Chinese firm under U.S. sanctions wins Turkey missile defence system tender

Source: Reuters

(Reuters) - NATO member Turkey has chosen a Chinese defence firm hit by U.S. sanctions to co-produce a $4 billion long-range air and missile defence system, rejecting rival bids from Russian, U.S. and European firms.

Western defence analysts said they were surprised by the choice of the Chinese system, having expected the contract to go to the U.S. Raytheon Co (RTN.N) company, which builds the Patriot missile, or the Franco/Italian Eurosam SAMP/T.

Turkish analysts said they believed Ankara had chosen its Chinese partner for technological reasons as well as a lower price.

"Turkey's NATO allies are distanced to the idea of co-production and technological transfer," Atilla Sandikli, the chairman of think-tank Bilgesam and former high-level officer in the Turkish army, said.

"But the Chinese firm states the opposite. I think Turkey's choice is a message to its NATO allies in this sense."

Read more: http://uk.reuters.com/article/2013/09/27/uk-turkey-china-defence-idUKBRE98Q0I520130927