Rail

L.B. Foster, Union Pacific extend railroad tie agreement

Posted on December 12, 2012

L.B. Foster Co. agreed on a multi-year contract extension with the Union Pacific Railroad (UPRR) for the supply of prestressed concrete railroad ties from its Tucson, Ariz. facility. The previous supply contract was set to expire at the end of the year.

The extension of the contract represents significant value for L.B. Foster Co. and will help it to fund additional engineering and development of concrete tie design for the rail industry.

L.B. Foster's Tucson, Ariz. facility is dedicated to the production of concrete tie products. The company has invested more than $15 million in production machinery and employs approximately 50 people at the plant which has been in operation since 2006. 

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. L.B. Foster had been providing regular updates on its progress with UPRR regarding their claims.

 

The extension of the Tucson Concrete Tie supply contract was the last step in the current action plan to resolve the matter.

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