Trump unveils proposed $15bn Essar steel complex in Iowa
US President Donald Trump has announced plans for a $15 billion steel complex in Iowa to be developed by Mesabi Metallics, owned by India’s Essar Group. The integrated project would use Minnesota iron ore, begin production in 2030 and create thousands of permanent and construction jobs if completed.
US President Donald Trump has unveiled plans for a $15 billion steel complex in Iowa that will be developed by Mesabi Metallics, a company owned by India’s Essar Group. Trump announced the project at the White House alongside executives from Mesabi Metallics. The White House described the proposed facility as the largest steel plant in US history, while Trump presented it as a major investment in American manufacturing.
Mesabi Metallics plans to use iron ore from a mine it is developing in Nashwauk, Minnesota, and transport the material to Iowa for processing into steel. The first phase of the plant is expected to produce 7.5 million tons of steel annually, with eventual output potentially reaching 10 million tons. First production is expected in 2030.
Essar Group said its total investment in the United States would reach $18 billion, according to Trump. The company has already invested more than $2.5 billion in the Minnesota mining operation, which the president described as the first new US iron ore mine in more than 50 years. The Iowa plant is expected to create at least 1,750 permanent jobs.
Its first phase could also support 5,000 to 6,000 construction jobs, according to a White House official. The White House estimates the project could generate about $95 billion in economic impact during construction and its first decade of operation. Mesabi Metallics chairman Rewant Ruia thanked Trump for supporting domestic manufacturing and said the project would complete an integrated American supply chain.
The company has not publicly detailed all the reasons for choosing Iowa, though the site is closer to central US markets and has marginally lower commercial electricity prices than Minnesota. The announcement fits Trump’s policy of promoting domestic production through tariffs. He said 50% duties on most imported steel were encouraging companies to build facilities in the United States rather than pay tariffs on foreign products.
Earlier this month, a federal agency said it would provide up to $10 billion in financing for the project.
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