Sims Limited and Equest Steel Pty Ltd, trading as Alter Steel, have signed a non-binding Memorandum of Understanding (MOU) to collaborate on a scrap supply and services agreement that supports the development of a new electric arc furnace (EAF) steelmaking facility in Pinkenba, Queensland.
Under the proposed terms of the agreement, Sims would supply up to 550,000 tonnes of ferrous scrap annually to Alter Steel, manage scrap inventory on a just-in-time basis, and provide access to port and rail infrastructure via a staged development of Sims’ existing Pinkenba site, located roughly one kilometre from Alter’s proposed facility.
“This MOU represents a strategic milestone for Sims,” said Stephen Mikkelsen, CEO and Managing Director of Sims Limited. “It reinforces our position as a key partner to Australia and New Zealand’s growing domestic steel sector.”
Alter Steel plans to invest over $750 million to construct the Pinkenba mill, with construction set to begin in 2026 and operations expected by 2028. The new mill aims to produce 500,000 tonnes of reinforcing steel annually from locally sourced scrap, with a focus on decarbonisation and domestic manufacturing.
“This collaboration with Sims completes the supply chain to deliver the cleanest steel in Australia, right here in Queensland,” said Grant Johnston, Managing Director of Alter Steel. “Together, we’ll transform local scrap into high value steel, cut emissions, and keep manufacturing onshore.”
The proposed facility is anticipated to create more than 600 construction jobs and over 220 permanent skilled roles in steelmaking, engineering, trades and logistics.
Alter Steel has already secured conditional development approval and entered a supplier agreement with global technology provider Danieli.
Sims’ planned development of its Pinkenba site is central to its long-term strategy for Australia and New Zealand, aiming to build a strategic logistics and recycling hub that shifts material transport from road to shipping and potentially rail.
This transition is expected to improve efficiency and strengthen Sims’ role as a supplier of high-quality recycled materials to steelmakers across the region.
“The MOU provides a potential pathway to long-term volume certainty for both parties, supported by efficient logistics through the Pinkenba hub,” Mikkelsen added.
“We are very excited to work with Alter, supporting their ambitions in manufacturing low-emission steel.”
The content of this article is based on information supplied by Sims Limited. For more information, please refer to the official company announcement and communications from Sims Limited. Please consult a licensed and/or registered professional in this area before making any decisions based on the content of this article.
