According to Indian sources, the proposed plant will have an annual production capacity of 500,000 tons of stainless steel slab and is expected to begin operations within three to four years.
SAIL is expected to send a technical team to Indonesia next month to prepare a feasibility study. Once the report is completed, the two companies will finalize the joint venture's capital structure, regulatory approval timeline, and other project details.
Neither company has issued an official statement regarding the project, and SAIL and Krakatau Steel did not respond to Reuters' requests for comment.
Sources also indicated that expanding the plant's production capacity after commissioning is under consideration.
Indonesia's nickel advantage comes to the forefront
The partnership is expected to provide SAIL with access to lower cost nickel, one of the key raw materials used in stainless steel production. Indonesia is the world's largest nickel producer, accounting for more than %50 of global nickel output.
According to the sources, all stainless steel slabs produced in Indonesia will be purchased by SAIL. The slabs will then be shipped to the company's Salem plant in Tamil Nadu, India, where they will undergo rolling and final processing.
Most of the finished stainless steel products will be supplied to the Indian market, while limited volumes are expected to be exported to the Middle East and Europe.
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