German energy company Steag plans to sell its 51 percent stake in İskenderun Energy, signaling its exit from Turkey amid a broader trend of German companies leaving the country, Bloomberg reported on Tuesday.
The company, which invested $1.5 billion in the Sugözü thermal power plant, is seeking around $600 million for its majority share, according to sources who asked not to be identified as the discussions are private.
The 1,320-megawatt Sugözü facility, one of Turkey’s largest coal-fired plants, supplies approximately 3 percent of the country’s electricity needs. The remaining 49 percent stake is held by Oyak, the Turkish military pension fund.
The sale process is ongoing, with no buyers confirmed as of yet, the sources said.
The move aligns with Steag’s strategy to phase out coal by 2030, reflecting global trends toward cleaner energy sources, contrasting with Turkey’s plans to increase its coal capacity from 21.1 gigawatts to 24.3 gigawatts by 2035.
According to consultancy firm Ember, Turkey surpassed Germany in 2024 to become Europe’s largest coal-powered electricity generator.
Steag’s planned departure follows several recent exits by German companies from Turkey.
Construction materials manufacturer Ytong sold its stake in Türk Ytong to Nakkaş Holding in November, while automotive supplier Linde + Wiemann ended its partnership in Linde Opsan Otomotiv in December.
Farhym, a Hymer Group subsidiary, transferred its entire stake to Turna Ahşap in January.
Additionally, Siemens Gamesa, a leading wind turbine manufacturer, plans to close its research and development center in İzmir, one of its six global R&D hubs.
The closure, expected soon, will result in the layoff of 80 engineers.
The wave of German corporate exits reflects Turkey’s broader economic challenges, including rising energy costs and inflation, industry experts say.