Daijiworld Media Network - Washington
Washington, Sep 29: US President Donald Trump on Monday announced that Indian conglomerate Essar Group, through its subsidiary Mesabi Metallics, will invest $18 billion to build what he described as the "largest steel plant in American history" in Iowa.
Trump announced the project at the White House alongside executives from Mesabi Metallics, highlighting it as a major investment in the US manufacturing sector.
Speaking from the Oval Office, Trump said the facility would produce 10 million tonnes of steel annually, making it one of the largest single-site steel mills in the United States.
"Today we are thrilled to announce that Mesabi Metallics will be building the largest steel plant in American history in the great state of Iowa," Trump said, describing it as one of the largest plants in the world.
According to Trump, the project is expected to generate up to 6,000 construction jobs and nearly 2,000 permanent jobs in manufacturing and mining, while contributing an estimated $95 billion to the US economy.
The facility will use iron ore sourced from a new mine in Minnesota, establishing an integrated supply chain from mining to steel production.
Trump said the project would be developed over the next 10 years using advanced steelmaking technology and would produce high-quality, affordable steel for domestic consumption and exports.
Mesabi Metallics Chairman Rewant Ruia thanked Trump for his administration's focus on domestic manufacturing, saying the new steel complex in Iowa would help complete a fully integrated American supply chain.
The investment is estimated at around $18 billion, while US Commerce Secretary Howard Lutnick put the combined investment in the mine and steel plant at $17.5 billion.
Once operational, the facility is expected to produce 10 million tonnes of steel annually, with raw materials sourced from the company's iron ore mine in Minnesota.
Essar Group, founded by brothers Shashi and Ravi Ruia, has a five-decade operating history. Its Indian assets have included a 10-million-tonne steel facility in Hazira, Gujarat, and a major refinery in Vadinar. The group also acquired Shell's Stanlow refinery in the UK and has planned a low-carbon steel plant in Saudi Arabia.
Mesabi Metallics is Essar's US subsidiary. The group entered Minnesota in 2007 after acquiring Minnesota Steel, which controlled more than 1.4 billion tonnes of iron ore resources.