Trex, which uses recovered polyethylene film to make composite wood products, boosted its sales and profits in 2019.
The Winchester, Va.-based company reported net sales of $745 million in 2019, up 9% from the year before. The company’s total net income was $145 million, up 7% over 2018.
In 2018, sales and net income were up 21% and 41%, respectively, over 2017.
Trex uses about 500 million pounds of recovered polyethylene film and sawdust to make composite lumber each year.
Capacity expansion progressing
In announcing its 2019 financial results, the company also confirmed it is continuing to expand its production capacity, as announced last year. In June, Trex stated it would spend about $200 million to expand production capabilities at its plants in Winchester and Fernley, Nev.
In a Feb. 24 press release, then President and CEO Jim Cline said Trex has added two lines in Nevada and one additional line in Virginia. Late in the second quarter of this year, Trex will start up three additional lines in Nevada and another one in Virginia.
In October, Trex broke ground on a new manufacturing building at the existing plant in Virginia. Production inside that new building is expected to come on-line early in 2021.
In 2019, the company’s capital expenditures totaled $67 million. For 2020, Trex expects to spend between $140 million and $160 million on buildings and equipment, the majority of which will go to expansion projects.
Executive change
In the Feb. 24 release, Trex also announced that Cline will retire from the CEO and president position to become chairman of the board, effective April 29. In his place, Bryan Fairbanks, who currently serves as executive vice president and chief financial officer, will become president and CEO.