Union Pacific Signs Contract For Domestic Rails

Union Pacific Railroad and Rocky Mountain Steel Mills have reached a new, seven-year contract for the domestic production of steel rails, underscoring Union Pacific’s clear commitment to buying the majority of its rail from a U.S. manufacturer.

Rocky Mountain Steel, located in Pueblo, Colo., is the only remaining dedicated rail production facility in the U.S. and one of the largest producers of steel products in North America. Steel made for Union Pacific, and all Rocky Mountain Steel customers is produced by members of the United Steelworkers (USW).

Union Pacific has been using steel rail from the mill at Rocky Mountain Steel since the early 1890s. This renewed commitment by Union Pacific underscores their commitment to Rocky Mountain Steel, now operating under new ownership and management, as well as the skilled workers of the USW and the historic steel community in Pueblo. The agreement ends any pending legal disputes between the companies, as Union Pacific has withdrawn its previously filed lawsuit in Nebraska.

Rocky Mountain Steel expects to begin operations this year at a new, state-of-the-art long rail mill, constructed with a more than $1 billion investment in domestic steel production. The new mill will ensure Pueblo will remain the only dedicated steel rail mill in the U.S., operating one of the most advanced rail production lines in the world.

The new rail mill at the Pueblo facility will deliver extraordinary long-rail capability, producing 100 meter (328 ft.) lengths of premium rail. The long rail produced at the facility will bring significant efficiency gains to the industry, as it requires 80% fewer welds than standard 80 ft. rails, improving track safety and reliability for major railroads, like Union Pacific. The new rail mill is powered by a dedicated 1,800 acre solar farm, making it the world’s largest solar-powered steel mill.