US President Donald Trump on Monday announced plans for a $15 billion steel plant in Iowa by Mesabi Metallics, a US-based company owned by India’s Essar Group. Trump described the proposed facility as the largest steel plant in American history.
The announcement was made at the Oval Office in the presence of Essar Group co-founder Ravi Ruia and his son, Rewant Ruia, who is the chairman of Mesabi Metallics. The project is expected to begin steel production in 2030.
“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.
What Rewant Ruia said
Rewant Ruia thanked Trump for his push to expand manufacturing in the US and spoke about his own connection with the country.
“While I was born in India, I went to high school in New York, college in Boston and did my MBA in California. I have spent half my life here, so announcing this investment today is... a true homecoming for me,” he said at the Oval Office event.
Ruia also said the facility would be designed to compete globally on production, quality and costs.
“This plant will use the latest technology and will compete head-to-head with any steel plant in the world on size, quality and cost,” he said.
Steel plant to use Minnesota iron ore
The Iowa facility is planned as part of an integrated mining and steelmaking operation. It will use iron ore from Mesabi Metallics’ mine near Nashwauk in Minnesota’s Mesabi Iron Range.
The company has invested $2.5 billion in the mine, which is expected to produce around 7.5 million tonnes of iron ore annually and employ about 350 people. The White House has described it as the first new iron ore mine in the US in 50 years.
The Iowa plant, meanwhile, is expected to produce 7.5 million tonnes of steel a year in its initial phase, eventually increasing output to around 10 million tonnes. It is projected to create about 1,750 permanent jobs in Iowa, alongside thousands of construction jobs during the project’s development.
Energy Secretary Chris Wright, Commerce Secretary Howard Lutnick and Export-Import Bank chairman John Jovanovic were among the officials present during the announcement.
The project adds to Essar Group’s industrial presence in the US, with the company using its Minnesota mining operation as the source of raw material for the planned Iowa steel complex.