Hello, Iowa House District 84 from the State Capitol!
Hope you’re having a good fall thus far! As you’ve most likely seen in the local, state, and national news, the Iowa Legislature was called into a special session on Friday, October 2nd to consider House File 2801 to attract Mesabi Metallics to build a $15 billion steel plant by Wever, Iowa in southeast Iowa.
Mesabi Metallics, located in Nashwauk, MN is a company that is opening an iron ore and pellet mine near there that plans to build the steel plant with about 6,000 construction jobs. At this time, the raw materials could arrive by rail, highway, and even the Mississippi River. After completion, the plant will employ about 1,750 people with very impressive high-paying jobs!
Iowa was chosen because of its ability to cut red tape over the past several years to create a pro-growth business climate with the help of the Iowa Economic Development Authority (IEDA) Bill signed into law in 2024. HF 2801 updates the major economic growth attraction (MEGA) program that is under the IEDA. Before HF 2801, MEGA was limited to two projects receiving a 5% investment tax credit each. The new update allows one project to receive a 10% investment tax credit, and the bill also extends MEGA to 2030.
This new steel plant, scheduled to be up and running in 2030, will be a major economic boost to Iowa and the United States. It is estimated that from the construction start to the first ten years of operation, it will amount to roughly $95 BILLION in economic output. When fully operational, it will produce close to 10 million tons of steel each year. This will provide job security and national security as domestic steel production will increase from about 75% to 90-95% of its annual steel needs when fully operational.
We legislators have heard countless times that we need to keep our youth here in Iowa after high school or college. Iowa needs to slow down or stop the “brain drain” of young residents moving out of state for better paying jobs and secondly, we need to grow Iowa’s economy. This will certainly help in both areas.
The Chairman of Sukup Manufacturing Co. Steve Sukup and the President of Kinze Manufacturing Susanne Veatch are both strong supporters of building this steel plant. Veatch stated in a letter to Governor Reynolds that steel prices have increased about 50% in the last 18 months! Creighton University economist Ernie Goss stated this plant “could have impacts far beyond the steel industry.”
When completed, this steel plant will be the largest in the country and Iowa will become the second largest steel producing state! HF 2801 passed on the house floor 75 ayes and 17 nays, with all but two republicans in favor, while 16 democrats voted aye and 15 voted nay. I voted in favor, because this will grow Iowa, help Iowa businesses, and help with national security.
