An Indian giant bets $18 bn on Trump's steel dream

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Key points

• (Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.).
• Essar Group, through its subsidiary Mesabi Metallics, intends to invest USD 18 billion for a steel plant in Iowa.
• Essar to invest $18 billion in US, build America's largest steel plant in Iowa.
• In an announcement from the Oval Office at the White House, Trump remarked he was "thrilled to announce" the plant.
• 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.

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Essar to invest $18 billion in US, build America's largest steel plant in Iowa. ANILast Updated: Sep 29, 2026, 06: 29: 00 AM IST.

Essar Group, through its subsidiary Mesabi Metallics, intends to invest USD 18 billion for a steel plant in Iowa. The facility intends to produce 10 million tonnes of steel annually and will utilize iron ore from Minnesota. It is projected to create 6, 000 construction jobs and 2, 000 permanent employment opportunities. The investment is part of a broader focus on enhancing domestic manufacturing capabilities in the United States.

Washington DC: United States President Donald Trump on Monday (local time) confirmed that Indian multinational conglomerate Essar Group, through its subsidiary Mesabi Metallics, will invest USD 18 billion to construct the largest steel plant in American history in the state of Iowa. In an announcement from the Oval Office at the White House, Trump remarked he was "thrilled to announce" the plant. It he stated would produce 10 million tonnes of steel a year. That is a fraction of India's annual output but would create it one of the biggest single-site mills in the US.: AM/NS takes over banks' claims linked to Essar Group promoters' personal guarantees.

Expressing his appreciation for the administration's 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. Live Events.

"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 remarked to journalists. One of the owners, Rewant Ruia, informed the event he was born in India before studying in New York, Boston and California. He remarked he had spent half his life in the US and that the investment was "a true homecoming". He remarked his family was investing USD 3 billion in a new iron ore mine in Minnesota, the first in the US in concerning 50 years, and promised a fully integrated supply chain "from mine to mill". Ravi Ruia of ESSAR remarked he and his brother founded the group decades ago as a family business of "builders". Though he did not say where, he remarked it had built steel plants, oil refineries and power plants. Asked regarding the cost, the owners agreed on roughly USD 18 bn, concerning 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 remarked. Detailing the socioeconomic benefits of the multi-billion-dollar project, Trump remarked the project would create up to 6, 000 construction jobs and almost 2, 000 permanent manufacturing and mining jobs, adding USD 95 bn to the US economy. He remarked no state tax breaks were involved and that the business had "guarantees" that would hold whoever is in power.: SBI-led banks seek bids for Essar Group promoter guarantees "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 additionally shipping it outside and do highly well, " Trump noted. On his administration's economic and trade policies for attracting global capital, Trump and his cabinet additionally credited the 50 per cent tariffs on foreign steel for the project. According to Lutnick, without the tariffs "this mine doesn't get built, and this steel plant does not get built". Trump remarked businesses were building in America "because they don't want to pay tariffs". The same tariffs have hurt steel exporters worldwide, including India, one of the world's biggest producers. Notably, the investment demonstrates that Indian capital, like other foreign capital, is choosing to produce inside the US rather than pay to export into it. Though the US Export-Import Bank supported finance the mine, the plant is privately funded. Production is projected 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 regarding Canada, Iran and China, he stated the US would win its war with Iran "very soon" and that a fair trade accord 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 India's largest single-location steel facility (10 MT) in Hazira, Gujarat, and the country's second-largest single-location refinery in Vadinar. It additionally acquired Shell's Stanlow refinery in the UK. Abroad, it has planned a low-carbon steel plant in Saudi Arabia. Mesabi Metallics, the firm investing here, is Essar's US arm. Essar has been in Minnesota since 2007, when it purchased Minnesota Steel. It controlled over 1.4 billion tons of iron ore resources. Add Now!

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Taken together, the developments around an Indian giant bets $18 bn on Trump' s steel dream point to a situation that is still moving, and the coming days should bring more clarity.