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Turkish defense firm Otokar secures $934M contract with Romania

Turkish defense firm Otokar to produce Cobra II vehicles in Romania
Turkish defense firm Otokar to produce Cobra II vehicles in Romania
October 05, 2024 01:42 PM GMT+03:00

Turkish defense company Otokar has secured a major contract to supply 1,059 4x4 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 4x4 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.

Designed by Otokar in Sakarya's Arifiye district to perform special-purpose missions such as border surveillance, reconnaissance, personnel carrier, missile launch, command and control and ambulance, Cobra ll. (AA Photo)

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 Cobra II armored vehicle in Romania. (AA Photo)

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."

October 05, 2024 01:42 PM GMT+03:00
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