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Union Pacific and Rocky Mountain Steel Mills sign 7-year agreement for domestic rail production

Union Pacific Railroad and Rocky Mountain Steel Mills announced that they have reached an agreement on a new 7-year contract covering domestic steel rail production in the United States. The agreement reaffirms Union Pacific’s commitment to sourcing the majority of its rail needs from a U.S.-based producer.

Union Pacific and Rocky Mountain Steel Mills sign 7-year agreement for domestic rail production

Rocky Mountain Steel, located in Pueblo, Colorado, is the only facility in the United States dedicated exclusively to rail production. The company also stands out as one of the largest steel producers in North America, with its products manufactured by workers represented by the United Steelworkers union.

The new agreement further strengthens the long-standing partnership between the two parties. Union Pacific has been sourcing steel rails from Rocky Mountain Steel since the 1890s. It was also reported that ongoing legal proceedings between the two companies have been resolved, with Union Pacific withdrawing its lawsuit filed in Nebraska.

Rocky Mountain Steel plans to commission a next-generation long rail production facility later this year. Built with an investment exceeding USD 1 billion, the plant is expected to remain the only privately owned rail production center in the United States and to feature one of the most advanced rail production lines in the world.

The new facility will produce rails up to 100 meters in length, which require approximately 80% fewer welds compared to standard 80-foot (about 24-meter) rails, thereby improving railway safety and efficiency.

It was also announced that the plant will be powered by a 1,800-acre solar energy farm, making it the world’s largest solar-powered steel production facility.

Union Pacific executives emphasized that the agreement is critical for strengthening U.S. industry and ensuring safe, sustainable, and efficient railway operations, while Rocky Mountain Steel management described the deal as a significant milestone for the future of U.S. steel production.

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