A White House official confirmed to CNBC that U.S. President Donald Trump will announce on Monday that a steel manufacturing company plans to invest approximately $15 billion to build a factory that, if completed, will become the largest of its kind in U.S. history.
The event announced in the oval office, co-hosted with Mesabi Metallics, is scheduled to take place at 2 p.m. Eastern Time. With just a few weeks left until the mid-term elections in November, public opinion in the United States regarding Trump's handling of economic issues is increasingly negative, which is expected to affect the election outcome.
An official who requested anonymity due to the inconvenience of revealing their identity before a White House event stated that this steel plant is planned to be built in Iowa, with production set to begin in 2030.
The Wall Street Journal was the first to report on this upcoming announcement earlier on Monday.
Mesabi Metallics, headquartered in Nashwawk, Minnesota, stated to CNBC that the project will provide "100% American steel: mining, smelting, and casting will be completed in Minnesota and Iowa."
The company confirmed that its chairman, Rewant Ruia, plans to speak at a White House event alongside Trump.
This steel plant will use iron ore produced by the mine located in the mining area of Minnesota, identified as Mesabi. The investment in this mine exceeded $2.5 billion, and it has only just started production after about 20 years of development. The project has encountered controversies and setbacks, including Essar Steel Minnesota filing for bankruptcy in 2016. Mesabi is affiliated with the Indian corporate group Essar Group.
According to the White House, the first phase of the steel plant project in Iowa is expected to produce about 7.5 million tons per year and support up to 6,000 construction jobs. The official told CNBC that the project's ultimate plan is to increase annual production to 10 million tons and support at least 1,750 permanent jobs. Minnesota Public Radio reported that the mining project in Minnesota has currently created 200 full-time jobs, with an expected total of 350.
In addition to Ruia, Trump will also be present in the Oval Office along with Mesabi Metallics's CEO Joe Broking, Secretary of Commerce Howard Lutnick, and the Chairman of the US Export-Import Bank John Jovanovic, said this official. Other attendees include the Executive Director of the White House's "National Energy Dominance Commission" Jarrod Agen, as well as the Senior Director for Global Supply Chains at the National Security Council David Copley.
Shortly after the beginning of his second term, Trump imposed an additional 25% tariff on steel and aluminum imports, which was later raised to 50%. This president strongly disapproves of trade deficits and criticizes free trade agreements; while promoting domestic manufacturing in the United States, he has implemented a number of high tariffs on imports.
Critics say that these tariffs have played a significant role in driving up steel prices in the United States, which have recently reached multi-year highs.
However, several steel trade groups wrote to Trump last Friday, attributing a total of $47 billion in "already announced and ongoing investments" to his steel tariffs policy. They urged Trump not to weaken these tariffs, stating that doing so would "put this progress at risk."
White House spokesperson Taylor Rogers stated in a statement regarding CNBC: "President Trump is fulfilling his commitments to rebuild American industries, promote the return of manufacturing, and create new jobs."
Rogers said, "Today's announcement highlights the president's historic efforts to revitalize America's steel industry – supporting local communities, strengthening the supply chain, and maintaining our national security. After decades of decline, this president is restoring America's industrial competitiveness and securing trillions of dollars in new investment."
