USA: Union Pacific and Rocky Mountain Steel Mills have agreed a seven-year contract for the domestic production of steel rails, which the railway said underscores its ‘clear commitment’ to buying the majority of its rail from a US manufacturer.
UP said Rocky Mountain Steel in Pueblo, Colorado, is the only remaining dedicated rail production facility in the USA and one of the largest producers of steel products in North America. UP has been using steel rail from the mill since the early 1890s.
Rocky Mountain Steel expects to begin operations this year at a long rail mill constructed as part of a $1bn investment in domestic steel production. The will be powered by a dedicated 730 ha solar farm, and will supply premium rails in 100 m lengths to reduce the number of welds required
Orion Steel bought the North American business of UK-incorporated Russian steelmaker Evraz plc including Rocky Mountain Steel Mills in 2025. Orion CEO Doug Matthews, 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. I thank Union Pacific leadership for making that case crystal clear via this new long-term contract.’
The agreement announced on April 16 also ends a legal dispute between the companies; UP had filed a lawsuit in November 2025, claiming that the steelmaker broke long-term agreements by refusing to ship more rail unless the railway agreed to a 61% price increase.