Union Pacific Railroad (NYSE: UNP) and Rocky Mountain Steel Mills today announced a new seven-year agreement for the domestic production of steel rails, reaffirming Union Pacific’s commitment to sourcing the majority of its rail from US-based manufacturers. Located in Pueblo, Colorado, Rocky Mountain Steel is the only dedicated rail production facility in the United States and one of North America’s largest steel producers.
The agreement strengthens a historic partnership between the two companies that dates back to the early 1890s, while also supporting American manufacturing and the workforce represented by the United Steelworkers. The agreement also resolves all pending legal disputes between the companies.
Rocky Mountain Steel is set to begin operations at a new state-of-the-art long rail mill, backed by an investment exceeding $1 billion. The facility will produce 100-meter premium rails, delivering improved efficiency with up to 80% fewer welds compared to traditional rail lengths, thereby enhancing safety and reliability. Notably, the mill will be powered by a dedicated 1,800-acre solar farm, making it the world’s largest solar-powered steel mill.
Leaders from both organizations emphasized the strategic importance of the partnership. Jim Vena highlighted the role of domestic steel in supporting reliable rail operations and future growth, including Union Pacific’s planned merger with Norfolk Southern. Doug Matthews, representing Rocky Mountain Steel’s parent company, underscored the long-standing collaboration and its contribution to American industry, infrastructure development, and job creation.
Rocky Mountain Steel Mills produces advanced steel solutions that play a vital role in building and transporting across North America. Backed by over 150 years of steelmaking expertise and a growing focus on renewable energy, the company is the continent’s leading rail steel producer and a major supplier of materials for infrastructure, construction, telecommunications, and automotive industries. It also manufactures pipes and connections designed for demanding oil, gas, and geothermal drilling conditions.
Union Pacific (NYSE: UNP) provides safe, dependable, and efficient transportation of essential goods used by families and businesses every day. Serving 23 western states, the company links customers and communities to the global marketplace. Rail transport remains one of the most environmentally sustainable freight options, supporting Union Pacific’s commitment to protecting future generations.
