Turkish MKE increases defense exports, plans new facilities, expansion into Europe
Türkiye's state-ownd defense company, the Mechanical and Chemical Industry Corporation (MKE) displays solutions at the IDEX and NAVDEX 2025 International Defense Exhibition and Conference in Abu Dhabi, United Arab Emirates, on February 17, 2025. (AA Photo)
Turkish defense company Mechanical and Chemical Industry Corporation (MKE) announced a dramatic rise in export performance, increasing its annual international sales from $40 million in 2021 to $639 million in 2024—representing a 16-fold increase.
MKE General Manager Ilhami Keles disclosed the figures during a presentation to the Turkish Parliament’s State Economic Enterprises Commission (KIT), where he also detailed the company’s broader expansion strategy, including the construction of major production facilities in Türkiye and plans to establish a corporate presence in Europe.
🚀 REKORLARIN YILI, STRATEJİK HAMLELERİN ZİRVESİ!
MKE, 75. YILINDA TARİH YAZDI!Türkiye Yüzyılı’nda, Millî Güç MKE olarak;
TARİHİ BAŞARILARA, REKOR CİROLARA VE STRATEJİK İLKLERE imza attık!İşte gurur tablomuz:
📈 1,2 Milyar Dolar Ciro – Şirket tarihimizin en yüksek seviyesi… pic.twitter.com/JCH2BXlA9e
— Makine ve Kimya Endüstrisi (@MKEgovtr) April 3, 2025
New facilities in Kirikkale and Samsun
According to Keles, MKE is investing heavily in domestic manufacturing capacity, including the development of a new production complex in Kirikkale spanning 4.7 million square meters—equivalent to the size of a small city.
Another facility under construction in Samsun will focus on producing nitroguanidine, a dual-use explosive precursor primarily imported from northern countries where natural gas is more affordable.
Keles said the company’s total investment budget reached $818 million, making MKE the largest investor in Türkiye’s defense sector and the third-largest across all industries.
Record revenue and export growth
Keles stated that MKE’s revenue reached $1.2 billion in 2024, marking the first time the company surpassed the billion-dollar threshold in its history. Of this figure, 53% was attributed to international sales.
- Export growth (2021–24): $40M to $639M
- Revenue growth: $1.2 billion total, 156% increase in dollar terms
- R&D budget: $59 million
- Confirmed sales contracts: $7 billion domestic, $1 billion international
Keles emphasized MKE’s unique capacity to produce entire defense systems end-to-end, including firearms, ammunition, and raw explosives. He noted that very few companies globally possess this level of technical “know-how” across all production stages, making MKE a rare player in the defense manufacturing industry.
Plans for European expansion
Speaking during the same commission session, Türkiye’s Deputy Minister of National Defense Alpaslan Kavaklioglu highlighted the European Union’s €800 billion ($909.79 billion) defense budget allocation and expressed Türkiye’s ambition to secure a share through MKE.
“We aim to establish and partner with new companies in Europe in the coming years,” Kavaklioglu said. “We will strengthen our domestic and national industry while expanding exports. Our profitability is increasing, and we intend to reinvest that into capital expansion.”
He also underlined the strategic importance of being present at the forefront of the global defense market and noted that preliminary steps for European expansion are already underway.
