSAN: Communication and information technologies,
radars, electronic warfare and intelligence systems and defense systems
technologies
Turkish Aerospace Industries (TAI): Aero structures and
space, integrated helicopter systems, integrated aircraft systems,
training and consultancy
HAVELSAN: Software and systems related to C4ISR, naval
combat systems, air defense systems, management information systems,
simulation and training systems, homeland security systems and energy
management systems
ROKETSAN: Rocket and missile technologies--structural,
thermal, mechanical design; internal ballistics; guidance-control,
weapon systems, aerodynamic, composite structures, propellant systems
and warhead technologies
ISBIR: Alternators, frequency convertors, gensets
ASPILSAN: battery pack and Ni-Cd aircraft batteries
Tusas Engine Industries (TEI): Parts and module
production, engine assembly and test maintenance, repair and overhaul
services, engine design and product development
DITAS: Ship owner/ship management, brokering/chartering,
ship and tugboat management, vetting and ship vetting
MIKES: Electronic warfare, radar warning receivers,
electronic counter measure systems, chaff flare dispensing systems,
electronic support measures, software solutions, avionics
TuAFF organizes the biannual International Defense Industry Fair (IDEF)
in Istanbul. IDEF is certified by the U.S. Department of Commerce as a
platform vehicle for U.S. firms to enter and expand sales in the
Turkish defense market. As the premier defense exhibition for Turkey
and the region, in 2011 IDEF hosted 575 exhibitors from 44 countries
and over 40,000 visitors. The U.S. Department of Commerce, Commercial
Service, supported 21 U.S. participants and the U.S. Pavilion at IDEF
2011.
Civil Aviation
Turkey, a large country with a growing economy, is the size of
Texas and is strategically located three hours by plane to 1.5 billion
people and $23 trillion of GDP as it is surrounded by developed
(Europe) and emerging (Russia, Caucasus and MENA. As a result of
Turkey's growing economy and population, Turks have come to rely on
domestic and international air service increasingly over the past
years. International and domestic passenger numbers in 2009 in Turkey
totaled 85 million. An important growth factor for the Turkish aviation
industry is the growth of the overall economy- expected at 7-8 percent
for 2010. This economic growth has given Turks more money to travel.
Turkey's per capita gross national income more than tripled between
2002 and 2009, to $8,730, according to World Bank figures. DHMI, the
State Airport Authority is under the umbrella of the Ministry of
Transportation. DHMI is responsible and has the final authority for
licensing, tendering, building and operating of airports, air traffic
management and control, airport management, ground services, airlines
and air safety. Presently, there are 44 commercial airports in
operation in Turkey. With a work force of more than 7,500 employees,
DHMI is the largest Turkish procurement authority with respect to air
traffic control (ATC) equipment, navigation aids, airside airport
infrastructure, and airport security systems.
DHMI expects to procure safety and security equipment, ground
control equipment, perimeter security, communications, runway and
landing lighting as well as automated landing systems. Specifically
mentioned are bomb detection equipment by nuclear and chemical
detection equipment, x-ray machine upgrades, next generation door
detectors, fingerprint access to restricted areas and airport perimeter
security.
Turkey's aerospace industry has experienced rapid growth over the
past decade. In 2010, Turkey's aerospace import market size was $4.2
billion, a compound annual growth rate of 12.5 percent since 2000. In
2010, Turkey's aerospace imports from the U.S. were
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$2.7 billion (64 percent of the market). U.S. aerospace companies have
a strong presence in Turkey that is expected to continue.
Turkey's strategic location ensures unrivaled advantages in
airline, maintenance, repair and overhaul (MRO), cargo and air taxi
services in the region. With the addition of Ordu and Mersin airports,
the number of civil airports in Turkey grew to 46 in 2010. Istanbul is
considering adding a 3rd international airport. In 2009, 19 airlines
(including 3 cargo airlines) and 61 air taxi operation companies were
active (more recent data is not available). The increase of regional
airlines will ensure further growth in the industry. A good example of
this growth is that in 2002, Turkish Airlines (then a monopoly) flew to
25 locations from two hubs, total annual domestic passenger traffic of
approximately 8.7 million. Today, over 16 passenger airlines carry 41
million domestic passengers and 44 million international passengers
from 7 hubs. These figures show the diversification and growth of the
civil aviation market. This rapid growth presents immediate and long-
term opportunities for U.S. firms.
Since 2002, there has been a 372 percent increase in domestic
passenger traffic, a 77 percent increase in international passenger
traffic and a 153 percent increase in total (domestic & international)
passenger traffic. There are a total of 329 private airline companies
operating in the Turkish aerospace industry, 17 of which are Turkish.
These companies are creating demand for aircraft parts (new and used)
as well as safety equipment, training and management. An example of
airline growth in Turkey is Turkish Airlines. Turkish Airlines has
grown 15-20 percent on average over the past 10 years. Currently
Turkish Airlines is the 4th largest airline in Europe with 142 aircraft
(including 64 new aircraft orders), 159 destinations (38 domestic and +
121 international) and was named the Best Airline in Europe at the 2011
Paris Air Show World Airline Awards.
Mission Goals
The goal of the U.S.-Turkey Aerospace and Defense Industry Trade
Mission is to (1) introduce U.S. companies to Turkish business partners
and industry representatives; and (2) introduce U.S. companies to
Turkish government officials to learn about various U.S.-Turkish and
Turkish aerospace and defense program opportunities.
Mission Scenario
The trade mission will visit Ankara and Istanbul, Turkey, December
3-7, 2012.
Trade mission members will meet with officials from the Ministry of
Defense (UnderSecretary of Defense Industries/SSM), DHMI, and Turkish
Armed Forces Foundation, and will take part in business matchmaking
appointments with private-sector entities. In addition, participants
will attend an Embassy briefing and networking events with U.S. and
Turkish government officials and various Turkish companies, participate
in at least three site visits and multiple one-on-one business
matchmaking appointments.
Matchmaking efforts will involve relevant networking groups such
as: the Defense Industry Manufacturers Association (SASAD), Turkey's
primary association for producers of defense systems and equipment, and
the two American Chambers of Commerce in Turkey. U.S. participants will
be counseled before and after the mission by U.S. Export Assistance
Center trade specialists, primarily by members of the Aerospace and
Defense Technology Team. Participation in the mission will include the
following:
Pre-travel briefings/webinar on subjects ranging from
business practices in Turkey to security;
Pre-scheduled meetings with potential partners,
distributors, end users, and local industry contacts in Ankara;
Transportation to/from the hotel to meetings for the
duration of the mission;
Meetings with key U.S. and Turkish government officials;
and
Participation in industry networking receptions.
Proposed Timetable
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Monday, December 3........... Trade Mission Participants
Arrive in Ankara.
Dinner with CS/ODC/PMA Staff.
Tuesday, December 4.......... Welcome briefing by U.S. Embassy
country team.
Presentations by selected trade
mission participants to UnderSecretary
of Defense Industries (SSM) Murad Bayar
(TBC).
Lunch hosted by SASAD,
Association of Turkish Defense Industry
Companies (TBC).
One-on-One business matchmaking
appointments.
Networking Reception with
members of Ankara Business Community at
Ambassador's Residence (TBC).
Wednesday, December 5........ One-on-one matchmaking
appointments.
Lunch and Site visit at Turkish
Aerospace Industries (TAI) (TBC).
Fly to Istanbul.
Thursday, December 6......... One-on-one business matchmaking
appointments.
Lunch hosted by American
Business Forum in Turkey (TBC).
Site visit (Turkish Technic MRO
with Aerospace companies/Istanbul
shipyards for Defense companies) (TBC).
Late afternoon/evening
networking event hosted by TABA (TBC).
Friday, December 7........... Trade Mission Participants
Depart.
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Participation Requirements
All parties interested in participating in the Executive-led U.S.-
Turkey Aerospace/Defense Industry Trade Mission must complete and
submit an application for consideration by the Department of Commerce.
All applicants will be evaluated on their ability to meet certain
conditions and best satisfy the selection criteria as outlined below.
Recruitment for the mission is open on a rolling basis starting January
16, 2012 and will be open until we have reached our limit of 15-20
qualified U.S. companies.
Fees and Expenses
After a company has been selected to participate on the mission, a
payment to the Department of Commerce in the form of a participation
fee is required. The participation fee will be $4,850.00 for large
firms and $3,435.00 for a small or medium-sized enterprise (SME),\*\
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which includes one principal representative. The fee for each
additional firm representative (large firm or SME) is $500. Expenses
for lodging, some meals, incidentals, and airfare to/from Turkey
(including the domestic flight from Ankara to Istanbul) will be the
responsibility of each mission participant.
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\*\ An SME is defined as a firm with 500 or fewer employees or
that otherwise qualifies as a small business under SBA regulations
(see http://www.sba.gov/services/contracting opportunities/
sizestandardstopics/index.html). Parent companies, affiliates, and
subsidiaries will be considered when determining business size. The
dual pricing schedule reflects the Commercial Service's user fee
schedule that became effective May 1, 2008 (for additional
information see http://www.export.gov/newsletter/march2008/initiatives.html).
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Conditions for Participation
An applicant must submit a completed and signed mission
application and supplemental application materials, including adequate
information on the company's products and/or services, primary market
objectives, and goals for participation. If the Department of Commerce
receives an incomplete application, the Department may reject the
application, request additional information, or take the lack of
information into account when evaluating the applications.
Each applicant must also certify that the products and
services it seeks to export through the mission are either produced in
the United States, or, if not, marketed under the name of a U.S. firm
and have at least fifty-one percent U.S. content.
Selection Criteria for Participation
Selection will be based on the following criteria:
Suitability of a company's products or services to the
mission's goals
Applicant's potential for business in Turkey, including
likelihood of exports resulting from the trade mission
Consistency of the applicant's goals and objectives with
the stated scope of the trade mission
Any partisan political activities (including political
contributions) of an applicant are entirely irrelevant to the selection
process.
Timeframe for Recruitment and Applications
Mission recruitment will be conducted in an open and public manner,
including publication in the Federal Register, posting on the Commerce
Department trade mission calendar (http://www.trade.gov.trade-missions)
and other Internet web sites, press releases to general and trade
media, direct mail, notices by industry trade associations and other
multiplier groups, and publicity at industry meetings, symposia,
conferences, and trade shows. The timeline for recruitment of this
mission will allow for vetting and selection decisions on a rolling
basis beginning January 17, 2012 until the maximum of 15-20
participants are selected or until the application period ends on
September 28, 2012. Although applications will be accepted through
September 28, 2012, applications received after that date will be
considered only if space and scheduling constraints permit. All
interested U.S. firms are encouraged to submit their applications as
soon as possible. We will inform applicants of selection decisions as
soon as possible after they are internally reviewed.
Contacts
U.S. Commercial Service Turkey: Mr. Thomas Bruns, Commercial
Officer, (until July 15, 2012), Email: [email protected], Tel:
(90) (312) 455-5555, Fax: (90) 312-467-1.
U.S. Commercial Service Aerospace and Defense Technology Team: Mark
A. Cooper, Director, U.S. Department of Commerce, U.S. Export
Assistance Center--Indiana, 1-(317) 582-2300, Email:
[email protected].
Elnora Moye,
Trade Program Assistant.
[FR Doc. 2012-1435 Filed 1-24-12; 8:45 am]
BILLING CODE 3510-FP-P