Aselsan Secures €1.3 Billion Deal to Expand Turkey’s Steel Dome Air Defence System with Asia-Pacific Export Reach

Turkey’s Aselsan Secures €1.3 Billion Deal to Advance “Steel Dome” Air Defence System

Mohd Hanif Ismail - : Nov 14, 2025 - : 11:22 am

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In a significant development for the global air defence market, Turkish defence-electronics specialist Aselsan has reportedly been awarded a contract valued at €1.3 billion (approximately US $1.4 billion) to further enhance the national multi-layered integrated air-defence architecture known as Steel Dome. The deal underlines Ankara’s ambition to build an indigenous air-defence ecosystem and positions the company as an increasingly credible player in the Asia-Pacific region.

The contract will expand the Steel Dome system with additional radar, command-and-control (C2) and missile-battery capabilities, adding to a foundational phase already delivered earlier in 2025 valued at around US $460 million. According to reports, Aselsan’s award of the procurement contract will expedite the deployment of additional battalions and strengthen the system’s export-readiness.

As detailed in the article cited in the announcement, the deal stems from Ankara’s strategic decision to develop national air-defence sovereignty after decades of dependency on foreign systems. The article notes that the contract reflects Italy and Türkiye’s renewed drive towards localisation, and that the systems will be fully integrated under the “Steel Dome” umbrella. This reporting also emphasises that the procurement is part of a larger investment drive by Aselsan in its new technology base in Oğulbey, Ankara.

Background and Strategic Significance

The Steel Dome programme, formally approved by the Turkish defence-industry executive committee in August 2024, aims to deliver a “system-of-systems” shield combining surveillance radars, electro-optical sensors, network-centric C2, and missile layers capable of countering drones, cruise missiles and tactical ballistic threats. The initial tranche saw nearly 50 elements delivered to the Turkish Armed Forces in August 2025. The project builds on Turkey’s long-standing goal of defence-industrial independence – a goal sharpened by past export restrictions and dependencies.

For Aselsan, the contract is not only a major domestic order but also a crucial stepping-stone for export ambitions. With the company investing some US $1.5 billion to build its Oğulbey technology base—expected to be Europe’s largest integrated air-defence facility—capacity to deliver for export markets is being explicitly scaled. The modularity of Steel Dome, and its Turkish-domestic supply-chain content, make it attractive for partner nations which may face export constraints from traditional Western suppliers.

Asia-Pacific Export Implications

While the contract serves Turkey’s internal defence needs, the Asia-Pacific region looms large as a strategic export target. Defence demand in the Asia-Pacific—driven by maritime and aerial threats in the South China Sea, Taiwan Strait, and wider Indo-Pacific corridor—is increasing rapidly. Turkey’s ability to offer a networked, layered, indigenous air-defence suite may appeal to countries in the region seeking alternatives to US, Israeli or Russian systems. Aselsan has already flagged interest from Gulf states and Eastern Europe, but a push into Asia-Pacific would open substantial opportunity. For instance, Southeast Asian nations looking to upgrade short- and medium-range air-defence capabilities could partner with Ankara under co-production or transfer-of-technology frameworks.

Furthermore, as major Indo-Pacific powers invest in layered air and missile defence architectures, Turkey’s Steel Dome offer may compete as a more accessible option. By supplying command-and-control, radar and missile-battery layers under a single integrator (Aselsan), the system may appeal to smaller regional states seeking turnkey solutions.

Outlook and Conclusion

This €1.3 billion contract underscores Turkey’s growing maturity as a defence-electronics supplier and confirms Aselsan’s ambition to become a global player. Internally, the Steel Dome programme strengthens Turkey’s national defence posture; externally, it signals that Ankara is now serious about exporting air-defence systems into the global arena—Asia-Pacific included. The deal offers insight into how emerging defence suppliers are challenging established industry players by combining domestic innovation with aggressive export strategy.

As the next phase of Steel Dome moves from delivery of foundational elements to full-scale deployment and export readiness, it will merit close attention from those tracking air-defence architecture, regional procurement trends and the evolution of Turkey’s global defence footprint.