PURPOSE: To produce a heat resistant material improved in the plastic working of a steel ingot by HIP forming of an Fe-Cr-Al alloy powder and capable of being forged without causing cracking.

CONSTITUTION: A molten Fe-Cr-Al alloy is powdered by a gas atomizing method or a water atomizing method. The resulting powder is formed into a steel ingot by HIP forming or CIP forming. This steel ingot is red heated and then continuously forged by stages in a longitudinal direction by using a segmental die divided into three or more pieces in a diameter direction and having an angle of inclination in an axial direction. Then, hot rolling is done.