On November 8, 2024, the US Army awarded Repkon USA, the American division of a Türkiye-based firm, a $435 million contract to build a TNT production plant in western Kentucky. The plant will become the first US-based source of explosive material in decades. Its goal is to decrease the nation’s reliance on overseas sources for crucial explosive material and ensure the US military has “timely access” to such sources.
This is not the US’s first contract with the Turkish firm. Earlier this year, the US signed an agreement with Repkon to build a facility in Texas to produce 155-millimeter artillery shells.
Repkon was founded in 1978 and has since been offering innovative solutions in the metal forming sector. The firm’s expertise lies in high-precision production solutions for the compression of explosive materials, and specialized technological techniques in metal formation like flow-forming, shearing, rotational cold forging, closed/open mold hot forging, and hot spinning. The company’s international success draws attention to Türkiye’s advancements in industrial capabilities.
Türkiye’s defense sector is an expanding field, and its growth can be detected internationally. The Defense News Top 100 list of defense companies for 2024 includes five Turkish firms, namely ASELSAN, Turkish Aerospace Industries (TUSAS), ROKETSAN, Machine and Chemical Industry (MKE), and Military Factory and Shipyard Enterprise (AFSAT). The only three countries that have more companies in the ranking are the US, UK, and China.
Moreover, there has been an increase in international partnerships in this industry. Turkish defense firms have collaborated with countries like Ukraine, the UK, and Gulf countries, establishing relationships not only based on trade and export but also collaboration. The Turkish Minister of Defense Yaşar Güler described the Turkish defense sector as “young and dynamic” and pointed out its unique advantageous position with access to the Middle East, Africa, Balkans, and Central and Southern Asia. He also mentioned that defense exports in the first half of 2024 showed up to 20% of continuous growth.
Other Fields of Exploration
Türkiye’s industrial growth does not have to be confined to defense alone. Its expanding industrial capabilities, demonstrated by its successes in defense could give the country the potential to position itself as a critical player in another global supply chain, specifically the energy sector. Türkiye’s capability to develop advanced projects in engineering and manufacturing are all abilities that can be directly applied to energy projects. The growing reliance on energy, combined with Türkiye’s geographical location could provide an opportunity to grow as an international energy hub. Türkiye has already announced its ambition to fulfill its potential in this area.
The Mideast is full of natural gas and oil reserves. Moreover, Türkiye’s close neighbor Russia is the world’s second-largest natural gas producer. Russia’s influence over the Middle Eastern market as well as its position as the largest gas exporter in the world makes the country a dominant force in the energy field. However, due to the ongoing Russia-Ukraine War, Europe has moved away from Russian energy choices, instead turning to the US and Norway. Türkiye’s potential transformation as an energy hub could turn it into an alternative supplier to European energy markets.
Nevertheless, Türkiye’s position in global markets ultimately comes down to how the nation juggles its relationship with Russia and the European Union. On the one hand, Turkish defense industries engage in generally positive relations with European states, seeking opportunities to collaborate on joint export markets. The contracts mentioned before also indicate a favorable relationship on this front with the US. Conversely, in the energy department, Türkiye seems to be considering working with Russia. The Energy Minister Alparslan Bayraktar revealed recently that a partnership between BOTAS, the oil pipeline corporation, and Gazprom, Russia’s natural gas company. A trading platform for gas could begin operations in the Istanbul Finance Center as soon as 2025. Though Türkiye has made progress in connecting gas and oil pipelines between Europe and the Middle East with projects like the Trans Adriatic Pipeline, its warm relations with Russia could strain its relationship with the EU.
The complexities surrounding Türkiye’s global market position pose the big challenge of balancing relationships between global powers. The defense and energy sectors don’t just bolster Türkiye’s economy, they also play a role in developing its standing in the political sphere, which is why it is crucial to be aware of how successes in each industry affect possibilities in the other. The Repkon deal is a prime example of displaying not only strengthening industrial capabilities but also how such developments can affect relationships with other nations and pave the way for collaboration. This deal is a huge milestone in Türkiye’s international market which is heavily connected to the nation’s ability to navigate global dynamics. Though whether Türkiye can reinforce its domain on the market is not yet known, its current momentum shows promise for development in the two main fields.
Edited by: Melisa Altıntaş and Yağmur Ece Nisanoğlu