Washington: US President Donald Trump on Monday announced a $15 billion steel complex to be established in Iowa in partnership with India’s Essar Group, describing it as a major investment in American manufacturing. The project will be executed by Mesabi Metallics, a unit of the Essar Group.
Essar Group Chairman Prashant Ruia, who was present with Trump at the announcement, thanked the President for encouraging manufacturing investment in the United States. Ruia said the Iowa complex, once operational, would establish an integrated supply chain spanning the entire process from mining to steel production.
Under the plan, Mesabi Metallics will transport iron ore from its mine in Minnesota to Iowa, where it will be processed into steel. The facility will have an initial capacity of 7.5 million tonnes of steel annually, with provision to scale up to 10 million tonnes. The company said first steel output is expected in 2030.
The Iowa plant will draw from a new iron ore mine the company is developing in the Nashwauk area of Minnesota, where it has already invested more than $2.5 billion. Trump noted that this is the first new iron ore mine to open in the country in over 50 years.
Minnesota’s Mesabi Iron Range extends nearly 80 to 100 miles and, according to the US Geological Survey, accounted for roughly 60 percent of the country’s total iron ore output during the 20th century. The new mine is projected to yield about 7.5 million tonnes of iron ore a year, generating around 350 jobs in Minnesota. The Iowa plant is expected to create at least 1,750 permanent jobs once operational, besides 5,000 to 6,000 additional jobs during construction. The White House said the project’s construction phase and first decade of operations combined could have an economic impact of nearly $95 billion on the US economy.
Trump said Essar Group’s total US investment now stands at $18 billion, with the Iowa plant set to expand the group’s steel and mining footprint in the country. Earlier this month, a federal agency announced financial assistance of up to $10 billion for the project. Officials cited Iowa’s comparatively lower commercial electricity rates and its proximity to major markets and industrial centres in the American Midwest as key factors behind the state’s selection.
The announcement comes amid Trump’s broader push to strengthen domestic manufacturing. He has raised tariffs on imported steel to 50 percent, arguing that the measure incentivises companies to build plants within the US rather than import steel from abroad. Trump said the American steel industry is regaining strength rapidly, with companies increasingly setting up new domestic plants to avoid import tariffs.