Union Pacific Railroad and Rocky Mountain Steel Mills Announce New Long-Term Contract for Domestic Rail Production

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Renewed Partnership Between Iconic Railroad and Only Remaining Dedicated Steel Rail Supplier in the United States

Contract Represents a Significant Commitment to Domestic Steel Production, the United Steelworkers and the Historic Steel Town of Pueblo, Colorado

OMAHA, Neb.--(BUSINESS WIRE)-- Union Pacific Railroad (NYSE: UNP) and Rocky Mountain Steel Mills (“Rocky Mountain Steel”) announced today they 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 United States manufacturer. Rocky Mountain Steel, located in Pueblo, Colorado, is the only remaining dedicated rail production facility in the United States 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 The agreement ends any pending legal disputes between the companies, as Union Pacific has withdrawn its previously filed lawsuit in Nebraska.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 United States, operating one of the most advanced rail production lines in the world.

“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,” said Jim Vena, CEO of Union Pacific. “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.”

“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,” said Doug Matthews, CEO of Orion Steel, the parent company of Rocky Mountain Steel Mills. “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.”

“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,” Matthews added.

The new rail mill at the Pueblo facility will deliver extraordinary long-rail capability, producing 100-meter (328-foot) lengths of premium rail. The long rail produced at the new facility will bring significant efficiency gains to the industry, as it requires 80% fewer welds than standard 80-foot 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.

The nearly 140-year lineage between Union Pacific and Rocky Mountain Steel has supported Western U.S. growth, infrastructure expansion, and industrial stability. The expansion of western railroads, led in large part by Union Pacific, created the economic conditions that enabled the growth of domestic steel production in the Western United States, including the mill at Rocky Mountain Steel, which emerged as a critical regional supplier, helping meet industrial needs more efficiently than more distant eastern steel producers. Union Pacific and the mill at Rocky Mountain Steel collaborated during World War I to significantly increase steel production, with raw materials transported by Union Pacific to the mill at Pueblo and finished steel products transported out of Pueblo by Union Pacific to support war efforts.

ABOUT ROCKY MOUNTAIN STEEL MILLS

Rocky Mountain Steel Mills specializes in high-performance steel products that are essential to building and moving North America. With more than 150 years of steelmaking tradition and a future powered by renewable energy, Rocky Mountain Steel is North America’s largest producer of rail and one of the largest domestic manufacturers of steel for resilient infrastructure, construction, telecom, and automotive, as well as pipe and connections for the toughest oil, gas, and geothermal drilling environments.

ABOUT UNION PACIFIC

Union Pacific (NYSE: UNP) delivers the goods families and businesses use every day with safe, reliable and efficient service. Operating in 23 western states, the company connects its customers and communities to the global economy. Trains are the most environmentally responsible way to move freight, helping Union Pacific protect future generations. More information about Union Pacific is available at www.up.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260415110801/en/

Rocky Mountain Steel Mills Media Contact: mediainquiries@orionsteel.com

Union Pacific Media Contact: media@up.com
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Source: Union Pacific Railroad