Steel Authority of India Limited (SAIL) and Indonesia’s Krakatau Steel are planning a joint investment of up to $350 million in a stainless steel slab manufacturing facility in Indonesia.
The proposed plant is expected to have production capacity of approximately 500,000 tonnes per annum.
The development is intended to strengthen the supply of stainless steel slabs for downstream processing and could provide SAIL with access to Indonesia’s raw-material and industrial ecosystem.
Under the proposed arrangement, stainless steel slabs produced in Indonesia could be supplied to SAIL’s Salem Steel Plant in Tamil Nadu for further processing.
Indonesia is one of the world’s major nickel-producing countries, making it an important location for stainless steel manufacturing.
Nickel is a key raw material used in many grades of stainless steel, and access to competitive raw-material supplies is an important consideration for stainless steel producers.
SAIL’s Salem plant produces stainless steel products and has established downstream processing facilities.
The proposed Indonesian facility would therefore create a connection between overseas primary production and existing downstream manufacturing infrastructure in India.
The companies are expected to undertake further technical and feasibility studies before the project proceeds.
SAIL plans to send a technical team to Indonesia to evaluate the proposed development.
A facility of this scale would require infrastructure covering raw-material handling, melting and casting, utilities, power, water, process control and material movement.
The project also highlights the increasing importance of international supply chains in the metals industry.
Indian steel producers are exploring overseas partnerships and investments to secure access to raw materials while strengthening their domestic downstream capabilities.
If the project progresses as proposed, it could create a new supply route for stainless steel semi-finished products and support SAIL’s broader stainless steel strategy.
The development remains subject to feasibility assessment and further discussions between the two companies.
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