Steel Authority of India Limited (SAIL) and Indonesia's Krakatau Steel are progressing plans for a joint venture that could invest up to US$ 350 million in a stainless steel slab facility in Indonesia. The project is expected to strengthen regional steel supply chains, support India's downstream manufacturing sector, and deepen industrial cooperation between the two countries.
Steel Authority of India Limited (SAIL) and Indonesia's PT Krakatau Steel are moving forward with plans to establish a stainless steel slab manufacturing facility in Indonesia through a proposed joint venture, according to media reports citing sources familiar with the discussions. The investment is estimated at up to US$ 350.00 million and will create a plant with an initial annual production capacity of approximately 500,000 metric tons. The facility is expected to become operational within the next three to four years, subject to feasibility assessments, regulatory approvals, and final investment decisions.
The companies signed a preliminary agreement earlier this month during Indian Prime Minister Narendra Modi's visit to Indonesia, laying the foundation for the partnership. According to media reports, SAIL will dispatch a technical team to Indonesia to prepare a feasibility study before both partners finalize the joint venture's ownership structure, implementation schedule, and approval process. The project also includes the possibility of expanding production capacity after the plant enters commercial operation.
SAIL is expected to utilize the full output of the Indonesian facility by transporting stainless steel slabs to its Salem plant in Tamil Nadu, where the material will be rolled and finished into higher-value products. Most of the finished steel is anticipated to serve domestic Indian demand, while a smaller share may be exported to markets in the Middle East and Europe. This integrated production strategy is designed to improve raw material availability and strengthen manufacturing efficiency across SAIL's downstream operations.
The planned investment reflects India's broader strategy of expanding overseas industrial partnerships to enhance supply chain resilience and secure access to strategic raw materials. Rising domestic steel consumption, coupled with changing international trade conditions and increasing competition from Chinese producers, has encouraged Indian steelmakers to diversify sourcing and manufacturing capabilities. For Indonesia, the project reinforces its position as a growing regional hub for metal processing and value-added manufacturing while attracting foreign industrial investment.
Steel Authority of India Limited is one of India's largest state-owned steel producers, operating integrated steel plants and supplying products to infrastructure, construction, engineering, automotive, railway, and defense sectors. PT Krakatau Steel is Indonesia's leading state-controlled steel manufacturer and plays a significant role in the country's industrial development through steel production and downstream processing activities.
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