Trex Company, Inc. announced a new capital expenditure program to increase production capacity at its Winchester, Virginia, and Fernley, Nevada, 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.

Furniture

Trex Company announces new capital expenditure program to increase production capacity

Trex Company, Inc. announced a new capital expenditure program to increase production capacity at its Winchester, Virginia, and Fernley, Nevada, 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 3Q 2019. Additional lines will also be installed by the end of the 2Q 2020. The Virginia capacity will begin to come online in the 1Q 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.

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. 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.

Trex Company is the world’s largest manufacturer of high-performance wood-alternative decking and railing.