After Germany and Turkey signed a friendship treaty in 1924, soon there was an agreement regarding joint aircraft production between Turkish Finance Minister Hasan Bey, on behalf of Turkish Government, and Monsieur Sachsenberg, on behalf of Germany’s Junkers Aircraft Manufacturers — which was approved at the Council of Ministers meeting on October 7, 1925. Shortly thereafter, the Atatürk government decided to establish a state-supported joint-stock company to implement this agreement and established the first aircraft factories in Turkey. TOMTAŞ was founded with a capital of 3,360,000 Turkish Lira, headquartered in Ankara, following the approval by the Council of Ministers on October 25, 1925. TOMTAŞ founded the Aircraft Production Factory in Kayseri and Aircraft Maintenance & Repair Facility in Eskişehir. The TOMTAŞ Aircraft Production Factory of Kayseri was one of the largest aircraft manufacturing factories in the world back then. This paved the way for foreign companies from United States, Poland, and others to collaborate and attracted their investments into this newly growing aviation industry of Turkey.
The agreement between the Turkish Government and Junkers, dated August 15, 1925, stipulated that the production would start within a maximum of two years. The factory was planned in two phases: reaching the capability to repair aircraft by the fall of 1926, and starting aircraft production in 1927. The German firm Philipp Holzmann und Co., which won the construction bid, began building hangars, water wells, warehouses, personnel housing, and factory facilities. Materials brought from Germany’s Hamburg to Iskenderun and then by train to Ulukışla Station, were transported to Kayseri under very difficult conditions using horses, mules, camels, ox carts, and horse-drawn carriages. A power plant (500 KW total power) was built and commissioned (as Kayseri did not have electricity at that time). In the first stage, 18 people were sent to Junkers facilities in Germany for training. On October 1, 1926, a team of 170 people (50 Turks and 120 Germans) prepared the factory for assembly. Training began simultaneously by sending some Turkish personnel to Germany and establishing the ‘Kayseri Machinist School’. The first section of the TOMTAŞ Kayseri Aircraft Factory was completed and officially opened on October 6, 1926, with a ceremony attended by the-then Minister of National Defense Recep Peker, TOMTAŞ Board Chairman Refik Koraltan, Kayseri Mayor İbrahim Safa Bey, and a 22-person delegation who had traveled from Ankara to Kayseri in two hours via three planes.