Jindal Stainless To Acquire 49% Stake In Indonesia-Based Nickel Pig Iron Company
The facility is planned to be commissioned within two years.
Jindal Stainless Ltd. entered into a collaborative agreement with New Yaking Pte for the investment, development, construction, and operation of a nickel pig iron smelter facility located in Halmahera Islands, Indonesia.
The board has approved a plan to acquire a 49% stake in the Indonesia-based nickel pig iron company for $157 million, or Rs 1,289.8 crore.
The facility is planned to be commissioned within two years, with an annual nameplate production capacity of up to 2,00,000 metric tonnes of NPI with an average 14% nickel content, according to an exchange filing.
"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," said Abhyuday Jindal, managing director, Jindal Stainless. "This acquisition will usher in a sharper competitive advantage for JSL in Indian and international markets."
Shares of the stainless steel manufacturing company declined 3.38% to end at Rs 279.90 apiece, compared to a 0.20% decline in the benchmark Nifty.