Türkiye's Baykar to complete plant in Ukraine in two years - CEO

Turkish defence company Baykar is planning to complete the construction of its manufacturing plant in Ukraine in two years, its chief executive said on October 27, after the company became highly renowned for its drones' success in thwarting Russian forces.

The aerial drones supplied to Ukraine by Baykar were instrumental in Ukraine's defence against Russian armour and anti-aircraft systems in the first few weeks of the Russian invasion, Reuters reports.

Its Bayraktar TB2 drone gained so much prominence with the public that Ukrainians composed a song about it and some allies launched unprecedented crowdfunded campaigns to buy more.

As part of an agreement between Türkiye and Ukraine, signed just before Russia's February 24 invasion, Baykar had agreed to build its second manufacturing plant in Ukraine.

CEO Haluk Bayraktar told Reuters on October 27 that plans were moving ahead despite some obstacles created by Russia's invasion. "Our plan is moving ahead," the chief executive said on the sidelines of the SAHA defence expo in Istanbul.

"Right now we have the architectural design. The detailed design phase is finished. And we will move ahead with construction actually... within two years we would like to finish it."

Ukraine figures prominently in Baykar's supply chain, especially with the new heavy-lifter drone Akinci and unmanned fighter jet Kizilelma, or Golden Apple, currently under development. Both use Ukrainian engines from Motor Sich (MSICH.UAX) and from Ivchenko-Progress.

Deployment of the company's Bayraktar TB2 drone has been a major factor influencing conflicts from Syria to Azerbaijan and Ukraine, pushing Baykar into the global spotlight and transforming it into a major manufacturer and exporter.

The battle-proven TB2 drone is being sold to 24 countries including NATO member Poland, while the company signed deals with five countries for exports of its much larger sibling Akinci.

While the TB2 can lift off with up to 150 kg (330 pounds) of missiles or equipment, Akinci, first delivered to Turkish armed forces last year, can fly much higher and take off with 10 times the weight.

The expanding order book is expected to net around $1 billion in export revenues this year, Bayraktar said, about 50 per cent higher than last year's $650 million, with a further 50 per cent growth expected in 2023.

Though Baykar is not the only military drone developer in Türkiye, the TB2 has figured so prominently in conflicts that it now spearheads Türkiye's global defence export push. Last year the company made up a fifth of Türkiye's $3.2 billion in defence exports, according to data from the Turkish Exporters Assembly.