NEW PROVIDENCE, N.J., March 11, 2014 /PRNewswire/ -- AXION International Holdings, Inc. (OTCQB: AXIH), a leader in recycled plastic and plastic composite technologies used to produce ECOTRAX® rail ties/sleepers and STRUXURE® building products, today announced a second purchase order for ECOTRAX® rail ties to be shipped to Russia and installed in track with a major transit line.
The order, which called for 600 rail ties for installation with another metro transit system in Russia, was sold through AXION's in-country distributor and business partner, TVEMA, an international group of companies based in Moscow whose subdivisions are involved in design, manufacture, and project development of rail diagnostic equipment.
"We are excited with the progress we have made in developing our business in Russia. Breaking into a new market with a new technology is a process that takes time. After several years of lab testing and in track trials, we are starting to see the business develop. Russia is the second largest rail network in the world and we have focused resources against this large opportunity," stated AXION President and CEO Steve Silverman. "We are extremely pleased with our partnership with TVEMA and look forward to a very fruitful relationship as we continue to progress in the global adoption process for a high quality composite rail tie and continue to build our footprint in Russia."
Russia's railway system is the country's key mode of transportation, with an operational length of over 85,000,000 kilometers, making it the second largest rail network in the world. According to Railway Technology, a current rail modernization plan in Russia calls for the construction of up to 20,000 kilometers of new routes, the upgrade of 13,800 kilometers of freight lines for heavy axle loads, among other improvements, at an estimated cost of $353 billion by 2030. The European Bank for Reconstruction and Development (EBRD) has invested more than $1.6 billion in 13 Russian rail projects since 2001.
AXION's composite rail ties have potential for widespread adoption throughout Russia's rail network, many of which traverse a variety of climates where wooden alternatives are short-lived. ECOTRAX® rail ties are not porous, they do not absorb moisture, and therefore are impervious to water and rot. Offering longevity and therefore a higher ROI for customers, ECOTRAX® also provides the added environmental benefits of recycling plastic waste and reducing the harvesting of trees.
AXION currently sells its ECOTRAX® rail ties/sleepers to multiple domestic and international transit and freight railroads including a domestic Class 1 contract and a trial with a second Class 1.
ECOTRAX® composite rail ties are made from AXION's patented, 100%-recycled plastic formulation. Because they are inert, ECOTRAX® rail ties will not rot or absorb moisture, and they are impervious to insect infestation. Setting the industry standard for composite rail ties, ECOTRAX® rail ties meet and exceed all American Railway Engineering and Maintenance-of-Way Association specifications and are continuously tested at third-party laboratories and in track. ECOTRAX® rail ties feature long life cycles and excel in the harshest conditions, making them a cost-effective choice in road crossings, switches and turnouts, open-deck bridges, and freight line track. From Australia to New York, ECOTRAX® rail ties are the tested, proven, and superior choice for railroads around the world. For more information about ECOTRAX® rail ties, click here to learn more.
About AXION International Holdings, Inc.
AXION (OTCQB: AXIH) is green technology company, transforming waste plastics into structural building materials. Using 100%-recycled consumer and industrial plastics, AXION develops, markets and sells its recycled structural composite products through its ECOTRAX® composite rail tie and STRUXURE® building material lines. From the railroading industry to the military to global engineering firms, AXION delivers tested, proven and superior green solutions to infrastructure needs around the world.
This release contains "forward-looking statements" for purposes of the Securities and Exchange Commission's "safe harbor" provisions under the Private Securities Litigation Reform Act of 1995 and Rule 3b-6 under the Securities Exchange Act of 1934. These forward-looking statements are subject to various risks and uncertainties that could cause AXION's actual results to differ materially from those currently anticipated, including the availability of materials at favorable pricing, sufficient manufacturing capability and the risk factors identified in AXION's filings with the Securities and Exchange Commission.
SOURCE AXION International Holdings, Inc.