Washington: India’s Essar Group is set to invest $18 billion in the United States, including $15 billion to develop a major steel plant in Iowa, US President Donald Trump announced at an Oval Office event attended by members of the Ruia family, which owns the conglomerate.
Essar’s US subsidiary Mesabi Metallics will develop the facility, which is expected to become part of an integrated steel supply chain in the United States. Iron ore for the plant will be sourced from the company’s operations in Minnesota.
Trump described the proposed facility as the “largest steel plant in American history” and said it would represent a major boost to domestic manufacturing. The plant is projected to begin production in 2030 and is expected to have an annual production capacity of 10 million tonnes once fully operational.
The White House said the entire steel production process would take place in the United States. Trump attributed the revival of domestic steel manufacturing to the 50% tariffs imposed on steel imports last year, arguing that companies were choosing to establish production facilities in the US to avoid tariff costs.
Mesabi Metallics Chairman Rewant Ruia thanked the Trump administration for its focus on domestic manufacturing and “bringing back the importance of building things in America.”
The announcement also carried political significance in Iowa, a key state for Republicans ahead of competitive midterm races. Trump said he would campaign in the state in the coming weeks. Representatives Ashley Hinson and Mariannette Miller-Meeks, Governor Kim Reynolds and Senator Joni Ernst were also present at the event.
Essar Group was founded by brothers Shashi Ruia and Ravi Ruia in India in 1969 and has interests spanning energy, mining, technology and other sectors. Its Indian assets include a major steel facility in Hazira, Gujarat, and a refinery in Vadinar.
Mesabi Metallics, headquartered in Nashwauk, Minnesota, has operated since 2007 and controls more than 1.4 billion tonnes of iron ore resources. CEO Joe Broking said the proposed facility would supply steel for sectors including defence, automobiles, shipbuilding, appliances, energy and infrastructure.
