Union Pacific announced a seven‑year agreement with Rocky Mountain Steel Mills to supply its steel rails, securing a majority of its track material from a domestic source. The contract, signed in Pueblo, Colorado, resolves a long‑standing legal dispute and follows the withdrawal of a prior lawsuit.
Under the deal, Rocky Mountain Steel will begin operations this year at a new long‑rail mill that has received more than $1 billion in investment and will be powered by an 1,800‑acre solar farm, making it the world’s largest solar‑powered steel mill. The partnership guarantees a steady supply of 100‑meter (328‑foot) rails, which require 80 % fewer welds than standard 80‑foot rails, improving track safety and reliability across Union Pacific’s network.
The contract aligns with Union Pacific’s broader strategy to strengthen its domestic supply chain as it moves forward with its proposed merger with Norfolk Southern. The merger, approved by shareholders in July 2025, is currently under review by the Surface Transportation Board, with a revised application expected by April 30, 2026 and a projected completion in early 2027. Securing a reliable source of high‑quality rails is therefore a key enabler for the potential transcontinental network.
Jim Vena, Union Pacific’s CEO, said, “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.” He added that the partnership “strengthens the nation’s manufacturing core as well as domestic job growth.”
Doug Matthews, CEO of Orion Steel, the parent company of Rocky Mountain Steel Mills, noted, “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 1890s and has been benefiting American workers every day since.” He also said, “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.”
The agreement also marks the end of a legal dispute that had disrupted rail shipments. By resolving the lawsuit, Union Pacific eliminates a potential supply‑chain risk and positions itself to maintain operational excellence as it pursues the merger.
The new mill’s solar‑powered operation underscores Union Pacific’s commitment to sustainability. The 1,800‑acre solar farm will provide clean energy for the mill’s steel‑making process, reducing the carbon footprint of rail production and aligning with broader industry decarbonization goals.
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