China is interested in expanding cooperation with Sanjiv Gupta

"China's recognition of the importance of building a new Whyalla steel mill is important for strengthening its relationship with a global superpower," says British industrialist Sanjeev Gupta.

Gupta's GFG Alliance is developing a new steel plant in Australia's regional heart with the goal of doubling production.

Last week, the Chinese government named the development as one of 16 projects of national importance for China.

“This recognition demonstrates the importance of this unique project not only for the future of manufacturing and industry in Australia and the long-term prospects of Whyalla, but also for strengthening the relationship with China,” Gupta said in a statement on Monday.

“The steel mill is destined to be the largest and most efficient plant outside of China in the past few decades.

“It will have the capacity and infrastructure to double its capacity over time.

"This also needs to be accompanied by a significant expansion of our mining business in order to feed this plant on a long-term competitive and sustainable basis."

While in Beijing last week, Gupta also signed a memorandum of understanding with China International Capital Corporation to develop funding options for his group's expansion plans.

He said the development of Whyalla would not only transform the city but also spark a new industrial revolution in Australia.

“Manufacturing steel in modern, efficient, world-class plants in Australia, rather than just exporting raw materials around the world, is a compelling industrial strategy,” Gupta said.