MKE Enters Egyptian Defense Market: “Zafer” Subsidiary and Joint Production

Turkish defense manufacturing giant Machinery and Chemical Industry (MKE) has officially entered the Egyptian market, establishing a wholly owned subsidiary named “Zafer” (Victory) in Cairo. This strategic move aims to manage MKE’s commercial activities and support joint production projects targeting defense markets across Africa and the Gulf region.

Speaking at the El Alamein International Airshow in Egypt, MKE General Manager Ilhami Keles emphasized that the company views Egypt as much more than just a destination for exports. “We are focusing on Egypt not merely as a ‘market,’ but as a country with which we can do joint business,” Keles noted, highlighting the deep historical and political ties shared by Türkiye and Egypt.

Joint Production and Technology Transfer

MKE recently signed a memorandum of understanding with Egypt’s Ministry of Military Production. The contract paves the way for the joint production of energetic materials, explosives, and various ammunition equipment.

This agreement underscores a growing global trend in the defense sector. “All countries are now striving to carry out this kind of production in their own countries,” Keles explained. As a result, the ability to transfer technology and establish localized defense ecosystems is taking precedence over direct product exports.

With Egypt possessing a robust existing capability to produce military vehicles, MKE plans to integrate Egypt’s manufacturing strengths with Turkish turret systems, command-and-control technology, and comprehensive hard-kill and soft-kill solutions.

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The TOLGA Counter-Drone System

A key component of MKE’s recent regional engagement is the TOLGA counter-drone system, designed to detect and neutralize aerial threats—an increasingly critical capability given the proliferation of asymmetric warfare technologies.

MKE has successfully sold the TOLGA system to Egypt. While Keles described this initial sale as a symbolic step to introduce the system into Egypt’s inventory, the long-term strategic vision is broader. MKE plans to leverage its new joint venture in Egypt as a platform to market the system throughout Africa and eventually the Gulf. Local partners at the El Alamein exhibition have already expressed strong interest in acquiring TOLGA systems to address emerging aerial threats.

‘Zafer’: Expanding the Global Footprint

The newly established Cairo-based company, Zafer, will operate entirely under Egyptian law while remaining 100% owned by MKE. Zafer will serve as the primary vehicle for MKE’s commercial activities in the region, managing the joint production facilities established with local partners.

“Zafer will be a partner in those local companies,” Keles explained. “We established this company in Cairo to contribute to our commercial operations in Egypt, as well as our activities in Africa and the Gulf region”.

This expansion into Egypt is part of MKE’s broader strategy to widen its production network and global partnerships. Following their recent contract signing at the defense exhibition in Sarajevo, MKE is also pursuing joint ventures in Canada, localization tenders in Malaysia, and potential investments in the United States and Southeast Asia. Driven by a conducive international environment, MKE is actively transitioning from a traditional manufacturer into a highly integrated, global defense solution provider.

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