Steel Authority of India Limited (SAIL) and Indonesia’s PT Krakatau Steel are considering setting up a joint venture to develop a stainless steel project with a capacity of 500,000 to 1 million tonnes. Earlier, the two companies signed a memorandum of understanding to study potential cooperation in producing stainless steel slabs to serve rising demand in the Indian market.
Under the plan being discussed, if the joint venture is established, stainless steel slabs will be produced in Indonesia and supplied to SAIL’s Salem Steel Plant in India. The plant produces various stainless steel grades, including austenitic, ferritic, martensitic and low-nickel stainless steel, serving sectors such as nuclear, oil and gas, chemicals and automobiles.
Producing slabs in Indonesia is considered to have a cost advantage due to the country’s large nickel reserves, a key raw material in stainless steel production.
SAIL said details on capacity, investment structure, project timeline and technology configuration will be decided after the feasibility study is completed and the required approvals are obtained from the two companies and the relevant governments.