New Delhi: India’s Essar Group is set to make one of its biggest overseas investments with plans to commit around $18 billion to projects in the United States, including a proposed $15 billion integrated steel plant in Iowa.
The project was announced at the White House, where US President Donald Trump described the planned facility as the largest steel plant in American history. The plant is being developed by Essar’s US subsidiary, Mesabi Metallics, and is expected to begin production in 2030.
Once fully operational, the facility is projected to produce around 10 million tonnes of steel every year. The company plans to establish an integrated supply chain in the US, with iron ore supplied from its operations in Minnesota and steel production carried out domestically.
The announcement comes as the Trump administration continues to push for increased manufacturing and steel production within the United States. Trump linked the investment to his administration’s higher tariffs on imported steel, arguing that such measures were encouraging companies to establish production facilities inside the country.
Essar chairman Rewant Ruia welcomed the US focus on domestic manufacturing and highlighted the importance of expanding industrial production within America.
The Iowa announcement also carries political significance, with senior Republican leaders from the state attending the White House event. Iowa Governor Kim Reynolds, Senator Joni Ernst and Representatives Ashley Hinson and Mariannette Miller Meeks were among those present.
Essar Group was founded in India in 1969 by brothers Shashi Ruia and Ravi Ruia. The conglomerate has interests spanning steel, energy, mining, technology and other sectors.
Its Indian operations include a major steel facility in Hazira, Gujarat, and a large refinery at Vadinar. Internationally, Essar also operates the Stanlow refinery in the UK and has plans for a low carbon steel facility in Saudi Arabia.
Mesabi Metallics, based in Nashwauk, Minnesota, has controlled more than 1.4 billion tonnes of iron ore resources. The new Iowa project is expected to connect those resources with large scale US steel manufacturing, supplying industries including defence, automobiles, shipbuilding, energy and infrastructure.
