Union Pacific Railroad has received the first stick of rail from Rocky Mountain Steel’s new long rail mill in Pueblo, Colorado.

The announcement from Rocky Mountain marks the official start of production at the $1.2bn facility, with the two companies signing a seven-year supply contract in April.

Jim Vena, CEO of Union Pacific, said: “When two great companies come together with a shared purpose, the benefits extend far beyond our businesses.

“Union Pacific and Rocky Mountain Steel Mills have a proud history of supporting American manufacturing, jobs and communities. As we look to the future, this renewed partnership will help strengthen our country's supply chain and demonstrates the importance of reliable rail transportation in keeping our economy moving.”

The rail production line at the Pueblo facility can produce premium rail lengths of up to 100m. The rail produced also requires 80% fewer welds than standard 80ft rails, improving track safety and reliability.

100% of steel produced at Rocky Mountain Steel is made using electric arc furnace (EAF) technology. Furthermore 95% of the mill’s electricity is obtained through it’s 750,000 on-site solar panels.

Doug Matthews, CEO of Orion Steel, the parent company of Rocky Mountain Steel, added: “Pueblo’s steelmaking heritage represents the resilience, innovation and workforce strength that define American manufacturing.

“Rocky Mountain Steel is proud to continue building this legacy with Union Pacific and mark the official start of operations at our new mill, an investment in domestic steel, American workers and in the state of Colorado. Our partnership with Union Pacific demonstrates what is possible when American companies work together to strengthen domestic supply chains and invest in the future.”