Trex, a manufacturer of composite decking, reported electrical fire at its Winchester, Virginia facility at a time when the supply chain for building products is being strained as builders and contractors struggle to obtain materials.
The volume lost as a result of the electrical fire in Virginia will be made up in the second quarter.
Trex President and CEO Bryan Fairbanks stated that based on projected production losses, the company expects first-quarter revenue to be at the lower end of the $235 million range. The lost volume will be made up in the second quarter.
Trex did not specify how much product was lost in the fire. There were no injuries reported.
“We are grateful to everyone who helped us extinguish the fire quickly and safely,” Fairbanks said.
The building’s electrical systems are expected to be repaired by the end of March.
Production will continue at the company’s other manufacturing facilities in Virginia and Nevada.
Furthermore, the company’s capacity expansion at its Virginia location continues, with the recent opening of a new state-of-the-art manufacturing facility dedicated to the production of Trex decking.
“Our success with line startup in our new building is providing incremental capacity faster than planned, allowing us to make up for lost production,” said Trex President Fairbanks.
“All of the lines in the new building are expected to be fully operational approximately 30 days ahead of our previously stated end-of-second-quarter target.”
Fairbanks also stated that the demand for Trex products remains “robust.” In addition to the new Virginia facility, the Winchester-based company has improved production at its Nevada facility significantly.
The company will have four independent decking production facilities, which will increase production capacity by roughly 70% over current levels. Trex is the world’s largest manufacturer of composite and wood-alternative decking, railing, and accessories.
