Daijiworld Media Network - Cairo
Cairo, Feb 6: Turkey’s state-owned arms manufacturer Mechanical and Chemical Industry Corporation (MKE) has signed a major defence export agreement worth $350 million with the Egyptian Ministry of Defence, covering the supply of ammunition and the setting up of production facilities in Egypt.
The agreement was signed during Turkish President Recep Tayyip Erdogan’s official visit to Egypt on Wednesday, where he held talks with Egyptian President Abdel Fattah el Sisi. Sources familiar with the development said the deal marks a significant step in deepening defence cooperation between Ankara and Cairo following years of strained relations.
According to an official statement issued by Turkey’s defence ministry, MKE will export the Tolga Short Range Air Defence System to Egypt as part of the agreement. Sources said the system, designed primarily to counter aerial threats such as drones, is valued at around $130 million.
In addition, MKE will establish a 155mm long-range artillery ammunition factory in Egypt, along with separate production lines for 7.62mm and 12.7mm ammunition. The remaining $220 million of the deal will be invested in setting up these manufacturing facilities, sources said.
The ministry further stated that a joint venture company will be formed between MKE and Egyptian authorities to manage the new production units and enhance export potential within Egypt and the wider region.
Founded in 1950, MKE has been the principal supplier of weapons and ammunition to the Turkish armed forces. The company was restructured in 2021 to modernise its infrastructure and expand its footprint in international defence markets, including exports to NATO allies and partner countries.
Turkey and Egypt began restoring diplomatic ties in 2023 after a decade of tension following the 2013 military takeover in Egypt. Relations have since improved steadily, with both countries finding common ground on several regional security issues, particularly in the aftermath of the Gaza conflict.