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MSI & MENATEK 2022 Interview
7/6/2022
Menatek Walks with Confident Steps to the Future with its Managers in the Aftermath of Late Kazım Ünal.'

Menatek, a subsystem supplier to many armed forces and sector companies around the world, lost its General Manager Kazım Ünal, who was also one of the doyen names of the sector, in May. The management of the company was taken over by Menatek Managing Partner Mehmet Ünal and Business Development and Strategy Director Naz Ünal, who are currently undertaking critical tasks in the company and represent the next generation of Menatek. Mehmet and Naz Ünal talked about the vision that their father Kazım Ünal brought to the company and the company's future goals and growth strategies for MSI Magazine readers.

MSI Magazine: Mr. Mehmet and Ms. Naz, we are all saddened by the passing of your father, Mr. Kazım, who was the founder of Menatek and undoubtedly played a leading role in the company's growth. From a corporate development and sustainability perspective, what kind of Menatek did the late Mr. Kazım leave you?

Naz ÜNAL: Our father was a very visionary person and shed a very good light on our path with his knowledge and culture. He founded Menatek after his retirement with the experiences he gained during his military career and engineering studies. He was well aware of the problems in the supply of subsystems and spare parts, both in the defense industry and on the end-user side. Menatek, which started its life in a small office nearly 30 years ago, has become a critical industry player, exporting products to 23 countries around the world and doing business with many companies in the Turkish defense and aerospace industry. He passed on his knowledge and engineering experience to us, who represent the next generation of Menatek, during the last 10 years we have been working in the company. He has added a vision that can carry Menatek to much more important points in the future.

 

Who is Kazım Ünal?

In 1968, Kazım Ünal graduated from Kuleli Military High School with the first rank and was awarded the Golden Graduation Plaque. He had the honor of receiving his diploma from then President Cevdet Sunay and Chief of General Staff General A. Cemal Tural. He then graduated from Istanbul Technical University, Faculty of Mechanical Engineering with the 3rd place and graduated as a Senior Mechanical Engineer, and then completed his master's degree in business administration at the same university. He worked as Plant Manager in various Main Maintenance Factories of the Ministry of National Defense and the Turkish Armed Forces (TAF).

After his retirement, Ünal founded Menatek in 1995, utilizing the deep knowledge and experience he gained in military uniform. Since its establishment, Menatek has been supplying spare parts to all of Türkiye's strategically important military factories. In 2000, Menatek began cooperating with the United States, becoming an approved supplier to NATO in 2002 and to the US Army in 2006.

Unal, who has been instrumental in Menatek's many firsts throughout its history, has played a major role in reducing Türkiye's foreign dependency by contributing to the indigenization of nearly 15,000 parts, including brake systems, pumps, filters, alternators, generators, starter motors, switches, periscopes, special type bearings, gears and test benches, as well as various products and systems, especially all components of the walking parts of tracked and wheeled military land vehicles.

Major Technological Developments that Kazım Ünal was instrumental in Menatek's Production for the First Time in Turkish History:

The technology of plastering porteur (road) wheels, which are one of the main components of the track parts of tanks

Technology for forging arm assemblies and track arms with track adjustment mechanism

Casting and gear manufacturing technologies to be used in the production of many different types of pumps

Ultra-high precision machining technology for the brake system of 50-ton vehicles and the rotary shock absorber of tanks over 70 tons

Mono-block lamination technology used in periscope manufacturing

Forming technology applied for special types of bearings

Cold forming and robotic welding technologies used in swing arms

Torsion bars and reclamation and preset technologies for tanks weighing over 70 tons

"Beyond all these, the most precious value that Kazım Ünal left to the entire Menatek family is to work tirelessly and without losing motivation and to achieve honorable successes."

Menatek Family

Naz ÜNAL: We talk about this a lot among ourselves: Menatek is actually an unprocessed gem with its know-how and vision. Our father showed us this. We are trying to process this ore. In the future, we will keep our father alive in the corporate culture of the company with the moral values and business culture he left us. While continuing Menatek's growth with new plans, we will carry our company to the future with stronger steps. About 2-3 years ago, Menatek started to experience a generational change and embarked on a journey of transformation in which our father made significant contributions. In line with the strategy we have drawn for this journey, we have set various goals and we are taking firm steps towards these goals. In short, our father left us a young sycamore, and we will take the necessary steps to make this young sycamore even bigger. We will immortalize Kazım Ünal by aligning the company's values with our father's life principles.

Although we are aware that this will not be easy, we are prepared and equipped for this process, which does not scare us. Because his energy, his ability to stay positive and his motivation were a source of inspiration for all of us. His favorite thing was to work without stopping and without giving up. Every day, with the same excitement and dynamism, he took great pleasure in bringing something new to the employees and the company. We will keep him alive by turning these values he left behind into the main culture of the company. Although it will be impossible not to feel his presence and miss him, Menatek will continue on its way, growing and intact.

MSI Magazine: How did Menatek handle the generational change that you mentioned started 2-3 years ago?

Naz ÜNAL: Family companies usually experience great pains when changing generations. Of course, we have also had our share of problems, but we are very lucky in this regard. Our father made us a part of this process long before he passed away. By assigning us critical tasks within the company, he made sure that we learned how to handle these challenging tasks.

Thanks to the trust he placed in us and the wide playing field he left us, we learned how to take the initiative and we gained experience by actually managing all the processes within the company. In this process, we had both failures and strategic breakthroughs that brought the company to where it is today. These have both shaped our activities in the international arena and prepared us for the future. So much so that it made us say, "Look, Menatek can evolve here too." In fact, while our father was alive, we drew a vision for Menatek and created a detailed plan by embroidering all the steps we would take to achieve our future goals. Of course, as in any place where different generations come together, there were conflicts, but our path was clear. In his absence, we will continue this process from where we left off.

Menatek Growing by Maintaining Dynamism

MSI Magazine: Could you elaborate a bit more on this transformation process?

Naz ÜNAL: In order to complete this transformation in a healthy way, we have been receiving support from management consultants for some time. In this process, we have been looking for ways to grow Menatek without making it cumbersome and preserving its dynamism. Our era does not allow for cumbersome structures. We are aware of this and want to preserve the dynamism of our company. On the other hand, we also have growth targets. Therefore, we want to build a scalable and dynamic system that coincides with our growth plans. In short, we dream of a Menatek that grows continuously, but does not become cumbersome as it grows.

When we look at it, Menatek is not just an intermediary company that has subcontractors perform work for the defence and aerospace industry. It is an engineering, operation and project center with a very intricate structure. Thanks to these capabilities, our past experience and the strength we derive from our know-how, we are able to make rapid changes when necessary, and to step into different projects in different geographies, where we can emphasize Türkiye's advantages.

There are significant differences between our business processes a few years ago and today, and we are reaping the fruits of this. We are working much more efficiently now. The projects we have undertaken, the successful deliveries we have realized, our growth and export successes are concrete indicators of this.

MSI Magazine: Will there be any changes in the distribution of duties during this process?

Naz ÜNAL: Within the transformation process I mentioned, we are also building a different structure in terms of management. On the other hand, there is no reason for us to rush in this regard yet. Because we have already been in the decision-making mechanisms of the company for the last few years. We have been working in the company for the last 10 years, and especially in the last 5 years, things were already running via us. Menatek has also grown especially in these 5 years. Therefore, we plan to maintain Mr. Mehmet's and my roles within the company for a while longer.

Within the scope of the transformation, we will create certain critical positions in order to create the structure we envision and for us to be more effective in our areas of expertise. We will bring people with both sectoral and managerial experience to these positions. But we are not in a hurry here either. All of this will happen over time.

In addition, our Board of Directors will also differentiate. We are also planning to create a Board of Advisors. In the Board of Advisors, we want to have doyen names in the sector and in their own fields. We have taken the first steps in this regard.

5 New Countries in the Last 2 years

MSI Magazine: How is this transformation reflected in your organizational chart?

Mehmet ÜNAL: On the one hand, we are expanding the staff of our existing directorates, and on the other hand, we are establishing new units. For example, we have taken serious steps in the area of enterprise resource management (ERP) and we have made a new organization in this area. Apart from that, we have separated our sales, marketing and business development departments from each other. There are currently eight people working in these three separate departments. We took such decision because at Menatek, the processes of creating a project and the subsequent tender phases and relationship management are completely different from each other. Even though these 3 departments are different units, they feed each other and at the end of the day, they complete one job and pass it on to the other. Therefore, even though they are different departments, they work as a team. We have already begun to see how right this decision was and in the last 2 years, we have added 5 new countries to our customer portfolio.

35% Growth in 2021

MSI Magazine: In our interview with you last year, you stated that Menatek grew very rapidly between 2018 and 2020 and that this growth continues. What kind of a 2021 did Menatek leave behind? What were the prominent developments of the past year?

Mehmet ÜNAL: 2021 was actually a milestone year for us. Especially for us two siblings. Because with the impact of our new projects, we experienced a leap in terms of infrastructure, employment and turnover. While expanding our facility on the one hand, we increased our turnover by 35 percent on TL basis and by 10-15 percent on foreign currency basis. We tripled our employment. While managing this growth, we also went through various difficulties and overcame great difficulties. These added very important experiences to us. It was an important year that made us feel stronger and better today and increased our self-confidence. We have already proven this with the projects we have recently received.

2022 Goals are Achieved Step by Step

MSI Magazine: How is the year 2022 going for Menatek?

Mehmet ÜNAL: First of all, I must say this: After the big leap we experienced in 2021, we set ourselves the goal of maintaining the positive momentum we achieved with this growth. Since we are a contract-based company, there can be ups and downs in our work. From now on, we want to draw a graph that always goes upwards. Also, in our new system, the way we conduct operations has changed. Therefore, we need to assimilate this first. We are trying to establish a scalable system in the employment figures we have reached.

In this picture, 2022 was a year for us, which started slowly and then saw very serious developments. This was actually due to the approval of this year's budget of the US Land Forces, one of our biggest customers, 2-3 months late. For this reason, we received some of the projects we had targeted with a delay of 2-3 months. However, the developments so far indicate that we will achieve and exceed our target of 15 percent growth in foreign currency terms that we set for this year.

Menatek Expands to Europe

MSI Magazine: Have there been any other developments in the first half of 2022 that you would like to share with our readers?

Mehmet ÜNAL: This year we added three new countries to our customer portfolio, including a European country. This European country in particular has been a new and beautiful market for us. In addition, in the first half of the year, we were part of a new and very large domestic project. We will produce the parts that make up the complete undercarriage of a modernized tracked vehicle, such as suspension arms, traction gears, sprocket assembly, portor wheels and torsion bars, and we will provide certain systems inside the vehicle.

We have also submitted a series of proposals to NATO this year, and we expect to receive the results of our proposals towards the end of this year. The contracts in question here are long-term and very large projects that will continue for three to five years. In fact, these are projects that will have an impact on Menatek's history, and perhaps enable it to take the next leap forward. For this, we have worked very seriously and made very competitive pricing.

Infrastructure Investments Continue

MSI Magazine: How are your infrastructure investments progressing?

Mehmet ÜNAL: We have developed a very serious test machine for a specific requirement of the US Army. We designed this machine to qualify a bearing to be used in a specific vehicle. We can also test different models of our own NAZ bearings and bearings from other manufacturers. With its capabilities, this machine has significantly paved the way for us, especially for NAZ bearings. Because with a single test bench, we are now able to test many different functions at the same time.

In addition to this, we have a very strategic investment plan, which is still at a mature stage, and we aim to take steps next year. We are currently thinking about how we can do this in the right way. We will actualize this investment with a highly innovative and different perspective.

Countdown to AS9100 Continues

MSI Magazine: Menatek has been working on the AS9100 certification in the past period. Can you share the latest status of these efforts?

Mehmet ÜNAL: When we took the first steps for AS9100 certification, we realized how suitable our existing infrastructure was for AS9100 processes. At this point, I will remember our father once again. He left us a very important experience not only in engineering but also in quality and documentation. In fact, without realizing it, we realized that we were documenting in AS9100 standards at every stage, from raw material procurement to production, from coating processes to tests. We were already documenting all our processes within a certain standard, we just didn't have AS9100. Our work continues and we aim to complete the AS9100 process in the second half of 2023.

First Product Target for BOQU Scooters for the Last Quarter of 2022

MSI Magazine: Menatek has recently stepped into the urban mobility sector. In this field, you created a brand called BOQU Scooters and started working on electric scooters. What is the status of your work in this field? When will the first products be released?

Naz ÜNAL: As valuable as Menatek is for us, our new child BOQU Scooters is just as valuable. BOQU Scooters is also critical for Menatek to achieve its goals in its growth vision. We approach this issue with great seriousness and give our energy for this brand.

In the case of BOQU Scooters, instead of strategically diversifying by creating new products, we have focused on existing projects that we have started R&D on, and we have now reached the point where we will reap the fruits of these projects. In fact, thanks to these efforts, we received the Good Design award, one of Türkiye's most prestigious design awards, at the Design Türkiye Industrial Design Awards organized by the Turkish Exporters Assembly (TİM).

We have recently completed a very successful test process. In these field tests, we observed the performance of the motor, battery and motor driver, and looked at the scooter's performance on hills, on the flat surface, at medium speeds and at high speeds. ASPİLSAN Energy and BİAS Engineering, our important business partners in the defense and aerospace industry, did not leave us alone in these tests. We obtained very good data during the tests, which we used to make choices on certain issues and to draw up a road map for various improvements. The current plan is to start mass production in the last quarter of this year, followed by deliveries immediately afterwards. The first model we will produce at this point will be a product for companies that provide services in this field; but after that, there will be interesting models that we will reach directly to the end user.

MSI Magazine: Is there any other topic or topics you would like to add?

Naz ÜNAL: Following the death of our father, we received messages of condolence from all levels of the defence and aerospace sector. These messages showed us once again what important work our father had done. I would like to thank the entire industry once again through you here.

I would also like to share here that after his passing, we took action to start a scholarship program in his name at his alma mater, ITU.

Source: https://www.savunmahaber.com