Nextracker and Orrcon Steel to Deliver Sovereign Capability in Australia
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Insights
The partnership between Nextracker and Orrcon Steel, facilitated by BlueScope Steel's investment, is a strategic move within the renewable energy sector in Australia. This collaboration not only enhances the supply chain resilience by localizing production but also aligns with the growing demand for renewable energy infrastructure. The creation of a facility capable of producing critical steel components for solar trackers domestically is expected to shorten lead times and reduce logistical costs, potentially improving Nextracker's market position in Australia.
Furthermore, the investment in local manufacturing is likely to have a ripple effect on the economy, creating jobs and supporting the government's clean energy initiatives. The production capacity of up to 50,000 tonnes of torque tubes indicates a significant scale, which could cater to multiple large-scale solar projects. The commitment to sustainability and the transition to renewable energy sources is also a positive signal to stakeholders and may enhance the corporate image of the companies involved.
From an economic perspective, the establishment of the manufacturing facility for solar tracker components represents a forward-thinking approach to energy production and consumption. By focusing on reducing the carbon footprint through local manufacturing, the initiative supports Australia's transition to a low-carbon economy. This move can be seen as a proactive response to climate change, which is increasingly becoming a factor in investment decisions and consumer preferences.
Additionally, the investment in renewable energy technology manufacturing could lead to long-term cost savings for the solar energy industry, as well as for end-users, by reducing dependency on imported materials. This aligns with the broader economic trend towards sustainable development and may provide a competitive edge as global markets increasingly favor environmentally responsible products and practices.
The announcement has direct implications for the financial performance of the companies involved. For BlueScope Steel, the investment in the facility represents a strategic diversification into the renewable energy sector, which could open new revenue streams and provide a hedge against the volatility of traditional steel markets. For Nextracker, the ability to deliver high-quality products faster to its customers in Australia could translate into increased sales and market share, as evidenced by Rystad's data indicating Nextracker's leadership in the Australian solar tracker system market.
The financial impact on BlueScope Steel's stock (ASX:BSL) and Nextracker's stock (Nasdaq: NXT) will depend on the operational efficiency of the new facility, the uptake of solar energy projects in Australia and the companies' ability to capitalize on the growing renewable energy market. The strategic nature of this investment suggests a positive outlook for both companies, provided they can maintain quality and meet the anticipated demand from the renewable energy sector.
The first project scheduled to receive delivery of Australian made steel components from the facility is ACCIONA Energia’s 480MWp Aldoga Solar Farm to be built near Gladstone
Nextracker's critical steel components manufacturing facility at BlueScope Steel's Orrcon Steel facility, QLD,
Critical steel components will be produced from BlueScope’s steel coil at Orrcon Steel’s Salisbury Tube mill in
The new manufacturing facility was officially opened today by
“This foundation strengthens Nextracker’s commitment to deliver energy security to Australians with a local supply chain and new manufacturing jobs to make clean energy affordable and accessible. We support Queensland’s Energy and Jobs Plan and applaud their ambitions to create jobs for the clean energy economy,” said Peter Wheale, Nextracker GM for
“In addition to reducing our carbon footprint by manufacturing critical tracker components in
Tania Archibald, Chief Executive of BlueScope Australian Steel Products, said, “As one of Australia’s largest manufacturers, BlueScope continues to invest in our Australian operations, with more than
“As part of this program, we’ve been undertaking a range of climate related initiatives – not just in progressing our own ambitions for lower emissions steelmaking – but focusing on supplying our high-quality steel products that support our customers and the Australian industry more broadly participate in the energy transition.”
Tony Schreiber, Chair of the Australian Steel Institute and General Manager of Orrcon Steel, said, “Orrcon Steel is one step closer to achieving our ambition to be a significant participant in Australia’s renewable energy supply chain. Our investment also includes a large tubular mill at Unanderra NSW, tooling to produce solar torque tubes and increased warehouse capacity, positioning our business as a key supplier of products for the rapidly expanding renewable energy sector. The collaboration with Nextracker and Baojia is another example of how we’re making a difference in the utility scale solar industry with an Australian made, high quality product.”
The manufacturing facility has been commissioned and 16 new jobs have been created to produce up to 50,000 tonnes of torque tubes, the equivalent of over 2.5GW of utility scale solar farms.
According to industry analyst, Rystad, Nextracker is the market leader for solar tracker systems in
About Nextracker
Nextracker is a leading provider of intelligent, integrated solar tracker and software solutions used in utility-scale and distributed generation solar projects around the world. Its products enable solar panels to follow the sun’s movement across the sky and optimise plant performance. With plants operating in more than thirty countries worldwide, Nextracker offers solar tracker technologies that increase energy production while reducing costs for significant plant ROI. For more information, visit nextracker.com.
About Orrcon Steel
Orrcon Steel, a wholly owned business of BlueScope, provides high-quality steel products and solutions. We locally manufacture steel, tube and pipe supplying a customer base that includes resellers, stockists, and distributors. The tubular products are utilised by steel fabricators, furniture and trailer body manufacturers, housing and construction companies, pipeline and infrastructure engineering firms, renewables and more. Orrcon Steel Distribution in addition to local tubular products, provides a range of hot dipped gal pipe, hot rolled structural steel, fencing and roofing through its network of branches
About Baojia
Baojia is a leading OEM manufacturer specialising in the design, fabrication, and supply of high-quality steel structures for solar trackers. With a commitment to innovation, reliability, and sustainability, we play a pivotal role in the renewable energy sector by providing robust and efficient solutions for solar tracking systems. With over decades of experience and expertise in engineering and manufacturing steel structures tailored for solar trackers, our dedicated team of professionals ensure that our products meet the highest industry standards, providing our clients with reliable and durable products for their solar trackers.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240313484617/en/
Kristan Kirsh
+1 650 814 1273
Kkirsh@nextracker.com
Gabriel Wong (on behalf of Nextracker Australia Pacific)
+61 432 177 005
gabriel@positivegood.com.au
Source: Nextracker
FAQ
What is Nextracker's (NXT) partnership with Orrcon Steel about?
Which solar farm is set to receive the first delivery of Australian made steel components from the facility?
How many new jobs have been created by the manufacturing facility?
What is the equivalent capacity of the torque tubes produced by the facility?
According to industry analyst Rystad, what is Nextracker's position in the Australian market for solar tracker systems?
