Canadian National says a new long-term contract with Amsted Rail will result in one million wheels being manufactured at Griffin Wheel Company's Winnipeg plant for use at CN's Transcona mechanical facility.

The rail company announced the new contract on Thursday, saying the wheels will be produced in the Winnipeg facility over the next 10 years.

Griffin Wheel's Winnipeg plant is one of Amsted Rail's five wheel manufacturing plants in North America and the only one in Canada, CN said in a news release.

"CN has a long and successful partnership with Amsted Rail and its Griffin Wheel Company facility in Winnipeg," Gerry Weber, CN's vice-president of supply, fleet and fuel management, said in the release.

"We are pleased to renew our partnership and solidify CN's business relationships in the city of Winnipeg."

The long-term partnership was applauded by Winnipeg Mayor Brian Bowman and Kevin Chief, Manitoba's minister of jobs and the economy.

"Using 100 per cent recycled steel to build one million wheels, Amsted Rail and CN are showing Winnipeg workers they can have an international reach — literally linking states and provinces — and still have their biggest impact at home by providing more than 170 well paying jobs here in our city," Chief said in the news release.

"Their world-class workers and world-class products are helping Manitoba have one of the fastest growing economies in Canada."

Winnipeg is home to CN's Transcona Shops, where wheels are mounted on axles and wheelsets installed on freight cars moving on the company's rail lines.

The city is also where Symington Yard, one of CN's largest rail car switching facilities, is located, along with a national employee training centre called CN Campus.