KOP - Koppers Announces Improved Contract Terms with Several Class I Railroad Customers | Benzinga
PITTSBURGH, Sept. 5, 2023 /PRNewswire/ -- Koppers Holdings Inc. (NYSE:KOP) today announced that, as part of its ongoing efforts to recoup higher input costs due to inflation, the company has agreed to an amendment of its contract with one of its Class I railroad customers. The amendment will extend the current term of the agreement from 2026 to 2030, with favorable pricing adjustments. This represents the fourth Class I customer with which Koppers has reached agreement this year on increased pricing.
Executive Vice President and Chief Operating Officer James Sullivan said, "Significant unexpected inflation and supply chain shocks, exacerbated by the pandemic and the war in Ukraine, put our rail business in an untenable situation with long-term supply contracts in place that provided only partial relief. This latest amendment and extension is another important step toward returning to an acceptable level of profitability. I appreciate our customers' recognition of the various challenges and willingness to come to terms that benefit both parties."
President and Chief Executive Officer Leroy Ball said, "We are proud of our long history serving the rail industry and wish to continue that legacy far into the future. At the same time, we have seen a significant erosion in the profitability of our treated wood products over the past five years, ...