INDIA'S SAIL AND INDONESIA'S KRAKATAU STEEL PLAN A JOINT VENTURE TO SET UP A STAINLESS STEEL PROJECT

India's steel major

and Indonesia-based PT Krakatau Steel have signed an MOU to set up a joint venture for setting up a stainless steel project with a capacity of 500,000 tonnes to 1 million tonnes. If the JV is formed, the slabs will be produced in Indonesia and supplied to SAIL's Salem Steel Plant in Andhra Pradesh, which specialises in the production of austenitic, ferritic, martensitic and low-nickel stainless steels, catering to diverse sectors including nuclear, petroleum, chemical and automotive industries. In fact, producing slabs will be cheaper in Indonesia, which has access to one of the world's richest nickel reserves, a key raw material for stainless steel manufacturing. This JV will benefit as it will be able to get cheaper slabs from Indonesia. The companny currently works on an operating margin of 10-11%, however this project could increase the company's operating margins in the future.