Iowa steel project faces tests after Foxconn comparison

Iowa project’s plans

Mesabi Metallics plans to invest billion in a steel complex in Lee County as part of an billion development announced by President Donald Trump’s administration. The company, which is owned by India’s Essar Group, would direct the other billion toward completing an iron ore mine in Minnesota.

Plans for the Iowa complex call for more than 6,000 construction jobs and at least 1,750 permanent jobs paying an hour. Steel production is expected to begin as soon as 2030, with an initial annual capacity of 7.5 million tons. Later development could raise that capacity to 10 million tons.

Jerrod Agen, an assistant to Trump and executive director of the National Energy Dominance Council, said demand for steel used in energy and infrastructure distinguishes the proposal from Wisconsin’s Foxconn project.

The Foxconn comparison

Trump announced the Wisconsin electronics development in 2017 as a planned billion investment expected to create 13,000 jobs. The operating facility is now much smaller: its initial investment was less than 7% of the amount announced, and it employs up to 2,600 people.

The Lee County project remains years from its planned production date, leaving its eventual investment, employment and output to be demonstrated as development proceeds.

Iowa lawmakers’ role

Gov. Kim Reynolds called for a special legislative session to consider tax incentives for Mesabi Metallics. That action followed Trump’s statement that construction had already started.

State Rep. John Wills said lawmakers previously approved legislation meant to help Iowa compete for very large development projects. He said the planned billion investment requires amendments to that law and that the final bill had not yet been produced. Wills said the House’s responsibility is to protect taxpayers while considering incentives intended to attract major employers.