Iowa approves pricy foreign-owned steel plant project in swing district
Summary
Iowa lawmakers approved $1.36 billion in tax breaks over 10 years to help build a large steel plant owned by the Indian company Essar Group. The plant is expected to create about 1,750 permanent jobs and 6,000 temporary construction jobs, but some people worry about the high cost and past broken promises from the company.Key Facts
- Iowa held a special session and passed tax incentives totaling $1.36 billion for a new steel plant.
- The steel plant will be built by Mesabi Metallics, owned by the Indian conglomerate Essar Group.
- The project could create 1,750 permanent jobs and about 6,000 construction jobs.
- The tax incentives average about $777,000 per permanent job over 10 years.
- Some lawmakers and residents were surprised by the quick approval after President Trump announced the plant.
- Iowa’s first congressional district, where the plant will be built, is a closely contested political area.
- Essar Group has a history of missed deadlines and bankruptcy linked to previous steel projects.
- Essar has received loans from the Russian government-owned bank VTB, according to some reports.
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