PITTSBURGH, Jan. 17, 2017 /PRNewswire/ -- Koppers Inc., a wholly-owned subsidiary of Koppers Holdings Inc. (NYSE: KOP), announced today that it has entered into new long-term coal tar supply agreements with leading steelmaker ArcelorMittal. Pursuant to the contracts, which have initial terms of 10 years, Koppers will purchase coal tar, a byproduct of ArcelorMittal coke plants in the United States. This contracted volume will satisfy a significant portion of the domestic raw material needs for Koppers.
ArcelorMittal USA operates three coke plants to transform coal into coke, an important ingredient in the integrated steelmaking process. Coal tar is a viscous, carbon-rich liquid byproduct with a complex chemical make-up. It is a key raw material used by Koppers in the production of creosote, an oil-based wood preservative that is used in treating crossties for the railroad industry, and carbon-based chemicals.
Koppers President and CEO Leroy Ball said, "These multi-year contracts are the latest step in our strategy to transform Koppers into the global leader in wood-based technologies. The agreements leverage the value of our vertically intregrated supply model for treated crossties by adding long-term stability of creosote supply to the North American rail industry at a fair value while reducing our exposure to historically more volatile end-markets associated with crude oil and aluminum." Ball continued, "We are extremely happy to extend our long-standing partnership with such a large, well-known, global partner as ArcelorMittal. Their willingness to recognize the issues facing both of our industries allowed us to jointly craft agreements that serve both companies' long-term interests."
At ArcelorMittal coke plants, all of the byproducts generated are sold for further industrial usage. All the coal tar is converted into beneficial products; none is landfilled or stockpiled.
"Beyond the recycling of steel itself, more than 90 percent of all of the byproducts and residues from our U.S. operations are reused or recycled," said John Brett, chief executive officer, ArcelorMittal USA. "Sustainability is a core value to ArcelorMittal and guided by 10 sustainable development outcomes including the efficient use of resources and high recycling rates. We are pleased to partner with Koppers to repurpose the byproducts of steelmaking and promote environmental sustainability."
Koppers, with corporate headquarters in Pittsburgh, Pennsylvania, is an integrated global provider of treated wood products, wood treatment chemicals and carbon compounds. Our products and services are used in a variety of niche applications in a diverse range of end-markets, including the railroad, specialty chemical, utility, residential lumber, agriculture, aluminum, steel, rubber, and construction industries. Including our joint ventures, we serve our customers through a comprehensive global manufacturing and distribution network, with facilities located in North America, South America, Australasia, China and Europe. The stock of Koppers Holdings Inc. is publicly traded on the New York Stock Exchange under the symbol "KOP." For more information, visit us on the Web: www.koppers.com. Questions concerning investor relations should be directed to Michael J. Zugay at 412 227 2231 or Quynh McGuire at 412 227 2049.
ArcelorMittal is the world's leading steel and mining company, with a presence in 60 countries and an industrial footprint in 19 countries. Guided by a philosophy to produce safe, sustainable steel, we are the leading supplier of quality steel in the major global steel markets including automotive, construction, household appliances and packaging, with world-class research and development and outstanding distribution networks. Through our core values of sustainability, quality and leadership, we operate responsibly with respect to the health, safety and wellbeing of our employees, contractors and the communities in which we operate. Learn more about ArcelorMittal's presence in the United States at usa.arcelormittal.com. Questions for ArcelorMittal should be directed to Bill Steers at 312 899 3817 or Mary Beth Holdford at 216 394 8054.
Safe Harbor Statement
This news release may contain forward-looking statements based on management's current expectations, estimates and projections. All statements that address expectations or projections about the future, including statements about the company's revenues, earnings, restructuring, strategy for growth, product development, market position, expected expenditures and financial results are forward-looking statements. Some of the forward-looking statements may be identified by words like "expects," "anticipates," "plans," "intends," "projects," "indicates," and similar expressions. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. Many factors, including those discussed more fully elsewhere in this release and in documents filed with the Securities and Exchange Commission by Koppers, particularly its latest annual report on Form 10-K and quarterly report on Form 10-Q, as well as others, could cause results to differ materially from those stated. These factors include, but are not limited to, changes in the laws, regulations, policies and economic conditions, including inflation, interest and foreign currency exchange rates of countries in which Koppers does business; competitive pressures; the loss of one or more key customer or supplier relationships; customer insolvencies; successful integration of structural changes, including restructuring plans, acquisitions, divestitures and alliances; cost and availability of raw materials; and other economic, business, competitive, regulatory and/or operational factors affecting the business of Koppers generally.
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SOURCE Koppers Holdings Inc.