India's Essar Group to invest $18 billion in 'largest' US steel plant, Trump announces

President Donald Trump speaks as from right, Commerce Secretary Howard Lutnick, Energy Secretary Chris Wright, Essar Capital Director Prashant Ruia, Mesabi Metallics Chairman Rewant Ruia and Mesabi Metallics CEO Joe Broking

US President Donald Trump on Monday announced plans by Indian conglomerate Essar Group, through its US subsidiary Mesabi Metallics, to invest about $18 billion in a major steel plant in Iowa.Trump made the announcement at the White House alongside Essar Group co-founder Ravi Ruia and Mesabi Metallics chairman Rewant Ruia, describing the project as the largest steel plant in American history."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 facility is expected to produce 10 million tonnes of steel a year once fully operational, with production targeted to begin in 2030. The project is also expected to create thousands of jobs during construction and nearly 2,000 permanent positions across the steel and mining operations.Project to link Minnesota iron ore mine with Iowa steel plantThe Iowa plant will form part of an integrated US supply chain, with iron ore sourced from a new mine being developed by Mesabi Metallics in Minnesota's Mesabi Iron Range.

The company has invested about $2.5 billion in the mine, which is expected to produce around 7.5 million tonnes of iron annually and create about 350 jobs.Rewant Ruia said he was born in India but had studied in New York, Boston and California, adding that he had spent half his life in the US and described the investment as "a true homecoming". He said the project would establish a fully integrated supply chain "from mine to mill".Trump highlighted the domestic nature of the operation, saying the Minnesota mine would be "the first new iron ore mine in the United States in more than 50 years with the highest quality ore.""In other words, this steel will be mined, melted, and made right here in the USA, which is something very unusual," Trump said.Rewant Ruia thanked the president "for bringing back the importance of building things in America." He also said the plant would use advanced technology and "will compete head-to-head with any steel plant in the world on size, quality and on cost."Trump and Commerce Secretary Howard Lutnick attributed the investment partly to the administration's steel tariffs. Trump said companies were building in the US "because they don't want to pay tariffs".