Machine and Chemical Industry Corporation to Be Established with Initial Capital of TRY 1,200,000,000

Establishment of Machinery and Chemical Industries Corporation with Initial Capital of TRY 1.2 Billion According to the law, the Machinery and Chemical Industries Corporation (MKE AŞ) will be established under the Turkish Commercial Code and private law provisions, with initial capital of TRY 1.2 billion. The management, oversight, duties, authority and responsibilities of MKE AŞ will be regulated. The ministry responsible for the company shall be the Ministry of National Defense.

MKE AŞ will conduct its operations with its entire capital held by the Treasury.

MKE AŞ, in line with national security objectives and for military and civilian purposes, shall be authorized to produce or have produced, market and trade all types of weapons, ammunition, explosives and chemical substances, petrochemicals and other chemical products, machinery, equipment, materials, raw materials, vehicles, apparatus, devices, systems and platforms domestically and internationally; engage in representation activities; conduct research and development, product development and engineering activities; perform or have performed modernization, design, testing, assembly, integration and after-sales services; establish thematic research centers/laboratories, special industrial zones or educational institutions for the development of generic and innovative technologies on a domestic and national basis; provide project engineering, consulting, technology transfer, training services, energy, recycling and contract work services to all types of institutions, organizations and consumers; provide logistic support; engage in ammunition sorting and screening activities; and engage in other activities as determined in its articles of association. The company may use raw materials, materials, vehicles, apparatus, devices, equipment, spare parts, systems, subsystems and similar items from the Ministry of National Defense inventory, provided it returns them in the same manner or pays their fair value, in order to fulfill its contractual obligations more effectively. Buildings, factories, manufacturing facilities, workshops, workplaces and similar real estate, land, platforms, weapons, ammunition, equipment, systems and subsystems, and infrastructure and test centers in the Ministry of National Defense inventory may be used free of charge with the approval of the Minister of National Defense. MKE AŞ shall have the authority to establish companies domestically and internationally, acquire established companies, hold stakes in these companies or operate them, open branches/representative offices domestically and internationally as needed, and conduct expropriation for investment projects involving national security and national development through Presidential Decree. The establishment of companies abroad, acquisition of established companies and holding stakes in such companies shall be executed through general assembly decision, following consultation with the Treasury and Finance Ministry. The duties required by MKE AŞ services shall be carried out by personnel subject to the Labor Law. The company may employ domestic and foreign personnel on a temporary or permanent basis in matters related to its field of activity. The shares and subsidiaries of MKE AŞ may not be transferred to domestic or foreign private law natural or legal persons through sale, lease, transfer of operating rights or other dispositions. MKE AŞ and subsidiaries in which more than 50 percent of capital is held by MKE AŞ shall not be subject to the provisions of the Law on Privatization Practices. Goods and services imported within the scope of MKE AŞ's field of activity shall be exempt from customs duties. Personnel subject to the Labor Law employed at the Machinery and Chemical Industries Institution, as well as personnel subject to the schedules (I) and (II) attached to Decree Law No. 399, shall continue to be employed at MKE AŞ with their existing status and titles and their social and personal rights. Source: AA