BNSF and CSX extend contracts with Koppers

Written by Jenifer Nunez, assistant editor

Koppers Inc. has agreed to contract extensions with each of its two largest railroad customers, BNSF and CSX. Combined revenues from BNSF and CSX accounted for approximately 40 percent of 2014 railroad-related sales for the company.

 

The agreements extend the contracts to 2021 from the previous 2017 expirations and include commitments for Koppers to provide crossties, as well as related products and services to BNSF and CSX through the respective contract periods.

“We are pleased to be able to continue our positive relationships with BNSF and CSX,” said Tom Loadman, senior vice president of railroad products and services at Koppers. “We have a long history of serving the North American rail network with quality products and services and hope to continue growing our presence serving that market into the future.”

“With the variability we have been experiencing in our more volatile Carbon Materials and Chemicals (CMC) business, we felt the timing was right to extend these key railroad agreements to stabilize a sizable portion of our revenue and earnings for a prolonged period of time,” said Leroy Ball, president and chief executive officer of Koppers. “Our focus moving forward will continue to be on emphasizing our higher value business segments as we look to restructure and lessen our exposure to the more cyclical CMC business.”

 

 

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