Türkiye’s Baykar signs preliminary agreement to acquire Italian company's business complexes PHOTO

Turkish Baykar defence company has entered into a preliminary agreement with Italian Piaggio Aerospace company for the transfer of its business complexes.

This action was made following the Turkish drone manufacturer’s announcement a month ago that it had acquired the renowned Italian aviation company, Caliber.Az reports via Turkish media. 

The deal involves the facilities of Piaggio Aero Industries and Piaggio Aviation, which operate under the Piaggio Aerospace brand. 

It's important to note that Piaggio Aerospace is separate from the maker of Vespa scooters, Piaggio. The aerospace company had been under government-appointed special administration since it sought creditor protection in 2018. Baykar’s offer was selected over two other final and binding bids from international companies, as confirmed by Italy's Ministry of Industry last month. It was deemed the "most suited to guarantee the interests of workers and creditors (of Piaggio Aerospace) and relaunch the group's industrial prospects. 

Baykar committed to continuing and enhancing the production of aircraft, along with supporting activities such as technical support, training, logistics, and engine maintenance, as well as manufacturing engine components. The agreement was signed by Baykar's CEO, Haluk Bayraktar, and Piaggio Aerospace's extraordinary commissioners Carmelo Cosentino, Vincenzo Nicastro, and Gianpaolo Davide Rossetti, according to the statement.

"The closing of the transaction is expected in spring once a series of conditions have been met, including authorization from the Italian Presidency of the Council of Ministers." 

In the upcoming weeks, Baykar plans to hold consultations with trade union representatives and will present its strategy for revitalizing the business operations of the two Italian companies. Piaggio Aerospace is renowned for manufacturing the P.180 Avanti business jets, often dubbed the "Ferrari of the skies," as well as aircraft engines. The company also provides maintenance, repair, and overhaul services and is highly regarded for its role in enhancing Italy's technological infrastructure. 

Baykar has become a key player in Türkiye’s defense and aerospace industries, gaining global recognition as one of the leading drone exporters. Its Bayraktar TB2 combat drones gained international attention for their use by Ukraine's military against Russian forces, as well as in operations in Azerbaijan and North Africa. According to company officials, the Bayraktar TB2 holds the title of the world's most-exported combat drone. Baykar is Türkiye’s leading defense exporter, accounting for nearly one-third of the sector’s record $5.5 billion in sales in 2023. Approximately 90 per cent of its revenue comes from international markets. Its exports reached a record $1.8 billion in 2023, up from $1.2 billion the previous year. 

The company has secured agreements with 34 countries for its Bayraktar TB2 drones and 10 countries for its larger Akıncı combat drones. Baykar is also developing Türkiye's first unmanned fighter jet, the Kızılelma, which made its inaugural flight in late 2022 and has since entered mass production. Additionally, its Bayraktar TB3 drone, specifically designed for the country’s first aircraft carrier, became the first drone in the world to successfully take off and land on a short-runway warship last month. 

The TB3 is unique for its ability to fold its wings, and it completed its maiden flight in late October 2024. According to a report from the US-based think tank Center for a New American Security, Türkiye dominates 65 per cent of the global drone export market. Baykar holds nearly 60 per cent of this market, three times the share of its closest US competitor.

By Naila Huseynova