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Chinese firm to produce Primix's composite tie in Peoples Republic

Last week, Primix Corp. announced it reached a license agreement with Qingdao Maple Leaf Environmental Technologies Inc. under which the Chinese firm will exclusively produce the composite “Primix Tie” in China.

Earlier this month, the Chinese patent office issued a patent for Primix’s tie — one of only a few composite crossties licensed in China, according to a prepared statement. Per the agreement, Primix will receive a royalty from Qingdao for each tie and obtain a 25 percent equity in the licensee.

The engineered composite Primix Tie features a steel-and-concrete inner core, and recycled polyethylene and crumb rubber outer core. The tie is designed to last 60 years — 300 percent longer compared with traditional wood ties, according to Primix officials.

By mid-September, Qingdao plans to open a 70,000-square-foot production facility designed to produce 2 million ties annually.

“Production should reach 500,000 crossties within six months and 1 million crossties by Sept. 15, 2006,”said Qingdao President and Chief Executive Officer Yuan Qiang.

By 2020, China plans to add 17,398 miles to its rail network. During the next few years, the country’s crosstie demand is expected to reach 90 million units.

Contact Progressive Railroading editorial staff.

More News from 6/14/2005