Koppers enters into five-year, $50M contract to dispose of crossties

Koppers Recovery Resources, LLC (KRR) announced Monday they had entered into a contract with a Class I railroad to collect and manage end-of-life railroad crossties and other materials.

The five-year, $50 million contract runs through Dec. 31, 2027, and directs KRR to collect and grade railroad crossties at the end of their useful life. Some of the collected crossties will be sold as agricultural or building materials, while the rest will be processed into biomass fuel and used to power biomass-capable industrial facilities.

“This further solidifies our company’s proven reputation as a full-service solutions provider for industry,” Koppers Chief Operating Officer Jim Sullivan said. “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.”

With this contract, Koppers now serves four of six Class I railroads and will continue to explore industry opportunities to increase its market presence. The company said it will expand its business of converting landfill-bound wood products into a circular energy solution using treated wood waste as biofuel to displace fossil fuels, increasing sustainability.

“Bringing solutions that represent a more efficient use of resources, especially at the end-of-life stage, creates a better outcome for the environment,” Koppers Chief Sustainability Officer Leslie Hyde said. “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.”