TÜMOSAN and Daedong Forge 5-Year Power Transmission Partnership: A New Era for Turkey's Agricultural Machinery Sector

Turkey's TÜMOSAN and South Korea's leading agricultural equipment maker Daedong are signaling a new era in the country's ag‑machinery ecosystem with a five‑year power‑train partnership.

Strategic Bridge: Joint Production of Power‑Train Systems

TÜMOSAN and Daedong signed an agreement in 2024 to co‑produce hybrid engines and power‑train technologies in Turkey for a 5‑year term. The move adds international R&D capacity to domestic manufacturing, aiming for a technological leap in the sector.

Market Dynamics: Turkey‑Korea Agricultural Machinery Competition

■The Turkish ag‑machinery market, growing at %15 annually, targets a $1.2 billion turnover by 2025.

■Daedong holds a %20 market share in Asia, and the partnership could open a new export channel through Turkey.

■The joint venture will boost TÜMOSAN's annual production capacity by %10, enhancing the competitiveness of local dealers.

Financial Attractiveness and Investment Flow

■The project will secure a low‑interest loan of $150 million from the Turkey Development Bank.

■Daedong's equity injection amounts to $300 million, strengthening the venture's capital structure.

■Regional supply‑chain integration is expected to cut costs by %8.

Risk Assessment and Future Outlook

■Technology transfer delays could pose a %2‑3 timeline risk in the first two years.

■Currency fluctuations, especially a %5 swing in the USD/TRY rate, may affect cost components.

■In the long term, the partnership could enable TÜMOSAN to enter the European market, increasing exports by %12.

Kerem Tufan – Director of Commercial Loans and Central Bank Policies

This collaboration exemplifies the type of initiative supported by Turkey’s SME‑focused credit policies. Low‑interest financing and an international partnership can positively accelerate commercial credit growth. However, effective hedging against currency risk will be crucial to mitigate the macro‑prudential strain on the banking sector.