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Turkiye’s leading defense electronics company, ASELSAN, has signed a $1.9 billion contract with the country’s Secretariat of Defense Industries (SSB) to provide the armed forces with advanced air defense systems.

The deal represents one of the largest defense agreements that Turkiye has entered into in recent years, highlighting Ankara’s growing focus on self-reliance in military technology. Deliveries under the contract are scheduled between 2027 and 2031.

The Turkish government and ASELSAN have not disclosed how many systems will be supplied or the exact types involved. Company representatives declined to give further details in response to follow-up questions. Despite the lack of specifics, the agreement is viewed as a major step forward in the country’s efforts to create an indigenous air and missile defense shield.

National “Steel Dome” Project

The contract is closely tied to the “Steel Dome,” a national project nveiled in July 2024. Modeled in part on Israel’s Iron Dome, the Steel Dome is intended to protect Turkiye against a wide range of aerial threats, from drones and aircraft to ballistic missiles. The project reflects Ankara’s determination to strengthen layered defense networks at a time of rising regional tensions.

ASELSAN was previously named the lead contractor for the Steel Dome, giving the company a central role in shaping the system’s design, production, and deployment. In addition to developing interceptors and radar systems, ASELSAN is expected to integrate communication and command-and-control technologies that will allow the various layers of defense to operate as a unified whole.

{#ElektronikHarp}
Çok Katmanlı Hava Savunmamız ÇELİKKUBBE’nin önemli bir unsuru olan #KORAL, modernize edilen kritik altyapılarıyla düşman radarlarını uzak mesafeden tespit edip etkisiz hale getirerek hava harekatına alan açıyor.
Milli yazılım, milli donanım, milli güç! 🇹🇷… pic.twitter.com/753GhFhCMy

— ASELSAN (@aselsan) September 12, 2025

The latest agreement provides a financial foundation for these efforts. By securing a multibillion-dollar commitment from the government, ASELSAN will be able to expand production, invest in research and development, and move forward with long-term planning.

In addition to ASELSAN, the Steel Dome project also imvolves other Turkish defense firms such as Roketsan, TÜBİTAK SAGE, and the Machine and Chemical Industry Corporation (MKE).

Investment in Domestic Production

The deal comes just weeks after the government broke ground on a new defense technology base at Ogulbey near Ankara. The site, valued at $1.5 billion, will focus on air defense production and is envisioned as the largest facility of its kind in Europe.

President Recep Tayyip Erdogan described the Ogulbey base as a milestone for Turkiye’s defense industry. “The Ogulbey technology base will be one of the region’s most advanced defense technology centers,” he said at the groundbreaking ceremony. The first phase is expected to be operational by mid-2026, ahead of the initial deliveries scheduled under the ASELSAN contract.

The project also underscores Ankara’s strategy of consolidating its defense industry under major domestic players, reducing reliance on imports, and expanding its role in international arms markets.

Deliveries to the Armed Forces

ASELSAN has already delivered several systems under earlier contracts. During a visit to company facilities in late August, 47 vehicle-based air defense systems worth $460 million were displayed after being formally handed over to the Turkish armed forces. These mobile units are expected to play a key role in protecting against low-altitude threats, including drones and helicopters.

The Steel Dome system includes advanced air defense, radar, and electronic warfare platforms such as the long-range Siper missile system, Hisar short- and medium-range interceptors, Korkut short-range air defense vehicles, PUHU electro-optical platform, and the ALP radar family. These systems underscores Turkiye’s ambition to defend its territory with a domestically built, AI-supported, multilayered defense shield.

In an interview earlier this year, ASELSAN CEO Ahmet Akyol emphasized the need to constantly adapt to new threats. “These kinds of solutions are not endless systems, not only for Turkey, but for all countries, because you have a huge territory and also the threat environment is not stable,” Akyol said. “We are trying to add new features.”

The comments reflect a broader challenge for defense manufacturers worldwide: keeping pace with rapidly evolving technologies and tactics, particularly in the field of drones and precision-guided weapons.

ASELSAN showcases latest technology

ASELSAN has also used the ongoing DSEI defense exhibition in London earlier this month to present its latest technologies to international buyers. Among the highlights was the debut of the KORKUT 100/25 counter-drone system, designed to neutralize mini- and micro-drones through a 25 mm ATOM smart munition.

The company also announced a series of partnerships at the expo aimed at strengthening its global reach. These included a joint venture with Indonesia’s PT Republikorp to co-produce radios and defense communication systems, a memorandum of understanding with Brazil’s AKAER to collaborate on avionics, electro-optics, and armored vehicle modernization, and a letter of intent with Nokia to explore cooperation in military communications.

By combining domestic expansion with international partnerships, Aselsan aims to position itself not only as a cornerstone of Turkiye’s defense industry but also as a competitive supplier in global markets.

Turkiye’s Defense Ambitions

Turkiye has significantly expanded its defense sector over the past decade. Once heavily dependent on imports, the country now produces a wide range of systems domestically, from armed drones to naval platforms. Turkish drones such as the Bayraktar TB2 have gained international attention and been exported to multiple countries.

The Steel Dome project and the new ASELSAN contract are seen as part of a broader effort to achieve strategic autonomy. By producing its own missile defense systems, Turkiye hopes to reduce vulnerabilities that could arise from political disputes with suppliers. Ankara has previously faced difficulties acquiring advanced air defense systems from foreign partners, most notably during its controversial decision to purchase the Russian S-400 system in 2019.

The new investment signals a shift toward domestically driven solutions. Analysts say that if successful, the Steel Dome could also become an export product, adding to Turkiye’s growing list of defense sales abroad.

While many details of the $1.9 billion contract remain undisclosed, the agreement underscores the Turkish government’s confidence in the domestic defense industry and its commitment to advancing national air defense capabilities. The combination of new production facilities, ongoing deliveries, and international partnerships suggests that Turkiye is determined to cement its place among the world’s leading defense manufacturers.

With deliveries scheduled through 2031, ASELSAN’s systems are expected to play a central role in the modernization of Turkish armed forces. At the same time, the company’s international activities highlight the strategic importance of blending domestic innovation with global collaboration.