Türkiye's prominent drone maker Baykar and Italy's defense and aerospace giant Leonardo signed a memorandum of understanding (MoU) Thursday in unmanned technologies that envisages establishing a joint venture for unmanned aerial systems (UAS).
The agreement was signed by Leonardo CEO Roberto Cingolani, Baykar Chairperson and CTO Selçuk Bayraktar, and its CEO, Haluk Bayraktar, at Leonardo's headquarters in Rome.
"The agreement is based on the industrial synergies and complementarities of the two companies in the unmanned sector. The scope of the Joint Venture, based in Italy, includes the design, development, production and maintenance of unmanned aerial systems," the Italian company said in a statement.
This partnership will leverage Baykar’s industry-leading unmanned platforms, which have demonstrated operational effectiveness across various global markets, and Leonardo’s expertise in mission systems, payload design and related aerospace certification in Europe, it added.
In a statement, the two companies also estimated that the European market for UAVs will be worth $100 billion over the next 10 years.
"We have been in intensive negotiations for months. We were already working with Leonardo and there are systems we have integrated," said Selçuk Bayraktar.
"We were already cooperating and the chemistry and synergy has developed in a fascinating way in recent months," he noted.
Stressing that the two companies have complementary features, he further said: "We can make the best systems together. We thank them for their cooperation, we are very happy to start this journey."
The deal followed recent visits by Leonardo and Italian government officials and comes as Baykar had already acquired aviation and defense company Piaggio Aerospace.
"Today is a very important day as we are signing a memorandum of understanding with Baykar. We have identified important cornerstones with our colleagues from Baykar," said Cingolani.
Stating that they are going through a complex period, Cingolani said the agreement is a product of their intensive work in the last five months.
"This is a great result," Cingoloni said, noting that the agreement is for five years but envisages a deeper cooperation.
"Europe has a gap in unmanned technologies for various reasons, and in a complicated time like the one we are living in it is fundamental to guarantee global security," he told a news conference.
He said the "cornerstone agreement" with Baykar would address the issue.
Through the agreement, Leonardo and Baykar aim to jointly pursue opportunities in both the European and international markets, also capitalizing on additional synergies in the space sector.
"With Baykar we are creating a new reference player in unmanned technologies, which will play an increasingly central role in the future of defense," Leonardo quoted Cingolani as saying.
"Today, we are signing a new international alliance that marks a significant leap forward in unmanned systems, opening up new market opportunities, particularly in Europe," he added.
"The defense industry is facing unprecedented challenges, such as unmanned systems, artificial intelligence, sixth-generation fighters, cybersecurity, and space. In this context, we are convinced that technological cooperation is both necessary and urgent to accelerate progress and ensure global security."
"As the global leader in armed UAV development, production and export in the world, Baykar has always focused on pushing the boundaries of innovation in unmanned aviation. Leonardo’s globally renowned capability in C4I systems and its advanced AI technology backbone make this collaboration even more impactful. This strategic partnership with Leonardo marks a significant milestone in expanding our technological footprint and strengthening our presence in the world," Selçuk Bayraktar was quoted as saying in the press release.
While JV would be set up in Italy, production will be carried out in both, Türkiye and Italy under the partnership of the two companies, an Anadolu Agency (AA) report said.
Baykar is Türkiye's top defense exporter, selling drones to dozens of countries.
