Creosote-Treated Railroad Ties (Cross Ties)

Largest provider of creosote-treated railroad crossties to North American Class I railroads (~35% market share); operates 9+ pressure treatment facilities nationally. Owns the creosote supply chain through KMG Chemicals acquisition — controls coal tar distillation (converting steel mill coal tar byproduct into creosote oil) AND the treatment plants that pressure-impregnate hardwood ties. Entered long-term coal tar supply agreements with ArcelorMittal USA (3 coke plants) through 2026 to stabilize creosote supply. Koppers is also a major supplier of carbon pitch and naphthalene for aluminum smelting anodes — the same coal tar chemistry that preserves railroad ties also enables aluminum smelting. As integrated steel mills (using coke ovens) decline and electric arc furnaces grow, Koppers faces a structural long-term coal tar supply contraction.

Second-largest North American railroad tie producer; major Canadian-listed wood products company. $3.5B total revenue in 2024 (5% growth); railway ties represented 27% of Q1 2025 sales ($208M). Supplies 12M+ pressure-treated railroad crossties per year to Class I, regional, and short-line railroads. Operates 44 wood treating plants total (9 US + 2 Canada for railway ties specifically); also operates a coal tar distillery for creosote production. Also a dominant utility pole producer (43% of revenue) — the same pressure-treating infrastructure serves both railroad ties and utility poles. Publicly listed on Toronto Stock Exchange.

World's #2 steel producer; operates 3 US coke plants (as part of integrated steel mills in Indiana) that produce coal tar as a mandatory byproduct of the coking process. Coal tar is the raw material for creosote (railroad tie preservative). ArcelorMittal entered long-term coal tar supply agreements with Koppers Holdings through 2026. While ArcelorMittal does not make railroad ties, it is a critical upstream input supplier for the creosote that treats them. The 3 ArcelorMittal coke plants at Indiana Harbor (East Chicago IN), Burns Harbor (Portage IN), and Cleveland OH are primary US coal tar sources for the railroad industry.