New logistics infrastructure has been commissioned in New Zealand to support the use of ferrous scrap in domestic steel production. Recycling company Sims Metal has opened a new rail connection at its Ferrous Processing Facility in Auckland’s Ōtāhuhu area. The project was developed in cooperation with Sims Metal, New Zealand Steel and rail operator KiwiRail.
Scrap steel to be transported to Glenbrook by rail
Officially opened on July 30, the new rail connection will enable shredded scrap steel and HMS scrap processed at Sims Metal’s facility to be transported directly to NZ Steel’s Glenbrook plant.
According to Sims Metal, the new system will shift a significant portion of transportation from road to rail. This is expected to reduce truck movements on New Zealand roads by approximately 8,000 trips per year.
More than 100,000 tonnes of scrap steel are planned to be transported by rail from Ōtāhuhu to Glenbrook annually. This will create a more direct domestic supply chain for recycled steel to be reused in steel production within New Zealand.
Linked to new EAF investment
NZ Steel has announced the production of its first commercial steel from its new EAF, marking a shift toward a production model based on locally sourced scrap steel. The company said that long-term scrap supply agreements with Sims Metal and GMS will enable hundreds of thousands of tonnes of scrap to be used at the Glenbrook plant rather than exported.
With the new EAF in operation, NZ Steel aims to reduce annual greenhouse gas emissions at the Glenbrook facility by more than 45%. Coal consumption is also expected to fall by approximately half as part of the transformation.
Infrastructure completed
KiwiRail said the project was delivered entirely through its own teams, covering planning, surveying, geotechnical studies, design and construction. The company has completed the infrastructure connecting Sims Metal’s recycling facility directly to the national rail network.
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