Companywide Capital Investments to Fuel 70% Increase in Decking Output
WINCHESTER, Va., January 12, 2021 – Since the mid-1990s, Trex Company [NYSE: TREX] has invented and revolutionized the composite decking category with its industry-leading lineup of low-maintenance, high-performance, eco-friendly products that have fundamentally changed the way people live outdoors. For nearly 30 years, the company has focused on product innovation, operational excellence and partnerships with outstanding distributors, dealers and contractors – always with an eye on “engineering what’s next in outdoor living.” In keeping with this approach, Trex enters 2021 celebrating yet another historic milestone – the startup of its new Virginia production facility that caps a $200 million expansion program. The milestone bolsters the company’s position as the industry’s largest and most productive composite decking manufacturer.
“For every company there are moments that are history making, and this is definitely one of those for Trex,” said Bryan Fairbanks, president and CEO of Trex Company. “Thanks to the foresight and confidence of the Trex team and our board of directors to invest in this capacity expansion, we are embarking upon the next era of growth for our company. These strategic investments reinforce our faith in the future of Trex, our category leadership and our long-term commitment to deliver industry-leading products and service to our trade partners and customers.”
Anticipating the Inevitable
Driven by its best-in-class Trex Transcend® decking product introduced in 2009, Trex has experienced more than a decade of record growth, including double-digit increases in compounded annual sales and profitability over the past five years. With a solid command of the composite category, Trex saw an opportunity to capture an even larger share of the decking market by introducing a composite product designed to compete more directly with its largest competitor – wood. In late 2018, the company launched its re-engineered Trex Enhance® decking, offering all the performance benefits affiliated with the Trex brand at a price-point designed to compete directly with the wood decking market. Response from the channel and consumers was overwhelmingly positive, with demand quickly exceeding expectations.
Trex recognized the tremendous potential for growth across its entire decking portfolio and the need for expanded manufacturing capacity to meet projected demand. In June of 2019, the company announced plans to invest $200 million in the infrastructure, people and processes to increase capacity in its Nevada and Virginia manufacturing facilities.
New Manufacturing Facility
At the center of Trex’s capital investment and long-term strategic growth plan is approximately 200,000-square-feet of newly constructed manufacturing and support facilities dedicated to producing Trex decking. The state-of-the-art manufacturing plant, adjacent to the company’s existing Virginia campus, features approximately 8,500 cubic yards of concrete in its foundation, 75,000-square-feet of exterior precast, 1,500 tons of structural steel, and 3 million linear feet of wiring.
“This will be the most productive and efficient composite decking facility designed for maximum output,” emphasized Adam Zambanini, president of Trex Residential Products. “The building is equipped with state-of-the-art, proprietary extrusion technology that allows us to manufacture Trex decking using 95% recycled content, with an emphasis on quality and energy-efficient systems.”
70% Increased Capacity
In addition to the new Virginia decking facility, Trex also improved production capabilities and capacity at its manufacturing site in Nevada, where new lines were installed and made operational in June of 2020. Combined, these companywide investments will empower Trex – already the world’s largest manufacturer of high-performance, wood-alternative decking – to increase production capacity by approximately 70% while adding 350 new jobs.
“Trex is in an unmatched position to lead the industry in production output and to meet the demands of our customers in the coming years,” noted Zambanini.
Recently named one of the nation’s 100 fastest-growing companies by Fortune magazine, Trex opened its first production lines in Virginia in 1993 with 36 employees – 12 of whom still work for the company. Over the past decade, the company has transformed into a $817 million revenue manufacturer (over the twelve months ending September 30, 2020) with more than 1,200 employees, industry-leading brand recognition and unsurpassed channel placement in more than 6,700 retail outlets across more than 40 countries worldwide. For more information, visit www.trex.com.
About Trex Company
Trex Company, Inc. [NYSE: TREX] is the world’s largest manufacturer of high-performance wood-alternative decking and railing, with nearly 30 years of product experience. The #1 brand in outdoor living is proud to be named to Fortune magazine’s 2020 100 Fastest-Growing Companies list. 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. For more information, visit trex.com. You also can follow Trex on Twitter (@Trex_Company), Instagram (@trexcompany), Pinterest (trexcompany) or Houzz (trexcompany-inc), “like” Trex on Facebook (@TrexCompany) or view product and demonstration videos on the brand’s YouTube channel (TheTrexCo).
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