SAIL, Krakatau Steel to Invest $350 Million in Indonesia Plant
The Steel Authority of India, a state-owned enterprise, and Krakatau Steel of Indonesia intend to invest up to $350 million in a stainless steel slab facility in Indonesia, as reported.
The facility is projected to have a yearly capacity of 500,000 metric tons and is anticipated to be functional in the next three to four years.
At the beginning of this month, SAIL and Krakatau Steel established a preliminary agreement to create a joint venture for manufacturing stainless steel slabs in Indonesia during Indian Prime Minister Narendra Modi's trip to the nation.
SAIL intends to dispatch a technical team to Indonesia next month to create a feasibility report, after which both companies will finalize the equity arrangement of the joint venture, the schedule for government approvals, and additional details.
The capacity of the proposed plant can be increased once it is operational, SAIL will utilize the complete output of the intended Indonesian facility and transport the stainless steel slabs to its Salem plant for processing and finishing.
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The state-owned steel manufacturer will mainly provide the final products to Indian clients, although a minor portion may be sent to the Middle East and Europe.
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India, the largest producer of crude steel globally after China, has recognized Indonesia and over a dozen other nations for collaboration in the steel industry to enhance exports and ensure vital raw materials.
Steel consumption in India has surged by 55% in the last five years, surpassing the 42% rise in production, according to reports.
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Indian steel manufacturers are shifting focus to the local market to counteract declining exports as Europe and Britain impose stricter import controls; however, the competition from Chinese steel is undermining this approach.