Krakatau Steel, Tsingshan advance stainless slab project in Indonesia

The project is estimated to require an investment of $350 million and is expected to generate annual revenue of more than $2 billion, Krakatau Steel's Infrastructure and Operations Director Sidik Darusulistyo said at a recent investment forum in Jakarta, ANTARA reported.

Darusulistyo said the facility was intended to increase the value of processed nickel through further processing into stainless steel. He described the initiative as part of the company's efforts to create greater economic value and strengthen the competitiveness of Indonesia's domestic industry.

Tsingshan, the world's leading stainless-steel producer headquartered in East China's Zhejiang province, has an integrated stainless steel production chain spanning raw material processing, steelmaking and rolling. The group has an established production presence in Indonesia, including facilities at the Indonesia Morowali Industrial Park (IMIP) in Central Sulawesi.

The 1.2 million t/yr stainless steel slab project is being developed by Krakatau Steel and Tsingshan at IMIP, according to Indonesian media reports.

The project's groundbreaking ceremony was held on April 29, as part of a nationwide ceremony for 13 industrial projects, officiated by President Prabowo Subianto in Cilacap, Central Java.

Krakatau Steel's Corporate Secretary Rariya Budi Harta said that bringing technological innovation to commercial scale required an industrial ecosystem capable of creating added value. She said the company aimed to strengthen supply chains, attract investment and improve national industrial competitiveness through the development of advanced materials and the commercialisation of new technologies.

Krakatau Steel has also pursued broader strategic partnerships to support the development of Indonesia's advanced materials industry.

In July, Krakatau Steel signed a separate memorandum of understanding (MoU) with India's Steel Authority of India Limited (SAIL) to explore a joint venture for stainless steel slab production in Indonesia, as Mysteel Global reported. Indian media reports, citing sources familiar with the matter, indicate that a capacity of around 500,000 t/yr is being considered for the proposed venture.

SAIL has said that details including production capacity, investment structure, implementation schedule and technology configuration will be finalised after feasibility studies and the receipt of the necessary approvals.

Written by Tiffany Hou, houtianhui@mysteel.com

Edited by Russ McCulloch, russ.mcculloch@mysteel.com