Concrete railroad tie maker extends Union Pacific contract - Inside Tucson Business: News

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Concrete railroad tie maker extends Union Pacific contract

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Posted: Monday, December 17, 2012 6:30 pm

L.B. Foster Company and Union Pacific Railroad announced they’ve agreed to a multi-year contract extension to continue supplying the railroad with pre-stressed concrete railroad ties manufactured at its plant at 2965 E. Fairland Stravenue, adjacent to Union Pacific’s main Tucson yard.

Foster, which is headquartered in Spokane, Wash., said the extension will enable the company to continue improving the development of its name-brand CXT Concrete Ties. Since opening in 2006, the company has invested more than $15 million in its Tucson facility, which has about 50 employees.

The previous contract was due to expire at the end of this month. As part of the extension, L.B. Foster and Union Pacific also agreed on new plans for handling warranty claims over the concrete ties. In February, the company closed a plant in Grand Island, Neb., acknowledging that some of the concrete ties made there were defective.

More than 60 employees lost their job with that closure. The company also took a $19 million charge to support its corrective plan.

In addition to Tucson, Foster makes CXT Concrete Ties at its Spokane facility.

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