Steel Authority of India Limited has formed a Joint Venture with Indonesia’s PT. Krakatau Steel to establish a 500 kilotonnes per annum stainless-steel slab production facility in Indonesia, marking SAIL’s first significant move into international manufacturing.
The partnership provides SAIL with direct access to Indonesia’s vast nickel reserves, a critical raw material for stainless-steel production, while positioning the company within the ASEAN free-trade zone. By locating the facility in Indonesia, SAIL avoids high export logistics costs from India while serving growing regional infrastructure demand.
The JV signals a strategic shift for SAIL from predominantly domestic, commoditised carbon steel toward higher-margin, value-added stainless-steel products. Indonesia’s downstreaming policy, which restricts raw ore exports, has made it a global hub for stainless steel production, and partnering with PT. Krakatau Steel, a dominant local player, allows SAIL to bypass entry barriers and secure a foothold in one of the world’s fastest-growing industrial markets.
The move also reduces SAIL’s exposure to domestic market cyclicality and aligns with broader trends in the global steel industry, where producers are increasingly regionalising operations to navigate carbon taxes and trade barriers.
SAIL has separately received board approval for a Rs 1.2 lakh crore capital expenditure plan aimed at modernising its domestic plants at Bhilai and Bokaro by 2030, reflecting the company’s dual focus on international expansion and domestic modernisation.
