Just two U.S. makers of critical railroad material left after plant closure

Producer pivoting to red-hot rare earths business

Rail being rolled at Cleveland-Cliffs' Steelton, Pa. plant. (Photo: Cleveland-Cliffs)

Steelmaker Cleveland-Cliffs will permanently close its Steelton, Pa. plant, one of only three major domestic producers of track rail in the U.S.

The facility in south-central Pennsylvania served by Norfolk Southern was idled in June due to weak demand and depressed pricing, the company said then in a letter to employees.

Steel Dynamics, Inc., based in Fort Wayne, Ind., and Pueblo, Colorado’s Orion Steel are the remaining producers of heavyweight rail in the U.S.

The closing, scheduled for Jan. 13, 2026, will eliminate 500 jobs, according to local media. Steelton had annual capacity of 300,000 net tons; Cleveland-Cliffs does not break out separate figures for rail sales. The company did not immediately respond to emails seeking more information.

Cleveland-Cliff’s stock has improved by 135% since the June announcement as the Cleveland-based company said it will expand its rare earths business, and make a deal with a foreign-based partner. Japan’s Nippon Steel acquired U.S. Steel for $15 billion earlier this year. 

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Stuart Chirls

Stuart Chirls is a journalist who has covered the full breadth of railroads, intermodal, container shipping, ports, supply chain and logistics for Railway Age, the Journal of Commerce and IANA. He has also staffed at S&P, McGraw-Hill, United Business Media, Advance Media, Tribune Co., The New York Times Co., and worked in supply chain with BASF, the world's largest chemical producer. Reach him at stuartchirls@firecrown.com.