Italian defense and aerospace company Leonardo SpA and Turkish drone manufacturer Baykar have signed a deal to jointly develop drone technologies aimed at the European market, according to Bloomberg.

The new partnership will focus on the design, development, production, and maintenance of unmanned aerial systems, as confirmed in a statement from both companies on Thursday, which aligns with an earlier Bloomberg report.

The collaboration will combine Baykar’s expertise in drone technology with Leonardo’s capabilities in mission systems, payload design, and aerospace certification in Europe, according to the statement. The two firms have signed a memorandum of understanding to establish the joint venture.

“Europe needs to be stronger in drones,” Leonardo CEO Roberto Cingolani noted at a press conference in Rome. The European market for drones over the next decade, including unmanned fighter jets, armed surveillance drones, and deep strike drones, is projected to reach $100 billion.

Baykar plans to manufacture both aircraft and drones with Leonardo in an effort to establish a foothold in the European market, sources familiar with the agreement have said.

Italy and Turkey have previously expressed interest in defense and aerospace cooperation. In December, Italy approved Baykar’s acquisition of Piaggio Aerospace, a company producing aircraft and engines for military and civilian use.

Militarnyi recently reported that Bayraktar Akinci drone successfully completed its first test flight equipped with the Murad AESA active phased array radar (AFAR) developed by ASELSAN.

Another Baykar’s unmanned fighter aircraft, Bayraktar Kizilelma, has also completed its first flight tests with a new afterburning engine.

Baykar is also conducting trainings for the future employees – 20 students of the Kyiv Aviation Institute and 14 employees in Turkey – of the drone manufacturing plant being built in Ukraine, according to Haluk Bayraktar, Baykar CEO. 

According to him, they will be trained at Baykar for at least nine months. He also added that “during the training, a new group of people will arrive. So we are preparing to train people for the enterprise, to launch production.”