Trump says Essar Group to invest $18 bn in US including $15 bn in Iowa steel plant

The Essar Group is set to make a USD 18 billion investment in the US, including a proposed USD 15 billion steel plant in Iowa, in one of its largest overseas investments.

US President Donald Trump on Monday (September 28) announced the project at an Oval Office event attended by members of the Ruia family, which owns Essar. The group's US arm, Mesabi Metallics, will develop the plant as part of an integrated steel chain, with iron ore supplied from its Minnesota operations.

What Trump said

"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, as quoted by NDTV.

Also Read: Gautam Adani, 4 group firms settle shareholding norm violation case with SEBI for Rs 1.48 cr

Production is expected to begin in 2030, with the facility projected to reach annual output of 10 million tonnes once fully built. The White House stated that the complete steel-making process would take place within the US.

Trump credits steel tariffs for investment

Trump argued that his steel tariffs have played a key role in reviving domestic production. The administration imposed a 50 per cent tariff on steel imports last year.

Also Read: Tata Trusts proposes Tata Sons rejig to remove need for stock-market listing

"Everyone is building their plants here because they don't want to pay tariffs. It's really not that complicated,” said Trump.

Mesabi Metallics Chairman Rewant Ruia thanked the Trump administration "for bringing back the importance of building things in America."

Trump plans Iowa campaign appearances

The announcement also came as Iowa Republicans prepare for competitive midterm races. Trump said he planned to campaign in the state alongside Representative Ashley Hinson, who is seeking a Senate seat, and Representative Mariannette Miller-Meeks, who is running for re-election.

Also Read: No stay doesn’t mean SC has backed UPI MDR: What Monday’s order means

"We're going to do a great rally. We'll all be there together," Trump said.

Essar's India operations and US assets

Essar was founded in India in 1969 by brothers Shashi Ruia and Ravi Ruia. The group has businesses spanning energy, mining, technology and retail. Its Indian operations include a large steel plant at Hazira in Gujarat and a refinery at Vadinar.

Mesabi Metallics, based in Nashwauk, Minnesota, has operated since 2007. It acquired Minnesota Steel and controls more than 1.4 billion tonnes of iron ore resources.