Koppers lands five-year deal with another Class 1 for crosstie removal

Koppers will pick up and dispose crossties for a new Class 1 operator.

Koppers Recovery Resources LLC, a wholly owned subsidiary of Koppers Holdings Inc. and an integrated global provider of treated wood products, wood treatment chemicals, and carbon compounds, announced it has entered into a new five-year, $50 million agreement with a Class 1 railroad customer to collect and manage end-of-life railroad crossties and other materials.

Under this agreement, which continues through Dec. 31, 2027, Koppers 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 1 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.

“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,” said Jim Sullivan, Koppers Chief Operating Officer. 

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