Turkish defense company Baykar plans to complete construction of its factory in Ukraine within two years, CEO Haluk Bayraktar said on Thursday, after the company became widely known for the success of its drones in countering Russian forces.

The drones supplied to Ukraine by Baykar played an important role in protecting Ukraine against Russian armored vehicles and anti-aircraft systems in the first weeks of the Russian invasion.

The Bayraktar TB2 drone has become so popular with the public that Ukrainians have written a song about it, and some allies have launched unprecedented crowdfunding campaigns to buy more.

As part of an agreement between Turkey and Ukraine signed just before the Russian invasion on February 24, Baykar agreed to build its second plant in Ukraine.

Turkish drones with Ukrainian engines

Chief executive Haluk Bayraktar told Reuters on Thursday that plans were moving forward despite obstacles created by the Russian invasion.

“Our plan is moving forward,” the CEO said on the sidelines of the SAHA defense exhibition in Istanbul.

“Now we have an architectural project. The stage of detailed design is completed. And we will start the actual construction…within two years we would like to complete it,” Haluk Bayraktar said.

Ukraine is an important part of Baykar’s supply chain, particularly with the new Akinci drone and the Kizilelma, or Golden Apple, drone fighter currently under development. Both use Ukrainian engines from Motor Sich and Ivchenko-Progress.

Turkish drones bought by dozens of countries

The company’s deployment of the Bayraktar TB2 drone has been a major factor influencing conflicts from Syria to Azerbaijan to Ukraine, catapulting Baykar into the global spotlight and turning it into a major manufacturer and exporter.

The combat-proven TB2 drone is sold in 24 countries, including NATO member Poland, and the company has signed deals with five countries to export its much larger sibling, the Akinci.

While the TB2 can take off with missiles or equipment weighing up to 150 kg, the Akinci, first delivered to the Turkish military last year, can fly much higher and take off with 10 times its weight.

Double profit in 2023

The expanded order book is expected to generate export revenue of about US$1 billion this year, Bayraktar said, up about 50 percent from last year’s US$650 million, with a further 50% increase expected in 2023.

Although Baykar is not Turkey’s only developer of military drones, the TB2 has played such an important role in the conflicts that it now leads Turkey’s global defense exports.

According to the Assembly of Turkish Exporters, this company accounted for a fifth of Turkey’s defense exports worth $3.2 billion last year.

Investments in production

The company will invest in the expansion of production lines, Bayraktar said.

“Our production capacity is TB2, we make 20 units per month. In 2023, our target is to produce at least 30 (units) per month,” the Baykar executive said.

Research and development of the Kizilelma drone, which analysts say represents a significant expansion of low-flying reconnaissance and missile-carrying drones, will also accelerate, Bayraktar said.

Kizielma will be able to take off and land on an aircraft carrier with a short runway, and its first flight is expected in the coming months.

The successor of the Bayraktar drone will be improved

The TB3, a version of the TB2 capable of operating on short runways, should complete its testing phase by the end of 2023, Bayraktar said.

The company is also expanding its focus on space technology to complement its self-driving car system.

“Now we are investing in space technology… Not in well-established segments, but in new areas where new innovative solutions can be brought,” Bayraktar said.

Baykar also invests in some companies in its extended supply chain.

“We invest in companies that bring value-added elements to our systems … in communications, optics, network architecture,” Bayraktar said.