WINCHESTER, Va.--(BUSINESS WIRE)--Jun. 6, 2019--
Trex Company, Inc. (NYSE:TREX), the world’s number one brand of decking
and railing and leader in high-performance, low-maintenance outdoor
living products, and a leading national provider of custom-engineered
railing and staging systems, announced a new capital expenditure program
to increase production capacity at its Winchester, VA, and Fernley, NV,
facilities.
The Company’s new multi-year capital expenditure program is projected at
approximately $200 million between now and 2021, and involves the
construction of a new decking facility at the existing Virginia site and
the installation of additional production lines at the Nevada site. The
additional production lines in Nevada will come online beginning in the
third quarter of 2019. Additional lines will also be installed by the
end of the second quarter of 2020. The Virginia capacity will begin to
come online in the first quarter of 2021. The investment will allow Trex
to increase production output for future projected growth related to its
strategy of converting wood demand to Trex composite decking. The
Company expects to fund the capital expenditures primarily from
operating cash flows.
Management noted that demand for its newly launched Enhance Basics and
Naturals decking and its legacy flagship decking product Transcend
continues to be robust, and reaffirmed its commitment to dedicate
significant resources to increasing production throughput at its
existing manufacturing facilities. Current production rates at both the
Virginia and Nevada facilities have attained planned levels, and
operating efficiency improvements are underway and are consistent with
the Company’s comments shared in its first quarter 2019 earnings
announcement in late April.
Trex President and CEO James E. Cline noted, “Demand trends indicate the
conversion from wood has accelerated at a faster pace than expected with
our recent introduction of the Enhance decking products. This has
required that we accelerate our planned capacity expansion by one year.
We appreciate the brand loyalty of our customers and we are making the
requisite investments to ensure the quality and availability of the
entire portfolio of Trex decking and railing products. When completed
these investments will increase our capacity by approximately 70%.”
As a result of the new capital expenditure program, the Company has
revised its capital expenditure guidance for 2019 to $75 million - $80
million.
About Trex Company
Trex
Company is the world’s largest manufacturer of high-performance
wood-alternative decking and railing, with more than 25 years of product
experience. Stocked in more than 6,700 retail locations worldwide, Trex
outdoor living products offer a wide range of style options with fewer
ongoing maintenance requirements than wood, as well as a truly
environmentally responsible choice. Also, Trex is a leading national
provider of custom-engineered railing and staging systems for the
commercial and multi-family market, including performing arts venues and
sports stadiums. For more information, visit trex.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190606005071/en/
Source: Trex Company, Inc.
Bryan Fairbanks
Exec. Vice President and CFO
540-542-6300
Lynn Morgen/Viktoriia Nakhla
AdvisIRy Partners
212-750-5800