Greensteel orders $1.6 billion worth of steelmaking kit, plans to bring new facility online “within two years”

Greensteel Australia announced on Thursday that it has placed an order with steelmaking infrastructure company Danieli Group, “valued in excess of $1.6 billion”, representing stages two and three of a proposed “ultra-low-carbon steel mill”.

The order includes a direct reduced iron (DRI) plant, two electric arc furnaces, a structural steel rolling mill, and a second rolling mill for reinforced steel (rebar).

Greensteel’s placed an initial order with Danieli in October for a rebar mill.

The Sydney-based company said it expected to take delivery of the three mills, two arc furnaces and DRI plant “by late 2026 or early 2027”. It has not selected a site yet, but said “the preferred location remains Whyalla, adjacent to the existing steel works.”

The Whyalla Steelworks were forced into administration by the South Australian government on February 19, with KordaMentha appointed as administrator. It is the nation’s sole maker of steel for rail.

Greensteel President and Executive Director, Mena Ibrahim said at a contract-signing event in Adelaide that an expedited delivery timetable with Danieli “will bring our steelmaking capability onstream within two years, creating over 1,500 permanent jobs and 2,500 jobs during construction. 

“These are critical steps forward, especially given the uncertainty caused by the collapse of the existing steel works in Whyalla and the gap it leaves in Australia’s sovereign steel capability.”

The statement said the structural steel rolling mill will be able to produce “ultra-long sections required for high-speed rail”, which would be unique in the nation. The plant is planned to have four times Whyalla’s output, though with a 70-hectare footprint versus Whyalla’s 1,000 hectares.

Picture: (Left to right) Nicola Patrizi, Managing Director – Danieli; Giacomo Mareschi, Chief Executive Officer – Danieli; Romany Ibrahim, Executive Chair and Chief Executive, Greensteel Australia

Further reading

Workers begin to return to normal shifts at Whyalla steelworks

Planning approval awarded for WA’s first steel mill

Green Steel forging ahead with WA green steel plants

Whyalla site will retire blast furnace, up capacity with new electric arc furnace: GFG

Whyalla steelworks blast furnace faces temporary shutdown amid funding concerns

Hi-smelt could solve Whyalla’s steel crisis: expert