July 30, 2014
Encore Wire Corporation announced that the Company is building a 250,000 square-foot expansion to the existing aluminum manufacturing plant on its McKinney, Texas campus. The Company projects expenditures for this project, including related upgrades to Encore’s McKinney complex, will be approximately $41 million to $46 million. These expenditures will be made in 2014 and 2015. The plant expansion is part of the Company’s capital expenditure plan for 2014 and 2015 that will also include the purchase of manufacturing equipment to produce aluminum wire and cable. The Company estimates its total capital expenditures for 2014, including other projects, to be between $40 million and $45 million.
Commenting on the announcement, Daniel L. Jones, President and Chief Executive Officer, Encore Wire Corporation, said, “Encore Wire has experienced steady growth throughout its history. In order to plan for our future and continue the long-term growth of the Company, we have continued to increase our product offerings to our existing customer base in the building wire category. In 2006, we opened a new armoured cable plant, and in 2008, we opened a plant dedicated to the production of large tray cable. In 2012, we opened a new plant dedicated to the production of aluminum building wire. The aluminum building wire sales have exceeded our expectations, with gross sales totaling over $100 million in the last 4 quarters. With the demand for these products clearly exceeding our capacity, we have decided to go forward and expand the plant to accommodate increased production. This expansion will add an estimated 128 new jobs over the next couple of years.
We also strongly believe that our ability to offer aluminum building wire has helped to increase our copper building wire sales over the last two years. Over the trailing four quarters, our copper unit sales are up 13 per cent over the previous four quarters. We believe that is due in some part to the fact we now also offer aluminum wire. We continue to believe that copper will be the conductor of choice in most building wire applications, but we will offer aluminum to those customers who want it. We will continue to canvass our independent manufacturer’s representatives and our electrical distributor customers to determine what products they are purchasing that may make sense for us to produce and sell.”
Encore Wire Corporation is a leading manufacturer of a broad range of electrical building wire for interior wiring in commercial and industrial buildings, homes, apartments and manufactured housing.
