Winning Bizness Desk
Mumbai.Essar Group to invest Rs 1.5 lakh crore in US, plans America’s biggest steel plant by 2030
Indian conglomerate Essar Group will invest $18 billion, or around Rs 1.5 lakh crore, in the United States, with the biggest share going into a major steel project in Iowa. The group will invest $15 billion, nearly Rs 1.25 lakh crore, to build what has been described as the largest steel plant in the US.
The announcement was made during an event at the White House Oval Office in the presence of Essar Group co-founder Ravi Ruia and his son, Rewant Ruia. The company said the Iowa project will form the centrepiece of its planned investment in the US.
Iowa plant targets production of 10 million tonnes annually
The steel plant will be built by Essar Group’s US company Mesabi Metallics. According to a White House official, the company is targeting the start of steel production by 2030.
Once operational, the facility will have an annual production capacity of 10 million tonnes of steel. The project is also expected to create around 1,750 permanent jobs in Iowa.
Key figures from the project include:
- Total Essar US investment: $18 billion
- Iowa steel plant investment: $15 billion
- Annual steel production capacity: 10 million tonnes
- Permanent jobs in Iowa: Around 1,750
- Target for production: 2030
New Minnesota mine to supply iron ore for plant
Essar Group is also developing a new iron ore mine in Minnesota to supply raw material for the steel facility. The company is investing $2.5 billion, around Rs 21,000 crore, in the mine. The mine will provide iron ore required for the Iowa steel plant, linking the group’s mining and steel operations in the US. A White House official said the project represents the first new iron ore mine to begin operations in the US in 50 years.
Trump links fresh investment to higher steel tariffs
US President Donald Trump said the American steel industry was becoming stronger again. He attributed the revival to the 50% tariff imposed on steel imports last year. Trump said companies were setting up manufacturing facilities in the US to avoid paying the 50% tariff on imported steel. He made the remarks while announcing the Essar investment at the White House.
Essar plans major expansion across American industrial sector
The Iowa steel project is part of Essar Group’s wider $18-billion investment programme in the US. The investment will expand the group’s presence in the American mining and steel sectors. The company already has operations in Minnesota through its US subsidiary Mesabi Metallics. Mesabi Metallics is based in Nashwauk, Minnesota, and has been operating since 2007.
Essar began in India and expanded overseas
Essar Group was founded in India in 1969 by brothers Shashi Ruia and Ravi Ruia. Over the decades, the group expanded into several sectors, including energy, mining, technology and retail. Its operations now span India, the UK, the US and Saudi Arabia. In India, Essar operates major industrial assets, including its steel plant at Hazira in Gujarat and its refinery at Vadinar.
Group controls major iron ore resources in Minnesota
Mesabi Metallics controls more than 1.4 billion tonnes of iron ore resources in Minnesota. The company’s mining operations are intended to support Essar’s broader steel production plans in the US. The Minnesota project will therefore provide the raw material base for the planned Iowa facility.
The group’s US expansion combines mining, raw material supply and steel production under one business chain.
Essar has major industrial assets across several countries
Essar’s international operations include its former acquisition of the Stanlow refinery in the UK. The group is also planning a low-carbon steel plant in Saudi Arabia.
Its major assets and projects include:
- Hazira steel plant in Gujarat
- Vadinar refinery in Gujarat
- Stanlow refinery operations in the UK
- Mesabi Metallics in Minnesota
- New iron ore mine in Minnesota
- Planned steel plant in Iowa
- Planned low-carbon steel project in Saudi Arabia
Iowa project marks major new phase for Essar in US
With the Iowa steel plant, Essar is expanding its American operations from iron ore mining into large-scale steel manufacturing. The company’s $18-billion US investment includes the $15-billion steel facility and the $2.5-billion Minnesota mining project.
The Iowa plant is scheduled to begin production in 2030 and will have the capacity to produce 10 million tonnes of steel annually. The project is also expected to generate about 1,750 permanent jobs in Iowa, making it a major industrial investment for the state.
