Koç group loses another national defense contract

ANKARA - Hürriyet

The Defense Industry Undersecretary has announced Sedef Shipbuilding Yard has won the Landing Platform Dock (LPD) tender, revealing that Koç Holding’s RMK Marine, which recently lost another national contract, has been left out.

Defense Industry Executive Committee, which is Turkey’s top defense decision-making body, has decided to kick off contract negotiations with Sedef shipbuilding yard that is known to be close with the Justice and Development Party (AKP) government. The committee also named Desan Deniz İnşaat as the second alternative to be approached in case of any problems with Sedef.

According to SSM, the LPD’s main purpose is the acquisition of one Landing Platform Dock in order to meet the operational requirements of the Turkish Naval Forces.

With the announcement of the decision, Koç Holding’s RMK Marine appeared to be losing another major national defense project, following cancellation of the Milgem project in late September.

The contract to produce six corvette ships by Koç Holding had been cancelled and a contract to build two ships would be awarded to the Turkish naval shipyard.

The LPD tender result was also expected to be announced at the committee’s Sept. 26 meeting, during which the annulment of national warship contract was agreed upon.

Based on unknown reasons, the winner of the LPD tender was announced Dec. 28, with the permission of Turkish Prime Minister Recep Tayyip Erdoğan, who leads the committee.

Koç group was among companies that were slammed by the prime minister for supporting Gezi Park demonstrations that continued throughout the summer in protest at the government’s policies.

Divan Hotel in Taksim, which belongs to the Koç Group, had opened its doors to the Gezi protesters who were exposed to tear gas.

After the Gezi protests, the group’s flagship company, TÜPRAŞ, also faced a number of tax and quality controls.