In its statement on the issue, Essar Steel said that Minnesota Steel would commence project activities after receiving financial closure, adding that this was one of the largest acquisitions by an Indian group in Minnesota.
Accordingly, Minnesota Steel is planning to develop, finance and construct a new $1.6 billion steel facility, where it will combine a high-quality ore body with modern and commercially proven technology to develop a vertically integrated steel mill in Nashwauk. It will be the first facility in North America to include iron ore mining, ore processing, direct reduction and steelmaking on a single site.
Essar recently acquired Algoma Steel, Canada, which has a production capacity of four million mt per annum. Essar Steel has also stated that it plans to set up steelmaking facilities in Trinidad & Tobago, Vietnam and Eastern India, as well as enhancing its steel capacity at its plant in Hazira, India, where it is the largest producer of flat steel in western India.
Commenting on the acquisitions, Essar Global chairman Shashi Ruia said, "These acquisitions are in line with our strategy of having a geographical spread close to high value steel markets as well iron ore sources."