Washington — President Trump announced Monday that Mesabi Metallics will build a $15 billion steel plant in Iowa over the next several years, which would be the largest of its kind in U.S. history.
“There is a company known as Mesabi,” the president said in the Oval Office. “And they’re going to make a big investment in a place called Iowa. I love Iowa. I’ve won Iowa every time. Today we’re excited to announce that Mesabi Metallics will build the largest steel mill in American history in the great state of Iowa.”
The president and Minnesota-based Mesabi Metallics unveiled the company’s plans for what the White House calls a mega-steel plant, alongside Mesabi executives and Iowa Republican representatives who face tough races in November.
Once operational in 2030, the plant is expected to produce 7.5 million tonnes or more of steel per year. A White House official said the plant is expected to create 1,750 permanent jobs in Iowa.
Kent Nishimura/AFP via Getty Images 
Commerce Secretary Howard Lutnick and Export-Import Bank President John Jovanovic joined Mesabi executives and Republican members of Congress in the Oval Office for the announcement.
The new plant plans are the latest move by the Trump administration to boost domestic steel production in the face of foreign competition, a centerpiece of the president’s trade agenda. Last year it doubled customs duties on imported steel at 50%and steel taxes were part of the ongoing trade conflict between the United States and Canada.
Mesabi did not announce where the steel plant would be located in Iowa, but Energy Secretary Chris Wright mentioned it would be in the southeastern part of the state. A White House official said it would be the first mega-steel plant built in the United States since the 1960s. The Trump administration expects the steel could support U.S. defense projects in the future.
Iron ore for the plant – iron ore is a primary raw material for making steel – will come from Mesabi Metallics’ new $2.5 billion iron mine in Minnesota.
The Wall Street Journal was first to report the president’s anticipated announcement about the new steel plant.
“President Trump is delivering on his promise to rebuild American industry, relocate manufacturing and create new jobs,” White House spokeswoman Taylor Rogers said. “Today’s announcement highlights the President’s historic efforts to revitalize America’s steel industry – supporting local communities, strengthening supply chains, and protecting our national security. After decades of decline, this president is restoring America’s industrial competitiveness and securing billions of dollars in new investment.
The announcement comes less than 40 days before the midterm elections, as Iowa Republicans face competitive races for the U.S. House of Representatives. Senate and the Governor’s Mansion. Republicans, who now own the governor’s mansion and both Senate seats, are trying to block Democrats from changing that.
In Iowa, the Des Moines Register reported that state lawmakers have been alerted that they may have to return to the Statehouse to approve tax breaks for Mesabi. CBS News has reached out to key Iowa State officials for comment.
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