Steel Authority of India Ltd. (SAIL) and Indonesia’s PT Krakatau Steel are planning to jointly invest up to $350 million in a stainless steel slab manufacturing facility in Indonesia, marking a significant step in SAIL’s strategy to strengthen raw material security and expand its international footprint. The proposed investment follows the Memorandum of Understanding (MoU) signed by the two companies earlier this month to explore a joint venture for stainless steel production.
The proposed plant will have an initial production capacity of 500,000 tonnes per annum, with the potential for future expansion. Once operational, the facility is expected to manufacture stainless steel slabs that will be shipped to SAIL’s Salem Steel Plant in Tamil Nadu for rolling and finishing into value-added products, primarily for the Indian market, while a smaller share may be exported to the Middle East and Europe.
A technical team from SAIL is expected to visit Indonesia shortly to prepare a feasibility report, following which both partners will finalise the joint venture’s equity structure, implementation roadmap and regulatory approvals. Locating the project in Indonesia is expected to provide access to one of the world’s richest nickel reserves, a key raw material for stainless steel production, thereby improving supply chain resilience and production economics.
The collaboration aligns with India’s broader efforts to deepen industrial cooperation with resource-rich countries while supporting the growing domestic demand for stainless steel. It also reflects SAIL’s focus on expanding beyond conventional steelmaking through strategic overseas partnerships and strengthening its presence in the global stainless steel value chain.