MRO & Manufacturing
Turkish Aerospace Subsidiary TEI Wins $2.95B Engine Production Contract
TAI’s subsidiary TEI secured a $2.95B export deal for engine production and maintenance across 22 aviation programs, elevating its backlog to $8.2B.
This article is based on official announcements from the Turkish Defense Industry Agency (SSB) and Turkish Aerospace Industries.
Turkish Aerospace Subsidiary TEI Secures $2.95 Billion Engine Production Order
Turkish Aerospace Industries (TAI) has started 2026 with a significant milestone, announcing that its engine manufacturing subsidiary, TUSAS Engine Industries (TEI), has secured a massive $2.95 billion export order. The agreement, revealed on Friday by the Turkish Defense Industry Agency (SSB), covers high-value engine production technologies and maintenance services for an international client.
According to the official statement from SSB President Haluk Görgün, the deal encompasses 22 different engine programs serving both civil and Military-Aircraft sectors. This contract marks the first major export success for the Turkish defense industry in 2026 and propels TEI’s total order backlog to a record $8.2 billion.
The announcement underscores Turkey’s growing influence in the global aerospace supply chain, shifting from a purchaser of technology to a critical manufacturing hub for advanced aviation components.
Deal Scope and Financial Impact
The $2.95 billion agreement is one of the largest single export Orders in TEI’s history. While the specific customer was not named in the initial public release, the scope of work is extensive. Officials confirmed that the contract includes the production of high-tech engine parts as well as MRO services.
Deliveries and services under this new contract are scheduled to commence in 2026. The infusion of this order significantly strengthens TEI’s financial outlook, bringing its total confirmed order volume to $8.2 billion. This backlog ensures sustained production activity and highlights the company’s capacity to handle large-scale, long-term international commitments.
In a statement regarding the deal, SSB President Haluk Görgün emphasized the strategic importance of the contract:
“While 2025 ended with record-breaking achievements, TEI has achieved its first major export success of 2026. The $2.95 billion order won from abroad is a strong confirmation that Türkiye is among the world’s leading centers in high value-added engine production technologies.”
Haluk Görgün, President of the Turkish Defense Industry Agency (SSB)
Strategic Expansion of Turkish Aviation
This agreement aligns with Turkey’s broader strategy to treat defense and aviation as a “holistic ecosystem.” By integrating deeply into global supply chains while simultaneously developing indigenous platforms, Turkish companies are aiming to secure long-term sustainability.
Dr. Mehmet Demiroğlu, General Manager of TAI, noted that the deal validates the engineering competence and production discipline established at TEI over the last four decades. The company, which was established in 1985, has evolved into a Manufacturing powerhouse capable of producing over 1,500 different parts for 50 distinct engine programs.
Demiroğlu expressed optimism for the year ahead, stating:
“The $2.95 billion export success… confirms our quality and capabilities in engine production. This good start has reinforced our belief that 2026 will be a year full of breakthroughs.”
Dr. Mehmet Demiroğlu, General Manager of TAI
AirPro News Analysis
The GE Aerospace Connection
While the official announcement refers to an unnamed “international client,” AirPro News notes that TEI’s corporate structure provides strong context for this order. TEI is a joint venture between Turkish Aerospace Industries (50.5%), GE Aerospace (46.2%), and other Turkish foundations. TEI is already the largest supplier of structural parts for several GE engines globally.
The mention of “22 distinct engine programs” and a mix of civil and military applications strongly suggests a renewal or expansion of agreements related to major global platforms. TEI is a critical supplier for the LEAP engine (powering the Boeing 737 MAX and Airbus A320neo), the GEnx (Boeing 787), and the F110 engine (F-16 fighter jets). Given the current global strain on aviation supply chains and the desperate need for increased engine production rates, a $3 billion commitment likely represents a long-term lock-in of manufacturing capacity for these high-demand programs.
Frequently Asked Questions
Who is the customer for this $2.95 billion order?
The official announcement did not name the specific client, referring only to an “international” source. However, given TEI’s joint venture status, the order is likely linked to major global OEMs such as GE Aerospace.
What does the contract cover?
The contract covers the production of high-value engine parts and MRO (Maintenance, Repair, and Overhaul) services across 22 different civil and military engine programs.
When will production begin?
Deliveries and services associated with this new order are scheduled to begin in 2026.
What is TEI’s total backlog?
With the addition of this $2.95 billion deal, TEI’s total order backlog has reached $8.2 billion.
Sources
Photo Credit: AA Photos