The collaboration aims to invest in, develop, build, and operate a Nickel Pig Iron (NPI) smelter facility in Indonesia, with an annual nameplate production capacity of up to 200,000 metric tonnes (MT) of NPI with an average 14% Ni Content
Jindal Stainless acquires stake in New Yaking. (Credit: yasin hm on Unsplash)
India-based stainless steel manufacturing company Jindal Stainless (JSL) has signed a collaboration agreement with New Yaking to secure a long-term supply of nickel.
The collaboration aims to invest in, develop, build, and operate a Nickel Pig Iron (NPI) smelter facility in an industrial park in Halmahera Islands, Indonesia.
Under the terms of the agreement, JSL will acquire a 49% equity interest in New Yaking for a total consideration of around $157m.
The NPI smelter, planned to be commissioned within two years, will have an annual nameplate production capacity of up to 200,000 metric tonnes (MT) of NPI with an average of 14% Ni Content.
JSL stated that it is the first-ever strategic partnership for an Indian company to procure a stake in nickel reserves worldwide as India is deficient in nickel ore.
Jindal Stainless MD Abhyuday Jindal said: “This path-breaking collaboration will enhance value for stakeholders with JSL acquiring a stake in nickel supply to create raw material security for its SS operations.
“This acquisition will usher a sharper competitive advantage to JSL in Indian and international markets.”
JSL said that it currently meets the bulk of its nickel requirement through stainless steel scrap and NPI/ferro nickel and the collaboration will secure an adequate supply of NPI for JSL.
Established in 1970, JSL has recorded a turnover of $4.2bn in FY 2022 and is already in its expansion phase.
It has two stainless steel manufacturing complexes in the Indian states of Haryana and Odisha, along with an overseas manufacturing unit in Indonesia.
In addition, the company has six service centres in India, one in Spain, a network of 14 global offices across the world, and 10 sales offices in India.