Greensteel Australia places $1.6bn order with Danieli Group for fabrication of next-generation steel mill
Sydney-based Greensteel Australia has announced that it has placed an order with the leading global steelmaking infrastructure group Danieli Group to purchase stages two and three of its proposed ultra-low-carbon steel mill.
The order, valued at over $1.6 billion, includes a direct reduced iron (DRI) plant, two electric arc furnaces, a structural steel rolling mill with high-speed rail capability, and a second rolling mill for reinforced steel (rebar).
The order follows Greensteel’s placement of an initial order with Italy-based Danieli for the fabrication of a single reinforced steel (rebar) rolling mill in October of last year.
The delivery of three mills, two arc furnaces, and a DRI plant is expected by late 2026 or early 2027. This will signify a crucial milestone in Greensteel’s plans to establish Australia’s first ultra-low-carbon steelmaking operation, enhancing the country’s sovereign steelmaking capability.
Speaking at a contract-signing event in Adelaide, Mena Ibrahim, President and Executive Director of Greensteel, emphasised the company’s commitment to creating Australia’s most advanced steelmaking hub while also contributing to the decarbonization of heavy industry.
“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,” Mr Ibrahim said.
“We have agreed on an expedited delivery timetable with Danieli. This 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 steelworks in Whyalla and the gap it leaves in Australia’s sovereign steel capability,” he said.
“We’re excited to be partnering with Greensteel on their plans to bring ultra-low-carbon steelmaking to Australia,” said Danieli Group CEO Giacomo Mareschi. “From the very beginning we have been impressed with the boldness of Greensteel’s vision and their commitment to the industrial decarbonisation agenda. We look forward to delivering on this commitment and bringing world-leading steelmaking capability to Australia.”
Among the new facility’s capabilities is the ability to produce ultra-long sections required for high-speed rail, which are currently not manufactured in Australia. Although it significantly expands Australia’s steelmaking output, reaching four times that of the existing Whyalla plant, requires just 70 hectares in contrast to Whyalla’s 1,000-hectare footprint due to its modern configuration.
The DRI plant can operate on hydrogen rather than coking coal to refine magnetite into iron pellets, enabling a cleaner steelmaking process.
While Greensteel evaluates potential sites for the mill, the preferred location continues to be Whyalla, adjacent to the existing steelworks.
“Whyalla offers everything we need – an experienced workforce, a high-quality magnetite resource, port facilities and reliable renewable energy,” Mr Ibrahim said.
“Greensteel’s proposed mill provides a clear way forward for the region. With the existing steelworks in Administration, we believe our mill can be built in parallel, enabling a smooth transition for the workforce after that process. This is vital for the people of Whyalla and the local community,” he said.
Greensteel’s sister company, Reosteel, is based in Sydney and is a well-established manufacturer of finished steel products for the construction industry.