Sydney company signs $1.6bn order for new Whyalla steelworks

Greensteel Australia has signed a $1.6 billion order for a “next-generation” steel mill to be built in Italy as it advances its plan to take over the troubled Whyalla steelworks.

The Sydney-based company finalised the deal with Italian firm Danieli at a contract signing in Adelaide on Sunday. The agreement includes a new plant, two electric arc furnaces and a structural steel rolling mill.

This follows an earlier order Greensteel placed with Danieli in October last year for the first equipment needed for its planned “ultra-low-carbon steel mill”.

Greensteel president Mena Ibrahim said the equipment is expected to be delivered by late 2026 or early 2027 and could replace the existing steelworks, which has suffered from long-term neglect.

“Danieli is the world’s leading provider of advanced, high-technology steelmaking infrastructure. Bringing their expertise to Australia will immediately position this country among the ranks of the most advanced steel suppliers globally,” Ibrahim said to The Advertiser.

The company also released rendered images this week showing the proposed new Whyalla plant.

Administrator KordaMentha, which took over from OneSteel Manufacturing in February, is currently stabilising the Whyalla steelworks and mine, with plans to sell it within six months.

Interestingly, Danieli built the original Whyalla steelworks and was previously involved in controversy with former owner GFG Alliance’s Sanjeev Gupta, who claimed the Italian company was building promised new equipment for his operations.

Ibrahim, who has established a network of businesses with his brother Romany Ibrahim under the name The Group, promised the project would create significant employment opportunities.

“We have agreed on an expedited delivery timetable with Danieli. This will bring our steelmaking capability on-stream within two years, creating over 1,500 permanent jobs and 2,500 jobs during construction,” he said to The Advertiser.

Picture: credit Greensteel Australia LinkedIn