India’s Essar Group plans to invest $18 billion in the US, including a $15 billion steel plant expected to begin production in 2030.
Washington: India’s Essar Group is set to invest $18 billion in the United States, including $15 billion in a major steel plant in Iowa that US President Donald Trump described as the “largest steel plant in American history”.
The project will be developed by Essar’s US subsidiary Mesabi Metallics and is expected to begin production in 2030. Once fully operational, the plant is projected to produce around 10 million tonnes of steel annually.
Trump made the announcement at an Oval Office event attended by members of the Ruia family, which owns the Essar Group. The project is expected to form part of an integrated US steel supply chain, with iron ore sourced from Mesabi Metallics’ operations in Minnesota.
“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.
Mesabi Metallics said the project would produce “100% American steel: mined, melted and poured in Minnesota and Iowa”.
The White House said the entire steel production process would take place in the US. The facility is expected to supply steel for sectors including national defence, automobiles, shipbuilding, household appliances, energy and infrastructure.
Trump linked the investment to his administration’s push to expand domestic manufacturing and said the US steel industry was “roaring back to life”. He attributed the renewed investment partly to the 50% tariffs on steel imports imposed by his administration.
“Everyone is building their plants here because they don’t want to pay tariffs,” Trump said.
Rewant Ruia, Chairman of Mesabi Metallics, thanked the Trump administration for its focus on domestic manufacturing.
“We thank President Trump for bringing back the importance of building things in America,” Ruia said.
White House spokeswoman Taylor Rogers said the announcement reflected the administration’s efforts to expand US manufacturing and create jobs.
“President Trump is delivering on his promise to rebuild American industry, reshore manufacturing, and create new jobs,” Rogers told CNBC.
Joe Broking, CEO of Mesabi Metallics, described the announcement as a “major moment for US-made steel”, saying the facility would support industries and infrastructure that depend on steel.
The announcement comes as Iowa gains political significance for Republicans ahead of the US midterm elections. Trump said he planned to hold a rally in the state in the coming weeks. Several Republican politicians from Iowa attended the Oval Office event.
Essar, founded by brothers Shashi Ruia and Ravi Ruia in India in 1969, has interests spanning energy, mining, technology and other sectors. Its Indian assets include a large single-location steel facility in Hazira, Gujarat, and a major refinery in Vadinar.
Its international operations include the Stanlow refinery in the UK and plans for a low-carbon steel plant in Saudi Arabia. Mesabi Metallics, headquartered in Nashwauk, Minnesota, has operated since 2007 and controls more than 1.4 billion tonnes of iron ore resources, according to the report
