''Defense News'' claims in its latest edition that the Turkish government will upgrade only the first 170 M-60 tanks at Israel Military Industries (IMI), and will not exercise its option to upgrade a further 1,000 tanks.
The upgrade of 170 Turkish Army M-60 tanks is the largest project IMI has ever undertaken overseas. IMI lowered its bid to upgrade the tanks from $1 billion to $668 million to win the contract. Turkey has an option to upgrade an additional 1,000 tanks, which would make the entire project worth at least $7 billion.
However, Turkish military sources told ''Defense News'' that IMI will not get a follow-up order beyond the initial 170 tanks.
"The deal with Israel will meet Turkey's armored corps needs. There is no way to continue the program in the foreseeable future, due to financial difficulties. The project is off the agenda," a senior Turkish official said. He said the Turkish government will approve ending the project soon, after only 170 tanks are upgraded.
Turkey has cancelled 32 military procurement and equipment upgrade projects worth over $19 billion since April 2001.
Published by Israel's Business Arena on 19 March 2002