Greensteel Australia has announced plans to invest $500 million in a new low-emissions steel manufacturing facility in Newcastle, describing it as Australia’s first new steel mill in more than 30 years and the country’s first to operate entirely on electricity.
According to Greensteel Australia, the project will return steel manufacturing to the Hunter region through the redevelopment of a 70,000-square-metre site at Mayfield North, with refurbishment due to begin before the end of the year and the mill expected to be operational by January 2028.
The company said the Stage 1 investment will enable the facility to produce up to 600,000 tonnes of finished steel annually for the housing, transport and energy sectors. Reinforcing bar will be the first product manufactured, with wire rod and coil planned for future stages.
Greensteel Australia Chief Executive Officer Romany Ibrahim said the project had been supported by recent government policy settings.
“Australia stopped building steel mills a generation ago. Thanks to the leadership of the NSW and Federal Governments, we’re building again,” Ibrahim said.
“They’ve made it possible to bring manufacturing home to Newcastle, where Australian steelmaking began and where it never should have left.”
Greensteel Australia Head of Government Relations Patrick Buchan said government initiatives had helped provide certainty for the investment.
“The investment was made possible by the recent policy directions set by the NSW and Federal Governments. The Future Made in Australia agenda, together with national and state housing targets and NSW’s support for industry in the Hunter, has given us the certainty we need to manufacture steel in Australia rather than overseas,” Buchan said.
The company said the all-electric mill will use electric induction furnace technology rather than conventional gas-fired reheating furnaces, resulting in no direct carbon dioxide emissions from the manufacturing process. It also said the facility will operate independently of gas supplies by drawing on electricity, including renewable energy sources.
Greensteel Australia said the project is expected to directly employ more than 200 full-time workers, including fitters, electricians, crane drivers, metallurgists and engineers, while supporting additional jobs during construction and across Hunter-based supply chains.
Greensteel Australia Chairman Ross Garnaut said increasing domestic steel production could strengthen local supply.
“Every tonne of steel we forge at Mayfield is a tonne Australia doesn’t have to import,” Garnaut said.
“That means more reliable supply and better prices for builders, and because there is no gas anywhere in our process, it also means lower embodied carbon in the homes and infrastructure this country needs. That’s a win for builders and home buyers, and a win for the Hunter.”
Greensteel Australia said the project’s main equipment, including an all-electric induction furnace supplied by Italian steel infrastructure company Danieli, is expected to arrive from October 2027. The company also confirmed that details of a planned Stage 2 expansion at the Mayfield site will be announced in the coming weeks.
