Indian government-run Steel Authority of India Limited (SAIL) and Indonesia’s PT Krakatau Steel (Persero) Tbk have signed a memorandum of understanding (MoU) to explore the possibility of setting up a joint venture for manufacturing stainless steel slabs in Indonesia, a company statement said on Thursday, July 9.
The proposed collaboration brings together the complementary strengths of the two companies. Indonesia offers access to one of the world's richest reserves of nickel, an essential raw material for stainless steel, and SAIL brings over five decades of experience in steelmaking, project execution and operating large integrated steel plants, the statement said.
The proposed joint venture is expected to support the increasing demand for stainless steel in India and the ASEAN region, while promoting value addition to Indonesia's mineral resources, it added.
It also opens new avenues for technology exchange, industrial collaboration, skill development and sustainable economic growth for both countries.
Further details regarding the proposed joint venture, including project capacity, investment structure, implementation schedule and technology configuration, will be finalized following completion of the feasibility studies and receipt of the necessary approvals from both organizations and the respective governments, the statement said.
