Sims Limited and and Equest Steel, trading as Alter Steel, today announced a non-binding memorandum of understanding (MOU), to establish a scrap supply and services agreement supporting AlterSteel’s proposed electric arc furnace (EAF) planned for Pinkenba, Queensland in 2028. 

Under the terms of the MOU, Sims will exclusively supply up to 550,000 metric tonnes of ferrous scrap annually; will also manage Alter Steel’s scrap inventory on a just-in-time basis; and will provide access to port and rail infrastructure via the staged development of Sims’ Pinkenba site, which is about 1km from Alter’s proposed EAF on Tingira Street.

“This collaboration with Sims completes the supply chain to deliver the cleanest steel in Australia, right here in Queensland,” said Grant Johnston, Managing Director of Alter Steel. “Sims is a global leader in metal recycling, and we’re proud to have them alongside us on this project. Together, we’ll transform local scrap into high value steel, cut emissions, and keep manufacturing onshore. Construction is planned to commence in 2026, with operations beginning in 2028. This project positions Queensland at the forefront of Australia’s low carbon steel industry,” he added. Alter Steel is backed by Westview Group, a privately owned Australian industrial group employing more than 750 staff across steel, technology and manufacturing.

Sims’ Pinkenba investment represents a significant development for its Australia and New Zealand operations and strategy. Plans are focused on the staged development of the site into a world-class strategic logistics and metal recycling hub. The site will enable more efficient scrap movement by significantly transitioning from road-based transport to shipping and potentially rail.

Stephen Mikkelsen, chief executive officer and managing director of Sims, commented: “This MOU provides a potential pathway to long-term volume certainty for both parties, supported by efficient logistics through the Pinkenba hub. It also builds on our core strengths of providing responsible, sustainable operations, scale, material quality, technology, and diverse scrap sourcing, supported by a network of collection sites with access to a wide range of transport options. We are very excited to work with Alter, supporting their ambitions in manufacturing low-emission steel.”

Alter Steel’s Pinkenba mill is expected to create over 600 construction jobs and more than 220 permanent skilled positions across steelmaking, trades, engineering and logistics once operational.