Kale Group: No hurdle in partnership with Rolls-Royce in fighter jet project

Turkey's Kale Group denied allegations that British Rolls-Royce had downsized the scope of the work it carried out with the group on developing the engine of Turkey's domestic fighter aircraft.

Speaking to Turkish daily Habertürk, Kale Group TFX Program Leader Selim Ergün said, "We, together with Rolls-Royce, submitted our last offer on the project to the Defense Industries Presidency in the last days of 2018. There is no change in our position nor that our partner."

The Kale Group announced that there is no change in the scope of work carried out by British engine manufacturer Rolls-Royce to develop the engine of Turkey's domestic fighter aircraft. A Financial Times report claimed on Monday that Rolls-Royce narrowed the scope of the work it carried out with Kale Group to develop aircraft engines under the TFX project. According to the report, Rolls-Royce CEO Warren East stated that the project slowed down and employees were shifted to other projects.

Ergün also responded to allegations that a number of disputes emerged in sharing intellectual property rights and regarding the involvement of a Qatari-Turkish company in the project in last year's talks, saying, "There is no such dispute between us and Rolls-Royce."

The Financial Times report had asserted that Rolls-Royce was troubled with the possible involvement of a Qatari-Turkish company in the project. Reportedly, the company has been seeking a solution for the alleged problem via high-level bureaucracy.

Underlining that they have been in good terms with Rolls-Royce since they formed a partnership, Ergün noted that both companies could undertake new projects together in the future.

"We have established good infrastructure throughout our partnership. The partnership we have established in other areas may be used later, but it is too early to say that," he added.

In 2017, Kale Group had established a partnership with Rolls-Royce to produce an aircraft engine. The partnership was formed after a $133 million defense deal signed between Turkey and the U.K.

The partnership between the two companies is aimed at developing an engine for use in the new-generation fighter aircraft program dubbed the TFX or the National Combat Aircraft (MMU).

Turkish and British officials had made great efforts to finalize the deal. Turkey and the U.K. signed a memorandum of understanding (MoU) during President Recep Tayyip Erdoğan's visit to the U.K. on May 13-15, 2018.

The fifth-generation fighter jet, one of the country's largest design projects announced by President Erdoğan, is to be realized by a project-based incentive system. Preliminary design activities received a TL 4.8 billion incentive certificate under the incentive program. The project is meant to employ 3,200 people, with indirect employment contribution estimated to be around 11,200.

Turkey, after the U.S., Russia and China, will thus take its place among the countries in the world that have the infrastructure and technology to produce a fifth-generation fighter jet.