US President Donald Trump on Monday unveiled Essar Group's plans to build a massive $15 billion steel plant in Iowa, developed by the Indian conglomerate's US subsidiary Mesabi Metallics, taking Essar's planned total investment in the United States to $18 billion. Trump announced the project in the Oval Office with Essar Group co-founder Ravi Ruia and his son Rewant by his side.
The largest steel plant in American history
"Today, we're thrilled to announce that Mesabi Metallics will be building the largest steel plant in American history in the great state of Iowa," Trump said. According to a White House official, the plant aims to start production by 2030, produce 10 million tonnes of steel a year, and create as many as 1,750 permanent jobs in the state.
The plant will use iron ore from a new mine that the company invested $2.5 billion to build in Minnesota's Mesabi Iron Range, which will produce about 7.5 million tonnes of iron per year and create about 350 jobs. A White House official said it will be the first new iron mine in the US in 50 years. "This plant will use the latest technology and will compete head-to-head with any steel plant in the world on size, quality and on cost," said Rewant Ruia, who chairs Mesabi Metallics.
A tariff-driven manufacturing push
Trump credited his trade policy for the investment, saying the American steel industry was "roaring back to life" because of the 50 per cent tariffs on steel imports he imposed last year. "Everyone is building their plants here because they don't want to pay tariffs," he said.
The announcement drew top administration officials including Energy Secretary Chris Wright, Commerce Secretary Howard Lutnick and Export-Import Bank chair John Jovanovic. The first phase of the Iowa plant is expected to produce 7.5 million tonnes of steel annually, with output potentially rising to 10 million tonnes. The Minnesota operation has started initial operations and, according to Essar, is the first new iron ore mine and pellet plant to begin operating in the US in about 50 years.
Sources: The Hindu — Trump unveils Essar's new steel plant in Iowa; Firstpost — India's Essar Group to invest $18 billion in US
The largest steel plant in American history
"Today, we're thrilled to announce that Mesabi Metallics will be building the largest steel plant in American history in the great state of Iowa," Trump said. According to a White House official, the plant aims to start production by 2030, produce 10 million tonnes of steel a year, and create as many as 1,750 permanent jobs in the state.
The plant will use iron ore from a new mine that the company invested $2.5 billion to build in Minnesota's Mesabi Iron Range, which will produce about 7.5 million tonnes of iron per year and create about 350 jobs. A White House official said it will be the first new iron mine in the US in 50 years. "This plant will use the latest technology and will compete head-to-head with any steel plant in the world on size, quality and on cost," said Rewant Ruia, who chairs Mesabi Metallics.
A tariff-driven manufacturing push
Trump credited his trade policy for the investment, saying the American steel industry was "roaring back to life" because of the 50 per cent tariffs on steel imports he imposed last year. "Everyone is building their plants here because they don't want to pay tariffs," he said.
The announcement drew top administration officials including Energy Secretary Chris Wright, Commerce Secretary Howard Lutnick and Export-Import Bank chair John Jovanovic. The first phase of the Iowa plant is expected to produce 7.5 million tonnes of steel annually, with output potentially rising to 10 million tonnes. The Minnesota operation has started initial operations and, according to Essar, is the first new iron ore mine and pellet plant to begin operating in the US in about 50 years.
Sources: The Hindu — Trump unveils Essar's new steel plant in Iowa; Firstpost — India's Essar Group to invest $18 billion in US