A South Korean firm will supply transmissions for the engines to be used on Türkiye’s domestic main battle tank (MBT) project, Altay, which was on hold after a deal with a German company collapsed.
SNT Heavy Industries will supply Altay producer BMC with a 1,500-horsepower automatic transmission, the company said Monday.
It said the export deal includes $74.9 million of supply until 2027 and has an option for further sourcing priced at $141 million between 2028 and 2030.
The South Korean company said the deal was signed after a test evaluation, including an endurance driving test last year.
"It is a valuable achievement through a harsh test evaluation, such as completing a night-based driving of about 200 kilometers (124.27 miles) a day even in the local rough terrain and environment," the company said, adding that their transmission could perfectly replace the German parts.
Previously, the next-generation battle tank's prototype was powered by a 1,500 horsepower diesel engine from Germany's MTU Friedrichshafen GmbH. The German Rheinmetall had also established a joint venture with BMC aimed at joint production of armored vehicles, particularly the Altay. However, the production and supply of the tank engine came to a halt following Berlin’s decision to limit arms exports to Türkiye, a longtime NATO ally.
The German arms embargo resulted from Türkiye’s counterterrorism operation in northern Syria that targeted both Daesh terrorists and the PKK terrorist group and its Syrian branch, the YPG.
Ankara has long criticized German authorities for not taking serious measures against the PKK, which is listed as a terrorist organization by Türkiye, the United States and the European Union, and waged a terror campaign against Türkiye for more than 40 years, causing the deaths of nearly 40,000 people, including women and children.
Media reports said previously that BMC was also negotiating an agreement with two South Korean companies, Doosan Infracore Co. and S&T Dynamics Co., for the engine and transmission.
Turkish defense officials have reiterated several times that the engine to be purchased from abroad will only be used on the first mass-produced tanks. In subsequent productions, Altay tanks are to be powered with domestic engines that are under production.
Türkiye completed the ignition of its first nationally developed 1,500-horsepower engine, BATU, in May. It is projected to power various armored vehicles and tanks, potentially including the Altay.