Sims Limited (Sims) and Equest Steel Pty Ltd, trading as Alter Steel (Alter), have signed a non-binding Memorandum of Understanding (MOU) to establish a scrap supply and services agreement for the electric arc furnace (EAF) facility planned to become operational in Pinkenba, Queensland in 2028.
Under the terms of the agreement, Sims will supply Alter Steel with up to 550,000 tonnes of ferrous scrap annually, manage the scrap inventory on a just-in-time basis, and gradually provide access to port and rail infrastructure at its Pinkenba site. Sims’ facility is located only 1 km from Alter’s proposed EAF site. This MOU forms the framework for the parties to develop a binding agreement.
To reduce Australia’s reliance on imports and lower carbon emissions, Alter Steel is investing over USD 750 million to produce 500,000 tons of reinforcing steel annually from local scrap at the Pinkenba facility. Once completed, the plant is expected to create over 600 construction jobs and more than 220 permanent skilled positions. Alter has also secured conditional development approval for the site and signed a supplier agreement with global technology and equipment partner Danieli.
Sims’ investment in the Pinkenba region is a key part of the company’s strategic transformation to enhance the efficiency of its Australia and New Zealand operations. The facility aims to accelerate the shift from road transport to sea and potentially rail, improving operational efficiency and meeting the future feedstock needs of Alter and other domestic steelmakers.
Alter Steel Managing Director Grant Johnston stated, “This collaboration with Sims completes the supply chain to deliver the cleanest steel in Australia, right here in Queensland. We will transform local scrap into high-value steel, reduce emissions, and keep manufacturing onshore.” Construction is planned to commence in 2026, with operations beginning in 2028.
Sims Chief Executive Officer and Managing Director Stephen Mikkelsen stated, “This MOU represents a strategic milestone for Sims. It demonstrates our role as a key partner in the development of the steel sector in Australia and New Zealand. With logistics efficiencies through Pinkenba, we will deliver advantages in both sustainability and operational scale.”
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