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A preliminary agreement worth $500 million for the sale of 250 armored personnel carriers would be the largest single export deal in the history of Turkey's defense industry, according to a procurement official.
A letter of intent was signed in mid-April by Turkey's FNSS defense company and the Malaysian government. The two sides are expected to finalize a formal contract soon, said the official, speaking Tuesday on the condition of anonymity.
Ankara-based FNSS is a joint venture between Turkey's Nurol Holding and U.S.-based BAE Systems Land & Armaments, with the majority share belonging to the Turkish company.
The vehicle, the Pars 8x8, will be co-produced with Malaysian partners in the Southeast Asian country. "With planned follow-on orders, the program is expected to become much larger, and FNSS' share is expected to exceed $500 million," the procurement official said.
FNSS had originally developed the Pars 8x8 for the Turkish military. In the Malaysian tender, FNSS came ahead of Swiss and Finnish rivals.
Turkish defense officials view the Malaysian deal as a breakthrough in efforts to win larger-scale foreign contracts.
The United Arab Emirates also has tested the Pars.
Otokar, another leading Turkish company selected to develop Turkey's first main battle tank, the Altay, also has exported armored vehicles to more than 10 countries in the Balkans, the Middle East and Southeast Asia, although its individual contracts have been smaller than FNSS' Malaysia deal.
"Armored vehicles are one of the strongest sectors in our defense industry," said Kaya Yazgan, secretary-general of Turkey's Defense Industry Manufacturers Association, or SaSaD, an umbrella group for Turkish-based defense companies.
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