Union Pacific Railroad has signed a seven-year contract with Rocky Mountain Steel Mills for the domestic production and supply of steel rails. The agreement reinforces long-term sourcing from US–based manufacturing and secures rail supply for network maintenance and expansion.
The project scope includes the production and delivery of steel rails from Rocky Mountain Steel’s facility in Pueblo, Colorado. The agreement will support the rollout of newly manufactured 100-meter rail segments, which reduce weld requirements and improve track performance and durability.
Rocky Mountain Steel has invested more than $1 billion to construct a new long-rail mill at its Pueblo facility. The mill will produce premium rail segments and operate with power supplied by a dedicated solar installation. The facility will support large-scale rail manufacturing using domestic steel production capacity. Orion Steel acquired the facility as part of its purchase of Evraz North America’s assets in 2025.
Rocky Mountain Steel expects to begin operations at the new rail mill in 2026, with production aligned to contract requirements over the seven-year term. The contract will support supply chain stability for rail infrastructure and reduce reliance on imported steel. The use of 100-meter rails will reduce welds by approximately 80%, improving track safety and lowering maintenance requirements across the network.