Trex expanding production output

Trex announced a new capital expenditure plan that will result in increased production capacity at its Winchester, Va. and Fernley, Nev. facilities.

The multi-year capital expenditure program is projected at approximately $200 million between now and 2021, and includes the construction of a new decking facility at the existing Virginia site and the installation of additional production lines at the Nevada site.

The Winchester, Va.-based composite decking and railing manufacturer said it will fund the moves through its cash flow. Once completed, the expansion will grow Trex’s capacity by 70%.

New 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 expansion will begin to come online in the first quarter of 2021.

Trex said that the increased production output is designed for future projected growth related to converting wood demand to the company’s composite decking.

Current production rates at both the Virginia and Nevada facilities have attained planned levels, and operating efficiency improvements are underway.

“Demand trends indicate the conversion from wood has accelerated at a faster pace than expected with our recent introduction of the Enhance decking products,” Trex President and CEO James Cline said. “This has required that we accelerate our planned capacity expansion by one year.”

When completed these investments will increase our capacity by approximately 70%.”

Trex said another catalyst behind the expenditure plan was demand for its recently launched Enhance Basics and Naturals decking and its legacy flagship decking product Transcend.

Last November, Trex expanded its line of Enhance decking with lower pricing points designed to put the pressure on treated lumber.