The Indian group Essar Global Limited has announced that, through its wholly-owned subsidiary Essar Steel Holding (Essar), it has acquired US-based steel company Minnesota Steel, which controls over 1.4 billion metric tons in iron ore resources.
In addition, Essar will invest approximately $1.65 billion in the construction of a new integrated steel plant, which Minnesota Steel is to set up upon the completion of the acquisition.
The new mill with a designed capacity of 2.5 million metric tons will be built in phases, the first phase of which is expected to be completed in 2009 with a capacity of 1.5 million metric tons of thick sheet slabs per year.
Minnesota Governor Tim Pawlenty commented, "This investment is a tremendous milestone, not only for the company but also for the state. It moves us much closer to the goal of making steel on the Iron Range."
Essar Global Chairman, Shashi Ruia said his company is looking forward to expanding operations into North America. "Our investment in Minnesota Steel is exciting as it gives us a cornerstone in the North American market. From this we will further expand our global steel business," he said.