India's state-owned Steel Authority of India limited (SAIL) and Indonesia's PT Krakatau Steel (Persero) Tbk have signed a memorandum of understanding to explore the possibility of setting up a joint venture to produce stainless steel slabs in Indonesia, the company said in a statement on Thursday, July 9.
The proposed collaboration brings together the complementary strengths of the two companies. Indonesia offers access to one of the world's richest reserves of nickel, an essential raw material for stainless steel, and SAIL has more than five decades of experience in steel production, project delivery and operation of large integrated steel plants, it said.
The proposed joint venture is expected to support the growing demand for stainless steel in India and the ASEAN region, while contributing to the value addition of Indonesia's mineral resources, it added he.
It also opens up new opportunities for technology exchange, industrial cooperation, skill development and sustainable economic growth for both countries.
More details of the proposed joint venture, including design capacity, investment structure, implementation schedule and technology configuration, will be finalized once feasibility studies are completed and necessary approvals are received from both organizations and the respective governments, the statement said.
