Trex Co. Inc. plans to build a new plant — its third — to make composite plastic lumber.
The company cited growing demand for its brands like Trex Easy Care Decking.
"How many manufacturing lines we'll put in will be dependent on what our needs will be," Chief Financial Officer Tony Cavanna said in a Feb. 21 telephone interview.
He said the new plant is likely to be on par with the firm's plant in Winchester, Va., which has eight extrusion lines, and its Fernley, Nev., plant, which has six.
Winchester-based Trex announced Feb. 20 that it had signed a purchase agreement for 100 acres of land in Knoxville, Tenn. Terms were not disclosed.
Cavanna said the site is attractive because it is near suppliers of wood flour. Trex mixes the flour with post-consumer high density polyethylene from recycled grocery bags. The location also is convenient to Trex's customer base, he said.
Trex did not disclose when construction will start or the square footage of the proposed facility. The company expects to hire 160 workers for the new location. Trex currently employs 400.
The company has mulled a third plant for several years. In May, the company announced that it would not build a third plant, instead choosing to expand its Virginia and Nevada operations. At the time, however, officials said they would continue to evaluate locations for a third large-scale plant.
Trex formed in 1996 from assets of Mobil Corp.'s Composites Products Division. The company saw its sales double from 1998 to 1999, to $74.3 million, and Trex expects 2000 sales to jump to about $115 million. The publicly held company is to announce its year-end results Feb. 26.