Turkish defence manufacturer Machinery and Chemical Industry (MKE) General Manager Ilhami Keles said the company has established a wholly owned subsidiary in Cairo under Egyptian law, named “Zafer (Victory),” to conduct commercial activities and facilitate joint production projects in Egypt.

Türkiye’s MKE has established a wholly owned subsidiary in Cairo to expand into Egypt, pursue joint defence production and use the country as a hub for markets across Africa and the Gulf.

Keles spoke to Anadolu at the El Alamein International Airshow in Egypt’s coastal city of El Alamein.

Emphasising the valuable ties between Egypt and Türkiye as friends and allies, Keles said Egypt is a country with shared historical and religious ties with Türkiye and with which Ankara has close political relations.

“Therefore, doing something with Egypt is very valuable for us,” he said.

Keles said MKE is focusing on Egypt not merely as a “market” but as a country with which it can “do joint business.”

He noted that MKE signed its first contract at the inaugural defence industry exhibition in Sarajevo shortly before arriving in Egypt.

‘We signed a contract with Egypt’

Keles said MKE signed a memorandum of understanding with Egypt’s Ministry of Military Production.

“We signed a contract with Egypt for the joint production of energetic materials and explosives, as well as the joint production of various ammunition equipment.”

Keles said interest in MKE’s TOLGA system has increased, particularly amid the diversification of asymmetric threats.

TOLGA is MKE’s counter-drone system designed to detect and neutralise aerial threats.

“Egypt is also interested in this, and we have sold TOLGA to Egypt,” he said.

He described the initial sale as a symbolic one aimed at introducing TOLGA into Egypt’s inventory, adding that MKE plans to use the joint venture it will establish in Egypt as a platform to market the system across Africa and eventually the Gulf.

“Egypt has the capability to produce military vehicles. We are moving forward with joint production integrating Egypt’s capabilities with our turret and command-and-control systems, as well as our hard-kill and soft-kill solutions,” he said.

Keles added that MKE’s local partner had also requested TOLGA systems at the exhibition.

Technology transfer becoming more important

Keles said MKE’s accumulated know-how, developed through its long-standing capabilities in ammunition and weapons production, has become increasingly valuable.

“All countries are now striving to carry out this kind of production in their own countries. As a result, the ability to transfer technology has begun to take precedence over product exports,” he said.

Keles said MKE is in talks with several countries not only on exports but also on mechanisms for joint production.

“We are establishing joint ventures in Canada, and those processes are continuing. Immediately after here, we will travel to the United States, where we will discuss a number of investments,” he said.

He added that infrastructure for potential cooperation is also developing in countries in Southeast Asia, including Malaysia and Indonesia.

“We entered a tender in Malaysia. Localisation is also part of the tender we entered. Therefore, we will also be undertaking something in terms of localisation,” he said.

Keles said MKE is continuing contacts with other countries as it seeks to expand its production network, partnerships and markets worldwide.

“We are trying to expand both our production network, our network of contacts and our market around the world with these capabilities. The current international environment is also very conducive to this, and we intend to make use of it,” he said.

‘Zafer’ to manage MKE’s activities in Egypt

Keles said MKE established the Zafer company in Cairo under Egyptian law as part of its agreement on joint production with Egypt.

“We established a company called ‘Zafer’ entirely under Egyptian law, with all of its shares owned by MKE,” he said.

The company will manage MKE’s commercial activities in Egypt and serve as the vehicle through which joint production facilities established with local partners will operate, he added.

“Thus, MKE now has a company here capable of operating under Egyptian law. Just as in Azerbaijan, MKE will continue to have a presence in Egypt through its own legal entity,” he said.

He said the Cairo-based Zafer company will establish partnerships with other companies and local firms in Egypt.

“In other words, Zafer will be a partner in those companies. We established this company in Cairo to contribute to our commercial operations in Egypt, as well as our commercial activities in Africa and the Gulf region,” he said.