Union Pacific Locks in 7-Year Steel Rail Deal with Rocky Mountain Mills

Key Details Union Pacific has signed a seven-year contract with Rocky Mountain Steel Mills to secure long-term domestic steel rail supply. The agreement was announced April 16 as the railroad pursues its proposed merger with Norfolk Southern. Rocky Mountain Steel operates the only remaining dedicated steel rail production facility in the United States, located in Pueblo, Colorado. Why It Matters Union Pacific CEO Jim Vena emphasized the partnership supports the railroad's commitment to domestic manufacturing and safe, reliable service. The deal becomes increasingly important as Union Pacific seeks to expand its network through the merger, which would create the nation's first transcontinental rail system combining Eastern and Western operations. What's New Rocky Mountain Steel is launching a new long-rail mill expected to begin operations later this year, backed by over $1 billion in investment. The facility will produce 328-foot rail sections instead of traditional 80-foot sections, requiring approximately 80% fewer welds and improving track safety and efficiency. The mill will be powered by a dedicated 1,800-acre solar farm, making it the world's largest solar-powered steel mill. Next Steps Union Pacific continues working on a revised merger application with Norfolk Southern after the Surface Transportation Board rejected their initial submission in January for being insufficient. The companies have not indicated a timeline for resubmission.