The Australian Reinforcement Company (ARC) has announced it will open a new steel processing and distribution facility in Western Sydney, capable of supplying 10,000 tonnes of reinforcing steel per year to support the region’s $50 billion infrastructure boom.

The 2,500 square metre facility in Milperra will receive reinforcing steel products from InfraBuild’s steel manufacturing mills in Rooty Hill, Newcastle and Melbourne, before cutting and bending them to custom specifications for residential and commercial construction projects.

Sean Mannering, InfraBuild’s Executive General Manager of Distribution and Processing, said the Milperra site is one of six ARC distribution facilities in Western Sydney supplying more than 40,000 tonnes of steel to the growing residential market, with over 100,000 new homes expected to be built over the next five years.

“It’s vital to be able to produce steel locally, cut and bent for local needs, and be accountable to our local customers,” Mr Mannering said. 

“When our customers are preparing to pour concrete, our steel has to arrive cut and bent, specifically for their program, at the exact time they need it. If it’s two hours late, or not the right shape, their whole program falls apart.

“Our customers chose us because we reliably deliver top-quality product. This new facility helps us ensure we can get reliable, sustainable steel to our Western Sydney customers precisely when they need it.

“The opening of the Milperra site demonstrates our commitment to growing Western Sydney, as we prepare for the $50 billion infrastructure boom and over 100,000 new houses over the next five years. 

“InfraBuild supports over 600 manufacturing jobs right in the heart of Western Sydney. We turn Western Sydney’s scrap steel into brand-new reinforcing products to support construction of Western Sydney homes, hospitals, schools and stadiums. Our reinforcing bar products are made in Western Sydney, for Western Sydney, using Western Sydney scrap

“We are ready to service Western Sydney’s growing demand for steel. In addition to the new Milperra facility, we’re also expanding our steelmaking capacity at Rooty Hill from 680,000 tonnes per year to 1 million tonnes per year by 2030.”

The site opening builds on InfraBuild’s growing steelmaking capability in Western Sydney, including its manufacturing plant that melts 100% recycled Australian scrap in an electric arc furnace, a process that is 75% less carbon intensive than a traditional coal-fuelled blast furnace.

InfraBuild is Australia’s sole manufacturer of reinforcing steel. ARC has been the original supplier of steel reinforcement to the Australian construction industry for more than 100 years, enabling major nation-building projects and residential development across the country. 

The opening follows InfraBuild’s recently announced expansion in Queensland, where the company is investing in facilities at Hemmant and Eagle Farm to service the state’s infrastructure pipeline ahead of the 2032 Olympics.

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Under a new Power Purchase Agreement (PPA) activated on 1 April, the mill now contracts enough electricity from a Victorian wind farm to cover up to 50 per cent of the power required to melt scrap metal into steel.

“This is a genuine milestone, not just for InfraBuild, but for Australian manufacturing,” said Francisco Irazusta, CEO.

“Today’s announcement marks a major step on our journey to 100% renewable energy across our manufacturing sites by 2030. By increasing the amount of renewable energy powering our EAFs, there will be a significant reduction in carbon dioxide emissions per tonne of steel that we produce.”

The Laverton mill produces over 750,000 tonnes of steel per year by recycling scrap metal through its EAF, a process that already generates around 77% lower CO₂ per tonne than traditional coal-reliant blast furnace methods, according to data by World Steel. With renewable energy now powering the majority of the furnace, InfraBuild is taking the Australian construction sector closer to net zero steel.

Matt Kean, Chair of the Australian Climate Change Authority, said the achievement was proof the energy transition was working in the real world.

“Those who have claimed over the years that renewables can’t power Australia’s heavy industry must now confront reality,” Mr Kean said.

“The economics of renewables have moved decisively, and the manufacturers who lock in those advantages first will be the ones who compete globally.”

The Laverton PPA follows InfraBuild’s existing 25% renewable energy agreement at its Sydney Steel Mill and Newcastle Rod Mill in New South Wales. Together, these agreements form part of a deliberate, staged pathway toward 100% renewable energy across all InfraBuild manufacturing sites by 2030.

InfraBuild is also simultaneously expanding Laverton’s production capacity toward one million tonnes per annum by 2028, demonstrating that industrial growth and decarbonisation are not in tension.

“We are backing our manufacturing sector to continue innovating and take advantage of our growing renewable energy sector because we know it gives families the security of good, well-paying jobs,” said Minister for Industry and Advanced Manufacturing Colin Brooks.

One hundred per cent of the renewable electricity contracted under the Laverton PPA comes from wind generation. InfraBuild will also seek to secure supplies of biomethane as a cleaner replacement for natural gas in parts of the mill that cannot readily be switched to electricity.

InfraBuild’s SENSE 600 product, developed in partnership with Monash University, already carries 49% less embodied carbon than the NABERS reinforcing steel average and was recently recognised with a World Steel Innovation of the Year Award. By increasing the renewable energy powering Laverton, InfraBuild is on track to drive SENSE 600’s global warming potential to among the lowest-emissions steel products in the world.

Davina Rooney, CEO of the Green Building Council of Australia, said the construction sector was watching closely.

“Australia’s property industry is entering a new phase of decarbonisation where it’s not just about the emissions from what we use from the grid, but about how the buildings themselves are built,” Ms Rooney said.

–ends–

Media contact:

Jessica Puz, Media & External Communications Manager

0416 449 347

media@infrabuild.com

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InfraBuild has finalised its audited accounts for Financial Year ending 30 June 2025:   

• InfraBuild is Australia’s largest steel long product manufacturer, selling 1.97 million tonnes of steel in FY25   

• FY25 revenue of $4,435 million   

• FY25 underlying EBITDA of $223 million   

• FY25 capital expenditure of $117 million   

• Strong balance sheet with $701.1 million total cash ($596.8 million unrestricted)   

• Net loss after tax of $250 million impacted by trading conditions, significant items, and refinance costs  

Without a level playing field to compete against low-cost imports, the ability for InfraBuild to invest in jobs, new products and services for customers, decarbonisation efforts and longevity of a domestic manufacturing industry, is threatened.   

InfraBuild’s results for Financial Year 2025 have been challenged by the over-capacity of steel globally, contributing to the rise in imports into the domestic market and the downward pressures on pricing and margins. Further impacting trading conditions has been the softer residential building sector. These factors have led to the 6 per cent drop in total tonnes of steel sold during the year and 8 per cent drop in revenue.   

During the year significant one-off items relating to internal restructuring efforts to meet the challenges of the market and provisions against related-party receivables, along with group costs impacted the overall financial performance.   

The company has continued to invest in its decarbonisation efforts, manufacturing abilities and digital capabilities. Sales of SENSE 600 reinforcing bar continue to grow as market engagement leads to a solid pipeline of sales. SESNE 600 is InfraBuild’s new reinforcing bar made from 100 per cent scrap, using up to 16.7% less raw material with the same load capacity that can deliver a lower embodied carbon solution of up to 39% than our 500N reinforcing steel, helping play a role in lowering customers’ Scope 3 emissions.   

InfraBuild is a key part of Australia’s manufacturing industry as the only electric arc furnace steelmaker, the country’s second-largest metals recycler, and the nation’s lowest carbon-intensive steel producer, employing more than 4,600 workers across the county.   

InfraBuild CEO Francisco Irazusta said:  

“Our ongoing commitment to manufacturing in this country is unwavering as we believe in providing jobs, skills and training to keep sovereign steel manufacturing in Australia.   

“However, our operations are continually threatened by the persistent increase in cheap imports arising from an over-supply of steel internationally, coupled with protectionist trade measures across Europe, Asia and USA.   

“Despite these challenges, InfraBuild continues to double-down on investing in our manufacturing and digital capabilities and reducing our carbon emissions enabling us to manufacture the lowest embodied-carbon steel in Australia.   

“During the financial year, InfraBuild secured its first power purchase agreement to provide approximately 25 per cent renewable electricity for our Sydney Steel Mill and Newcastle Rod Mill, playing a part in further reducing the carbon emissions involved in our steel production.   

“InfraBuild had a capital spend of $117 million during the year, further investing in our manufacturing capabilities including upgraded electricity equipment for Sydney Steel Mill, construction of a new mesh facility at Newcastle, and new wire cleaning house at Newcastle. In addition, we continued development in a new digital customer platform, along with investments in robotics, machine learning and artificial intelligence.   

“More recently in October, we announced upgrades to our steelmaking capacity at our Melbourne and Sydney sites allowing us to increase the amount of steel billets produced over the next decade, positioning InfraBuild well for the growing market demands from building and infrastructure, particularly in Queensland ahead of the Brisbane Olympic Games.   

“While the Australian steel industry continues to experience softer sales in the short-term, InfraBuild has been navigating these tough times by restructuring our operations, investing in our business and maximising our core profitable product offerings to set us up well for the future.”   

-ENDS- 

Download a PDF of this media release.

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Dharma is currently the Chief People Officer at Toll Group, bringing extensive expertise in human resources, strategy, legal and corporate affairs. His career spans some of Australia’s leading corporations, including Westpac, the Australian Broadcasting Corporation, Leighton Holdings, KPMG, and Towers Perrin.

He has also served as an Advisory Board and Panel Member for several New South Wales Government institutions and has held Non-Executive Director roles with a large private retail organisation, two ASX-listed companies, and a not-for-profit economic think tank.

Sanjeev Gupta, Chairman of InfraBuild, said:

“I’m pleased to welcome Dharma to the InfraBuild Board. We will benefit immensely from his deep experience and proven track record across some of Australia’s premier brands.

“Dharma’s appointment further strengthens an already highly credentialed and experienced Board, one dedicated to ensuring InfraBuild’s continued success as we redefine steel as a more sustainable building material for Australia’s future.”

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InfraBuild’s scrap based EAF technology emits approximately 70% lower CO2 emissions per tonne of steel than traditional blast furnace methods according to worldsteel 2023 data.

As part of an investment program at the Laverton Melt Shop, InfraBuild has taken delivery of two new EAF bowls supporting its objective of increasing site production by 25% to one million tonnes per annum (Mtpa).

In Sydney, InfraBuild will lift capacity to 680,000 tonnes per annum (tpa) this year and has commenced studies, including identifying any required regulatory approvals, on the optimal path to reach 1 Mtpa.

InfraBuild CEO Francisco Irazusta said the new equipment prepares Laverton for the next stage of growth.
“Investing in our manufacturing assets is how we continue to grow, improve efficiency and meet increasing demand for more sustainable steel” Francisco said.

“These new EAF bowls are one of the critical upgrades that will help Laverton deliver on its future 1 Mtpa production target.”

The two bowls will be in operation from October 2025, enabling a larger tap mass and supporting increased output.

The bowls are part of a rotation system in which one is re-lined offline and exchanged with the operating bowl approximately every six weeks.

“Our ability to produce more sustainable steel means we are here ready to help our customers and the construction industry transform so we have a more sustainable construction industry.”

InfraBuild’s circular steel making model at the Victorian and New South Wales sites uses EAF technology to recycle scrap metal and produce steel for Australian infrastructure and construction projects and other sectors.

Media enquiries to Kelly Fedor; Manager External Communications and Media +61 404 003 175

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Michael has served on the Board since 2019, following his role as Development Director and Deputy CEO of Australia for GFG Alliance from 2017 to 2019.

He brought nearly three decades of experience to the Board, including his early work in the Australian steel industry as a corporate lawyer with Clayton Utz, advising Smorgon Steel Group and later serving as its General Counsel.

Michael’s career also included senior leadership roles at global mining and metals company Nyrstar, based in London and Switzerland. At Nyrstar, he led the world’s largest zinc processing division, overseeing seven major sites across Europe, the US and Australia, with a workforce of around 3,000 people.

InfraBuild thanks Michael for his outstanding contributions, dedication and wise counsel during his time on the Board. His steady stewardship and deep industry insight have been invaluable over the past six years.

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• Infrabuild remains Australia’s largest steel long product manufacturer, selling 2.1 million tonnes of steel in FY24  

• FY24 revenue of $4,933.5 million  

• FY24 adjusted EBITDA of $403.3 million  

• FY24 CAPEX spend of $124million   

• Strong balance sheet at end of FY24 with $957.9 million in cash and cash equivalents ($334.6m unrestricted)  

• Net loss after tax of $121.2 million  

The financial year 2024 was a challenging market environment for steel companies globally, with contraction in demand and surplus supply of steel, impacting prices and margins.   

These difficult trading conditions affected InfraBuild as well as other entities in the GFG Alliance where InfraBuild has exposure, including businesses in Poland, USA, and OneSteel Manufacturing (in administration), which has resulted in InfraBuild taking a provision of $156.7million in the FY24 accounts in relation to amounts owing from these businesses.   

The recently agreed transaction with bond holders in April 2025 and recent changes to the Board have enhanced the governance of the company by further limiting payments to associate entities, ensuring that capital is retained within InfraBuild.  

In addition to the downturn in the market and the related party provisions, costs associated with the GFG Settlement, refinancing activities and interest repayments also impacted the FY24 net profit result.  

To navigate through the continued market downturn, InfraBuild is executing a transformation program focused on maximising value in its core steel-in-concrete businesses and construction markets, reviewing non-core activities, reducing costs, improving productivity and investing for future growth in digital and manufacturing capabilities and capacity to meet future demand.  

The completion of the FY24 accounts comes as InfraBuild has in recent weeks:  

• Completed a transaction with bond holders to provide greater flexibility and liquidity to the company 

• Raised an additional US$150 million notes issued under the existing bond holders’ agreement  

• Repaid its Asset-Backed Term Loan and mortgage in Newcastle in full  

• Boosted its liquidity to 30 April 2025 with cash and cash equivalents of around $790 million ($687.6 million unrestricted, an increase of $354 million since June 2024)    

• Fortified the ringfence around InfraBuild from the rest of GFG  

• Announced two new directors to its Board  

• Received a stabilisation in Outlook from Moody’s.  

Francisco Irazusta, InfraBuild Chief Executive Officer said:  

“InfraBuild continues making and selling steel. We are a strong company with an independent board, including the recent announcement of two new directors, governance structure strengthening and own financing arrangements. The strengthened ringfencing of our operations and governance, along with the recent upgrade in our outlook by Moody’s, reinforce InfraBuild’s independence and its robust market position.  

“Despite a challenging operating environment marked by softer demand, macroeconomic headwinds, and volatility in commodity spreads, our FY24 performance reflects the underlying strength of our business and the benefits of our long-term strategy. The finalisation of the FY24 accounts and completion of the April Senior Notes transaction with subsequent liquidity improvement draws a line in the sand for InfraBuild, allowing us to move forward with surety so we can implement our growth agenda.  

“With significant momentum within the business, our focus will be on new technology and innovation to deliver the very best products and services for our customer, future proofing the business as the market recovers.  

“As Australia’s only electric arc furnace steelmaker and the nation’s largest long steel manufacturer, InfraBuild continues to provide low embodied carbon steel that is essential for residential, commercial and major infrastructure developments nationwide.” 

-ENDS- 

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David Barse is being appointed as a new non-executive director. The CEO of XOUT Capital is an experienced chief executive and brings expertise with US capital markets.

GFG Group General Counsel Simon Nasta is being appointed as executive director following due process.

The appointments follow the departures of Monica Middleton and Sandip Biswas following significant contributions to the business.

The board changes follow the finalisation of a transaction which saw a significant majority of notes holders voting in favour of providing greater flexibility and liquidity for the company. 

Sanjeev Gupta, GFG Alliance Chairman said:

“I’m pleased InfraBuild will benefit from the calibre of experience brought by David Barse with his knowledge of US capital markets and Simon Nasta who will strengthen the company’s legal rigor, controls and enhance systems, supporting the overall governance of InfraBuild.

“Thank you to Sandip Biswas for bringing his lifetime of steel and financial experience and who will continue to make an important contribution to the group as CEO of LPMA. I am also grateful to Monica Middleton for her leadership throughout her time on the board.”

“InfraBuild is now able to renew its focus on making strategic investments and growing the business through innovation which will ensure it remains Australia’s leading sustainable steel company.” 

Notes

InfraBuild’s transaction with bond holders provides:

1. an additional US$150 million notes issued under the existing bond holders’ agreement to prepay outstanding amounts under the syndicated facility agreement (ABL), originally dated as of May 26, 2023. Once the ABL has been prepaid in full, the notes will be secured on substantially all assets of the issuer and the guarantors on a first lien priority basis; 
2. the return to InfraBuild’s balance sheet the escrow funds raised through the ABTL financing, bolstering the company’s free cash position to over AU$700 million pro forma to 31 March 2025; 
3. an initial extension for the delivery of InfraBuild’s audited FY24 financial statements by May 31, 2025; and 
4. strengthened governance, enhanced transparency and a fortified ringfence around InfraBuild. 
   
   

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The outcome of the transaction allows InfraBuild to withstand the current market downturn and invest in growth and innovation, positioning InfraBuild as Australia’s leading sustainable steel company and a key partner to the country’s building, construction and engineering industries. 

A majority of bond holders have supported the transaction that provides: 

• an additional US$150 million notes issued under the existing bond holders’ agreement to prepay outstanding amounts under the syndicated facility agreement (ABL), originally dated as of May 26, 2023. Once the ABL has been prepaid in full, the notes will be secured on substantially all assets of the issuer and the guarantors on a first lien priority basis; 
• the return to InfraBuild’s balance sheet the escrow funds raised through the ABTL financing, bolstering the company’s free cash position to over AU$700 million pro forma to 31 March 2025; 
• an initial extension for the delivery of InfraBuild’s audited FY24 financial statements by May 31, 2025; and 
• strengthened governance, enhanced transparency and a fortified ringfence around InfraBuild. 

The transaction represents the confidence of bond holders in InfraBuild’s growth plans and opportunities. The bolstering of the company’s balance sheet will allow for strategic investments to grow InfraBuild’s market position and development of sustainability-driven innovations. 

Following significant contributions to the business, Monica Middleton and Sandip Biswas have stepped down from the InfraBuild board. Both Monica and Sandip leave the board having made positive and lasting impacts benefiting InfraBuild into the future. New board appointments will be announced shortly.

As Australia’s only fully integrated electric arc furnace steelmaker, incorporating scrap metal recycling, long steel manufacturing, and downstream distribution and processing, InfraBuild provides steel that is essential for residential, commercial and major infrastructure developments nationwide.  

Francisco Irazusta, InfraBuild Chief Executive said: 

“InfraBuild is a strong and resilient business with these changes agreed to by bond holders providing the company with a robust cash position allowing us to operate efficiently through these current tough market conditions. 

“With the financial surety of this transaction, InfraBuild can continue its work supporting the building of Australia with sustainable steel made in this country, while investing in growing our business using new technology and innovation to deliver the very best products and services for our customers. 

“I’d like to thank both Monica and Sandip for their leadership, commitment, and their thoughtful perspective that has contributed to a positive impact on InfraBuild during a period of both growth and change at the company,” Mr Irazusta said. 

A spokesperson representing a sub-set of the Bond Holders has said:

“We are pleased to have supported InfraBuild through the successful completion of this important capital raise and debt amendment process. The result of these comprehensive transactions is a win-win for both InfraBuild and its stakeholders.

Bondholders benefit from an even more robust credit with enhanced governance processes and a new first lien position on the company’s working capital and highly strategic production facilities.

Now strengthened with a significant boost in liquidity, we have the utmost confidence in the shareholder and management to guide InfraBuild through this period of heightened market volatility and that the business will emerge even stronger as the market recovers.”

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The current restricted amounts will be returned to InfraBuild’s balance sheet, bolstering its free cash position to over AU$700 million pro forma to 31 March 2025.

In addition, the current raise of US$150 million through additional notes will be used to repay outstanding amounts under the syndicated facility agreement (ABL), originally dated as of May 26, 2023, giving the company clear runway with bonds maturing November 2028.

Once the ABL has been prepaid in full, the Notes will be secured on substantially all assets of the Issuer and the guarantors on a first lien priority basis.

Together with its bond holders, the company is working to strengthen its governance, transparency and ringfence.

This will allow InfraBuild to cement its position as an integral part of Australia’s construction and engineering industry as it builds the nation’s future on sustainable steel.

Francisco Irazusta, InfraBuild CEO said:

“The availability of these funds onto InfraBuild’s balance sheet signifies the confidence bond holders have in a strong Australian company which continues to deliver for its employees, creditors, customers and stakeholders.

“The additional liquidity allows InfraBuild to continue investing in our business driving sustainability-driven innovations from new lower-embodied carbon steel, advanced robotics and AI improving operations, and new digital services for customers,” Mr Irazusta said.

A spokesperson representing a sub-set of the Bond Holders has said:

“We are supportive of the shareholder’s vision for the company and have confidence in the management of InfraBuild. We’re pleased to work together for a successful outcome that enhances the credit profile and liquidity of the business. InfraBuild is a market leader, with a strong management team and board – which is well positioned to capture future growth alongside their end markets.”

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The Company has received a waiver to its FY24 financial statements reporting deadline and has entered transaction support agreements. The transaction is expected to be fully completed on or about April 18 2025.

The transaction will include, subject to customary terms and conditions:

• An initial extension for the delivery of InfraBuild’s audited FY24 financial statements by May 31, 2025.
• the issuance of US$150 million additional notes under the existing Bond Holders agreement to prepay outstanding amounts under the syndicated facility agreement (ABL), originally dated as of May 26, 2023. Once the ABL has been prepaid in full, the Notes will be secured on substantially all assets of the Issuer and the guarantors on a first lien priority basis.

A spokesperson representing a sub-set of the Bond Holders has said:

“We are supportive of the shareholder’s vision for the company and have confidence in the management of InfraBuild. We’re pleased to work together for a successful outcome that enhances the credit profile and liquidity of the business. InfraBuild is a market leader, with a strong management team and board – which is well positioned to capture future growth alongside their end markets.”

InfraBuild is a strong and well-established business with a positive outlook under an experienced leadership team led by Chief Executive Officer, Francisco Irazusta.

Chief Executive Officer, Francisco Irazusta, said:

“This agreement signifies the robustness and value of InfraBuild providing additional liquidity and strengthening our balance sheet which will allow us to focus on continuing to deliver high quality steel products and services to our customers. InfraBuild is an integral part of Australia’s construction and engineering industry as it builds the nation’s future on sustainable steel.

“Despite the challenging global operating environment, InfraBuild continues to invest through the cycle and deliver on its long term strategy focusing on sustainability-driven product and service innovations, digitisation, improving operational efficiencies, maintaining cost discipline and enhancing our customer offerings for an expected market recovery.”

It is business as usual at InfraBuild. InfraBuild has its own board, governance and financing.

As Australia’s only electric arc furnace steelmaker, InfraBuild is also the nation’s largest long steel manufacturer and provides steel that is essential for residential, commercial and major infrastructure developments nationwide.

-ENDS-

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InfraBuild will seek to have it dismissed. 

This appears to be a nuisance complaint with no foundation and no factual basis. 

There has been no event of default as described in the complaint. 

There has been no change of control nor requirement to repay the bond.   

The complaint relates to a disputed security agreement that is not recognised by InfraBuild and was fully disclosed in our accounts and in our bond offering memorandum.  

InfraBuild looks forward to working with its bond holders as the company continues to grow and move forward. 

It is business as usual at InfraBuild.  

InfraBuild is a separate company with its own board, governance structure and its own financing structure which distinguishes it from the wider GFG Group. 

InfraBuild is a strong business with a resilient supply chain and its liquidity remains robust with strategic measures in place for it to manage any challenging local or global steel market conditions. 

Finally, this complaint has no connection to recent events in South Australia. 

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