ASELSAN and ASFAT Relationship: Intermediary Electronic Provider in Export Projects
ASELSAN and ASFAT Relationship: An Intermediary and Electronic Provider in Export Projects
ASFAT A.Ş. (Military Factory and Shipyard Operation Inc.) is an organization established to operate military factories and shipyards and to carry out government-to-government (G2G) export/intermediation in defense projects; ASELSAN, on the other hand, is a company that provides the electronic subsystems of the platforms involved in these export projects. The relationship between the two organizations is not competitive but rather a matter of standing at different links in the export chain. In this article, we will neutrally address ASFAT’s role and how ASELSAN systems are included in export projects.
What is ASFAT?
ASFAT is a joint-stock company established under the Ministry of National Defense to facilitate the operation of military factories and shipyards and the export of defense products and services, especially in a government-to-government (G2G) model. The G2G model is an export method conducted between the official institutions of two states, offering not only products to the purchasing country but also a package that includes training, logistics, and long-term support.
The distinguishing feature of ASFAT is that it is more of an enterprise/intermediary that brings together production, manages contracts, and organizes exports rather than being a large electronic or platform manufacturer. ASFAT ranked 78th on Defence News’s 2025 list, indicating that its intermediation and factory/shipyard operation activities also generate significant revenue.
Task Sharing in Export Projects
It is useful to think of an export project as a chain. ASFAT is often the link that establishes the contract, coordinates production and delivery, and manages the relationship with the purchasing state. ASELSAN, on the other hand, is the link that provides electronic subsystems such as radar, electronic warfare, command-control, communication, and electro-optics within this package. In other words, while the “brain and sensory organs” of a corvette or armored platform exported to a country may be ASELSAN technology, ASFAT can weave the intergovernmental framework of that delivery.
The important point to note here is that it is not accurate to generalize that ASFAT is always ASELSAN’s client or superior in every project as a “prime contractor.” Export projects can be structured differently: in some, the platform manufacturer (for example, a shipyard) may be the main contractor, ASFAT takes on the intermediary role, and ASELSAN provides subsystems; in others, the manufacturers themselves can be the exporters. The contractual architecture of each project is unique.
Distinction Between Intermediary, Manufacturer, and Subsystem Provider
To read this relationship correctly, it is necessary to distinguish three roles:
- Intermediary / Operator (ASFAT): Intergovernmental contract, factory-shipyard operation, export organization.
- Platform Manufacturer: The organization that produces the physical body of the ship, vehicle, or system.
- Subsystem Provider (ASELSAN): The company that provides the electronic systems that go into the platform.
It is common for these three roles to come together in the same project, demonstrating the integrated structure of Turkish defense exports. However, a statement like “ASFAT is exporting ASELSAN” is technically misleading; rather, ASELSAN systems may be included in a package organized by ASFAT.
| Dimension | ASFAT | ASELSAN |
|---|---|---|
| Core function | Military factory/shipyard operation + G2G export facilitation | Defense electronics production |
| Position in the export chain | Contract/organization link | Subsystem provider link |
| Product or service? | Predominantly operation/intermediation service | Predominantly electronic product |
| Defence News 2025 rank (FY2024) | 78. | 43. |
| Affiliated structure | Under the Ministry of National Defense | Majority TSKGV + publicly traded |
| Nature of the relationship | No direct ownership; complementary in export projects across different links | |
Frequently Asked Questions
Is ASFAT the owner of ASELSAN?
No. There is no ownership relationship between ASFAT and ASELSAN. ASFAT is an operating/intermediary organization under the Ministry of National Defense, while ASELSAN is a publicly traded company with majority shares held by TSKGV.
What does G2G export mean?
G2G (Government-to-Government) is a state-to-state export model. It is conducted between the official institutions of the buyer and seller countries; it offers a package that includes not only the product but also training, logistics, and long-term support.
Does ASFAT manufacture?
ASFAT primarily operates as a factory/shipyard operator and facilitates exports; it plays more of an organizational/operational role rather than being a large-scale electronics or platform manufacturer. Production is carried out by the manufacturing companies it collaborates with.
How do ASELSAN systems enter export projects?
ASELSAN’s subsystems, such as radar, command-control, electronic warfare, and communication, can be integrated into the platform in export packages organized by ASFAT or a platform manufacturer.
Is ASFAT the intermediary in every export project?
No. In the G2G model, ASFAT is prominent, but not all defense exports are G2G. Companies can also conduct direct exports; the contract structure varies for each project.
Are the two organizations competitors?
No. They have different functions: ASFAT focuses on organization/intermediation, while ASELSAN focuses on electronics production. They complement each other in export projects and do not compete.
References
- ASFAT A.Ş. corporate website — asfat.com.tr. For ASFAT’s operation and G2G export facilitation role.
- Ministry of National Defense — msb.gov.tr. Military factory/shipyard operation and G2G framework.
- ASELSAN 2024 Activity Report — aselsan.com. ASELSAN’s export and subsystem provider role.
- Defence News Top 100 (2025 list, FY2024) — AA / Daily Sabah transmission. ASFAT ranked 78th, ASELSAN ranked 43rd.
