Washington, September 29, 2026: The Ruia family, founders of India’s Essar Group, is making a major return to the steel industry with an $18 billion investment in the United States, centered on a proposed large-scale steel complex in Iowa and an iron-ore operation in Minnesota. The project marks a new chapter for the family after Essar Steel’s Indian business entered insolvency proceedings in 2017 and changed ownership in 2019.
Through its US subsidiary Mesabi Metallics, Essar plans to invest about $15 billion in a new steel complex in Iowa, while approximately $3 billion is being invested in completing an iron-ore mine in Minnesota. The two operations are intended to form an integrated “mine-to-mill” supply chain within the United States.
Iowa Plant Targeted for 2030
The Iowa facility is expected to begin production around 2030 and eventually produce up to 10 million tonnes of steel annually. The project is designed around direct-reduced iron and electric-arc-furnace technology, with iron-ore pellets from Minnesota supplying the Iowa steelmaking operation.
Mesabi Metallics says the broader project could generate thousands of construction and permanent jobs. Company estimates include roughly 6,000 construction positions and at least 1,750 permanent workers at the Iowa facility, while the wider Minnesota-Iowa development is expected to support additional employment.
Ruia Family’s Return to Steel
The project represents a significant return to steelmaking for the Ruia family. Brothers Ravi Ruia and the late Shashi Ruia founded Essar in 1969, building the group from an infrastructure business into a diversified conglomerate with interests including steel, energy, ports and shipping. Essar previously developed a major steel operation in Hazira, Gujarat, before its Indian steel business went through the insolvency process.
Mesabi Metallics has been part of Essar’s US operations since 2007, when the group acquired Minnesota Steel and its iron-ore resources. The new investment connects that mining presence with a planned US steelmaking operation.
Focus on Domestic US Steel Supply
The project is being promoted as a fully integrated American steel supply chain, with the company saying its products will be “mined, melted and poured” in the United States. The project is also being positioned as a source of steel for sectors such as automotive manufacturing, infrastructure and defence.
The announcement comes amid higher US tariffs on imported steel and broader efforts to expand domestic manufacturing. US officials have cited the trade measures as one factor supporting investment in American steel production.
The $18 billion plan therefore represents both a major expansion of Essar’s US footprint and a strategic attempt to create an integrated steel business linking Minnesota’s iron ore resources with large-scale steel production in Iowa.