Baykar-Leonardo, relaunched Italian-Turkish drone agreement: how much is the market worth and locations in Italy

The intergovernmental summit between Italy and Turkey that took place in Rome confirmed Turkey's intention to find a place in European security plans, so much so that there is a shared belief in the 'importance of the widest possible involvement of non-EU allies in EU defence efforts'. It is no coincidence that one of the main commercial agreements exhibited, along with nine memorandums of understanding between the two governments, from space to infrastructure, is in the area of defence. Namely the recent one between Leonardo and BayKar, for a joint venture for drones. In March, Turkey's leading drone manufacturer reached a memorandum of understanding for a joint venture with Italy's Leonardo for the production of unmanned aerial vehicles. Last year, Baykar bought the Italian aircraft manufacturer Piaggio Aerospace.

In her statements to the press after the intergovernmental summit, the prime minister emphasised that 'large Turkish companies are increasingly interested in investing in Italy, as demonstrated by BayKar Technologies' decision to acquire Piaggio Aerospace and to set up an Italian-Turkish alliance with Leonardo in the sector of the development, production, and maintenance of unmanned aircraft systems. I consider this to be a significant agreement that provides for the creation of an Italian-based joint venture that will enable us to enhance our respective strengths and open up new market opportunities, especially in Europe'.

She thus referred to the Memorandum of Understanding (MoU) signed on 6 March between the two companies for the development of 'unmanned' technologies (unmanned aerial systems). The partnership, reads a note released on the day the Memorandum was signed, will take advantage of Baykar's advanced unmanned platforms and Leonardo's experience in designing mission and payload systems, and related aeronautical certification in Europe. In the background is the prediction that the European market - comprising unmanned fighters, armed surveillance drones and deep attack drones - will reach USD 100 billion in the next 10 years. Both companies are currently involved in the development and production of UAV (Unmanned Aerial Vehicle) systems, electronic systems, payloads, C4I (Command, Control, Communications, Computers, and Intelligence), Artificial Intelligence, integrated mission systems, and space equipment and services.

The Leonardo sites involved in the activities developed by the Joint Venture will be those of Ronchi dei Legionari, a specialised centre in the unmanned sector, Grottaglie and La Spezia.