International
oi-Gaurav Sharma
Indian conglomerate Essar Group is making a massive push into the US steel industry with an investment of around $18 billion, marking one of the group’s biggest overseas industrial projects.
Through its US subsidiary Mesabi Metallics, Essar plans to build an integrated steel complex in Iowa that is expected to produce around 10 million tonnes of steel annually. US President Donald Trump announced the project at the White House alongside Mesabi Metallics executives.
Essar Group is investing approximately $18 billion in a US steel complex in Iowa through its subsidiary Mesabi Metallics, aiming for 10 million tonnes annual production. Announced by President Donald Trump, the 10-year project leverages Minnesota iron ore, creating 6,000 construction and 2,000 permanent jobs to build an integrated US supply chain.
The project will bring together iron ore mining and steel production, with raw material expected to come from Essar’s iron ore operation in Minnesota. The company is aiming to establish an integrated supply chain covering mining, processing and steel manufacturing within the US.
For Essar, the announcement represents the latest chapter in its nearly two-decade presence in the American market. The group entered Minnesota in 2007, when it acquired Minnesota Steel, giving it access to more than 1.4 billion tonnes of iron ore resources.
Essar Group Chairman Rewant Ruia credited the Trump administration for its emphasis on domestic manufacturing and said the new steel complex would help complete a fully integrated American supply chain.
The project is expected to be developed over the next 10 years. According to figures cited at the announcement, it could generate up to 6,000 construction jobs and nearly 2,000 permanent jobs in manufacturing and mining.
The scale of the planned facility is familiar territory for Essar. In India, the group has operated a 10-million-tonne single-location steel facility in Hazira, Gujarat. Its business interests have also included major refining operations in India and the UK.
The company has been expanding its global footprint beyond India, with projects and operations spanning steel, energy and infrastructure. Its international portfolio has included the Stanlow refinery in the UK and plans for a low-carbon steel plant in Saudi Arabia.
The Iowa project therefore represents more than a new steel plant for Essar. It brings the Ruia-led conglomerate deeper into the US industrial economy, combining its existing Minnesota iron ore assets with a planned large-scale steel manufacturing operation in Iowa.
