L.B. Foster Co. announced a multi-year contract extension with Union Pacific Railroad for the supply of prestressed concrete railroad ties. The previous supply contract was set to expire on December 31, 2012.
L.B. Foster said the extension of the contract “represents significant value” and will provide funds for additional work on the design of concrete ties.
“We're very pleased that the Union Pacific Railroad has decided to extend the Tucson contract with L.B. Foster,” said Robert Bauer, L.B. Foster president and CEO, in a written statement. “As a leader in innovation and performance among rail companies, UPRR helps us to drive improvement throughout our organization on an on-going basis. We believe L.B. Foster makes the best concrete ties in the industry today and will strive to demonstrate this for all of our customers.”
The company's Tucson, Ariz., facility, which is dedicated to the production of concrete tie products, will be supplying Union Pacific under the extended contract. Approximately 50 people are employed at the plant, which has been in operation since 2006.
The agreement to extend this supply contract follows an agreement between L.B. Foster and UP on a path forward for handling warranty claims related to concrete ties previously made at L.B. Foster’s Grand Island facility, which was closed in 2011. The extension of the Tucson concrete tie supply contract was the last step in the current action plan to resolve the matter.