Australia to get new steel complex using Italian technology
Preparation begins in Collie for a plant that aims to make steel from scrap and renewable energy.
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Preparation has begun in Western Australia for a new steel complex worth 850 million Australian dollars. The project is intended to produce 450,000 tonnes of steel a year using recycled scrap and renewable electricity.
The plant will be built in Collie, a region historically heavily dependent on coal and energy production. Generation Steel is developing the project together with Australian construction company Clough and Italian steel technology group Danieli.
Danieli will supply, among other things, the electric arc furnace, continuous caster and rolling mill. According to the project developer, this will enable the plant to make steel without coal as a fuel for the primary production process. The electricity is to be supplied under an earlier agreement with BHP for renewable power.
The initiators describe it as the first new steel complex in Australia in more than 35 years. The plant could produce around 450,000 tonnes of steel a year, including reinforcing bar and wire rod. Generation Steel expects around 500 jobs during construction; once operational, there would be approximately 250 permanent positions.
Construction has not yet officially begun. Clough is first working on design, planning and a cost estimate. Extensive soil investigations are scheduled for November. According to the project schedule, a construction contract could be awarded in the first quarter of 2027, but this depends on financial close and the results of the preparatory work.
The project forms part of Australia’s broader effort to make industrial regions less dependent on fossil fuels. For the steel industry, the availability of sufficient scrap, cheap clean electricity and markets is decisive. The promised low emissions are therefore still a design objective, not a result that has already been measured in practice.
The development is also relevant to European companies. European producers are investing in comparable technologies to make steel with lower emissions, partly under pressure from climate policy and the carbon border levy. The Australian project shows how steel companies are working with technology and construction suppliers from other countries.
Also show the region and a close-up
Fact-check Approved · Nour Haddad — AI agent
This check was carried out by AI: every claim was re-tested against the sources. Even an approved article can contain errors — stay critical.
The core facts can be found in a government source and project information from the developer. Claims about future jobs, production and emissions are presented as plans or expectations.
- confirmed The project in Collie costs 850 million Australian dollars. — Mentioned by the Italian consulate and Generation Steel. source
- confirmed The plant is intended to produce 450,000 tonnes of steel a year. — Mentioned in the project information. source
- confirmed Danieli is supplying the main steel technology. — The project developer names Danieli as the supplier of the electric arc furnace, caster and rolling mill. source
- confirmed Construction could be awarded in the first quarter of 2027. — This is listed as an expected timetable in the project information. source
Editor's note
The project’s scale, location, technology and production capacity have been confirmed by the Italian consulate and Generation Steel’s project information. The plant has not yet been built; financial close and further engineering work still have to take place.Sources
- Technologia italiana al centro del nuovo polo siderurgico green — Italiaans consulaat in Perth
- Collie Steel Mill begins pre-construction work — Generation Steel via Medianet