Greensteel Australia releases first plans for Whyalla’s ailing steelworks after $1.6bn order placed with Danieli Group for new plant

New images of a rebuilt Whyalla steel plant have been released by Sydney-based Greensteel Australia as it pushes ahead with its bold plan to take over the ailing steelworks.

Greensteel Australia released rendered images of its planned steelworks for Whyalla. Picture: Greensteel Australia

An Australian company has signed a $1.6bn order for a “next-generation” steel mill to be built in Italy as it pushes ahead with its bold plan to take over the ailing Whyalla steelworks.

Sydney-based Greensteel Australia penned the deal with Danieli in a recent contract signing in Adelaide to buy a new plant, two electric arc furnaces and a structural steel rolling mill.

It followed Greensteel also placing an earlier order with the world-renowned firm Danieli in October last year to fabricate the first equipment needed for its planned “ultra-low-carbon steel mill”.

Greensteel president Mena Ibrahim said the three mills, two arc furnaces and plant were expected to be delivered by late 2026 or early 2027 – and could replace the long-neglected existing steelworks.

He also released rendered images this week of how the proposed Whyalla plant would look.

Greensteel president Mena Ibrahim said the three mills, two arc furnaces and plant were expected to be delivered by late 2026 or early 2027. Picture: Greensteel Australia

“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.

Administrator KordaMentha is busy stabilising the Whyalla steelworks and mine after taking over from OneSteel Manufacturing in February and wants it sold within six months.

Danieli built the original Whyalla steelworks and also was caught up in controversy surrounding its former owner GFG Alliance’s Sanjee Gupta who claimed the Italian company was building promised new equipment for his operations.

Mr Ibrahim has established a network of businesses with his brother Romany Ibrahim under the name The Group with a reported overall portfolio now exceeding two billion dollars in value.

It includes finished steel products supplier Reosteel.

Greensteel Australia president and executive director Mena Ibrahim. Picture: Supplied

“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,” Mr Ibrahim promised.

“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.”

Originally published as Greensteel Australia releases first plans for Whyalla’s ailing steelworks after $1.6bn order placed with Danieli Group for new plant