Highlights:
One of the biggest steel companies of India, Essar is set to build what president Donald Trump called "the largest steel plant" in American history, a $15 billion project in Iowa that promises thousands of jobs across two Midwestern states. Here's what you need to know.
Trump made the announcement Monday (28) in the Oval Office, joined by Essar Group co-founder Ravi Ruia and his son Rewant Ruia.
"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.
The plant will be built by Mesabi Metallics, a Minnesota company owned by India's Essar Group. The Iowa mill is part of a larger plan: a total of about $18 billion will be invested to build the Minnesota mine and processing facility along with the $15 billion steel mill, according to Mesabi Metallics.
Where will it be built?
The steel mill will be built in Lee County, Iowa, in the southeastern corner of the state. A White House official said this will be the first mega steel plant built in the US since the 1960s.
Iowa Gov. Kim Reynolds welcomed the news. "We couldn't be more proud to be the home of the largest steel plant in America," Reynolds said.
How many jobs, and when?
The jobs will come in two waves. First comes construction: the first phase of the Iowa steel plant is estimated to produce some 7.5 million tons per year, supporting up to 6,000 construction jobs, according to the White House.
Then come permanent jobs. The Iowa plant is expected to create as many as 1,750 permanent positions, according to a White House official, and Mesabi Metallics aims to start production by 2030. The company also says it will continue working with suppliers and businesses throughout Iowa and the Midwest, which could mean additional indirect jobs.
In Minnesota, the company's new mine is expected to create about 350 jobs, and hiring is already underway. Mesabi has hired more than 200 workers so far, out of a planned 350 full-time employees at the mine near Nashwauk.
How big is it?
At full capacity, the facility is expected to produce 10 million tons of steel a year. It will run on iron ore from the company's $2.5 billion Minnesota mine, which will produce about 7.5 million tons of iron annually and will be the first new iron mine in the US in 50 years, the official said. The mine officially opened earlier this month.
It sits in Minnesota's Mesabi Iron Range, which stretches 80 to 100 miles and supplied about 60 per cent of all US iron ore during the 20th century.
How will the steel be made?
The plant will use electric arc furnaces. They will be fed with a mixture of freshly reduced iron from the plant's own direct reduced iron process and scrap steel, which the company says reduces energy use and emissions compared to traditional coal-fired blast furnaces.
"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," Rewant Ruia said. The chairman of Mesabi Metallics also thanked Trump "for bringing back the importance of building things in America."
Who is paying for it?
Essar Group, the parent of Mesabi Metallics, will finance construction of the steel mill, Commerce Secretary Howard Lutnick said, adding that the project would generate about $95 billion for the US economy. Energy Secretary Chris Wright, Export-Import Bank Chair John Jovanovic and David Copley, senior director for Global Supply Chain, also attended the announcement.
Why not Minnesota?
Not everyone is celebrating. The choice of Iowa over Minnesota disappointed many on the Iron Range, where a Republican state representative called it a "gut punch." It's not clear why the steel plant is in Iowa instead of Minnesota, closer to the iron ore mine.
The company says Minnesota still stands to gain. Mesabi CEO Joe Broking said the company plans further investment in the state, including expanding mine capacity and building an additional hot briquetted iron facility in Minnesota.
A project with a long history
The Minnesota mine has taken years to reach this point. It is just beginning production after roughly two decades in development, a period marked by controversies and setbacks, including Essar Steel Minnesota filing for bankruptcy in 2016.
The political backdrop
The announcement also carries political weight. It comes as Trump is trying to energize Republican voters ahead of challenging midterm elections, with Iowa facing competitive races for the Senate and governor this year.
Key details still to come include the exact site within Lee County, when construction begins, and how hiring will work. Job seekers should watch for updates from Mesabi Metallics and Iowa and Minnesota state workforce agencies.
