$2bn portfolio behind Greensteel Australia’s bid to take over Whyalla Steelworks

They just declared an audacious bid to buy the Whyalla steelworks, so just who is behind the company that thinks it can fix SA’s biggest industry headache?

Greensteel Australia is making an audacious bid to buy Whyalla Steelworks, so just who is behind the company that thinks it can fix South Australia’s manufacturing headache?

Mena Ibrahim has rarely appeared in the media, but this week arrived on the South Australian scene with a bang.

The Sydney-based entrepreneur launched his company Greensteel Australia’s bold plan to take over the ailing Whyalla Steelworks claiming to be a “new name to the public but our foundations are anything but new”.

On paper, his company has a strong portfolio to back the strategy to scrap the existing Whyalla Steelworks over two years and shift production to a brand new Greensteel Australia plant built nearby.

\Greensteel Australia president and executive director Mena Ibrahim (standing far right) and chief executive of Greensteel Australia and Reosteel Romany Ibrahim seated far right. Danieli Group chief executive officer Giacomo Mareschi seated on left. Picture: Supplied

His company already has the building of a plant in process with Italian partner Danieli.

Danieli not only built the original Whyalla plant but also was embroiled in the controversy over its more current owner GFG Alliance’s Sanjeev Gupta’s claims that Danieli was producing promised new equipment for his operation.

Since then, GFG Alliance’s subsidiary overseeing the steelworks has been thrust into administration by the state government over unpaid bills to SA Water and in royalties from its mines with administrator KordaMentha to oversee mapping its future.

Greensteel’s bid to take over the steelworks stems from a plan it was already designing for Newcastle to create a manufacturing site based on Sweden’s Lulea plant that was established five years ago and now produces hydrogen-powered, emissions-free steel.

A Reosteel manufacturing site, sister company of Greensteel Australia. Picture: supplied

Mr Ibrahim said it made better sense to pivot the plan to Whyalla where “we do not believe there is a business case to invest in upgrading the existing plant”.

From all accounts Mr Ibrahim is backed with commercial clout. He tells of establishing a network of businesses under the name The Group with his brother Romany Ibrahim over the past two decades that encompasses a vast portfolio including in healthcare, education, manufacturing and housing.

Information provided to The Advertiser claims The Group’s combined portfolio now “exceeds two billion dollars in total value” with a network of radiology practices, Bright Beginnings Learning Centres, and large-scale property developments.

When it comes to experience in the steel manufacturing realm, The Group also operates a sister company to Greensteel called Reosteel.

Reosteel supplies finished steel products to the nation’s construction industry, employs almost 100 people and operates over 25,000 sqm of advanced manufacturing and production space across News South Wales and the Australian Capital Territory.

Hummock Hill Lookout in Whyalla, overlooking Whyalla Steelworks. Picture: Brett Hartwig

Mr Ibrahim is president of Greensteel Australia and says Australia’s first 100 per cent emissions-free steel mill that would use hydrogen to drive two electric arc furnaces could be built in two years, gradually transitioning work to the new plant from the existing, ageing Whyalla site.

“Greensteel has already placed an order with Italian partner Danieli (which provided the infrastructure at the existing Whyalla plant) for its proposed plant, representing a total investment north of $2 billion,” he said.

“The plans are serious – Greensteel has already made a significant instalment payment on the order.”

Originally published as $2bn portfolio behind Greensteel Australia’s bid to take over Whyalla Steelworks