US President Donald Trump on Monday (local time) announced that Indian multinational conglomerate Essar Group, through its subsidiary Mesabi Metallics, will invest USD 18 billion to build what he described as the “largest steel plant” in American history in the state of Iowa.
Trump announced the project at the White House alongside executives from Mesabi Metallics
‘Largest steel plant in American history’
Speaking from the Oval Office, US President Trump said he was ‘thrilled to announce’ the project and claimed the plant would produce 10 million tonnes of steel annually. While that is a fraction of India’s annual steel output, the facility would rank among 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. It is the largest plant, one of the largest plants in the world, but it is the largest plant in America by far,” Trump told reporters.
Trump heralded the investment as a landmark achievement for the US industrial sector.
According to Trump, the project is expected to create up to 6,000 construction jobs and nearly 2,000 permanent jobs in manufacturing and mining, adding USD 95 billion to the US economy. The facility will use iron ore from a new mine in Minnesota, creating an integrated supply chain from mining to steel production.
“This is a tremendous investment. And it’s going to be over the next 10 years using advanced steelmaking technology. The plant will produce some of the highest quality, most affordable steel anywhere in the world. They’re going to be making it here and using it here and also shipping it outside and do very well,” Trump said.
Plant to produce 10 million tons of steel annually
Expressing appreciation for the administration’s focus on domestic manufacturing, Mesabi Metallics Chairman Rewant Ruia thanked President Donald Trump ‘for bringing back the importance of building things in America.’ “Thank you, US President Donald Trump, for bringing back the importance of building things in America. With the new steel complex in Iowa, we will complete the fully integrated American supply chain,” Ruia said.
Asked about the cost, the owners agreed on roughly USD 18 billion, about Rs 1.5 lakh crore at current exchange rates. Commerce Secretary Howard Lutnick put the combined mine-and-plant investment at USD 17.5 bn.
Once operational, the facility is slated to produce 10 million tons of steel annually, sourcing its raw material from the company’s iron ore mine in Minnesota.
Essar Group is an Indian conglomerate founded by two brothers, Shashi and Ravi Ruia, with a five-decade operating history. Its India assets have included India’s largest single-location steel facility (10 MT) in Hazira, Gujarat, and the country’s second-largest single-location refinery in Vadinar. It also acquired Shell’s Stanlow refinery in the UK. Abroad, it has planned a low-carbon steel plant in Saudi Arabia.
Mesabi Metallics, the company investing here, is Essar’s US arm. Essar has been in Minnesota since 2007, when it bought Minnesota Steel, which controlled over 1.4 billion tons of iron ore resources.
(With ANI inputs)
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