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Navigating Toward Success with Incentives in Aviation

Issue 1 - 2019
Navigating Toward Success with Incentives in Aviation
Voytes plays an active role in finding financial solutions through incentives and grants that focus on accelerating industrial development in Aerospace, Aviation, Satellite, Space and Advanced Technologies

With the advance of technology in aviation industry, Turkish Government offers variety of support program with a purpose of improvement of the potential suppliers in Turkey. Incentive systems are specifically designed to encourage investments that have the potential to reduce import dependence on intermediate goods that are important for the country's strategic sectors like aviation, aerospace and advanced technologies.

The main objectives of the incentive systems are to reduce the current deficit, to expand the investment supports provided to the less developed regions, to increase the amount of support elements, to encourage clustering activities, and to support investments that will provide technology transformation. Technological Product Investment Program is one of the important support program that funded by Ministry of Science and Industry.

Technological Product Investment Program

“KOSGEB” is an incentive program carried out by the Small and Medium Enterprises Development Organization. KOSGEB has announced a call for participation in the “Techno-Investment” program for SMEs by using the motto: “We will provide the necessary support to all SMEs that produce innovative, technological and high added value products and that want to transfer these products to international markets and to focus on exports”.

With this program, the aim is to commercialize new products that emerge as a result of R&D and innovation activities in priority technology areas in order to boost Turkey’s economy to become competitive on an international level, to create added value for the country’s economy, to lead the export of technological products by actively participating in international markets, and to support the investments of enterprises in our country.

The product outcome of the Investment must be as follows:

The enterprise should have a specific certificate confirming that the technological product has emerged successfully. Within 5 (five) years from the date of finalization, the applicant is provided with support for the technological product. Owners of the technological products, the prototype studies of which have been completed or enterprises that have taken over the right of use from the right holder through a contract are able to benefit from this program. For technological products protected by patent specification, it is required that the patent has been transferred by the Turkish Patent Institute and Trademark Office.

Micro, Small and Medium Scaled SMEs can benefit from this support. The maximum limit of the support that will be granted under the SMEs Technological Product Investment Support Program is 5,000,000.00 TL (five-million), as refundable and/or nonrefundable. Early payment can be made at a rate of 25% of the total amount of support as set forth in the initial board decision.

Applications will be received on a regular basis throughout the year. In the SME Technological Product Investment Support Program, the duration of the investment project is a of maximum 36 (thirty) months. An additional period of six (6) months can be given by an approval decision of the Board.

Machine-Equipment and Software Expenses Support

Related to the production of the technological product subject to the investment project;

Machinery-equipment and mold expenses,

The transportation, assembly and insurance expenses of the machinery-equipment and the mold,

Software costs,

Production line design expenses refundable and / or non-repayable support is provided for enterprises.

The machine-equipment and the mold to be received within the scope of the support should be new. However, if previously provided imported machinery-equipment is new on the date of importation and if the machinery-equipment are only 3 years old at the application of the investment project, then it will be considered within the scope of support.

In case of the purchase of machine-equipment and the mold from domestic or foreign countries, all transportation and insurance expenses from the place of purchase, for the investment to be made, are supported.

Personnel Expense Support

Non-refundable support is given for newly recruitment personnel provided that they work in the investment project. Personnel employed from the date of application of the investment project are considered as new. Non-refundable support is provided for the personnel expenses at the net rate.

Training & Consultancy Expenses Support

Training Expenses: Includes training service expenses related to the use of personnel involved in the investment project, the related machinery and equipment and software from the service provider from which the machine-equipment and software are purchased.

Consultancy Expenses: Covers the costs of consultancy services for technical, design, engineering, finance, etc. to improve and implement the investment project.

The upper limit of this support is 150.000 TL as non-refundable.

Rent Expenses Support

Rent expenses support is provided when the investment is accepted as an investment project application and the support decision is supported with no refund over the net rental price (except withholding and joint expenses) for the new area to be leased within the scope of the production of technological product. The leased place shall be deemed as new from the date of the application of the Investment Project.

Personnel Expenses Support

Support is provided for new personnel to be hired under the introduction and marketing of technological products and working toward the use of machinery and equipment purchased within the scope of the investment. Personnel employed within the last 1 year as of the expiry date of the investment project are accepted as new. Non-refundable support is provided for personnel expenses at the net rate.

Energy Expenses Support

Non-refundable support is provided to companies for electricity and natural gas energy costs used for the production of technological products.

Within the scope of the “Technological Product Investment Support Program”, Voytes assists clients with the preparation of project feasibility studies, market research reports, technical and financial analysis, investment phases, project software, execution process and completion of the project.

Who is VOYTES?

Since 2010, Voytes Turkey has been offering financial solutions such as government incentives or private funds to a wide range of companies, supporting them to establish and implement strategies carried out with sectoral associations, professional chambers, organized industrial zones, universities and the Ministry of Trade.

In addition, Voytes Turkey prepares feasibility studies and market research reports, along with the expertise of incentives to inform investors about favorable and the most profitable investment opportunities. Thereby, through the use of incentives, Voytes Turkey impacts the reduction of costs associated with creating more sustainable investments in Turkey. The company has completed very important projects in strategic sectors in areas such as machinery, defense and aerospace, satellite / space technologies, engines, metallurgy, construction machinery, fabricated metal products, robotics and automation technologies and the digital transformation of industry. Voytes has also been providing accounting, tax and financial regulatory consultancy and expert legal services. Voytes gets to know every single detail about its customers’ business by diving in deep with fundamental working principles. With a multidimensional approach, instead of just doing what is expected, Voytes creates innovative and resourceful solutions and has demonstrated proven achievements through the successful implementation of these solutions. It has developed and finalized a wide range of projects in the fields of incentives, grants and government support project management.

Voytes has executed and continues to execute various projects regarding Turquality Preparation Projects, TÜBİTAK Grant Projects, Ministry of Industry Clustering Projects, Ministry of Trade URGE (Development of International Competitiveness) Projects, Global Supply Chain, Design – Product Development, Industrial Theses (San-Tez) Projects, Project Based Technological Production Investment Grant Projects, KOSGEB Grant Projects, Ministry of Industry Technological Investment Projects, European Union Projects, Ministry of Development – Development Agency Projects and Center of Attention Projects as well as Presidency of Defense Industries R&D Projects and Investment Fund Preparation Projects.

Voytes Turkey carries out incentive and grant project activities in the Defense and Aviation sectors. As of today, Voytes has already prepared and obtained the approval of two grant projects worth approximately US$ 6 million within the scope of the Ministry of Trade’s Development of International Competitiveness Program (UR-GE) for the SAHA Istanbul Association with 32 companies in the fields of Defense and Aviation. Voytes continues with dedication and expertise to provide executive consulting for these cluster projects.

Within the scope of the projects that Voytes is involved in, the reports prepared for requirement analysis, market research, offset applications, cluster analysis, standards and certifications, NATO STO activities, etc. have become an important source of well-founded information in terms of shaping a credible roadmap for the sector. The objective of the roadmap is to also include Turkish companies in the Global Supply Chain later on and to increase their competitiveness.

In addition, Voytes provided cooperation with regional institutions and stakeholders in Kayseri for the establishment of the Center of Excellence under the Aircraft Maintenance and Construction Center which is amongst Turkey’s 2023 targets. The company’s efforts will continue to generate added value via expert consulting services.

In the next issue, the Global Supply Chain Competence Project will be explained in detail; a concept which includes supporting leverage of up to 50% of expenses for a total of US$ 1.000.000 over two years

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