WASHINGTON — President Donald Trump announced Monday that Mesabi Metallics plans to pour approximately $15 billion into a massive new steel complex in southeast Iowa, a project state and federal leaders say would become the largest steel manufacturing investment in American history and create thousands of jobs.
Iowa Gov. Kim Reynolds joined Trump and Mesabi Metallics Chairman Rewant Ruia at the White House on September 28 for the announcement, calling the project a “transformational opportunity” that could fundamentally change Iowa’s economy for decades.
Mesabi Metallics plans to locate the fully integrated steel complex in Lee County in southeast Iowa.
The enormous industrial development is expected to create between 5,000 and 6,000 construction jobs and approximately 1,750 permanent jobs once operating.
The company expects the first phase of the Iowa plant to have capacity to manufacture approximately 7.5 million tons of steel annually. At full buildout, production could reach approximately 10 million tons per year.
First steel production is targeted for 2030.
Trump touted the announcement as evidence of a resurgence in American steel manufacturing and argued that his administration’s tariffs on imported steel are encouraging companies to locate new manufacturing operations inside the United States.
“Our steel industry is roaring back to life,” Trump said.
Trump said steel produced through the project would be “mined, melted and made right here in the USA.”
The administration has characterized the proposed facility as the first American “mega” steel plant constructed since the 1960s. The operation is expected to produce steel for uses ranging from strategic and defense needs to everyday American products.
Reynolds said the project carries implications extending well beyond Iowa.
“I want to thank President Trump for his commitment to bringing steel manufacturing back to America, and Mesabi Metallics for choosing Iowa as its partner and future home,” Reynolds said. “This is a transformational opportunity for our country, our state, and American families—one that strengthens national security, creates thousands of high-paying jobs, and provides a reliable supply of high-quality, American-made steel for strategic goods and everyday products.”
Reynolds credited Iowa’s fiscal and tax policies with helping the state compete for the enormous investment.
“Our commitment in Iowa to fiscal responsibility, tax competitiveness, and long-term economic stability has created one of the nation’s strongest environments for business investment,” Reynolds said. “Now, this opportunity will fundamentally change the economic trajectory of our state and the entire region for decades to come.”
Mesabi Metallics intends to connect the Iowa steel operation with its newly developed iron ore mine near Nashwauk, Minnesota, establishing a domestic supply chain stretching from Minnesota’s Iron Range to finished steel produced in Iowa.
The company has invested approximately $2.5 billion in its Minnesota operation, the state’s first new iron ore mine in roughly 50 years. About 350 permanent jobs are expected at the Minnesota operation.
Combined with the planned Iowa steel complex, the developments represent nearly $18 billion in investment.
Mesabi Metallics is part of the Essar Group, a multinational conglomerate.
The proposed Lee County location gives the Iowa complex access to the Mississippi River transportation corridor and puts one of the largest industrial developments in state history in a largely rural portion of southeast Iowa.
Iowa House Speaker Pat Grassley said the development could deliver the type of economic growth rural communities have been seeking.
“This project would be a gamechanger for southeast Iowa and leave a lasting impact on our state’s manufacturing footprint,” Grassley said. “This will bring real jobs that mean stable careers for working families, giving more young people a chance to proudly call Iowa home.”
Grassley said bringing opportunities for economic growth to all portions of Iowa has been a priority for the Iowa House.
Iowa Senate Majority Leader Mike Klimesh described the proposal as the largest private investment in Iowa history.
“For years, we have been passing legislation to help Iowa grow, draw people to our rural communities, and strengthen our state’s economy,” Klimesh said.
“Iowa has an opportunity to bring billions of dollars of investment into our state, good quality jobs, and bring people to a part of Iowa looking for growth,” Klimesh said. “These are the kinds of opportunities we have been looking for and that Iowa needs.”
“As we look to remain competitive on the national level, the largest private investment in Iowa history makes it clear our state is open for business,” Klimesh said.
Republican U.S. Sen. Joni Ernst also joined Trump for Monday’s announcement, along with Republican U.S. Reps. Ashley Hinson and Mariannette Miller-Meeks.
Miller-Meeks represents Iowa’s 1st Congressional District, which includes Lee County.
The decision to manufacture the steel in Iowa while obtaining iron ore from neighboring Minnesota quickly triggered political fallout north of the border.
Minnesota Republican U.S. Rep. Pete Stauber, whose congressional district includes Mesabi Metallics’ Iron Range mining operation, characterized the Iowa announcement as a missed opportunity for Minnesota and blamed the administration of Democratic Minnesota Gov. Tim Walz for the state failing to land the steelmaking operation.
Stauber argued that Iowa had created a more favorable environment for investment while Minnesota’s regulatory and economic policies were pushing opportunities elsewhere.
Minnesota Republican state Rep. Spencer Igo, whose district includes the Nashwauk mining operation, also expressed frustration over the Iowa decision, calling it a “gut punch” for Minnesota.
Igo argued that Minnesota needs to become more competitive for large industrial investments rather than watching billions of dollars and thousands of potential jobs go to other states.
Mesabi Metallics itself has not publicly said that Walz or Minnesota regulations caused the company to select Iowa for the steel complex.
In fact, Mesabi CEO Joe Broking thanked Walz and Minnesota regulators for their assistance in permitting the company’s new Minnesota mining operation.
However, Broking has previously told officials in Minnesota’s Itasca County that additional company investment in the state would require more efficient permitting and competitive incentives.
That has helped fuel a political debate in Minnesota over why iron ore extracted from the state’s famed Iron Range will be shipped south while Iowa receives the enormous downstream steelmaking investment and approximately 1,750 permanent manufacturing jobs.
Trump also criticized Walz during Monday’s White House event while praising the quality of Minnesota’s iron ore resources.
The Iowa project would represent an extraordinary expansion of heavy manufacturing in a state not traditionally considered one of America’s major steel-producing centers.
If the facility reaches its planned 10-million-ton annual capacity, its economic effects could stretch considerably beyond the permanent workforce at the plant.
Thousands of workers would first be needed to construct the sprawling complex, while transportation, suppliers, housing, electrical generation and transmission, water systems, roads and other infrastructure could all be affected by development on this scale.
The announcement adds another enormous industrial and energy project to investments being pursued across Iowa.
NorthIowaToday.com recently reported on federal financing of up to $1.9 billion toward restarting Iowa’s Duane Arnold nuclear power plant in Linn County:
$1.9 billion federal loan pushes Iowa’s only nuclear plant toward 2029 restart
Iowa has also been pursuing manufacturing and economic-development projects throughout the state. NorthIowaToday.com reported in August on millions of dollars in incentives connected to projects expected to bring new investment and jobs into Northern Iowa:
Iowa economic board approves $7.6 million; Northern Iowa projects land nearly $1.74 million
The proposed Mesabi Metallics development would operate on an entirely different scale.
Monday’s announcement marks the beginning rather than the completion of the project. Mesabi faces a multiyear development and construction process before its targeted 2030 production date, and additional details concerning the precise Lee County site, state and local incentives, infrastructure requirements, financing and construction schedule are expected as the project advances.
If completed at the scale announced Monday, the Mesabi Metallics complex would establish one of the country’s largest steelmaking operations in southeast Iowa, represent what Iowa leaders describe as the largest private investment in state history and tie Minnesota’s Iron Range directly to a new generation of American steel production in Iowa.
Nice try Trump. Your steel mill from India is a false promise just like the 5K that everyone is supposed to g
A steel manufacturing plant in Iowa? For some reason that doesn’t seem to be a good fit.
What would you think is a good fit?
a big prison.
Reply to Brandon. Maybe a hog confinment in your back yard would be appropriate. Or a polluting steel mill with polluting going to kimmys back yard.
Please stop. I can’t take all of this winning.