Strategic Investment in Evertrak, a North American Composite Railroad Tie Manufacturer- Partnership to Support Building a Sustainable Railroad Infrastructure with Composite Railroad Ties Made from Recycled Plastics -

Sustainable Solution Initiatives in the North American Railroad Industry

In High Decay Zones, primarily located in the southeastern United States, heat and high humidity accelerate the early decay of wood railroad ties, posing challenges from both cost and environmental perspectives. To address these issues, the North American railroad industry is increasingly adopting composite railroad ties as a sustainable alternative. Made from recycled plastics and fiberglass, composite ties offer numerous advantages, including superior environmental performance, extended durability, and long-term cost savings. In addition, composite ties are 100% recyclable after use.

Market Overview : North American Railroad and Composite Ties

• Railroad ties replacement demand : ~20 million ties annually
• Composite tie opportunity : ~6 million ties annually (High Decay Zone)

Evertrak : Pioneering Durable and Sustainable Composite Tie Solutions

Founded in 2017 and headquartered in St. Louis, Missouri, Evertrak is a leading manufacturer of composite railroad ties. The company’s flagship product, the “Evertrak 7000,” offers an unparalleled lifespan of over 50 years in High Decay Zones, compared to the average 8-12 years of wood railroad ties. The North American railroad industry has been considering the adoption of composite railroad ties since the early 2000s, but achieving the required cost competitiveness and quality for mass production has been a significant challenge. Evertrak overcame these barriers with the Evertrak 7000, which is now being adopted by Class 1 railroads (*2), offering significant long-term cost and environmental advantages.

Established Initiatives in the North American Railroad Industry and the Background of the Investment

Sumitomo Corporation Group, primarily through its Steel Group, has been instrumental in supporting North American freight railroad infrastructure by exporting rails from Japan and manufacturing and selling tie plates, wheels, and axles in North America.
The decision to invest in Evertrak stems from a shared vision to build sustainable railroad infrastructure and the opportunity to create synergies with Sumitomo Corporation Group’s existing businesses. This strategic partnership will enhance Evertrak’s production capacity and accelerate the development of competitive and sustainable product solutions.

Future developments

North American freight railroad is one of the environmentally friendly transportation modes, with low CO₂ emissions and the ability to handle long-distance, large-scale transport. Sumitomo Corporation Group is committed to contributing to the development of sustainable railroad infrastructure in the North American railroad industry, the world’s largest railroad freight market, through the provision of railroad products and other solutions.

Reference Information

Overview of Evertrak

(*1) Primarily manufactured from recycled plastics and fiberglass, these ties are recyclable at the end of their lifecycle, providing a sustainable alternative to wood railroad ties.

(*2) In the North American railroad industry, Class 1 refers to the seven major freight railroad companies operating in the United States, Canada, and Mexico. This classification is established by the U.S. Bureau of Transportation Statistics (STB) based on the annual revenue of railroad companies.

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