Axion International Signs Two Agreements with Argentina’s Inversora Intervías S.A., a Company Owned by the Same Shareholders of Grupo Cometrans, for “ECOTRAX™” Composite Railroad Ties Dual Agreements will initially provide for distribution of Axion RR ties while plans for collaboration on regional recycling collection and manufacturing are explored
NEW PROVIDENCE, N.J.--(BUSINESS WIRE)-- Axion International (OTCBB: AXIH.OB - News), a leader in Recycled Structural Composite (RSC)™ technology used to produce ECOTRAX™ railroad ties and STRUXURE™ building materials, announced today the signing of a distribution agreement with Inversora Intervías S.A., a company owned by the same shareholders of Grupo Cometrans S.A., in Argentina, to be Axion’s distribution partner in the region. This distribution agreement immediately expands Axion’s global reach to provide the company’s 100% recycled plastic railroad ties in Argentina, Uruguay and Paraguay. Inversora Intervías SA, through its connection with Cometrans Group, which is a proven railroad industry leader, will establish marketing and sales functions for Axion’s ECOTRAX™ throughout the Mercosur region.
A collaboration agreement was also signed that provides the foundation and process for evaluating the formation of an operating entity that will manufacture, sell and market Axion’s ECOTRAX™ products in Argentina, Uruguay and Paraguay. With orders already shipped to Chile, Colombia and Brazil, this agreement helps add to Axion’s continued penetration into South America.
“This is a significant step forward for Axion as we continue to expand our business globally,” stated Axion CEO & President Steve Silverman. “Inversora Intervías S.A. is a perfect partner for Axion. We have spent a good deal of time exploring this market and in finding the proper partner. Inversora Intervías, through its connection with Cometrans Group, brings all the key elements you look for in a partner. Grupo Cometrans is a major operator of transit and freight lines in the region and they manage more than 2,200 Km of track – thus having their own internal demand for rail ties. Additionally, they are a major manufacturer of rail cars, buses and other equipment used in the transportation industry. As a rail line operator they have a firm handle on the needs of the market and they have the operational experience and manufacturing infrastructure needed to be a major force in the region. In addition to being a rail operator and a manufacturer/seller of equipment to the industry, Cometrans has a culture of being innovative, community oriented and constantly bringing new technologies to the region. We are honored to be working with them.”
Claudio Cirigliano, President of Grupo Cometrans S.A., added, “Innovation is a primary foundation of Grupo Cometrans’ philosophy, and Axion is a key innovator representing a perfect match for us to forge an alliance. There are early-stage policies about recycling in Argentina, and this is an excellent opportunity to commit to this practice, and to become more environmentally friendly, which is one of the main aims of Cometrans S.A. Furthermore, the Mercosur is becoming a key agricultural producer to the world. In order to meet the challenges ahead, Argentina needs to upgrade much of its 35,000 (plus) Km of railroad infrastructure, which is composed mainly of wooden ties. As the wooden railroad ties are becoming increasingly scarce, Axion’s ECOTRAX™ ties are a perfectly suited solution for long-term installation in areas where replacement and repairs are a challenge to rail carriers.” |
