FORT WAYNE, INDIANA, December 22, 2010 – Steel Dynamics, Inc. (NASDAQ-GS: STLD) today announced that its Structural and Rail Division at Columbia City, Indiana, is supplying 28,500 net tons of Continuous Welded Rail (CWR) to its strategic rail distributor, Pittsburgh-based L.B. Foster Company, for installation on the New England Central Railroad (NECR), an operating subsidiary of RailAmerica, Inc.
L.B. Foster will be delivering the new rail to Vermont for use in New England Central’s “Vermonter” project. Funding of the project, a part of the Federal Railroad Administration’s High-Speed Intercity Passenger Rail Program, was awarded to the State of Vermont from the American Recovery and Reinvestment Act.
To be completed by mid-2012, the project is to improve Vermont’s state-supported Amtrak service in this region on a continuing basis. The new welded rail will improve the speed of intercity passenger service and add capacity for freight carloads. Steel Dynamics is supplying rail to upgrade approximately 140 miles of NECR track.
According to Paul Kotsenas, SDI’s Manager of Rail and Special Products, “Steel Dynamics’ role is to provide the highest-quality standard rail possible in the longest lengths possible. SDI is producing the 115RE Standard Strength rail in 240-foot lengths and welding these rail sections into 1600-foot continuous strings at our weld plant adjacent to the rail mill.”
The first of the trainloads of welded rail are being loaded onto L.B. Foster’s specially equipped CWR trains. The completed order will incorporate eighteen trainload shipments of welded rail to be delivered by mid-2011 for installation at various locations throughout Vermont.
L.B. Foster manages the trackside off-loading of the rail. “The convenience of our own weld train and our jobsite-management capabilities help to expedite deliveries and minimize off-loading time along this busy route,” said Greg Lippard, Vice President, L.B. Foster Rail Sales.
To continue to support the world rail community, Steel Dynamics recently completed a $1.2 million upgrade of its Rail Testing and Inspection unit. SDI also is embarking on a $17.5 million capital improvement project to streamline processing in the Rail Mill Finishing area.
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L.B. Foster Company (NASDAQ: FSTR) provides materials and services for the construction and maintenance of transportation, utility, and other infrastructure projects. It is based in Pittsburgh, PA.
RailAmerica, Inc. (NYSE: RA) owns and operates short line and regional freight railroads in North America, operating a portfolio of 40 individual railroads with approximately 7,300 miles of track in 27 U.S. states and three Canadian provinces.
Forward Looking Statements
Contact:
Fred Warner, Investor Relations Manager
(260) 969-3564 or fax (260) 969-3590
f.warner@steeldynamics.com