SAIL eyes up to 1-mt stainless steel JV with Indonesia’s Krakatau Steel

SAIL and Indonesia-based PT Krakatau Steel, which have signed an MoU to set up a joint venture, are exploring a stainless steel project with a capacity of 500,000 tonnes to 1 million tonnes under the proposed JV, a source with direct knowledge of the plans said.

Earlier this week, the steel PSU and the Indonesian entity signed a memorandum of understanding to explore a joint venture to manufacture stainless steel slabs to meet the commodity's increasing demand in India.

"SAIL and PT Krakatau Steel would explore setting up a stainless steel project. It can be of 0.5 million tonnes (MT) capacity, or it can also be of 1 MT. But that will be discussed after the formation of a joint venture," the source said.

If the JV is formed, the slabs will be produced in Indonesia and supplied to SAIL's Salem Steel Plant (SSP) 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.

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.

SAIL Chairman Ashok Kumar Panda has said 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.

According to SAIL, the details regarding the proposed joint venture, including project capacity, investment structure, implementation schedule and technology configuration, will be finalised following completion of the feasibility studies and receipt of the necessary approvals from both organisations and the respective governments.

Under the Ministry of Steel, Steel Authority of India Ltd (SAIL) is India's largest public-sector steelmaker, with over five decades of experience.