DES MOINES, Iowa — The announcement by former President Donald Trump on September 28 of a major steel production facility planned for Lee County, Iowa, marks a significant development for the region’s economy. The proposed steel plant, described by Trump as “the largest steel plant in American history,” is projected to cost approximately $15 billion and will require about 6,000 construction workers over four years. Once operational, Mesabi Metallics, the plant’s owner, expects to employ around 1,750 workers.

The steel facility is the latest phase in a long-term expansion by the Ruia family, founders of India-based conglomerate Essar Group and parent company of Mesabi Metallics. The Ruia family’s efforts to establish a steel empire in North America span nearly two decades and have faced numerous hurdles, including bankruptcy filings, missed project deadlines, unpaid contractors, and ongoing legal disputes.

Co-founder Ravi Ruia leads the initiative to build the plant following the group’s recent success in launching Minnesota’s first new iron ore mine in 50 years near Nashwauk, within the Iron Range region. The $3 billion mine, for which production began with its first blast on September 17, represents a critical step toward supplying raw materials for the planned Iowa steelworks.

According to Mesabi Metallics spokesperson Jesse Harris, the company is “well positioned to fund and develop the Iowa steel plant,” with approximately $2 billion already invested by Essar Group. Harris indicated confidence in securing required financing, citing ongoing operational progress in Minnesota and the continued backing of parent companies. He acknowledged delays in Minnesota were partly caused by “anti-competitive conduct” by rival steelmaker Cleveland-Cliffs, which Mesabi has accused in a still-pending antitrust lawsuit.

The Ruia brothers, Shashi and Ravi, founded Essar Group in 1969, initially focusing on construction in India. Following India’s economic liberalization in 1991, the conglomerate diversified into sectors including ports, oil refining, steel production, and telecommunications. In the mid-2000s, Essar Group targeted expansion into North America, acquiring Canadian steel producer Algoma Steel in 2007 and taking control of Minnesota Steel Industries, where plans for the Nashwauk mine and steel plant were set in motion.

Despite early optimism, Essar faced multiple financial and operational setbacks. Essar Steel Algoma declared bankruptcy in 2015, followed by Essar Steel Minnesota in 2016, amid missed deadlines and unpaid debts. Controversies arose over alleged diversion of funds, growing debt, and a series of restructuring efforts. Essar Global’s financial difficulties prompted intervention by Indian and Canadian authorities, and in 2017, Indian regulators urged lenders to initiate bankruptcy proceedings against Essar Steel, a separate entity from the North American subsidiaries.

Following bankruptcy, the Minnesota operation was rebranded as Mesabi Metallics under new ownership before reverting to Essar Group control in 2019. This sparked state objections due to prior contract violations and missed obligations, including a $66 million repayment debt for infrastructure improvements. The Minnesota Department of Natural Resources (DNR) ultimately revoked Mesabi Metallics’ mineral lease in 2021 after the company failed to meet a financial assurance deadline. The lease was later awarded to Cleveland-Cliffs in 2023, although Mesabi Metallics continued construction and expanded its land holdings.

The company maintains that it remains committed to the project, with officials stating recent progress includes staying current on debt repayment plans. In September, the U.S. Export-Import Bank approved a $770 million loan to Mesabi Metallics shortly before the Iowa plant announcement. The company has also engaged lobbyists, including former Trump adviser Jason Miller.

Concerns have been raised regarding the Ruia family’s financial ties to Russian state-owned entities. Essar Group received over $12 billion from Rosneft Oil and holds substantial loans from VTB, a Russian state-owned bank subject to Western sanctions following Russia’s 2022 invasion of Ukraine. Reports indicate that Essar subsidiaries transferred loans through entities in Cyprus and Mauritius, raising questions about possible sanction circumvention. Essar attorneys deny wrongdoing, asserting compliance with all applicable sanctions laws, while Cyprus authorities investigate potential violations.

Iowa law restricts economic incentives for businesses tied to foreign adversaries. Harris affirmed that Mesabi Metallics has no relations with sanctioned entities and complies fully with sanctions regulations.

As Mesabi Metallics moves toward finalizing the Iowa steel plant project, the company’s complex history underscores the challenges of establishing a new American steel manufacturing presence amid financial, legal, and geopolitical hurdles. State leaders, including Iowa Governor Kim Reynolds, emphasize the project’s potential as a major economic opportunity for the state, even as scrutiny continues over the Ruia family’s global business dealings.