Trump announces $15 billion steel plant planned for southeast Iowa
WASHINGTON —
President Donald Trump on Monday announced a new steel plant in southeast Iowa that he says will be the largest in the United States. The president hosted steel executives and several Iowa leaders Monday afternoon for the announcement at the White House.
Video above: Iowa Gov. Reynolds thanks President Trump during announcement of $15B steel plant
The mill is being built by Mesabi Metallics, a Minnesota company owned by India-based Essar Group. It’s expected to create roughly 6,000 construction jobs and 1,750 permanent jobs in Iowa, with its first steel production in 2030.
Rep. Mariannette Miller-Meeks’ office said the permanent jobs are expected to pay more than $49 an hour.
The White House says it “will be fully vertically integrated in the U.S. (from iron mining through steel production).” It says it will also be able to support “important defense sector requirements for high-grade steel.”
The White House is framing it as part of Trump’s push to revitalize American steel. It comes as Trump is trying to energize Republican voters as his party faces challenging midterm elections. Iowa has found itself with competitive races for the Senate and the governor’s mansion this year.
Guests from Iowa at the announcement include Gov. Kim Reynolds, Sen. Joni Ernst, Reps. Mariannette Miller-Meeks and Ashley Hinson, and Iowa Attorney General Brenna Bird.
Reynolds called the project “transformational” and said it would bring high-paying jobs, opportunities for local businesses and community development to 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 high-paying jobs, and provides a reliable supply of high-quality, American-made steel for strategic goods and everyday products.”
Reynolds also said during the White House event that “tough 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 plant in southeast Iowa.
The Des Moines Register reported that, according to an email sent to Iowa House Democrats last week, a lobbying firm representing an unnamed steel company had been in discussions about an incentive package that 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 money would go toward the project, U.S. Commerce Secretary Howard Lutnick said private money will be used to build the Iowa steel plant. He said the Export-Import Bank helped finance the Minnesota mine that will supply iron ore to the plant.
Asked specifically whether the Iowa project is contingent on state tax breaks, Lutnick said no.
“I think this deal is done. This deal is done. They’ve already worked it out,” Lutnick said.
That leaves questions about whether Iowa is separately considering incentives for the project and whether lawmakers could still be called back for a special session. KCCI asked Iowa House Republicans Monday whether a special session is still under consideration or is no longer necessary. 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 bring more than 1,700 permanent jobs to the area.
“For too long, Iowa families have watched their jobs shipped overseas and their communities hollowed out. Not anymore,” Miller-Meeks said in a statement. “The largest steel plant in America 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 welcomed the prospect of new jobs and investment in southeast Iowa while calling for more information about 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 hardworking Iowans,” but said significant questions remain.
“We have no details regarding any potential incentive package that may be offered to this foreign company – nor any guarantees for Iowa workers,” Weiner said. “We don’t know whether transparency and accountability measures will be included to safeguard Iowans and the local communities, whether Iowa’s skilled union laborers will be prioritized, how any potential deal will impact landowners, or why haste is necessary. 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.”
Iowa House Democratic Leader Brian Meyer said he looks forward to reviewing the details of the plan.
“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,” Meyer said. “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.”
State Rep. Dave Jacoby, the ranking Democrat on the House Ways and Means Committee, said he was encouraged by the potential for jobs and investment but also wanted to see the details.
“As Iowa families continue to face high costs, we’re encouraged by the potential for new jobs and economic investment in Southeast Iowa,” Jacoby said. “We look forward to seeing the details and making sure any proposal delivers for Iowa workers while protecting Iowa taxpayers.”
State Rep. Elizabeth Wilson, the ranking Democrat on the Iowa House Economic Development Budget Subcommittee, similarly called for transparency surrounding any state investment.
“Right now, Iowa should prioritize investments that will create good-paying jobs and strengthen Iowa’s economy,” Wilson said. “As more details become available after today’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.”
The White House is framing the project as part of Trump’s push to increase steel production and manufacturing in the United States.
“President Trump is delivering on his promise to rebuild American industry, reshore manufacturing, and create new jobs,” White House spokesperson Taylor Rogers said in a news release. “Today’s announcement underscores the President’s historic efforts to revitalize the U.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 trillions of dollars in new investment.”