Steel Authority of India Ltd (SAIL) and Indonesia-based PT Krakatau Steel have signed a memorandum of understanding to explore a joint venture for manufacturing stainless steel slabs. According to reports from Rediff Moneynews, the proposed joint venture will study a 0.5-1 million tonne stainless steel slab project in Indonesia, leveraging the country's abundant nickel reserves to supply SAIL's Salem Steel Plant. Under the Ministry of Steel, SAIL is India's largest public-sector steelmaker with over five decades of experience.
As reported by Rediff Moneynews, the steel PSU and Indonesian entity are exploring a stainless steel project with a capacity of 500,000 tonnes to 1 million tonnes under the proposed joint venture. A source with direct knowledge of the plans stated that the project capacity can range from 0.5 million tonnes to 1 million tonnes, with final decisions to be made after the formation of the joint venture. The slabs will be produced in Indonesia and supplied to SAIL's Salem Steel Plant in Andhra Pradesh, which specialises in the production of austenitic, ferritic, martensitic and low-nickel stainless steels, catering to diverse sectors including nuclear, petroleum, chemical and automotive industries.
According to Rediff Moneynews, producing slabs will be cheaper in Indonesia, which has access to one of the world's richest nickel reserves, a key raw material for stainless steel manufacturing. The details regarding the proposed joint venture, including project capacity, investment structure, implementation schedule and technology configuration, will be finalised following completion of feasibility studies and receipt of necessary approvals from both organisations and respective governments.
As reported by Rediff Moneynews, SAIL Chairman Ashok Kumar Panda has emphasized that access to reliable raw materials and strategic partnerships become increasingly important as demand for stainless steel continues to grow across sectors such as infrastructure, mobility, renewable energy and manufacturing. The steel PSU and Indonesian entity signed the MoU this week to explore the joint venture to manufacture stainless steel slabs to meet the commodity's increasing demand in India.
