Union Pacific Railroad and Rocky Mountain Steel Mills said they have reached a new, seven-year contract for the domestic production of steel rails. The railroad says the deal underscores its commitment to buying the majority of its rail from a U.S. manufacturer. Rocky Mountain Steel, located in Pueblo, Colorado, is the only remaining dedicated rail production facility in the U.S., and one of the largest producers of steel products in North America. Its steel is produced by members of the United Steelworkers (USW). 

Union Pacific has been using steel rail from the mill at Rocky Mountain Steel since the early 1890s. The producer is now operating under new ownership and management, and the agreement ends any pending legal disputes between the companies, as Union Pacific has withdrawn its previously filed lawsuit in Nebraska, UP said in a statement April 15. 

Rocky Mountain Steel expects to begin operations this year at a new, state-of-the-art long rail mill, constructed with a more than $1 billion investment in domestic steel production. 

The new rail mill at the Pueblo facility will deliver extraordinary long-rail capability, producing 100-meter (328-foot) lengths of premium rail. The long rail produced at the new facility will bring significant efficiency gains to the industry, the companies said, as it requires 80% fewer welds than standard 80-foot rails, improving track safety and reliability for major railroads, like Union Pacific. The new rail mill is powered by a dedicated 1,800-acre solar farm, making it the world’s largest solar-powered steel mill.