Turkish defense firm Otokar secures $934M contract with Romania
COBRA II 4x4 armoured tactical vehicle designed and produced by Turkish company Otokar, at the 16th edition of International Defence Exhibition and Conference (IDEX) and the 7th edition of the Naval Defence and Maritime Security Exhibition (Navdex) in Abu Dhabi, United Arab Emirates, February 21 2023. (AA Photo)
Turkish defense company Otokar has secured a major contract to supply 1,059 4×4 tactical wheeled light armored vehicles (TW-LAV) to Romania, with the deal valued at approximately ₺32 billion ($934 million).
This deal marks a significant milestone in Otokar’s defense exports and strengthens the company’s presence in the European defense market.
According to a statement submitted to Türkiye’s Public Disclosure Platform (KAP) on Oct. 4, Otokar will produce the first 278 vehicles at its facilities in Türkiye, while the remaining vehicles will be assembled in Romania under a future partnership structure.
Romania’s tactical vehicle procurement
The tender, issued by Romania’s Ministry of National Defense through its state-owned company C.N. Romtehnica S.A., called for the procurement of 4×4 tactical armored vehicles. Otokar was selected after meeting technical, field testing, and commercial evaluation requirements, as outlined by the ministry.
A multi-year contract will be signed to supply the vehicles in nine different configurations, including a base model and eight variations, to equip Romanian defense forces.
Local production requirements
The contract includes a stipulation for local production in Romania, which was a key factor in the tender process. Other competitors, including U.S.-based Oshkosh JLTV, did not meet this local production requirement and did not participate in the tender.
Financial constraints, low margins, and strict contract conditions also deterred other companies from bidding.
Otokar’s growing relationship with Romania
Otokar’s relationship with Romania dates back to 2018 when the company exported 400 buses as part of a previous agreement. To manage its operations in the country, Otokar established “Otokar Romania.”
