Union Pacific and Rocky Mountain Steel Mills Forge New Era in Domestic Rail Production

Union Pacific has been sourcing steel rails from Rocky Mountain Steel since the early 1890s, and this renewed agreement reinforces their long-standing relationship. The new contract comes at a pivotal time as Rocky Mountain Steel operates under new ownership and management, ensuring that skilled workers represented by the United Steelworkers (USW) continue to produce high-quality steel for Union Pacific and its customers.

The contract also resolves any existing legal disputes, as Union Pacific has withdrawn its previously filed lawsuit in Nebraska, paving the way for a more cooperative future.

Rocky Mountain Steel is set to begin operations at a new, state-of-the-art long rail mill this year, following an investment exceeding $1 billion in domestic steel production. This facility will maintain Pueblo, Colorado, as the sole dedicated steel rail mill in the United States, equipped with one of the most advanced rail production lines globally.

Jim Vena, CEO of Union Pacific, emphasized the importance of this investment, stating, "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."

The new rail mill will produce extraordinary long rails, measuring 100 meters (328 feet). This production capability promises significant efficiency improvements, as it requires 80% fewer welds compared to conventional 80-foot rails. The result is enhanced track safety and reliability for major railroads like Union Pacific.

Furthermore, the mill will be powered by a dedicated 1,800-acre solar farm, making it the world’s largest solar-powered steel mill. This commitment to renewable energy highlights both companies' dedication to sustainable practices.

The partnership between Union Pacific and Rocky Mountain Steel has deep historical roots, dating back nearly 140 years. The collaboration has been pivotal in supporting the growth and expansion of the Western U.S. infrastructure and industrial landscape. Notably, during World War I, both entities worked together to significantly ramp up steel production, demonstrating their integral role in supporting national efforts.

Doug Matthews, CEO of Orion Steel, the parent company of Rocky Mountain Steel, remarked on the partnership's significance, stating, "This contract reinforces the one-of-a-kind partnership between Union Pacific Railroad and Rocky Mountain Steel, a relationship that has been benefiting American workers every day since."

As Union Pacific pursues its merger with Norfolk Southern, the partnership with Rocky Mountain Steel becomes increasingly vital. The merger aims to create the nation’s first transcontinental railroad, which is positioned to bolster the manufacturing core and job growth within the United States.

“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, reflecting the mutual respect and shared vision between the organizations.

The new long-term contract between Union Pacific and Rocky Mountain Steel Mills is not just a business agreement; it is a commitment to American manufacturing and a significant investment in the future of the steel industry. As both companies look forward to advancing their operations and enhancing rail safety and efficiency, this partnership stands as a testament to the enduring legacy of American industry and innovation.