Essar Group to Invest ₹1.5 Lakh Crore in the US: Largest Steel Plant to be Set Up in Iowa; Production to Begin in 2030
India’s Essar Group will invest $18 billion—approximately ₹1.5 lakh crore—in the United States. The largest portion of this investment will go towards a steel plant in Iowa, costing $15 billion. This will be the largest steel plant in the US.
The plant will be established in the state of Iowa, with an investment of $15 billion (approximately ₹1.25 lakh crore).
Trump announced this major project during an event at the White House Oval Office, in the presence of Essar Group co-founder Ravi Ruia and his son, Rewant Ruia.
Production to Start in 2030; 1,750 Jobs to be Created in Iowa
The steel plant will be constructed by Mesabi Metallics, Essar Group’s US-based company. According to a White House official, the target is to commence steel production at the plant by 2030.
Once completed, the plant will produce 10 million tonnes of steel annually. The project is expected to generate approximately 1,750 permanent jobs in Iowa.
First New Iron Mine in the US in 50 Years
A White House official stated that this is the first new iron ore mine to be opened in the US in the last 50 years.
To supply the raw material—iron ore—for the steel plant’s operations, Essar Group has developed a new mine in Minnesota. The company has invested $2.5 billion (approximately ₹21,000 crore) in the construction of this mine. ‘Companies are coming to the US fearing tariffs’: Trump claims resurgence of the steel industry
Donald Trump stated that the US steel industry is strengthening again, attributing this to the 50% tariff imposed on steel imports last year.
Trump remarked that everyone is now setting up plants in the US because no one wants to pay the 50% tariff; it is a straightforward matter.
Essar Group started in 1969: Operations span from Gujarat to the UK and Saudi Arabia
The Essar Group was founded in India in 1969 by the brothers Shashi Ruia and Ravi Ruia. Today, the group operates across various sectors, including energy, mining, technology, and retail.
Assets in India: The group owns the country’s largest steel plant in Hazira, Gujarat. Additionally, India’s second-largest refinery is located at Vadinar.
International operations: In the UK, the group acquired Shell’s renowned Stanlow refinery. There are also plans to establish a low-carbon steel plant in Saudi Arabia.
Presence in the US: Essar’s US subsidiary, Mesabi Metallics, is based in Nashwauk, Minnesota, and has been operational since 2007. It controls iron ore resources exceeding 1.4 billion tonnes.
