The content and conditions of incentives and state aid to be provided to industrial sectors in Turkey under the “Decision on State Aid for Investments” published in the country’s Official Gazette on May 30, 2025, have been announced. The published document includes provisions of particular importance to the steel sector.
According to the decision, in order for investments to be eligible for state incentives, they must meet the minimum amount requirement and fulfill the conditions outlined under the headings of “technology initiative”, “local development initiative”, and “strategic initiative”. Among these conditions, some of the most important ones for the iron and steel sector include the investment being carried out within the scope of digital transformation or green transformation plans. The steel sector, which has gained momentum in recent years with green transformation and decarbonization activities, is in a very advantageous position in terms of incentives.
In addition, under the heading of priority investments, support will be provided for solar and wind power plants built to meet the needs of producers and for investments in important regions according to local development programs.
The methods to be offered by the state under the incentive program include customs duty exemptions, VAT exemptions, tax reductions, interest or profit share support, machinery support, and investment site allocation. According to the Turkish Steel Producers Association (TÇÜD), the new system will make iron and steel investments more competitive and sustainable in line with Turkey's goals for green transformation and advanced technology targets.