Union Pacific Railroad announced a new seven-year contract with Rocky Mountain Steel Mills for the domestic production of steel rails, reinforcing a long-standing partnership and commitment to U.S. manufacturing.
The agreement underscores Union Pacific’s strategy to source the majority of its rail from domestic suppliers, while supporting the only remaining dedicated steel rail production facility in the United States, located in Pueblo, Colorado. The facility produces steel using members of the United Steelworkers and remains a critical component of the nation’s industrial infrastructure.
The renewed contract also resolves prior legal disputes between the companies, with Union Pacific withdrawing a previously filed lawsuit. The partnership dates back to the early 1890s and has played a significant role in supporting rail expansion and domestic steel production across the Western United States.
Rocky Mountain Steel is preparing to begin operations at a new long-rail mill, backed by more than $1 billion in investment. The facility will produce 100-meter rails, significantly reducing the number of welds required and improving track safety and operational efficiency. The mill will also be powered by a large-scale solar installation, positioning it as one of the most advanced and sustainable steel production facilities globally.
The agreement highlights continued investment in U.S.-based manufacturing and infrastructure, as well as the importance of domestic supply chains in supporting transportation and industrial growth.
KEY QUOTES:
“We appreciate the longstanding relationship with Rocky Mountain Steel, its dedicated workforce, and their collective commitment to domestic steel manufacturing. The new long-rail mill is a significant step forward in American manufacturing that supports Union Pacific’s focus on delivering safe, reliable service for our customers. As Union Pacific pursues its merger with Norfolk Southern to create the nation’s first transcontinental railroad, our ability to partner with Rocky Mountain Steel becomes even more critical as our merger is positioned to strengthen the nation’s manufacturing core as well as domestic job growth.”
Jim Vena, Chief Executive Officer, Union Pacific
“The new contract reinforces the one-of-a-kind partnership between Union Pacific Railroad and Rocky Mountain Steel, a relationship that traces its roots back to the 1890’s and has been benefiting American workers every day since. This mill is an essential part of America’s steel transportation infrastructure, and its continued existence shows that our nation offers railroads large and small the very best product, made by the very best steelmakers in the world. I thank Union Pacific leadership for making that case crystal clear via this new long-term contract.”
Doug Matthews, Chief Executive Officer, Orion Steel
“I’ve been in the steel industry for 37 years, and Union Pacific’s unique understanding of our market and their steadfast belief in U.S. steel manufacturing speaks to their role as an iconic American company.”
Doug Matthews, Chief Executive Officer, Orion Steel
