Greensteel Australia has confirmed a $1.6 billion order with Italian-based engineering company Danieli Group for the fabrication of components for its proposed ultra-low-carbon steelmaking facility.
The Sydney-based company said the order, covering stages two and three of its proposed steel mill, includes a direct reduced iron (DRI) plant, two electric arc furnaces, a structural steel rolling mill with high-speed rail production capabilities, and a second rolling mill for reinforced steel, Greensteel said in a news release.
This latest announcement builds on an earlier order placed in October 2024 for a single rebar rolling mill, also with Danieli. Delivery of all equipment is expected by late 2026 or early 2027.
Greensteel President and Executive Director Mena Ibrahim said the purchase marks a significant step in the company’s vision to build what it describes as Australia’s first ultra-low-carbon steelmaking operation.
“Danieli is the world’s leading provider of advanced, high-technology steelmaking infrastructure,” Mr Ibrahim said during a contract signing event in Adelaide.
“Bringing their expertise to Australia will immediately position this country among the ranks of the most advanced steel suppliers globally.”
Greensteel said the agreement includes an expedited delivery schedule and is expected to generate more than 1,500 permanent jobs and around 2,500 jobs during the construction phase.
The development comes as uncertainty continues to surround the future of existing steelmaking facilities in Whyalla, which are currently under administration.
Greensteel said its proposed facility could help bridge the gap left by these challenges and contribute to Australia’s sovereign steelmaking capacity.
Danieli Group CEO Giacomo Mareschi expressed support for the initiative. “We’re excited to be partnering with Greensteel on their plans to bring ultra-low-carbon steelmaking to Australia,” he said.
“From the very beginning we have been impressed with the boldness of Greensteel’s vision and their commitment to the industrial decarbonisation agenda.”
According to Greensteel, the new facility will be capable of producing ultra-long steel sections used in high-speed rail construction — a product not currently manufactured in Australia.
Despite increasing steel output to four times that of the Whyalla steelworks, the proposed site requires only 70 hectares compared to Whyalla’s 1,000-hectare footprint.
The DRI plant will be designed to operate using hydrogen instead of coking coal, enabling a cleaner method of refining magnetite into iron pellets.
While a final decision on the site has not yet been made, Greensteel confirmed Whyalla remains the preferred location. Mr Ibrahim said the area offers essential infrastructure, access to magnetite resources, and an experienced local workforce.
“Whyalla offers everything we need — an experienced workforce, a high-quality magnetite resource, port facilities and reliable renewable energy,” he said.
Greensteel is the parent company of Sydney-based Reosteel, a manufacturer of finished steel products for the construction industry.
