MKE establishes 'Zafer' subsidiary in Egypt for joint production

Machinery and Chemical Industry (MKE) General Manager İlhami Keleş said the Turkish defense manufacturer has established a wholly owned subsidiary in Cairo named "Zafer" to facilitate joint production projects with Egypt, emphasizing that the company views Cairo as a strategic partner for joint business ventures rather than merely an export destination.

Joint production agreements

Speaking to Anadolu at the El Alamein International Airshow, Keleş said MKE signed a memorandum of understanding with Egypt's Ministry of Military Production covering the joint manufacture of energetic materials, explosives and various ammunition equipment. "We signed a contract with Egypt for the joint production of energetic materials and explosives, as well as the joint production of various ammunition equipment," he said, adding that the company also finalized the sale of its TOLGA counter-drone system to Egyptian forces. He described the initial TOLGA delivery as a symbolic transaction aimed at introducing the system into Egypt's inventory, noting that MKE plans to use the Cairo-based entity as a platform to market the technology across Africa and eventually the Gulf.

'Zafer' subsidiary

Keleş said MKE established the Zafer company in Cairo under Egyptian law as part of its agreement on joint production with Egypt. "We established a company called 'Zafer' entirely under Egyptian law, with all of its shares owned by MKE," he said, explaining that the entity will manage commercial activities and serve as the vehicle through which joint production facilities with local partners will operate. He noted that Zafer will establish partnerships with other companies and local firms in Egypt, contributing to commercial operations not only in Egypt but also across Africa and the Gulf region.

Technology transfer priority

Keleş stated that MKE's accumulated know-how has become increasingly valuable as countries worldwide seek to localize defense production capabilities. "All countries are now striving to carry out this kind of production in their own countries. As a result, the ability to transfer technology has begun to take precedence over product exports," he said. He added that MKE is pursuing similar joint venture models in Canada, the United States, Malaysia and Indonesia, having entered a tender in Malaysia that includes localization requirements.