PEM Engineering carries out important production tasks thanks to its experience in the sector and the connections it has developed, based on its long-term collaborations with foreign companies. The company is engaged in R&D operations in which its partner GES Engineering also participates, while also cooperating with international companies for technologies and products that do not exist in Turkey. Arzu Baytar, Chairman of the Board at PEM Engineering, took the time to speak to MSI TDR and its readers.
MSI TDR: In our interview with Ruhi Baytar, Founder of PEM Engineering, he described a new road ahead for the company, saying, “In the fourth and latest stage, PEM Engineering has been carrying out works to enter into the field of production for the last 7–8 years, with a view to contributing to this change and development.” We would like to talk about what PEM Engineering is planning for this journey. After deciding to focus on production, you first started by partnering with a company that has growth potential, rather than starting a company from scratch. Could you tell us the reasons for that?
Arzu BAYTAR: At PEM Engineering, we have been working on production for a long time. About 20 years ago we convinced our foreign partners to invest in Turkey and to create production facilities, and technologies that did not exist in Turkey up to that point, were transferred through such investments. In 2015, we entered into a partnership with GES Engineering, which was a new development for us in our works related to production.
We had previously worked with GES Engineering, and we knew that it was a company that was extremely open to development. Before deciding to make the investment, we truly believed that we could grow this company, which was founded by three creative, young engineers, directly proportional to our dreams. I would like to take this opportunity to thank each of the founders of GES Engineering, as we have never doubted our decision.
GES Engineering is now on the sixth iteration of TOBB’s TURKEY 100 list, and has succeeded in becoming one of Turkey’s 100 fastest growing companies. I think this is a clear indication of our astuteness when making our choices on this road. We dreamed of the same things together as a team , and we will continue to work hard in the future, as we have in the past, putting our heart and soul into ensuring we achieve this dream.
MSI TDR: In what areas has PEM Engineering contributed to GES Engineering?
Arzu BAYTAR: PEM Engineering has important industrial experience and has been collaborating with several foreign companies for many years. This has contributed significantly to the increased business volume of GES Engineering, both at home and abroad. At GES Engineering and PEM Engineering, all of our departments are working together to maximise our local as well as international business collaborations. As a result of these works, GES Engineering is entering into long-term and continuous business collaborations with foreign companies making investments in Turkey, and provides production and development support to the projects and products of foreign companies with its technological infrastructure. I believe this will contribute considerably to our sector, and more importantly, to our country.
GES Engineering is now on the sixth iteration of TOBB’s TURKEY 100 list, and has succeeded in becoming one of Turkey’s 100 fastest growing companies. I think this is a clear indication of our astuteness when making our choices on this road.
MSI TDR: How do PEM Engineering and GES Engineering synergise?
Arzu BAYTAR: At PEM Engineering, we closely follow the needs of various end users and procurement authorities, both local and foreign. In many cases, these needs can be met through systems created by specific R&D works. In this area, the R&D capabilities of GES Engineering are very important for us.
In terms of meeting the needs, there is a significant synergy between PEM Engineering and GES Engineering. We work together to identify the need, and conceptualise, develop and market the product that best meets this need. Increasing the number of tasks we perform for especially foreign end users and procurement authorities is one of our main goals.
MSI TDR: Exports are extremely important for the commercial sustainability of the sector. What advantages does PEM Engineering’s experience in collaborating with foreign companies bring to the exportation of operations related to production?
Arzu BAYTAR: We have a well-established team at PEM Engineering that has gained considerable experience, and I would like to take the opportunity to thank them all here. They put great effort into supporting GES Engineering by making efficient use of our points of contact with foreign companies, especially with regard to exports. In this context, we have made some strategic cooperation agreements with several foreign companies for joint production operations requiring technologies that are currently lacking in Turkey, and have started the related investments. We are not currently at liberty to share some of these works with the public, but I can give the example of our collaboration with MARTEC on automatic fire suppression systems, since it has already been shared in industrial publications. Within the scope of this collaboration, GES Engineering carries out production operations by blending MARTEC’s 30-years’ experience with its own engineering experience. These fire suppression systems, equipped with electromagnetic valves, allow for the 100 percent testing of all functions, providing the end user with a level of reliability that is unavailable with other systems.
Corporate Structures Make a Difference
MSI TDR: You have developed an understanding of the corporate structures of foreign companies, since you are closely acquainted with them. How does this information affect the corporate development of both PEM Engineering and GES Engineering?
Arzu BAYTAR: PEM Engineering is advancing with bold steps in corporate-related issues, based on its experience with international companies, we are trying to fit same processes into GES Engineering.
This, we believe, will bring a positive contribution to the development of the company. The corporate structures of both PEM Engineering and GES Engineering offer advantages for collaborations in various areas, as well as in the marketing of products. When a prospective partner looks at our companies, they see structures that they can rely on.
MSI TDR: What kind of road map is ahead of you regarding production?
Arzu BAYTAR: We have recently entered into discussions with two international companies regarding their investment in Turkey. As you may guess there might be some challenges in convincing such companies, but we managed to overcome these challenges. Consequently, our investments into the production of their systems are continuing with full cooperation. Our goal is not only to meet needs in Turkey, but also to be able to meet the needs of those around the world from Turkey. We have put a great deal of effort into achieving this, and have come a long way. We hope to start harvesting the fruits of our effects soon.
With regard to new investments, I would like to highlight an important point here. We have always prioritised investments in people. Success depends on team effort, and we have worked day and night with our young and dynamic team with this in mind. This has allowed us to strengthen the GES Engineering R&D department, and to quickly develop new products. Accordingly, our goal is to become an R&D centre as soon as possible.
MSI TDR: Is there anything you would like to add?
Arzu BAYTAR: Today, it is very important to be able to foresee needs at a global scale. Needs evolve and change very dynamically. From a global perspective, there is no time to pause. The ongoing pandemic has compelled PEM Engineering to create new lines of business, and while I cannot go into detail, I can state that we are in discussions with a foreign company that is a global force in its area, about building of a joint facility in Turkey. We are moving ahead and I hope to be able to provide more information about this soon.
On behalf of our readers, we would like to thank Arzu Baytar, Chairman of the Board at PEM Engineering, for taking the time to answer our questions and for providing us with such valuable information.
Ara Spot: GES Engineering is now on the sixth iteration of TOBB’s TURKEY 100 list, and has succeeded in becoming one of Turkey’s 100 fastest growing companies. I think this is a clear indication of our astuteness when making our choices on this road.
— KUTUCUK —
GES Engineering develops innovative mechanical and electro-mechanical solutions, fulfilling the needs of the military, security forces and other companies in the sector. GES Engineering plays an active role in all stages of the development of these solutions, from the identification of the need to the finalisation of the product. Making use of its experience, and its analysis, design, production and installation capabilities, GES Engineering is delivering indigenous solutions that are today being used effectively by domestic and foreign militaries, security forces, and defence and aerospace companies.
GES Engineering launched its operations in 2013 in Ankara as a technology company, and today employs a qualified team of 85 personnel, offering a range of solutions comprising over 10 products. Currently, over 500 products manufactured by GES Engineering are being successfully utilised in the field. GES Engineering can also offer value added engineering, production and testing services, in addition to its indigenous products.