June 05, 2023 21:53 (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
Guard missing after Rs 1,700 crore under-construction bridge collapses in Bihar | 'This is our fight for justice...we will not step back': Top wrestlers rejoin work | PM Modi to address joint session of US Congress on June 22 | Goa-Mumbai Vande Bharat Express launch ceremony cancelled after Odisha train mishap | At least 50 killed, 300 injured in Coromandel Express mishap in Odisha's Balasore, massive rescue ops underway
Jindal Stainless buys 49% stake in Indonesia-based nickel pig iron company

Jindal Stainless buys 49% stake in Indonesia-based nickel pig iron company

India Blooms News Service | @indiablooms | 29 Mar 2023, 08:01 pm

Mumbai: Jindal Stainless Ltd (JSL) has entered into a collaboration agreement (Collaboration Agreement) with New Yaking Pte. Ltd. in Indonesia to ensure the long-term availability of nickel.

The deal involves investment in a Nickel Pig Iron (NPI) smelter facility located in an industrial park in Indonesia's Halmahera Islands, its development, construction, and operation.

As part of the agreement, JSL will acquire a 49% equity interest for a consideration of around $157 million.

The strategic collaboration offers the benefits of backward integration as JSL would have a stake in the business of NPI.

The facility is planned to be commissioned within two years, with an annual nameplate production capacity of up to 200,000 metric tonnes of NPI with an average of 14% Ni Content.

This is the first-ever strategic partnership entered into by an Indian company for securing a stake in nickel reserves globally as India is deficient in nickel ore.

Commenting on the move, 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 stainless-steel operations. This acquisition will usher a sharper competitive advantage to JSL in Indian and international markets.”

The nickel price trend has been a key factor in the stainless steel business across the globe.

Further, geo‑political issues, logistical hurdles, pandemic-induced constraints, etc. often affect the demand-supply dynamics of nickel, thereby increasing the cost and uncertainty for its user industries such as stainless steel.

Currently, JSL meets the bulk of its nickel requirement through stainless steel scrap and NPI/ ferro nickel and this collaboration will secure an ample supply of NPI for JSL.