UP inks deal with Rocky Mountain Steel

Union Pacific Railroad and Rocky Mountain Steel Mills (RMSM) have announced a new seven-year contract for the domestic production of steel rails, enabling UP to source the majority of its rail from a U.S. manufacturer. 

Located in Pueblo, Colorado, RMSM is the only dedicated rail production facility in the United States and one of the largest producers of steel products in North America, UP officials said in a press release.

The Class I has used RMSM's rails since the early 1890s. The new contract ends pending legal disputes between the railroad and manufacturer, said UP officials.

RMSM plans to begin operations at a new long-rail mill in Pueblo later this year. The new facility will produce 328-foot lengths of rail. Longer rail requires 80% fewer welds than standard 80-foot rails, improving track safety and reliability, said UP officials.

"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," said Doug Matthews, CEO of Orion Steel, which acquired RMSM in August 2025.