SAIL, Indonesia’s PT Krakatau Steel Sign MoU to Explore Stainless Steel Slab Joint Venture

Steel Authority of India Limited (SAIL) has signed a Memorandum of Understanding (MoU) with Indonesia’s PT Krakatau Steel to explore the establishment of a joint venture for manufacturing stainless steel slabs. The proposed collaboration is expected to strengthen industrial cooperation between India and Indonesia while supporting the growing demand for stainless steel across multiple sectors.

The agreement was announced during high-level engagements between India and Indonesia held alongside Prime Minister Narendra Modi’s visit to Indonesia from July 6 to July 8. The initiative reflects the commitment of both countries to deepen economic ties and develop resilient manufacturing value chains.

Under the proposed partnership, the two companies will assess the feasibility of setting up a stainless steel slab manufacturing facility. Indonesia’s abundant nickel reserves, one of the most important raw materials used in stainless steel production, will complement SAIL’s more than five decades of expertise in steel manufacturing, project execution and operating integrated steel plants.

According to SAIL, the partnership has the potential to improve raw material security while strengthening supply chain resilience for India’s expanding stainless steel industry. Demand for stainless steel continues to grow steadily across infrastructure, transportation, renewable energy, engineering, construction and advanced manufacturing sectors.

SAIL Chairman and Managing Director Ashok Kumar Panda said reliable access to critical raw materials and strategic international partnerships will play an important role in supporting the future growth of the stainless steel industry. He noted that the proposed collaboration could generate long-term value for both organisations while reinforcing economic cooperation between India and Indonesia.

The companies will now undertake detailed feasibility studies before taking the project forward. Important aspects such as investment structure, production capacity, project timeline, technology configuration and regulatory approvals will be finalised after the completion of technical and commercial evaluations.

The proposed venture also aligns with India’s Atmanirbhar Bharat vision by enhancing domestic manufacturing capabilities, reducing supply chain risks and supporting the country’s ambition to build globally competitive steel production. If implemented, the collaboration could become an important milestone in India’s stainless steel value chain while strengthening bilateral industrial cooperation with Indonesia for the long term.