India government-run steelmaker Steel Authority of India Limited (SAIL) and Indonesia's Krakatau Steel have firmed up an investment plan worth $350 million to construct a stainless steel slab plant in Indonesia, industry sources said on Wednesday, July 29.
The stainless steel mill is expected to have an installed capacity of 500,000 mt and to be made operational within three to four years, the sources said.
Earlier this month, SAIL and Krakatau Steel signed a memorandum of understanding to form a joint venture to produce stainless steel slabs in Indonesia.
SAIL plans to send a technical team to Indonesia next month to prepare a feasibility report, after which the two companies will finalize the equity structure of the joint venture, the timeline for government approvals and other details, the sources said.
The Indian company is expected to take the entire production from the Indonesian plant and ship it to its own Salem Steel Plant (SSP) for rolling and finishing, the sources said.
