"Trump Announces Plans for $15 Billion Steel Mill, Largest in U.S. History"

[Financial News]  

The Wall Street Journal reported that U.S. President Donald Trump is expected to unveil plans on the 28th for the largest steel investment in U.S. history at the White House. The announcement is seen as an all-out effort to win back support with the midterm elections just over a month away.
The Wall Street Journal reported that Trump plans to announce at the White House that he will build a $15 billion (approximately 20 trillion won) steel plant in Iowa alongside executives of Minnesota steelmaker Mesabi Metallics. Mesabi recently opened an iron ore mine in Minnesota for the first time in 50 years. According to White House officials, the Iowa steel mill is scheduled to begin operations in 2030 and create approximately 1,700 jobs. The plan is to process iron ore from the Minnesota mine, transported via the Mississippi River.
Mesabi also plans to install an electric arc furnace to process scrap metal. The cost of building the two steel mills—one for iron ore and the other for scrap metal—is expected to total approximately $15 billion.
The Iowa steel mill, which will be one of the largest in U.S. history, is expected to have an initial annual production capacity of 7.5 million tons. After the facilities are expanded, annual production is projected to reach approximately 10 million tons.
Mesabi, a subsidiary of Indian conglomerate Essar Group, is set to carry out the steel mill project roughly 20 years after its parent company first conceived it.
The project linking the iron ore mine with the steel mill will be the largest integrated steelmaking project built in the United States since the 1960s. It could achieve vertical integration of the U.S. supply chain.
Trump is expected to use the integrated steelmaking project to defend his tariff policy, which imposes tariffs of up to 50% on imported steel. The project gives him grounds to counter criticism that the tariffs have raised U.S. steel prices and increased cost burdens for manufacturers. He is expected to claim that the tariff policy has led to domestic investment and job creation.
The announcement of the steelmaking project is also seen as a move ahead of the midterm elections on November 3.
Iowa was originally a Republican stronghold, but public sentiment has shifted amid high oil prices resulting from Trump's war with Iran and soaring fertilizer costs, turning the state into a battleground. The strategy appears to be to create jobs through the large-scale construction project and draw votes.

[email protected] Song Kyung-jae Reporter