SAIL Looks to Set Up Up to 1-MT Stainless Steel JV with Krakatau Steel.

State-owned Steel Authority of India Ltd. (SAIL) and Indonesia's PT Krakatau Steel are exploring the possibility of setting up a stainless steel project with a capacity ranging from 500,000 tonnes to 1 million tonnes under their proposed joint venture, a source with direct knowledge of the development said.

The two companies signed a memorandum of understanding (MoU) earlier this week to explore the formation of a joint venture for manufacturing stainless steel slabs to cater to the growing demand for the commodity in India.

Under the proposed partnership, the companies are considering a stainless steel project with an initial capacity of 0.5 million tonnes (MT), which could be scaled up to 1 MT, the source said.

"SAIL and PT Krakatau Steel would explore setting up a stainless steel project. It can be of 0.5 million tonnes capacity, or it can also be of 1 MT. But that will be discussed after the formation of a joint venture," the source said.

The proposed capacity and other project details will be finalised after the joint venture is formally established, the source added.