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European nations that abandoned defense investments after the Cold War are now "acting with great panic" as they scramble to rebuild capabilities, according to the CEO of Turkish defense giant Aselsan, which has been selected as one of five companies to design NATO's future air defense architecture.
"Today we see how those countries that didn't make those investments are acting with great panic," Ahmet Akyol told the state-run Anadolu Agency (AA) technology desk at Teknofest Istanbul on Friday, contrasting European defense cuts with Türkiye's sustained military investments over the past two decades.
The statement comes as Aselsan launches construction of its $1.5 billion Ogulbey facility—the largest single defense investment in Türkiye's history—while simultaneously expanding into European and NATO markets previously dominated by Western firms.
Aselsan's selection as one of five firms to determine NATO's air defense architecture highlights the shifting dynamics in European defense, where infrastructure gaps have become increasingly apparent. NATO's secretary general has specifically emphasized Türkiye's necessary role in addressing these shortfalls, Akyol noted.
"At a time after the Cold War when many European countries saw defense investment as unnecessary, abandoned it, and gradually withdrew from these areas, we as a country made determined investments," Akyol said during the interview at the aviation and technology festival.
The company recently signed contracts with NATO agencies for communication and air defense systems, with teams actively working on the alliance's future defense architecture.
While European nations reduced defense spending, Aselsan grew from 2,000 employees in 2004 to 13,000 today, becoming Türkiye's largest employer of engineers and delivering more than 2 million products to Turkish and allied militaries.
"This acceleration in recent years is a result of our nation's and state's conscious and persistent policies in this field," Akyol explained, crediting government strategy for the company's expansion during a period of Western defense industry consolidation.
The company now operates in 25 countries, with subsidiaries in Poland, Romania, and North Macedonia, and recently signed a joint venture agreement with another European nation at the London defense exhibition.
As European nations rush to rebuild defense capabilities, Aselsan has already developed quantum-resistant cryptographic devices and achieved independence in military-grade chip production across radar, electronic warfare, and electro-optical systems.
"We are experiencing the joy of designing our new chips in the quantum field," Akyol said, noting that Aselsan has invested in quantum technology for seven to eight years, while many Western nations are just beginning such programs.
The company releases more than 30 new products annually, including the ASELFLIR 600 camera system capable of identifying aircraft at 120 kilometers, and has developed quantum computing projects in LIDAR, radar, and superconductors.
Aselsan maintains 10% annual growth in dollar terms and has become the Istanbul Stock Exchange's most valuable company, achieving kilogram-per-dollar export levels of $2,000 through high-value technology products.
"Aselsan marked last year with its financial performance. We expect to exceed last year in new contracts, delivery amounts, and export contracts. We again foresee double-digit growth," Akyol stated.
The company has delivered more than 500 different products to inventory, including recently modernized tanks for Türkiye's military and advanced radar systems, completing acceptance testing.
While European defense companies struggle to meet military demands, Aselsan has expanded into civilian sectors, developing:
The company has also secured transportation contracts worth over €200 million ($235.1 million) in the past year, with trains equipped with Aselsan systems traveling more than 500,000 kilometers and carrying over 500,000 passengers.
With an average employee age of 33 and growing expertise in emerging technologies, Aselsan is positioned to capitalize on European defense reconstruction efforts over the coming decades.
"An Aselsan that increases efficiency, focuses more on high technology, and continuously achieves high financial performance will continue to be seen," Akyol concluded, suggesting the company's growth trajectory will accelerate as European nations scramble to rebuild defense capabilities they abandoned after the Cold War.
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