en.Wedoany.com Reported - India's state-owned steel enterprise, Steel Authority of India Limited (SAIL), and Indonesia's state-owned steel company, PT Krakatau Steel (Persero) Tbk, signed a memorandum of understanding in early July 2026 to explore the establishment of a joint venture in Indonesia for constructing a stainless steel slab production plant. The collaboration was announced during Indian Prime Minister Modi's visit to Indonesia and is listed as one of the 20 key outcomes of this state visit.
Steel Authority of India Limited (SAIL), founded in 1954 and headquartered in New Delhi, India, is the largest state-owned steel manufacturer in the country, with an annual crude steel capacity exceeding 21 million tons. It operates five integrated steel plants and three special steel plants within India. Krakatau Steel, founded in 1970 and headquartered in Cilegon, Banten Province, is the largest state-owned steel enterprise in Indonesia, with an annual crude steel capacity exceeding 3 million tons, making it a significant steel producer in the ASEAN region.
According to the memorandum of understanding, both parties will leverage their respective resource advantages and technical expertise to advance the project. Indonesia is rich in nickel ore, a key raw material for stainless steel, while SAIL possesses over five decades of experience in steel manufacturing, project execution, and operation of large-scale integrated steel plants. The planned stainless steel slab plant will utilize Indonesia's nickel resource advantages and SAIL's metallurgical technical capabilities to meet the growing stainless steel demand in India and the ASEAN region, while also enhancing the added value of Indonesia's mineral resources.
The global stainless steel market is steadily growing, with an expected market size exceeding $200 billion by 2030. India is a major consumer of stainless steel, with consumption projected to surpass 7 million tons in fiscal year 2026. Meanwhile, infrastructure construction and manufacturing development in the ASEAN region are also driving continuous growth in stainless steel demand. This collaboration will provide SAIL with a stable overseas supply channel for stainless steel slabs, while bringing advanced production technology and management expertise to Krakatau Steel. During Prime Minister Modi's visit to Indonesia, this joint venture project was listed as one of the key outcomes of bilateral strategic cooperation. The specific investment amount and production capacity of the project have not yet been disclosed by either party and are expected to be further clarified in subsequent feasibility studies.
