Turkey has signed a 1.6-billion-euro ($1.9 billion) contract with Aselsan to supply its military with modern air defense systems.

The deal comes after Ankara named the company the lead of the “Steel Dome” initiative to build an indigenous air and missile defense network for the NATO country.

Aselsan’s project covers deliveries scheduled between 2027 and 2031.

Strengthening Industrial Base, Focus on Air Defense

Turkey’s latest move signals its commitment to reinforcing its domestic defense industry, boosting its exports, and cutting dependence on foreign equipment.

Among the nation’s priorities is air defense, particularly after challenges securing Western systems following its purchase of Russia’s S-400 surface-to-air missile system in 2017, which strained relations with NATO allies.

Earlier this year, Ankara committed $1.5 billion to establish a production hub for the Steel Dome initiative, which officials claimed would be the largest air defense facility in Europe.

Part of this program is the supply of 47 critical air defense system components to the Turkish Armed Forces, which was completed in August.

Aselsan’s Recent Milestones

Meanwhile, Aselsan is using major defense exhibitions to expand its overseas partnerships. At an arms fair in London in September, the company announced a joint venture with Indonesia’s PT Republikorp to produce radios, defense electronics, and communications equipment.

At the same event, Aselsan unveiled its Korkut mobile counter-drone system. The platform employs a 25-millimeter ATOM programmable round to target small drones, including mini and micro models.

It also signed a memorandum of understanding with Brazil’s AKAER to cooperate on electro-optics, avionics, and armored vehicle upgrades.

In addition, the firm signed a letter of intent with Finnish cyber giant Nokia to explore projects in military communications.