Wednesday, December 12, 2012

UP, L.B. Foster extend crosstie contract

Written by  Luther S. Miller, Senior Consulting Editor
L.B. Foster and Union Pacific have agreed on a multiyear extension of a contract for the supply of prestressed concrete ties from the supplier's Tucson, Ariz., facility. The previous contract was set to expire Dec. 31.

The Pittsburgh-based manufacturer said the extension "represents significant value for L.B. Foster Company and will help it to fund additional engineering and development of concrete tie design for the rail industry. For many years, the CXT® brand has been recognized as a leader in this industry.

"The agreement to extend the Tucson Concrete Tie supply contract follows an agreement the two companies have reached on a path forward for handling warranty claims on concrete ties previously made at its Grand Island facility, which was closed in 2011," added L. B. Foster in a statement Wednesday.

"We are very pleased that the Union Pacific Railroad has decided to extend the Tucson contract with L.B. poster," said Robert Bauer, L.B. Foster president and CEO.