Indian conglomerate Essar Group has announced plans to invest $15 billion in a major steel manufacturing facility in Iowa, United States, with production expected to begin by 2030. US President Donald Trump made the announcement at the White House, describing the proposed facility as the largest steel plant in American history.
The announcement was made in the Oval Office in the presence of Essar Group co-founder Ravi Ruia and his son Rewant Ruia, chairman of Mesabi Metallics, the Minnesota-based company owned by the Indian conglomerate.
Rewant Ruia thanked Trump for supporting domestic manufacturing and said the facility would use advanced technology to compete with steel plants worldwide in terms of size, quality and cost.
According to a White House official, the proposed plant is expected to produce 10 million tonnes of steel annually and create approximately 1,750 permanent jobs in Iowa. Its first phase could also support up to 6,000 construction jobs.
The project will source iron ore from Essar’s $2.5 billion mining operation in Minnesota’s Mesabi Iron Range. The mine, located in Nashwauk, is expected to produce around 7.5 million tonnes of iron annually and generate approximately 350 jobs. The White House described it as the first new iron mine in the United States in 50 years.
Essar has maintained operations in Minnesota since acquiring Minnesota Steel in 2007. Earlier this month, the US Export-Import Bank announced $10 billion in financing for the mine’s expansion.
The White House estimates that the first phase of the Iowa project could generate $95 billion in economic impact during construction and its first decade of operations.
The announcement comes amid challenges in global steel markets, including excess production capacity and weak demand. However, relatively higher steel prices in the US, supported by trade barriers, have encouraged investments in domestic manufacturing.
The project is expected to strengthen US steel production while expanding Essar Group’s industrial presence in the country.
