India's Essar Group to invest $18 billion to build "largest US steel plant" in Iowa: Donald Trump announces

In an announcement from the Oval Office at the White House, Trump said he was thrilled to announce the plant, which he said would produce 10 million tonnes of steel a year. That is a fraction of Indias annual output but would make it one of the biggest single-site mills in the US.

Expressing his appreciation for the administrations domestic manufacturing focus, Mesabi Metallics Chairman Rewant Ruia thanked President Trump "for bringing back the importance of building things in America."

Trump heralded the investment as a landmark achievement for the US industrial sector.

"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.

One of the owners, Rewant Ruia, told the event he was born in India before studying in New York, Boston and California. He said he had spent half his life in the US and that the investment was a true homecoming. He said his family was investing USD 3 billion in a new iron ore mine in Minnesota, the first in the US in about 50 years, and promised a fully integrated supply chain from mine to mill.

Ravi Ruia of ESSAR said he and his brother founded the group decades ago as a family business of builders. He said it had built steel plants, oil refineries and power plants, though he did not say where. Asked about the cost, the owners agreed on roughly USD 18 bn, about Rs 1.5 lakh crore at current exchange rates. Commerce Secretary Howard Lutnick put the combined mine-and-plant investment at USD 17.5 bn.

Once operational, the facility is slated to produce 10 million tons of steel annually, sourcing its raw material from the company's iron ore mine in Minnesota.

Trump highlighted the integrated domestic supply chain of the venture, noting that the Minnesota operation is "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.

Detailing the socioeconomic benefits of the multi-billion-dollar project, Trump said the project would create up to 6,000 construction jobs and nearly 2,000 permanent manufacturing and mining jobs, adding USD 95 bn to the US economy. He said no state tax breaks were involved and that the company had guarantees that would hold whoever is in power.

"This is a tremendous investment. And it's going to be over the next 10 years using advanced steelmaking technology. The plant will produce some of the highest quality, most affordable steel anywhere in the world. They're going to be making it here and using it here and also shipping it outside and do very well," Trump said.

On his administration's economic and trade policies for attracting global capital, Trump and his cabinet also credited the 50 per cent tariffs on foreign steel for the project. Lutnick said that without the tariffs this mine doesnt get built, and this steel plant does not get built.

Trump said companies were building in America because they dont want to pay tariffs.

The same tariffs have hurt steel exporters worldwide, including India, one of the worlds biggest producers. The investment shows that Indian capital, like other foreign money, is choosing to produce inside the US rather than pay to export into it. The plant is privately funded, though the US Export-Import Bank helped finance the mine. Production is expected around 2030.

The event came less than four weeks before the US midterm elections. Trump praised Iowa Republicans in tight races and dismissed closer polls as fake. Asked about Canada, Iran and China, he said the US would win its war with Iran very soon and that a fair trade deal with Canada would come.

Essar Group is an Indian conglomerate founded by two brothers, Shashi and Ravi Ruia, with a five-decade operating history. Its India assets have included Indias largest single-location steel facility (10 MT) in Hazira, Gujarat, and the countrys second-largest single-location refinery in Vadinar. It also acquired Shells Stanlow refinery in the UK. Abroad, it has planned a low-carbon steel plant in Saudi Arabia.

Mesabi Metallics, the company investing here, is Essars US arm. Essar has been in Minnesota since 2007, when it bought Minnesota Steel, which controlled over 1.4 billion tons of iron ore resources. (ANI)