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Rocky Mountain Steel begins $1.2 billion rail production in Pueblo
ColoradoBiz Staff //July 16, 2026//
Union Pacific Railroad CEO Jim Vena, left, and Doug Matthews, CEO of Orion Steel, the parent company of Rocky Mountain Steel Mills.
Union Pacific Railroad CEO Jim Vena, left, and Doug Matthews, CEO of Orion Steel, the parent company of Rocky Mountain Steel Mills.
Rocky Mountain Steel begins $1.2 billion rail production in Pueblo
ColoradoBiz Staff //July 16, 2026//
In Brief:
- Rocky Mountain Steel opens $1.2 billion rail mill in Pueblo
- Union Pacific CEO Jim Vena visits new mill for first rail delivery
- Mill produces 100-meter rail sections with 80% fewer welds
- Facility powered by 750,000 solar panels and electric arc furnace
Rocky Mountain Steel Mills has begun operations at its new $1.2 billion rail mill in Pueblo with the delivery of its first rail to Union Pacific Railroad.
Union Pacific CEO Jim Vena visited the facility as the railroad accepted the first rail produced at the new mill. In April, Union Pacific and Rocky Mountain Steel signed a seven-year agreement for the domestic production of steel rail.
Union Pacific purchased the first rail produced at the original Pueblo rail mill in 1882. Rocky Mountain Steel is now the nation’s only dedicated rail production facility, and all rail is manufactured by members of the United Steelworkers.
“When two great companies come together with a shared purpose, the benefits extend far beyond our businesses,” Vena said. “This renewed partnership will help strengthen our country’s supply chain and demonstrates the importance of reliable rail transportation.”
The new mill produces 100-meter, or 328-foot, rail sections that require 80% fewer welds than traditional 80-foot rail, improving efficiency and reducing maintenance needs.
The Pueblo facility has an annual production capacity of 1.1 million tons of electric arc furnace steel. In addition to rail, it manufactures wire rod, rebar and seamless oil country tubular goods for the construction, infrastructure, telecommunications, automotive and energy industries.
According to the company, all steel produced at the facility uses electric arc furnace technology, which generates 75% fewer carbon dioxide emissions than traditional blast furnace production. The mill also operates with approximately 750,000 on-site solar panels that provide up to 95% of its electricity. The company said it is the world’s largest solar-powered steel mill.
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