Union Pacific and Rocky Mountain Steel Mills Announce New Long-Term Contract

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Union Pacific Railroad and Rocky Mountain Steel Mills have reached a new seven-year contract for the domestic production of steel rails, underscoring Union Pacific's commitment to buying the majority of its rail from a United States manufacturer. The agreement ends any pending legal disputes between the companies and will support the construction of a new, state-of-the-art long rail mill in Pueblo, Colorado, ensuring it remains the only dedicated steel rail mill in the U.S.

Why it matters

This contract represents a significant commitment to domestic steel production and the historic steel community in Pueblo, Colorado. It will help maintain American manufacturing jobs and strengthen the nation's transportation infrastructure by ensuring a reliable supply of high-quality steel rails produced by union workers.

The details

The new contract between Union Pacific and Rocky Mountain Steel Mills will run for seven years. 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. The agreement ends any pending legal disputes between the companies, as Union Pacific has withdrawn its previously filed lawsuit in Nebraska.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 contract will run for seven years.
• Rocky Mountain Steel expects to begin operations at its new long rail mill this year.

What they’re saying

What’s next

The new long rail mill at the Pueblo facility is expected to begin operations this year, delivering extraordinary long-rail capability and improving track safety and reliability for major railroads like Union Pacific.