en.Wedoany.com Reported - Australia's Greensteel Australia plans to invest AUD 500 million to build an all-electric, low-emission steel manufacturing facility in Mayfield North, Newcastle. The company claims this will be the first new steel plant in Australia in over 30 years and the first in the country to operate entirely on electricity. Renovation work is set to begin before the end of this year, with operations expected to commence in January 2028.
The project will redevelop a 70,000-square-meter site, bringing steel manufacturing back to the Hunter region. The first phase of investment will enable the facility to produce up to 600,000 tons of finished steel annually for the residential, transportation, and energy sectors, with rebar as the initial product. Future phases plan to produce wire rod and coil.
Romany Ibrahim, CEO of Greensteel Australia, stated that the project has received recent policy support from the New South Wales and federal governments. He said government leadership has made it possible to bring manufacturing back to Newcastle, the birthplace of Australia's steelmaking industry.
Patrick Buchan, Head of Government Relations at Greensteel Australia, noted that the "Future Made in Australia" agenda, national and state-level housing targets, and New South Wales' support for the Hunter region's industries provide certainty for the investment.
The all-electric steel plant uses electric induction furnace technology, replacing traditional gas-fired reheating furnaces, with no direct carbon dioxide emissions during the manufacturing process. The facility will operate on electricity (including renewable energy) and will be independent of natural gas supply.
The project is expected to directly employ over 200 full-time staff, including fitters, electricians, crane operators, metallurgists, and engineers, with additional jobs created during construction and within the supply chain. Ross Garnaut, Chairman of Greensteel Australia, stated that increasing domestic steel production can strengthen local supply, with every ton of locally produced steel reducing a ton of imports, helping to stabilize prices and lower carbon emissions in residential and infrastructure sectors.
Key equipment—including the all-electric induction furnace supplied by Italian steel infrastructure company Danieli—is expected to arrive from October 2027 onwards. Details of the second phase expansion of the Mayfield site will be announced in the coming weeks.
