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Industry News

Massive steel plant plans for SA

CFG Alliance is planning to construct a steel plant in Whyalla, South Australia, which will be the largest in the western world, according to company chairman Sanjeev Gupta.

Gupta announced the new project, Next-Gen Steel, alongside Prime Minister Scott Morrison and leader of the opposition Bill Shorten at a press conference in Whyalla on December last year.

“This is the turnaround state, and this is the comeback city in Australia when we’re talking about Whyalla,” Morrison said.

The project will create a new steel plant for Whyalla capable of producing 10 million tonnes a year.

Gupta also announced that the existing Whyalla steelworks would also be transformed through a $600 million investment into a 1.8 million tonnes a year steel producer.

GFG Alliance purchased the steelworks in 2017, saving hundreds of jobs in the process.

The company signed two contracts with Danieli and CISDI Engineering for the development of rail and structural heavy section mill and a pulverised coal injection (PCI) plant respectively over the next three years at Whyalla.

“The transformation will vastly improve the operations, financial and environmental performance of the operations, paving the way for Whyalla to become an enticing, global hub for innovative industry,” Gupta said.

The creation of the new next-gen steel operation with a capacity of 10 million tonnes a year (and the infrastructure to eventually double that capacity) and the upgrades to the current Whyalla operation is expected to increase the town’s population fourfold to around 80,000.

“This is a major boost for our long-term outlook and gives Whyalla City Council and other industries and businesses more confidence to be able to plan for the future,” said Clare McLaughlin, Whyalla mayor.

“The plant will also have state-of-the-art environmental controls, which is yet another positive for the community on top of the financial investment and job creation.”