Greensteel Australia to invest $1.6 billion in new steel plant

Australian steelmaker Greensteel Australia has announced a $1.6 billion investment in a new steel plant. This is stated in the company’s message.

The facility will be equipped with a direct reduced iron (DRI) plant, two electric arc furnaces, and rolling mills for the production of structural steel and rebar. The equipment will be supplied by Italian Danieli.

In October 2024, Greensteel Australia ordered a rebar rolling mill from Danieli. The delivery of two EAFs and a DRI unit is expected by the end of 2026 or early 2027.

The location of the new plant has not yet been determined, but it is likely to be in Wyalla.

Greensteel President and CEO Mena Ibrahim emphasized the company’s commitment to creating a state-of-the-art steel center in Australia while contributing to the decarbonization of heavy industry. According to him, the company has agreed with Danieli on an accelerated delivery schedule. This will launch Greensteel’s steel capacity within two years, creating more than 1.5 thousand permanent jobs and 2.5 thousand jobs during construction.

The new plant’s capabilities include the production of extra-long sections required for high-speed rail, which are not currently produced in Australia, as well as hydrogen-based DRI operations.

As GMK Center reported earlier, Australia is launching a new investment fund, Green Iron, worth A$1 billion ($636 million). In this way, the government is consolidating the country’s position as a major producer of green iron. The fund will promote the development of environmentally friendly iron production and supply chains by supporting such projects and stimulating large-scale private investment.