SAIL, Krakatau Steel to Build $350M Indonesia Plant
Steel Authority of India Limited (SAIL) and Indonesia’s Krakatau Steel are planning to invest up to $350 million in a new stainless steel slab manufacturing plant in Indonesia. The proposed facility will have an annual production capacity of 500,000 metric tons and is expected to become operational within the next three to four years. The project follows a preliminary joint venture agreement signed earlier this month during Prime Minister Narendra Modi’s visit to Indonesia.
SAIL is expected to send a technical team to Indonesia next month to prepare a feasibility report before finalising the joint venture’s equity structure, government approvals, and implementation timeline. According to sources, the plant’s capacity could be expanded in the future based on demand.
The stainless steel slabs produced at the Indonesian facility will be shipped to SAIL’s Salem plant in Tamil Nadu for rolling and finishing before being supplied mainly to Indian customers, with limited exports to the Middle East and Europe. The investment aligns with India’s strategy to strengthen steel partnerships abroad, secure raw materials, and meet rising domestic demand amid increasing competition from Chinese steel.
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