Trex reveals big expansion plans for Arkansas
Trex has announced plans to develop a new multi-faceted production site in Little Rock, Ark.
The wood-alternative decking and accessories manufacture said that a third U.S.-based manufacturing facility should enable the company to provide customers significantly better access to Trex Residential products where and when they need them, and position the company for future growth.
“This new site represents a strategic investment not only in our company’s future but in the future success of our valued channel partners,” said Trex Company President and CEO Bryan Fairbanks. “With the outdoor living category continuing to show strong momentum and our success to date in converting share from the wood decking market, the time is right to further expand our capacity so that we can meet future customer demand efficiently and effectively.”
Set to be located within the Port of Little Rock, Trex said the new facility should increase the company’s ability to meet the anticipated strong demand for its industry-leading decking and railing products.
Recent Trex expansion moves have included the opening of a new production facility in Winchester, Va. along with expanding and upgrading its Nevada facilities.
Based on the company’s search parameters, Little Rock emerged as the best fit for Trex’s immediate and future needs with a location closer to essential raw materials, a strong pool of qualified and skilled labor, proximity to key growth regions for wood conversion, and adjacency to major transportation hubs that will offer optimized freight costs for customers in the middle of the country who are presently served by existing facilities in Virginia and Nevada. Adding capacity also positions the company to better serve its distribution and retail partners domestically and abroad.
Trex expects to invest an estimated $400M over the next five years in the development of the new Arkansas site, funded primarily through ongoing cash generation.
The Trex campus will sit on nearly 300 acres of land and will eventually include buildings dedicated to decking and railing production, plastic film recycling and processing, reclaimed wood storage, warehousing and administrative offices. Construction is slated to begin in early 2022.
According to Trex, the development approach will be modular and calibrated to demand trends with the first production output anticipated in 2024. The campus will substantially expand output and will have the potential to be the company’s largest manufacturing facility.
Trex expects to bring more than 500 new jobs to the Little Rock area. The company will be interviewing candidates for key positions starting this fall and will broaden its recruiting efforts for both salaried and hourly positions in spring 2022.
“This expansion provides Trex with important competitive advantages in today’s dynamic outdoor living market,” Fairbanks said. “It will afford us the ability to flex with demand by adding capacity as needed. Having multiple manufacturing sites also helps mitigate risk while providing bandwidth to pursue new opportunities that will enable us to further leverage our unsurpassed brand recognition and expand our presence both domestically and internationally.”
