The Indian state-owned company Steel Authority of India (SAIL) and Indonesia’s Krakatau Steel are planning to invest up to $350 million in a stainless steel slab production plant in Indonesia. This was reported by Reuters, citing sources.

According to insiders, the plant will have an annual capacity of 500,000 tonnes, which could be increased once the facility is commissioned. The plant is expected to come on stream within the next three to four years.

In July this year, SAIL and Krakatau Steel signed a preliminary agreement to establish a joint venture for the production of stainless steel slabs in Indonesia.

According to sources, SAIL plans to send a technical team to Indonesia in August to prepare a feasibility study. Following this, the parties will finalise the joint venture’s equity structure, the timeline for obtaining government approvals and other details.

SAIL will consume the entire output of the planned plant, one source reported, delivering the slabs to its plant in Salem (India) for rolling and processing. This plant, in turn, will supply finished products mainly to Indian customers, with a small proportion potentially being exported (to the Middle East and Europe).

It should be noted that Jindal Steel has signed an investment agreement with the industrial city of Suhar in Oman regarding the development of an integrated steelmaking project. The estimated investment will amount to 150 million rials ($390 million).