India's Essar To Build $18B Steel Plant In US, Trump Calls It 'Largest' In American History

Indian conglomerate Essar Group, through its US subsidiary Mesabi Metallics, will invest around $18 billion to build what US President Donald Trump called it as the “largest steel plant in American history”.

Trump announced the project at the White House on Tuesday, saying the facility in Iowa would produce up to 10 million tonnes of steel a year.

“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. It’s the largest plant, one of the largest plants in the world, but it’s the largest plant in America by far,” Trump told reporters.

The project is expected to create up to 6,000 construction jobs and nearly 2,000 permanent manufacturing and mining jobs, according

to Trump.

From Minnesota Mine To Iowa Mill

The project will use iron ore from a new mine in Minnesota, creating an integrated supply chain from mining to steel production.

Rewant Ruia, chairman of Mesabi Metallics, said his family would invest around $3 billion in the Minnesota iron ore mine, describing the wider investment as “a true homecoming”.

Trump said the mine would be the first new iron ore mine in the US in more than 50 years.

“In other words, this steel will be mined, melted, and made right here in the USA, which is something very unusual,” Trump said.

The plant is expected to take about a decade to develop, with production targeted for around 2030.

Trump Credits Steel Tariffs

Trump and members of his administration linked the investment to US trade policies, including the 50% tariff on imported steel.

US Commerce Secretary Howard Lutnick said that without the tariffs, “this mine doesn’t get built, and this steel plant does not get built”.

Trump said companies were choosing to manufacture in the US because they did not want to pay tariffs on imports.

The project is privately funded, while the US Export-Import Bank has helped finance the Minnesota mine.

Essar Expands US Presence

Essar Group was founded by brothers Shashi and Ravi Ruia and has businesses across sectors including steel, energy and infrastructure.

The group has operated in Minnesota since 2007, when it acquired Minnesota Steel and its iron ore resources.

Essar’s Indian operations include a 10-million-tonne steel plant in Hazira, Gujarat, while the group also owns the Stanlow refinery in the UK and has planned a low-carbon steel project in Saudi Arabia.

(With inputs from ANI)