Rolls Royce, the British automotive and aviation giant, and Kale Group, one of Turkey’s prominent defense contractors, have announced the establishment of a joint venture.
Kale Group will own 51 percent and Rolls Royce 49 percent of the joint venture company, which will be known as the TAEC Aircraft Engine Industry Corporation. The agreement was signed on May 8, 2017, in Istanbul. TAEC will produce jet engines for both military and civilian purposes, with intellectual property rights to the engines remaining in Turkey.
Kale Group announced that they are taking the lead on the TF-X National Fighter Jet project currently being developed by Turkish Aerospace Industries, Inc. (TAI). The TF-X will be Turkey's first domestically designed and produced fighter jet and it is meant to replace the current ﬂeet of F-16s in the early 2020s.
The joint venture follows the USD 125-million-defense deal signed between Turkey and the UK in January 2017 during UK Prime Minister Theresa May’s visit to Ankara. The deal is intended to promote cooperation between the UK’s Aviation and Defense Company, BAE Systems, and TAI on the TF-X project.