Union Pacific Corp. and Norfolk Southern Corp. announced an agreement to create America’s first transcontinental railroad. The companies will seamlessly connect more than 50,000 route miles across 43 states from the East Coast to the West Coast, linking approximately 100 ports and nearly every corner of North America. This combination will transform the U.S. supply chain, unleash the industrial strength of American manufacturing, and create new sources of economic growth and workforce opportunity that preserves union jobs, according to  the companies. 

“Railroads have been an integral part of building America since the Industrial Revolution, and this transaction is the next step in advancing the industry,” comments Jim Vena, Union Pacific CEO, referencing the new Union Pacific Transcontinental Railroad.

The Union Pacific Transcontinental Railroad will decrease highway congestion, reducing wear-and-tear on taxpayer-funded roads. Union Pacific and Norfolk Southern invest approximately $5.6 billion annually in infrastructure, innovation, and network expansion.

“Norfolk Southern, like Union Pacific, is a railroad integral to the U.S. economy, with a storied 200-year legacy of serving customers across 22 states in the eastern half of the nation,” says Mark George, CEO, Norfolk Southern. “Our safety, network, and financial performance is among the best we’ve had as a company, as is our customer satisfaction. And it is from this position of strength that we embark on this transformational combination.”

 U.S. freight railroads move approximately 1.5 billion tons of material and goods every year. The combination will unlock rail options for shippers in regions where railroad connections are less efficient, such as the Ohio Valley and on both sides of the Mississippi River (“watershed” markets), creating a more accessible, sustainable, and lower-cost supply chain for manufacturers and consumers.

With access to 10 international interchanges and approximately 100 ports, the Union Pacific Transcontinental Railroad will unlock strong international trade routes and offer greater access to U.S.-made goods.

The combination will improve transit times, removing several days by eliminating car touches and interchanges where rail cars are handed off. Customers will have the ability to quickly receive single-line rate quotes with one system to track freight, enabling real-time decisions that optimize supply chains.

Short lines and their shippers will have access to a unified rail network with a single Class I interface, new services, and reduced gateway delays. U.S. ports served by the transcontinental railroad will have expanded reach and faster access to new markets. 

The Board of Directors of both Union Pacific and Norfolk Southern unanimously approved the transaction, which is subject to STB review and approval within its statutory timeline, customary closing conditions, and shareholder approval. The companies are targeting closing the transaction by early 2027.  

Under the terms of the agreement, Norfolk Southern shareholders will receive 1.0 Union Pacific common share and $88.82 in cash for each share of Norfolk Southern. The implied value of $320 per share represents an implied total enterprise value for Norfolk Southern of $85 billion. Union Pacific will issue a total of approximately 225 million shares to Norfolk Southern shareholders, representing 27% ownership in the combined company. 

Based on 2024 results, the pro-forma combined company would have revenues of approximately $36 billion, EBITDA of approximately $18 billion, operating ratio of 62%, and free cash flow of $7 billion. 

The combined company will be headquartered in Omaha, Neb. Atlanta, Ga. will remain a core location for the combined organization over the long-term with a focus on technology, operations, and innovation, among other priorities.

Having proudly served the wood products and biomass energy sectors across the U.S. for 40 years, the company celebrated this milestone at Evergreen Engineering’s 40th Anniversary Open House in mid-August in Atlanta with a celebration planned for Oregon in mid-September.

Co-CEO Justin Price says, “A heartfelt thank you to those companies who joined us—it meant a lot to have you there. Your continued partnership, trust, and collaboration have played a big part in Evergreen’s journey and success over the past four decades. We’re grateful to work with such an incredible group of people and companies!”

Evergreen Engineering, Inc. was incorporated in 1985 with headquarters in Eugene, Ore., originally served mainly the forest products industries (wood products and pulp & paper) that used to be predominant in the Pacific Northwest.

In 2016, Evergreen opened an office in Atlanta, Ga. to better serve clients in the southeastern U.S. Danielle Daniels and Justin Price became Evergreen’s Co-CEOs in 2022.

As early as 1986, Evergreen began to diversify into other industries, including metals (steel and titanium) and chemicals (adhesives). This diversification continued over the next few years into power and energy systems, especially as related to utilities for industrial plants, and biomass production.

More than 1,400 exhibitors from 49 countries participated in the 50th anniversary Ligna held May 26-30 at the Exhibition Grounds in Hannover, Germany. They showcased their technologies to 78,000 visitors from 156 countries.     

A significant portion of those exhibitors and attendees represented the wood-based panel and engineered wood products segments.

Numerous developments surfaced during the course of the show and one of the main ones was the re-emergence of Hexion Inc. as something more than an adhesives producer. Purchased by a private equity firm in late 2021, Hexion purchased AI-driven Smartech in late 2024 and this integration came on strong at Ligna.

Siempelkamp hosted a press conference to reveal a new modernized logo, along with an umbrella brand structure where “Siempelkamp” is incorporated into the names of all companies within the group.

Last November Weyerhaeuser announced its plan to invest $500 million to build a new TimberStrand laminated strand lumber facility near Monticello, Ark. The news at Ligna was that Dieffenbacher has received the order for a considerable amount of the technology, including the forming station and forming line, single daylight hydraulic press, and billet conveyors, along with the power plant—a bubbling fluidized bed boiler cogeneration system that will provide steam and thermal oil to heat the press.

Several exhibitors addressed a popular subject on the Hall floor—MDF recycling with post-consumer materials.

Read full Ligna coverage in the July issue of Panel World.

As a manufacturer of stranding equipment used in the production of oriented strandboard (OSB) panels, Kadant Carmanah views its collaborative partnership with Hexion and the integration of Hexion’s Smartech artificial intelligence (AI) technology as a natural evolution of its flagship “SmartRING” strander product line and Argus smart-connected technologies platform. According to Todd Macey, president of Kadant Carmanah Design, combining Hexion’s world-class AI-driven autonomous manufacturing solutions with Kadant Carmanah’s expertise in stranding equipment will enable OSB manufacturers to produce higher quality strands, enhance strander performance, and reduce unplanned downtime.

Hexion’s Smartech division, which Hexion acquired in 2024, uses AI to improve the manufacturing process for wood panels. The product line includes software and systems solutions such as SmartPress and recently announced SmartQuality, each providing a unique approach to resin application that increases efficiency and product quality, as well as autonomous manufacturing systems, which utilize machine learning to optimize productivity.

“The benefit of this collaborative partnership for OSB producers will be the full visibility and connectivity they will now have throughout their entire manufacturing process—from the strander, to the dryer, to the blender, to the forming line, to the press,” says Michael Lefenfeld, President and CEO, Hexion. “As OSB mills continue to face labor challenges and the high variability of log inventory management, Hexion’s advanced AI and machine learning technology will help stabilize the quality of strands from the strander.”