Koppers announces new five-year, $50 million contract for crosstie disposal.
Koppers Recovery Resources LLC (KRR), a wholly-owned subsidiary of Koppers Holdings Inc. (NYSE: KOP), an integrated global provider of treated wood products, wood treatment chemicals, and carbon compounds, announced that it has entered into a new five-year, $50 million agreement with a Class I railroad customer to collect and manage end-of-life railroad crossties and other materials.
Under this agreement, which continues through December 31, 2027, KRR will collect and grade railroad crossties at the end of their useful life. Depending on their condition, some of the recovered ties will be sold as agricultural or building materials, with the remainder processed into biomass fuel used to produce power for certain industrial facilities.
Including this agreement, Koppers now serves four of six Class I railroads and remains active in exploring opportunities to increase its market presence in the industry.
Koppers continues to expand its business of converting otherwise landfill-bound wood products into a circular energy solution that uses treated wood waste as biofuel to displace fossil fuels, while advancing its contributions to the circular economy and sustainability.
Jim Sullivan, Koppers Chief Operating Officer, said:
This further solidifies our company’s proven reputation as a full-service solutions provider for industry.
“By repurposing end-of-life crossties and working in tandem with our customer to help improve their tie flow logistics, we also receive the benefit of optimizing our operating network – an integral component of our growth strategy and path to $300 million of EBITDA generation in 2025.”
Leslie Hyde, Koppers Chief Sustainability Officer, said:
Bringing solutions that represent a more efficient use of resources, especially at the end-of-life stage, creates a better outcome for the environment.
“Pursuing this cradle-to-cradle strategy further strengthens our purpose of protecting what matters and preserving the future. It enables our customers to advance their own sustainability initiatives by reducing their environmental impact and utilizing new applications for existing materials – everyone wins.”
About Koppers
Koppers, with corporate headquarters in Pittsburgh, Pennsylvania, is an integrated global provider of treated wood products, wood treatment chemicals, and carbon compounds.
Our products and services are used in a variety of niche applications in a diverse range of end markets, including the railroad, specialty chemical, utility, residential lumber, agriculture, aluminum, steel, rubber, and construction industries.
We serve our customers through a comprehensive global manufacturing and distribution network, with facilities located in North America, South America, Australasia, and Europe. The stock of Koppers Holdings Inc. is publicly traded on the New York Stock Exchange under the symbol “KOP.”
For more information, visit: www.koppers.com. Inquiries from the media should be directed to Ms. Jessica Franklin at FranklinJM@koppers.com or 412-227-2025. Inquiries from the investment community should be directed to Ms. Quynh McGuire at McGuireQT@koppers.com or 412-227-2049.
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Koppers Announces New Five-Year, $50 Million Contract for Crosstie Disposal, PITTSBURGH, October 10, 2022
