Cxt Expands Railroad Tie Facility Company Sells Paver Division
Spokane’s CXT Inc. has sold its concrete paver division so the company can concentrate on its growing railroad tie manufacturing operations.
With the sale of its paver division to Mutual Materials of Seattle, CXT has leased an additional 120,000-square-foot building at the Spokane Industrial Park in order to expand its remaining operations.
“It’s all a part of a major strategic plan that will help us better serve our customers in the upcoming century,” said John White, CXT’s president. “The changes will also undoubtedly increase employment and capital investment in Spokane.”
CXT’s newly-leased building is twice the size of the company’s current tie manufacturing plant, and is eventually expected to expand its current 136-person work force by 20.
CXT is an employee-owned company that has specialized in the development and production of concrete products since 1977. It was founded on a process to manufacture railroad ties out of concrete. The tie manufacturing has always been at the core of the company’s business, but in a diversification effort, the company expanded into a concrete paver division that manufactures decorative concrete blocks used in streets, patios, driveways, walkways and retaining walls.
Later, CXT added its environmental division which manufactures concrete storage buildings and toilets.
White said CXT’s demand for railroad ties has increased rapidly in recent months, forcing the company to put more of its resources into expanding its manufacturing capabilities in that core area.
The company has a major contract with the Union Pacific railroad, and when UP acquired Southern Pacific earlier this year, that sharply increased Union Pacific’s tie orders.
White said Burlington Northern continues to increase its orders, and a contract with the Port of Los Angeles is also expanding.
“And just today we got another small contract for a transit project in Santa Clara, Calif.,” White said Friday.
Although CXT had good success with its paver division, White said the company decided its management skills and capital could be put to better use.
Mutual Materials is a major block and brick producer for the construction industry.
“Acquiring CXT’s paver division will fulfill their need for increased manufacturing capacity while freeing up our resources for core business growth,” White said.
No employees will be displaced as a result of the sale.
Mutual Material will sublease CXT’s paver operation here for up to two years, White said, and then decide whether to relocate it.
Some of CXT’s paver employees will continue to work for the paver division until that happens, White said.
Others will be absorbed into the expanded tie and environmental building operations.
Change over of the paver plant’s operations will take place on Jan. 9.
The price of the sale was not disclosed.