Union Pacific Receives First Long Rail from Rocky Mountain Steel’s New $1.2 Billion Colorado Mill

Union Pacific Railroad Visits Colorado Mill, Renews Historic Partnership of More Than 140 Years to Strengthen Commitment to Domestic Steel Production, Freight Transportation

Union Pacific Railroad has officially received the first stick of rail produced at Rocky Mountain Steel Mills’ newly commissioned long rail manufacturing facility in Pueblo, Colorado, marking the beginning of operations at the state-of-the-art $1.2 billion plant. The milestone represents a significant investment in American steel manufacturing, rail infrastructure, and domestic supply chain resilience while reinforcing a partnership between the two companies that has endured for more than 140 years.

To commemorate the occasion, Union Pacific Chief Executive Officer Jim Vena and members of the railroad’s leadership team visited the Pueblo facility, where they toured the new production line and met with Rocky Mountain Steel employees. The event highlighted the launch of one of the world’s most advanced rail manufacturing facilities and celebrated the continued collaboration between two organizations that have played a vital role in building the nation’s transportation network.

The milestone follows the signing of a new seven-year agreement between Union Pacific and Rocky Mountain Steel Mills earlier this year. Under the agreement, Union Pacific reaffirmed its commitment to sourcing the majority of its rail requirements from the Colorado-based steel producer, strengthening domestic manufacturing while supporting thousands of American jobs.

The relationship between the two companies dates back to 1882, when Union Pacific purchased the very first rail produced at the original Pueblo rail mill. Since then, the partnership has continued to evolve, contributing to the development and maintenance of the U.S. rail network while supporting economic growth and industrial development across the country.

Rocky Mountain Steel Mills remains the only dedicated rail production facility in the United States and is one of North America’s largest producers of steel products. The steel manufactured for Union Pacific, along with products supplied to other customers, is produced by members of the United Steelworkers (USW), reinforcing the facility’s role in supporting skilled union labor and American manufacturing.

Speaking at the event, Union Pacific Chief Executive Officer Jim Vena emphasized the importance of the long-standing relationship between the two companies and its impact on the nation’s economy.

“When two great companies come together with a shared purpose, the benefits extend far beyond our businesses,” Vena said. “Union Pacific and Rocky Mountain Steel Mills have a proud history of supporting American manufacturing, jobs and communities. As we look to the future, this renewed partnership will strengthen our country’s supply chain and demonstrate the critical role of reliable rail transportation in keeping the economy moving.”

Doug Matthews, Chief Executive Officer of Orion Steel, the parent company of Rocky Mountain Steel Mills, described the new facility as a major investment in the future of domestic steel production and Colorado’s manufacturing sector.

He noted that Pueblo’s long history of steelmaking reflects the resilience, innovation, and workforce that continue to define American manufacturing. Matthews added that the new rail mill represents an investment in domestic steel production, American workers, and the state’s industrial future, while showcasing what can be achieved when U.S. companies collaborate to strengthen national supply chains.

United Steelworkers International President Roxanne Brown also welcomed the launch of the new mill, highlighting the role of union workers in producing steel that supports America’s critical infrastructure.

Brown said USW members have long supplied the steel that forms the backbone of the nation’s transportation and infrastructure systems. She added that the rails produced at Rocky Mountain Steel for Union Pacific will continue that legacy while supporting communities and future generations through high-quality union-made products.

The newly commissioned long rail mill is regarded as one of the most technologically advanced rail production facilities globally. Built with an investment of approximately $1.2 billion, the plant significantly expands domestic rail manufacturing capabilities by producing premium rail lengths of up to 100 meters (328 feet).

Compared with conventional 80-foot rail sections, the longer rails require approximately 80% fewer welds during installation. Fewer welds improve track integrity, reduce maintenance requirements, enhance operational safety, and increase long-term reliability for rail operators such as Union Pacific.

Beyond rail production, Rocky Mountain Steel Mills manufactures a broad range of high-performance steel products. The Pueblo facility has an annual production capacity of approximately 1.1 million tons of steel using Electric Arc Furnace (EAF) technology. Its product portfolio includes premium rail, wire rod, reinforcing bar (rebar), and seamless Oil Country Tubular Goods (OCTG) used in demanding oil, gas, and geothermal drilling applications, as well as products serving construction, telecommunications, and automotive industries.

Sustainability is another defining feature of the new facility. All steel produced at Rocky Mountain Steel is manufactured using Electric Arc Furnace technology, which generates approximately 75% fewer carbon dioxide emissions than conventional blast furnace steelmaking methods.

The Pueblo site also stands out for its extensive use of renewable energy. Approximately 750,000 solar panels installed on-site provide up to 95% of the mill’s electricity requirements, making it the world’s first and largest solar-powered steel mill. The combination of advanced manufacturing technology and renewable energy significantly reduces the environmental footprint of steel production while supporting the industry’s transition toward lower-carbon manufacturing.

The launch of the new long rail mill represents more than the opening of a modern production facility. It underscores a shared commitment by Union Pacific and Rocky Mountain Steel Mills to strengthen domestic manufacturing, invest in American workers, improve rail infrastructure, and enhance the resilience of the nation’s supply chains. With expanded production capabilities, advanced technology, and a strong focus on sustainability, the partnership is expected to play a key role in supporting North America’s rail industry for decades to come.

ABOUT UNION PACIFIC
Union Pacific (NYSE: UNP) delivers the goods families and businesses use every day with safe, reliable and efficient service. Operating in 23 western states, the company connects its customers and communities to the global economy. Trains are the most environmentally responsible way to move freight, helping Union Pacific protect future generations. More information about Union Pacific is available at www.up.com.

ABOUT ROCKY MOUNTAIN STEEL MILLS
Rocky Mountain Steel Mills specializes in high-performance steel products that are essential to building and moving North America. With more than 150 years of steelmaking tradition and a future powered by renewable energy, Rocky Mountain Steel is North America’s largest producer of rail and one of the largest domestic manufacturers of steel for resilient infrastructure, construction, telecom, and automotive, as well as pipe and connections for the toughest oil, gas, and geothermal drilling environments.

Source link: https://www.up.com/

Newsletter Updates

Enter your email address below and subscribe to our newsletter