06.03.2025 14:31
Italy's largest defense and aerospace company, Leonardo, and Baykar have signed a memorandum of understanding to establish a joint venture in the field of unmanned aerial systems. The partnership is expected to particularly target the European market.
Leonardo CEO and General Manager Roberto Cingolani announced the agreement today at a press conference held in Rome with Baykar General Manager Haluk Bayraktar and Baykar Chairman Selçuk Bayraktar.
It was announced that the joint venture will be based in Italy, with production planned to take place in both countries. The partnership will cover the design, development, production, and maintenance of unmanned aerial systems. The partnership is expected to particularly target the European market.
EXPECTED TO REACH 100 BILLION DOLLARS IN 10 YEARS
Sources close to the agreement emphasize that the European market for unmanned combat aircraft, armed surveillance, and deep strike-capable drones is expected to reach 100 billion dollars in the next 10 years.
In a joint statement from the two companies, it was noted that this collaboration would provide opportunities to enhance capacity by leveraging Baykar's industry-leading unmanned platforms, which have proven operational effectiveness in various global markets, and Leonardo's expertise in mission systems, payload design, and aviation certification in Europe.
The statement included, "With this agreement, Leonardo and Baykar aim to jointly pursue opportunities in both European and international markets, as well as to benefit from additional synergies in the space sector."
NEW MARKET OPPORTUNITIES IN EUROPE
Leonardo CEO Cingolani stated, "Today, we are signing a new international alliance that signifies a significant leap in unmanned systems and opens new market opportunities, especially in Europe."
Cingolani emphasized that the defense industry is facing unprecedented innovations and challenges in areas such as unmanned systems, artificial intelligence, sixth-generation fighters, cybersecurity, and space, stating, "We believe that technological collaboration is both necessary and urgent."
Selçuk Bayraktar also mentioned, "This strategic partnership with Leonardo marks an important milestone in expanding our technological footprint and strengthening our presence in the world."
Baykar added, "By combining ethical AI-focused technologies with Leonardo's tremendous capabilities in AI technologies, we will develop next-generation solutions that will define the future of unmanned aerial systems. This synergy will ultimately bring about AI-focused air superiority for the future."
CLAIM OF 1300 DRONES FOR THE ITALIAN ARMY
The possibility of collaboration between the two companies has been on the agenda in recent weeks with high-level visits and statements.
After Baykar acquired the Italian company Piaggio Aerospace at the end of last year, Leonardo CEO Roberto Cingolani visited Baykar in Turkey in January and stated that they were working on "industrial synergies in unmanned technologies."
Last month, Italy's Minister of Trade and Made in Italy, Adolfo Urso, along with Leonardo President Stefano Pontecorvo, visited Baykar facilities and announced that technological and industrial partnership agreements would also be developed between the two companies.
Italian media commented that after the sale of Piaggio Aerospace, which has been under "trustee" management since 2018, steps towards collaboration with Leonardo were being taken, stating, "It appears that there is an agreement involving Leonardo behind the rescue of Piaggio."
Il Fatto Quotidiano reported on February 20 that "Leonardo has chosen the Turkish group Baykar Technologies to establish an industrial alliance in the field of combat drones" and wrote that the Italian army wants to purchase 1300 drones.
Corriere della Sera also noted on February 27 in an article titled "Leonardo and Baykar: Drone Alliance for European Armies" that the two companies were close to an agreement.
The newspaper emphasized that Leonardo is "leading in the field of electronic systems but has only the Falco family in unmanned vehicles, while Baykar is one of the pioneers in AI-based drone production."
It was also reported that the Leonardo-Baykar agreement would concern the modernization efforts of the Italian armed forces.
COLLABORATIONS ACCELERATED
In recent months, Leonardo has also signed memorandums of understanding and cooperation agreements with countries such as Germany, the United Arab Emirates, and Saudi Arabia.
Former minister and CEO Roberto Cingolani is seen as the driving force behind these alliance pursuits.
Cingolani stated in a 2024 announcement that Leonardo aims to play a central role in the expansion of the European defense sector, strengthen its technological profile, and grow in the fields of space and cybersecurity within the next five years.
Cingolani emphasized that after Donald Trump's election as president of the United States in November 2024, Trump's demand for European countries to increase their defense spending aligns with Leonardo's goal of establishing more cross-border alliances in the sector.
Leonardo is also collaborating with Britain's BAE Systems and Japan's JAIEC companies on a project to develop a next-generation fighter aircraft under the Global Combat Air Program (GCAP).