Axion signs contract with Class I railroad
Written by William C. Vantuono, Editor-in-ChiefAxion International, a producer of recycled composite plastic industrial building products and railroad ties, said Tuesday it has signed a $15 million contract with a Class I railroad.
The railroad, which was not identified, has agreed to purchase a minimum of $5 million per year of Axion’s composite railroad ties, designed from 100% recycled plastic, New Providence, N.J.-based Axion said.
The ties will be made from Axion’s Recycled Structural Composite (RSC), a proprietary product made from 100% recycled plastic. The ties will be utilized for track throughout the United States, primarily as a replacement for aging wood ties.
“Entering into this $15 million contract represents a historic event and extraordinary milestone for Axion and our shareholders,” said 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.”
