The parties signed a non-binding Memorandum of Understanding (MoU) covering the supply of scrap for Alter's steelmaking plant, which is expected to be operational in 2028.
Under the agreement, Sims will supply up to 550,000 tons of scrap iron per year to the project, Alter will manage its scrap inventory on a just-in-time basis, and Sims' Pinkenba site will be developed with access to port and rail infrastructure. The site is located just 1 kilometer from Alter's upcoming electrical steelmaking facility on Tingira Street.
Alter Steel plans to invest more than USD 750 million to reduce emissions and reduce import dependency in Australia's steel industry, and aims to convert 500,000 tons of local scrap into low-carbon construction steel each year at its new plant in Pinkenba.
The project is expected to create over 600 temporary jobs during construction and over 220 permanent positions once production begins, in areas ranging from engineering to logistics. The company has also received conditional development approval for the plant and signed an equipment supply agreement with global technology partner Danieli.
Sims' investment in the Pinkenba field is a strategic move for the company's Australian and New Zealand operations. Plans are to transform the site into a world-class logistics and metal recycling center. With this transformation, a more efficient scrap logistics will be achieved by shifting from road transportation to port and rail transportation.
Grant Johnston, CEO of Alter Steel, made the following assessment about the cooperation:
"This collaboration with Sims completes the supply chain to produce Australia's cleanest steel in Queensland. Sims' global leadership in metal recycling gives us great strength as we bring this project to fruition. With construction scheduled to begin in 2026, we aim to be in production by 2028. This project will put Queensland at the forefront of low carbon steel production in the country."
Stephen Mikkelsen, CEO and Managing Director of Sims, stated:
"This MOU is an important milestone in Sims' strategic growth journey. It cements our position as a strong partner in Australia and New Zealand's thriving steel industry. The logistical support we will provide through our Pinkenba site offers long-term volume security for both parties. It also reinforces our leadership in sustainability and material quality. We are excited to support low-emission steel production together with Alter."
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