19 February 2025
Collapse of Whyalla Steelworks: A Pivotal Moment for Sovereign Steel Capability in Australia
The collapse of the Whyalla steelworks presents a unique opportunity to develop a genuinely competitive steel manufacturing capability in South Australia, according to Greensteel Australia, the company planning to build Australia’s first hydrogen-fuelled, emissions-free steel plant.
Sydney-based Greensteel Australia (Greensteel) stated that while the collapse of GFG and its subsidiary Infrabuild’s operations in Whyalla was a setback for the hundreds of employees and suppliers who relied on the plant, it could trigger the modernisation and future-proofing of Whyalla’s steelmaking operations.
Greensteel announced last year that it had placed an order with Italian steel group Danieli for infrastructure to support 100% emissions-free steelmaking in Australia, using hydrogen produced from renewable energy to fuel arc furnaces. It is the only Australian company to have ordered a rolling mill in recent years.
Greensteel’s sister company, Reosteel, based in Sydney, is a well-established downstream supplier of finished steel products to the construction industry.
“The collapse of Whyalla will not surprise downstream industry participants who have been closely monitoring GFG operations and have experienced increasingly inconsistent supply over the past year or more,” said Mena Ibrahim, President and Executive Director of Greensteel Australia.
“It’s a disappointing outcome, but we urge the State Government to now take the opportunity to reimagine Whyalla’s role in the Australian steel industry,” Mr Ibrahim said. “We believe it is critical for Australia’s sovereign steel capability that GFG is replaced with a well-capitalised steel manufacturer able to supply the domestic market.”
Greensteel is currently assessing locations with access to a suitable power supply for its new plant, which it plans to have operational by the end of 2026. Greensteel executives will travel to Italy in March to finalise contracts with Danieli for the purchase of a structural mill, two arc furnaces, and a Direct Reduced Iron (DRI) plant.
“The existing plant in Whyalla is old and decaying – we do not believe there is a business case for upgrading the existing plant. In our view, the far better course is to scrap it and replace it with a new, state-of-the-art mill capable of manufacturing emissions-free steel. The State Government’s plans for the $600 million hydrogen fuel hub are already in place – all that remains is to complete the other pieces of the puzzle,” Mr Ibrahim said.
Greensteel is reconsidering its previously announced plans to locate its hydrogen-fuelled plant in Newcastle after being advised by the NSW Government that it could not guarantee sufficient renewable energy supply.
“Whyalla, one of several sites we are considering, is attractive because of the ample power supply it offers,” Mr Ibrahim said.
Issued by Sefiani, part of Clarity Global, on behalf of Greensteel Australia. Media inquiries to Nick Owens, 0421 977 062 or nowens@sefiani.com.au