‘Largest in American history’: Trump announces India-based Essar Group's new steel plant in Iowa

WASHINGTON: US President Donald Trump on Monday announced that India-based Essar Group will build a USD 15 billion steel plant in Iowa, describing it as the "largest steel plant" in American history.

Trump made the announcement at the Oval Office alongside Essar Group co-founder Ravi Ruia and his son Rewant Ruia, chairman of the group's US-based subsidiary Mesabi Metallics.

"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, a Minnesota-based company owned by Essar Group, is expected to begin production at the plant in 2030. The facility is projected to produce about 10 million tonnes of steel annually and create up to 1,750 permanent jobs in Iowa, according to the White House.

The project will be supplied with iron ore from a new USD 2.5 billion mine developed by Mesabi Metallics in Minnesota's Mesabi Iron Range. The mine is expected to produce around 7.5 million tonnes of iron ore annually and create about 350 jobs.

The White House said the mine would be the first new iron mine in the United States in 50 years. The Mesabi Iron Range, which stretches for about 80 to 100 miles, accounted for around 60 per cent of total US iron ore production during the 20th century.

Rewant Ruia thanked Trump "for bringing back the importance of building things in America", saying the plant would use the latest technology and compete with steel plants globally on size, quality and cost.

"This plant will use the latest technology and will compete head-to-head with any steel plant in the world on size, quality and on cost," Ruia said.

Trump credited his administration's 50 per cent tariffs on steel imports for encouraging companies to invest in US manufacturing.

"Everyone is building their plants here because they don't want to pay tariffs," Trump said, adding that the American steel industry was "roaring back to life".

The project is expected to produce steel entirely in the US, with the iron ore mined in Minnesota and processed at the Iowa facility.

Essar Group, an industrial conglomerate founded in India in 1969, has interests spanning energy, mining, infrastructure, technology and other sectors. Mesabi Metallics is headquartered in Nashwauk, Minnesota.

The announcement was attended by Energy Secretary Chris Wright, Commerce Secretary Howard Lutnick, Export-Import Bank chairman John Jovanovic and other senior US officials.