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Essar Plans $15 Billion Steel Complex in Iowa
Essar is a large company started in India by brothers Shashi and Ravi Ruia.
Over time, it built businesses in areas such as steel, oil and telecommunications.
The company also took on a lot of debt and later sold several important businesses.
Now, its subsidiary Mesabi Metallics plans to build a very large steel complex in Iowa.
The project is expected to use iron ore from a mine in Minnesota.
Its first stage is planned to make 7.5 million tonnes of steel each year.
The company expects production to begin in 2030.
The plan brings Essar back into a major steel project after earlier financial difficulties.
Donald Trump announced a planned $15 billion steel complex in Iowa, to be developed by Essar subsidiary Mesabi Metallics.
The first phase is designed to produce 7.5 million tonnes of steel annually, with output potentially rising to 10 million tonnes.
First steel production is expected in 2030, using iron ore from Mesabi Metallics’ mine in Minnesota.
Essar was founded by brothers Shashi and Ravi Ruia in 1969 and expanded into steel, oil, telecom, power, shipping and infrastructure.
After its debt reached about Rs 1.38 lakh crore by 2017, Essar sold major assets; ArcelorMittal took over Essar Steel in 2019.
- Who
- Essar Group, through its subsidiary Mesabi Metallics; Donald Trump announced the plan.
- What
- A planned $15 billion steel complex, with a first phase designed to produce 7.5 million tonnes annually.
- Where
- Iowa, using iron ore from Mesabi Metallics’ mine in Minnesota.
- When
- Announced this week; first production is expected in 2030.
- Why
- The project is intended to develop an integrated steel operation using ore from the company’s Minnesota mine.
Key facts
- Planned investment
- $15 billion
- Developer
- Mesabi Metallics, an Essar Group subsidiary
- Location
- Iowa, with a linked iron ore mine in Minnesota
- First-phase capacity
- 7.5 million tonnes of steel per year
- Potential annual capacity
- Up to 10 million tonnes
- Expected first production
- 2030
- Essar founding
- Founded by Shashi and Ravi Ruia in 1969
- Essar debt
- About Rs 1.38 lakh crore by 2017
Sources
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