SAIL and the Indonesian company PT Krakatau Steel, which signed a memorandum of understanding, are exploring the possibility of establishing a joint venture (JV) for a project to produce stainless steel billets. The projected capacity of this project is between 500,000 and 1 million tons.
Joint Venture Details
A source with direct knowledge of the plans reported that the JV will be responsible for developing the stainless steel production project. It was discussed that the capacity could be either 0.5 million tons or 1 million tons, but the final decision will be made after the joint venture itself is formed.
Logistics and Raw Material Base
If the JV is established, the steel billets will be produced in Indonesia and subsequently supplied to the SAIL steel plant (Salem Steel Plant, SSP) located in Andhra Pradesh. This plant specializes in producing austenitic, ferritic, martensitic, and low-nickel stainless steels, serving sectors such as nuclear energy, oil refining, chemical industry, and automotive manufacturing.
Billet production in Indonesia will be more economical due to the country's access to one of the world's largest nickel reserves—a key raw material for making stainless steel.
Strategic Importance of the Partnership
Ashok Kumar Panda, Chairman of SAIL, noted that access to reliable raw materials and strategic partnerships is becoming increasingly important amid growing demand for stainless steel in infrastructure, mobility, renewable energy, and manufacturing sectors.
Next Steps for the Project
According to information from SAIL, all details concerning the proposed JV, including the investment structure, implementation schedule, and technological configuration, will be determined after completing feasibility studies and obtaining necessary approvals from both organizations and the relevant governments.