The facility will operate entirely on electricity, making it the country's first steel plant to eliminate the use of natural gas at every stage of the production process.
The new plant will be built at 51 Industrial Drive, the site that hosted the former BHP Newcastle Steelworks for much of the twentieth century. The investment aims to bring steel production back to the Hunter region.
Greensteel Australia Head of Government Relations Patrick Buchan stated that the investment decision was made possible by the industrial policies recently introduced by the New South Wales (NSW) Government and the Australian Federal Government.
"The Future Made in Australia agenda, national and state housing targets, and NSW's support for industry in the Hunter region have given us the confidence to produce steel in Australia rather than overseas," Buchan stated.
CEO Romany Ibrahim emphasized that Australia has not built a new steel plant for decades.
"Thanks to the leadership of the NSW and Federal Governments, we are rebuilding. We are bringing steel production back to Newcastle, where Australia's steel industry began and where it should never have left," Ibrahim stated.
Annual production capacity targeted at 600,000 mt
Greensteel Australia's facility will produce up to 600,000 mt of processed steel annually for the housing, transport, and energy sectors. The first phase will focus on rebar production, while wire rod and coil production are planned for later stages.
The company expects increased domestic production to reduce Australia's dependence on imported steel, contributing to more stable and lower steel prices for the construction sector over the long term. In addition, the absence of direct carbon emissions during production is expected to help reduce the construction industry's carbon footprint while supporting the country's target of building 1.2 million new homes.
Fully electric induction furnace technology
The project will be centered on a fully electric induction furnace. Instead of the large natural gas fired furnaces traditionally used in steel production, the facility will rely on electricity supplied through a grid powered by renewable energy sources.
According to the company, the technology offers two key advantages. First, using electricity for heat generation means the production process produces no direct CO₂ emissions. Second, the facility will operate independently of natural gas supplies, providing a more secure and future ready energy model.
Danieli to supply equipment, production scheduled for 2028
Renovation and modernization work at the site is expected to begin before the end of this year. The main equipment, including the fully electric induction furnace, will be supplied by Italian steel equipment manufacturer Danieli. Equipment deliveries are scheduled to begin in October 2027, while commercial production is targeted to start in January 2028.
The new facility is expected to create more than 200 full time jobs, including positions for fitters, electricians, crane operators, metallurgists, and engineers. Additional employment is also expected through construction activities and supply chain operations across the Hunter region.
"Mayfield is only the beginning"
Greensteel Australia Chairman Ross Garnaut emphasized that every ton of steel produced at Mayfield will reduce Australia's reliance on imports.
"Every ton of steel we produce at Mayfield is one less ton Australia needs to import. This will provide a more reliable supply and more competitive prices for the construction sector. Eliminating natural gas from the production process also means a lower carbon footprint for the housing and infrastructure projects Australia needs. This is a major benefit for both the construction industry and the Hunter region," Garnaut stated.
The company noted that the announcement covers only the first phase of the Mayfield investment and confirmed that details of the second phase will be announced in the coming weeks.
CEO Romany Ibrahim concluded, "Mayfield is only the beginning. This is the first phase. Stay tuned."
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