Trump announces $15 billion steel plant project in southeast Iowa
WASHINGTON —
President Donald Trump announced Monday the construction of a new steel mill in southeast Iowa that he said will be the largest in the United States. The president hosted steel industry executives and several Iowa executives Monday afternoon for the announcement at the White House.
Video above: Iowa Gov. Reynolds thanks President Trump during $15 billion steel mill announcement.
The plant is being built by Mesabi Metallics, a Minnesota company owned by the India-based Essar Group. It is expected to create approximately 6,000 construction jobs and 1,750 permanent jobs in Iowa, with first steel production in 2030.
Rep. Mariannette Miller-Meeks’ office said permanent jobs are expected to pay more than $49 an hour.
The White House says it “will be fully vertically integrated into the United States (from iron mining to steel production).” It says it will also be able to meet the defense sector’s “important needs for high-quality steel.”
The White House frames it as part of Trump’s efforts to revitalize American steel. It comes as Trump tries to energize Republican voters as his party faces a tough midterm election. Iowa found itself this year with competitive races for Senate and the governor’s mansion.
Iowa guests at the announcement include Governor Kim Reynolds, Senator Joni Ernst, Representatives Mariannette Miller-Meeks and Ashley Hinson, and Iowa Attorney General Brenna Bird.
Reynolds called the project “transformational” and said it would create good-paying jobs, opportunities for local businesses and community development in southeast 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 in a statement. “This is a transformational opportunity for our country, our state, and American families – one that strengthens national security, creates thousands of good-paying jobs, and provides a reliable supply of high-quality, American-made steel for strategic goods and everyday products.” »
Reynolds also said at the White House event that “difficult negotiations” took place to secure the project.
The announcement came days after reports that Iowa lawmakers could be called back to the Statehouse for a special legislative session to consider an incentive package for a large steel mill in southeast Iowa.
The Des Moines Register reported that, according to an email sent last week to Iowa House Democrats, a lobbying firm representing an unnamed steel company discussed an incentive program the company said it needed quickly before deciding whether to locate a large plant in southeast Iowa near the Mississippi River.
Monday’s announcement identified Mesabi Metallics as the company planning a $15 billion steel plant in Lee County.
Asked Monday whether federal funds would be dedicated to the project, U.S. Commerce Secretary Howard Lutnick said private funds would be used to build the Iowa steel mill. He said the Export-Import Bank helped finance the Minnesota mine that will supply iron ore to the plant.
When asked specifically if the Iowa plan was dependent on state tax breaks, Lutnick said no.
“I think this deal is done. This deal is done. They’ve already sorted it out,” Lutnick said.
That leaves questions about whether Iowa is separately considering incentives for the project and whether lawmakers could still be called in for a special session. KCCI asked Iowa House Republicans on Monday if a special session was still under consideration or no longer needed. Iowa House Republicans did not immediately respond to request for comment.
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Miller-Meeks, whose district includes Lee County, said the project would create more than 1,700 permanent jobs in the area.
“For too long, Iowa families have seen their jobs shipped overseas and their communities crumble. That’s not the case now,” Miller-Meeks said in a statement. “America’s largest steel mill is coming to Lee County, with more than 1,700 permanent, good-paying jobs. I’m proud to have helped make this historic investment a reality. There’s no better place than Iowa to make things IN America, BY Americans.”
Miller-Meeks’ office also said the project is expected to generate more than $95 billion in economic activity.
Democratic leaders in the Iowa Legislature said Monday they welcome the prospect of new jobs and investment in southeast Iowa, while calling for more information on any potential state involvement in the project.
Iowa Senate Democratic Leader Janice Weiner said the announcement was “compelling” and that she “would love to see the creation of good-paying jobs for hard-working Iowans” but said important questions remain.
“We have no details regarding a possible incentive package that might be offered to this foreign company – nor any guarantees for Iowa workers,” Weiner said. “We do not know whether transparency and accountability measures will be included to protect Iowans and local communities, whether qualified Iowa union workers will be prioritized, what impact any potential agreement will have on property owners, or why there is a need to rush. Until we know what type of agreement is on the table, we will not be able to determine whether this project is indeed in the best interests of taxpayers.”
Iowa House Democratic Leader Brian Meyer said he looked forward to reviewing the details of the plan.
“I’ve heard from Iowans across the state who are struggling with high diesel, housing and grocery prices and are looking for relief, so I look forward to reviewing the details of the plan,” Meyer said. “There are still a lot of unknowns, but I hope this is a step in the right direction to create good-paying jobs while being fiscally responsible.” »
State Rep. Dave Jacoby, the ranking Democrat on the House Ways and Means Committee, said he was encouraged by the job and investment potential, but he also wanted to see the details.
“As Iowa families continue to face high costs, we are encouraged by the potential for new jobs and economic investment in southeast Iowa,” Jacoby said. “We look forward to seeing the details and ensuring that any proposal will meet the expectations of Iowa workers while protecting Iowa taxpayers.”
State Rep. Elizabeth Wilson, the ranking Democrat on the Iowa House Economic Development budget subcommittee, also called for transparency regarding any state investments.
“Right now, Iowa should prioritize investments that will create good-paying jobs and strengthen Iowa’s economy,” Wilson said. “As more details become available following today’s announcement, we also have a responsibility to ensure that 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 provide lasting economic opportunities for Iowa families and communities for generations to come.”
The White House is touting the project as part of Trump’s efforts to increase steel production and manufacturing in the United States.
“President Trump is delivering on his promise to rebuild American industry, relocate manufacturing, and create new jobs,” White House spokesperson Taylor Rogers said in a press release. “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.
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