White House announces largest-ever US steel plant coming to Iowa
The largest steel plant in U.S. history will be built in Iowa, according to an announcement made Monday in the White House.
Minnesota-based and Indian-owned Mesabi Metallics officials said they plan to build a roughly $15 billion integrated “mega” steel plant, the first of its kind built in the U.S. since the 1960s, in southeast Iowa.
The project was announced Monday afternoon in the Oval Office by President Donald Trump, members of his administration, and leaders of Essar Group, the Indian multinational conglomerate company that owns Mesabi Metallics.
An Iowa delegation that included Gov. Kim Reynolds, U.S. Sen. Joni Ernst, U.S. Reps. Ashley Hinson and Mariannette Miller-Meeks and Iowa Attorney General Brenna Bird attended and all spoke at the announcement.
The exact location of the steel plant has not been announced.
Once operational, the Mesabi Metallics plant will create at least 1,750 new, permanent jobs, company and government officials said. The first steel production is expected by 2030, and the plant will produce 10 million tons of steel annually, Trump said.
The first phase of the project will support 5,000 to 6,000 construction jobs, officials said.
Miller-Meeks, at the announcement event, said the jobs will pay an average $49 per hour.
“With the new steel complex in Iowa, we will complete the fully integrated American supply chain from mine to mill — American ore carried on American railroads to an American steel plant powered by American energy, built and operated by an incredibly hardworking and talented American workforce,” Mesabi Metallics Chairman of the Executive Board Rewant Ruia said during the announcement at the White House. “This plant will use the latest technology and will compete head-to-head with any steel plant in the world on size, quality and on cost.”
U.S. Commerce Secretary Howard Lutnick said at Monday’s announcement that the plant’s location and construction in Iowa is not dependent upon state tax incentives or breaks.
“No, I think this deal’s done. This deal is done. They’ve already worked it out,” Lutnick said in response to a reporter’s question. “That’s why we’re all together with the president. The president doesn’t bring people together unless it’s a done deal.”
Iowa legislators in recent weeks had been discussing a possible special legislative session to provide tax incentives for a new steel plant in Lee County.
The Lee-Gazette Des Monies Bureau asked for confirmation of Lutnick’s comment — that no state tax incentives are needed for the steel plant’s location and construction in Iowa — from the offices of the governor, Iowa Economic Development Authority and Republican majority leaders in the Iowa Legislature. None of those offices responded to the question.
The Mesabi Metallics plant will be “fully vertically integrated in the U.S.” from iron mining through steel production and will be capable of supporting defense sector requirements for high-grade steel, company and government officials said. It will use iron mined from the company’s new, $2.5 billion iron ore mine in Minnesota, the first of its kind in the U.S. in 50 years, according to officials.
“Southeast Iowa, my district, has long had jobs leave, go overseas. It’s heartbreaking when you’re in those communities day after day,” Miller-Meeks said at the announcement. “So to see the largest steel mill in America being built in Iowa and in southeast Iowa … it’s just transformational in this area.”
Reynolds, at the announcement at the White House, praised Trump for his leadership and “commitment to bringing manufacturing back” to the U.S. She also thanked the Essar Group leaders in attendance, calling the process “tough negotiations.”
“We could not be prouder than being the future home of the largest steel investment in this country. And the impact that will have is just undeniable. This is a transformational opportunity, not only for our country but for Iowa and really for American families,” Reynolds said.
Lutnick said the plant’s construction means the U.S. will be less reliant on other countries for inputs like iron ore pellets.
“And where do we get those pellets from now? We get them primarily from Brazil. So we are beholden to Brazil to build our steel in America because the input is coming from outside the country. So now we are unleashing the iron range in Minnesota,” Lutnick said at the announcement. “(The new plant) will create steel at the same price they make it and import it from China. This is competitive. …
“This is great for Iowa. It’s great for Minnesota.”
Monday’s announcement comes just more than a month before the Nov. 3 midterm elections, and at a time when Trump’s approval rating is at just 36% nationally, according to Gallup, and 44% in Iowa, according to Emerson College Polling.
Iowa has competitive statewide elections for governor and the U.S. Senate, and in three of the state’s four Congressional districts.
Trump noted Hinson’s and Miller-Meeks’ campaigns when he introduced them to speak during the announcement. Both Republicans, Miller-Meeks is running for reelection in Iowa’s 1st U.S. House District, and Hinson is running in the state’s open-seat U.S. Senate election. Miller-Meeks faces Democrat Christina Bohannan, and Hinson faces Democrat Josh Turek.
“This steel will be mined, melted, and made right here in the U.S.A.,” Trump said during the announcement. “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 also shipping it outside, and do very well.”
Reaction poured in Monday from other Iowa elected officials and leaders.
- Iowa Republican U.S. Sen. Joni Ernst (at the announcement): “We're excited about it. We are looking for ways for America to refine, to mine, to grow, and to manufacture, and all of that is happening right there in southeast Iowa.”
- Iowa Republican U.S. Rep. Ashley Hinson (at the announcement): “We appreciate this investment in American manufacturing because Iowa does a lot of things really, really well. We feed and fuel the world, and now we're going to continue to be a part of the American manufacturing story. … I just think about the countless opportunities for Iowa families and what this means for them. It is a game-changer for our state and, frankly, for the country.”
- Iowa Attorney General Brenna Bird (at the announcement): “These are good-paying, family-supporting steelworker jobs, and so proud as an Iowan that you chose our state to invest in.”
- Iowa U.S. Sen. Chuck Grassley (statement): “This historic investment is a major win for Iowa workers and further cements Iowa’s role in the future of American manufacturing. … Iowa has the workforce, work ethic, resources, and business climate to compete with anyone, and we are proud to welcome this project to our state.”
- Republican Party of Iowa Chairman Jeff Kaufmann: “President Trump is rebuilding American manufacturing, and Iowa is poised to be at the center of that comeback. This project … will strengthen our domestic steel supply, protect our national security, and help restore an American industry that has endured decades of foreign undercutting.”
- State Rep. Elizabeth Wilson, D-Marion: “Right now, Iowa should prioritize investments that will create good-paying jobs and strengthen Iowa’s economy. As more details become available after (Monday’s) announcement, we also have a responsibility to make sure any state investment is transparent, accountable and a good deal for Iowa taxpayers. As Iowans continue to struggle, we clearly want this project to succeed in order to deliver lasting economic opportunities for Iowa families and communities for generations to come.”
- Iowa House Minority Leader Brian Meyer, D-Des Moines: “I’ve heard from Iowans all across the state who are struggling with high prices of diesel, housing and groceries, who are looking for relief, so I look forward to reviewing the details of the plan. There is still a lot unknown, but my hope is this will be a step in the right direction to create good-paying jobs while being fiscally responsible.”
- Stte Rep. Dave Jacoby, D-Coralville: “As Iowa families continue to face high costs, we’re encouraged by the potential for new jobs and economic investment in southeast Iowa. We look forward to seeing the details and making sure any proposal delivers for Iowa workers while protecting Iowa taxpayers.”
- Iowa Senate Minority Leader Janice Weiner, D-Iowa City: “The announcement (Monday) regarding a potential steel plant in southeast Iowa is compelling. I would love to see the creation of good-paying jobs for hardworking Iowans. We need to be thoughtful and measured in our approach. At this point, there is still much we don’t know. … Until we know what kind of deal is on the table, we won’t be able to determine whether this project is indeed in taxpayers’ best interests.”
