SAIL and Krakatau Steel plan to build a $350 million stainless steel slab manufacturing plant in Indonesia.

The Indian state-owned steel company Steel Authority of India Limited (SAIL) and the Indonesian company Krakatau Steel have approved a $350 million investment plan for the construction of a stainless steel slab production plant in Indonesia, industry sources said on Wednesday, July 29.

The stainless steel plant is expected to have an installed capacity of 500,000 tons and will be operational within three to four years, sources

Earlier this month, SAIL and Krakatau Steel signed a memorandum of understanding to establish a joint venture for the production of stainless steel plates in Indonesia.

SAIL plans to send a technical team to Indonesia next month to prepare a feasibility study, after which the two companies will finalize the joint venture's share capital structure, the timing of government approvals and other details, the sources said.

The Indian company is expected to take all the products from the Indonesian plant and ship them to its own Salem Steel Mill (SSP) for rolling and finishing, the sources said.

Ajoy DasEditor

I graduated from the University of Calcutta with a degree in economics and have three years of experience reporting for leading print publications covering key industries such as metallurgy, energy (fossil and renewable), chemical and petrochemical, and mining (coal, bauxite, iron ore, and copper). I work as a SteelOrbis correspondent covering the Indian steel industry, covering pricing and trading trends across the value chain, capacity creation and utilization, corporate developments, public policy fundamentals, and industry news.