Axion to Provide Composite Railroad Ties to Class I Railroad

Axion International, a producer of recycled composite plastic industrial building products and railroad ties, has signed a $15 million contract with a Class 1 railroad. Under terms of the agreement, the railroad has agreed to purchase at least $5 million per year of Axion’s composite railroad ties, which are designed from 100 percent recycled plastic.

“Entering into this $15 million contract represents an historic event and extraordinary milestone for Axion and our shareholders,” says Steve Silverman, Axion’s president and CEO. “As we continue to expand our sales efforts, this contract is a clear signal that the Class 1 railroad market is looking for longer-lasting, more long-term economical alternatives to wood and concrete and is ready to make significant investments in Axion’s innovative recycled plastic technology.”

According to a release, the railroad ties will be made from Axion’s Recycled Structural Composite (RSC), a product made from 100 percent recycled plastic. The ties will be used for track throughout the United States, primarily as a replacement for aging wood ties.

“As part of its ongoing maintenance efforts, the U.S. railroad industry purchases approximately 20 million railroad ties per year,” Silverman adds. “This contract represents our first sizable order in the domestic rail tie market, and the entire management team is extremely proud of this achievement. We believe that Axion, which delivers more durable, environmentally friendly products with a lower cost of lifetime ownership, has been presented with a tremendous opportunity to increase our share of this market going forward.”

“Due to the size and length of this multi-year contract, Axion will be able to increase the scale of our operations and improve efficiencies. As we continue to win additional contracts of this size, we look forward to expanding our ability to deliver Axion’s innovative recycled products for use in structural applications in the United States and worldwide,” says James Kerstein, Axion’s co-founder and chief technology officer.