Trex Closes Mississippi Plant

Trex Co. Inc. has decided to suspend operations at the company's Olive Branch, Miss., facility for an indeterminate amount of time and will consolidate all manufacturing operations into its other two plants which are located in Winchester, Va., and Fernley, Nev. The company has ceased production at its Olive Branch facility as of September 17, 2007, and will complete all other measures related to the suspension of operations in approximately 60 days. Trex has been operating two production lines at the Olive Branch facility, which serves markets in the South and Midwest and represents approximately 10 percent of the company's total manufacturing capacity.

In making this decision, the company assessed anticipated capacity requirements considering: the difficult market conditions in the homebuilding and remodeling sectors; the recent upgrading of existing production lines in Winchester and Fernley to provide the capability for increased quality and output; and the economics at each of the company's three manufacturing facilities. The company concluded that it was necessary to adjust production capacity to more appropriately match its demand outlook and improve the efficiency of the Company's manufacturing operations.

"Our decision to suspend operations at the Olive Branch facility until further capacity is needed was very difficult," says Chief executive officer (CEO) Andrew U. Ferrari. "We want to thank our employees at the facility for their dedication and hard work, and we want to express our appreciation to the various state and local agencies involved in opening of the Olive Branch facility for the generous welcome and cooperative spirit they have extended to Trex over the past two years."

Trex will work closely with Olive Branch employees, customers and suppliers to achieve smooth transitions, according to a company press release. Approximately 115 employees will be affected and will receive pay and benefits through November 12, 2007. Trex management will work with employees at Olive Branch to provide support including outplacement services.

If you are a dealer or distributor for Trex in the South or Midwest, Shelter wants to know how this will impact you. Please e-mail editor Samantha Carpenter at scarpenter@sheltermagazine.com.

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