Pueblo steel mill inks new rail contract with Union Pacific Railroad
The mill is powered by an 1,800-acre solar farm, making it the world’s largest solar-powered steel mill.
SEATTLE (Scrap Monster): Rocky Mountain Steel Mills in Pueblo has reached a new long-term contract with Union Pacific Railroad for the domestic production of steel rails, putting an end to a legal dispute between the two companies.
The seven-year contract between the only remaining dedicated rail production facility in the United States and Union Pacific — which has been using steel rail from the Pueblo mill since the early 1890s — shows the railroad company's commitment 'to buying the majority of its rail from a United States manufacturer,” according to a Rocky Mountain Steel Mills news release.
The agreement also ends any pending legal disputes between the companies, as Union Pacific has withdrawn a previous lawsuit in Nebraska, which centered around Union Pacific’s claim that Rocky Mountain Steel broke long-term supply deals by refusing to ship more rail unless the railroad agreed to a 61% price increase, according to the rail industry news website trains.com. Rocky Mountain Steel argued that the price increase was a long-overdue adjustment to market pricing.
A similar lawsuit filed by BNSF Railway against Rocky Mountain Steel in Texas is still pending.
“We appreciate the longstanding relationship with Rocky Mountain Steel, its dedicated workforce and their collective commitment to domestic steel manufacturing. The new long-rail mill is a significant step forward in American manufacturing that supports Union Pacific’s focus on delivering safe, reliable service for our customers,” Union Pacific CEO Jim Vena said in the release.
The release states that Rocky Mountain Steel expects to begin operations this year at its new long rail mill, which was “constructed with a more than $1 billion investment in domestic steel production.”
Construction on the long rail mill project broke ground in July 2021.
“The new mill will ensure Pueblo will remain the only dedicated steel rail mill in the United States, operating one of the most advanced rail production lines in the world,” the release states.
Doug Matthews, CEO of Rocky Mountain Steel Mills' parent company, Orion Steel, said the new contract “reinforces the one-of-a-kind partnership” that has “been benefiting American workers every day' since the 1890s.
“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,” Matthews said.
When the new long rail mill opens, it will produce 100-meter lengths of premium rail that require 80% fewer welds than standard 80-foot rails, improving track safety and reliability for major railroads, according to the release.
The mill is powered by an 1,800-acre solar farm, making it the world’s largest solar-powered steel mill.
Connecticut-based Atlas Holdings completed its purchase of Pueblo's steel mill in August 2025 and formed Orion Steel Companies to oversee the local mill as well as the Oregon Steel Mill in Portland and Canadian steel assets formerly owned by Evraz North America.
Courtesy: www.chieftain.com