SYDNEY, July 30, 2025--(BUSINESS WIRE)--Sims Limited ("Sims") and Equest Steel Pty Ltd, trading as Alter Steel ("Alter"), today announced they have entered into a non-binding Memorandum of Understanding (MOU), to establish a scrap supply and services agreement supporting Alter’s proposed electric arc furnace (EAF) planned for Pinkenba, Queensland in 2028.

Under the terms of the MOU, it is proposed that Sims would exclusively supply up to 550,000 tonnes of ferrous scrap annually, manage Alter Steel’s scrap inventory on a just-in-time basis, and provide access to port and rail infrastructure via the staged development of Sims’ Pinkenba site. Sims’ Pinkenba site is located approximately 1km from the location of Alter’s proposed EAF on Tingira Street. The parties will use the MOU as the framework for negotiating a binding agreement.

With growing pressure to cut emissions and reduce reliance on imports, Alter Steel is investing over $750 million to build a new steel mill at Pinkenba. The facility plans to turn local scrap into 500,000 tonnes of reinforcing steel each year, keeping manufacturing in Australia and supplying Queensland and national projects with lower carbon material.

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. The company has recently achieved several key milestones, including conditional development approval for the site and a supplier agreement with global technology and equipment partner Danieli.

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. This transformation is expected to unlock substantial operational efficiencies while also supporting the future feedstock needs of Alter Steel as well as other steelmakers in Australia and New Zealand, continuing to position Sims as a leading supplier of high-quality recycled raw materials.

"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."

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Stephen Mikkelsen, chief executive officer and managing director of Sims, commented: "This MOU represents a strategic milestone for Sims. It reinforces our position as a key partner to Australia and New Zealand’s growing domestic steel sector. The 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."

About Alter Steel

Alter Steel is backed by Westview Group, a privately owned Australian industrial group employing over 750 staff across steel, technology and manufacturing. Alter’s proposed Electric Arc Furnace at Pinkenba is expected to see an investment of more than $750 million in Queensland and would produce up to 500,000 tonnes per annum of high-quality, low emissions reinforcing steel once operational. This reinforcing steel would be supplied as a lower carbon option to the construction sector across Queensland and Australia for the building of new infrastructure like roads, buildings and sports stadiums. It is anticipated that the project would create approximately 600 jobs during construction and more than 220 permanent high-skilled positions once operational.

Head Office: 3 Marco Polo Drive, Mandurah WA 6210.

About Sims Limited

Founded in Australia in 1917, Sims Limited is a global leader in metal recycling and the provision of circular solutions for technology. Employing approximately 4,100 employees globally, the company operates more than 150 facilities across 13 countries. Sims Limited plays a vital role in helping increase circularity and decarbonisation by supplying recycled materials and re-purposed products. The company’s ordinary shares are listed on the Australian Securities Exchange (ASX: SGM), and its American Depositary Shares are quoted on the Over-the-Counter market in the United States (USOTC: SMSMY). The Company’s purpose, create a world without waste to preserve our planet, is what drives its constant innovation and leadership in the circular economy. For more information, visit www.simsltd.com.

Head Office: Level 9, 189 O’Riordan Street, Mascot, NSW, Australia 2020

View source version on businesswire.com: https://www.businesswire.com/news/home/20250730559486/en/

Contacts

Sims Limited 
Investor Relations 
Ana Metelo
Director, Investor Relations and
Sustainability
[email protected] 

Media Relations 
Stephanie Glue
Global Head of Corporate and Government Affairs
[email protected] 

Alter Steel 
Media 
Aaron Johnston
Group Marketing Manager
[email protected]

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