OTOKAR Romania Joint Venture: Enhancing Defense Production
**OTOKAR, a prominent Turkish manufacturer of land vehicles, has made a significant leap forward by signing an agreement to establish local production in Romania. This move follows the “1059 COBRA II ATBTU” contract inked with the Romanian Ministry of Defense in November 2024, whereOTOKAR entered a Joint Venture Agreement with Automecanica S.A., a key player in the Romanian defense industry. This collaboration aims to bolster the defense capabilities of Romania through the local production of military vehicles.**
The newly formed joint venture will not only produce COBRA II 4×4 armored vehicles in Romania but will also focus on engineering, marketing, and after-sales services within the country. According to the agreement, both OTOKAR Land Systems SRL and Automecanica S.A. will share equal ownership in the Joint Venture Company, each holding a 50% stake. This partnership marks a strategic milestone in OTOKAR’s expansion plans.
A Strategic Partnership for Defense Advancement
OTOKAR’s General Manager, Aykut Özüner, expressed enthusiasm over the agreement, highlighting OTOKAR’s status as Turkey’s largest exporter of land systems. Özüner emphasized that this partnership is a significant step in OTOKAR’s growth strategy within the defense sector. “We’re excited to announce this initial step towards setting up our joint venture in Romania to produce COBRA II vehicles. This initiative not only marks a crucial point in our strategy but also opens doors for broader global market expansion,” he stated.
Andrei Scobioala, Chairman of Automecanica S.A., shared his excitement about the partnership, underscoring its potential to contribute significantly to the Romanian economy and the capabilities of its armed forces. He remarked, “We take great pride in collaborating with OTOKAR, known for its exceptional capabilities. This project is pivotal for developing local defense industry capabilities and holds great significance for us.”
COBRA II Tactical Vehicle Procurement Process
As part of the defense procurement process in Romania, OTOKAR submitted a bid for the 4×4 Light Armored Tactical Vehicle tender issued by Romtehnica S.A., acting on behalf of Romania’s Ministry of National Defense. This process commenced on March 20, 2024, followed by thorough technical evaluations, field tests, and commercial assessments.
By October 4, OTOKAR had been invited to enter contract negotiations for the procurement after successfully completing all evaluation phases. In late November, the company announced its victory in securing a contract for 1,059 units of the 4×4 Tactical Wheeled Light Armored Vehicle, worth approximately 857 million euros, excluding VAT.
Production Dynamics and Future Deliveries
The contract encompasses the delivery of a total of 1,059 COBRA II 4×4 armored vehicles along with integrated logistics support services. The agreement specifies that the production will start with 278 units to be manufactured in Turkey, while the remaining vehicles will be produced locally in Romania. This production strategy not only fosters local industry growth but also strengthens logistical efficiency.
Deliveries of the armored vehicles are scheduled to commence in the last quarter of 2025, with completion expected in designated batches over a five-year period. This initiative is part of OTOKAR’s broader strategy to enhance its presence in international markets, including recent developments in Poland, marking a noteworthy expansion for the company.
