Trex Company, Inc. Explained

Trex Company, Inc.
Type:Public
Location:Winchester, Virginia, U.S.
Area Served:United States, International
Key People:Bryan H. Fairbanks
(president and CEO)[1]

James E. Cline
(Chairman of the Board)[2]

Industry:Industrials
Products:decking, railing
Revenue: US$ 1.2 billion (2021)[3]
Operating Income: US$ 275 million (2021)[4]
Net Income: US$ 209 million (2021)
Assets: US$ 920,321 (2021)

Trex Company, Inc. is a manufacturer of wood-alternative composite decking, railing, and other outdoor items made from recycled materials.[5] Headquartered in Winchester, Virginia, Trex is the world's largest manufacturer of wood-alternative decking and railing.[6] Trex composite products are made of 95% recycled materials. In redirecting more than 400 million pounds of plastic and scrap wood from landfills each year, Trex is one of the largest plastic film recyclers in the US.[7]

Company history

In 1988, Roger Wittenberg combined sawdust and plastic bags to create a park bench. In 1996, Mobil Chemical Co. acquired Wittenberg's technology and formed Trex, LLC. Trex is widely considered to be one of the inventors of composite decking made from recyclable materials.[8] The idea for a process and product created to maximize the use of materials that would otherwise wind up in landfills is credited to inventors Kjell-Ake Gustafsson, of Binghamton, New York; John J. Muller, of Winchester, Virginia; and Roger A. Wittenberg of Newton, Pennsylvania.[9] The first patent for a "Method of Producing a Wood-Thermoplastic Composite Material" was filed as U.S. Patent number 5746958 in March 1995 and granted in May 1998.

Leadership

Bryan H. Fairbanks was named president and CEO of Trex effective April 29, 2020.[10] Former president and CEO (2015-2020), James E. Cline, has assumed the position of chairman of the board. Dennis C. Schemm was named vice president and CFO[11] and Ronald W. Kaplan is now vice chairman effective April 29, 2020.

Manufacturing

Trex is America's largest manufacturer of composite decking.[12] Their manufacturing process combines recycled plastic film, like grocery bags and dry cleaning wrap, with reclaimed wood, some of which is swept from the floors of furniture factories. To procure the amount of plastic film necessary for production, Trex works with grocery store chains like Albertsons, which has contributed more than 200 million pounds of recycled plastic film to the NexTrex recycling program.[13] Trex uses approximately 400 million pounds of recycled plastic film to make its composite decking. Trex maintains two manufacturing facilities in Winchester, Virginia, and Fernley, Nevada.[14]

Environmental considerations

Trex promotes an environmental stance as part of its commercial appeal in the marketplace.[15]

Recycled components

Trex composite decking contains more than 95% recycled content and offers verification by ICC-ES.[16] In July 2010 Trex received a Verification of Attributes Report (VAR-1011) from the International Code Council Evaluation Service (ICC-ES) under the Sustainable Attributes Verification and Evaluation Program. The verification validates Trex's wood-alternative products are manufactured with a minimum of 95.4% recycled content. Trex claims is the first composite decking manufacturer to obtain this certification.[16]

Environmental recognition

Trex corporate participation in environmental efforts, coupled with its eco-friendly product profile, has led to recognition by governments, publications and trade groups. Trex has expanded production and failed to mitigate the noise pollution it produces and impacts neighbors in a broad residential area.[17]

These include:

Industry recognition

Product issues

A manufacturing problem at the Trex manufacturing facility in Fernley, Nevada, from 2002 to 2007 led to production of decking boards that were prone to surface flaking. These boards were sold throughout 16 Western states in the U.S. and resulted in a class-action suit against the company.[32] In a settlement approved in 2010, Trex agreed to replace any decking boards, including some resulting labor costs, for decking affected by surface flaking.

References

Notes and References

  1. Web site: Trex Company Announces Succession Plan. Business Wire. 24 February 2020. 6 May 2020.
  2. Web site: Trex Company Announces Succession Plan. Business Wire. 24 February 2020. 6 May 2020.
  3. Web site: Trex Company Reports Robust Demand and Record Results for Fourth Quarter and Full Year 2021. 28 February 2022.
  4. Web site: Trex Company Reports Robust Demand and Record Results for Fourth Quarter and Full Year 2021.
  5. News: Harrison. J.D.. Not-real-wood company Trex posts a very real earnings bump. Washington Post. 26 March 2015.
  6. Web site: 23 December 2020. 5 Russell 2000 Stocks That Have Crushed the Index in 2020. 20 January 2021. Yahoo! Finance. Verizon Media.
  7. Web site: Trex. 2021-02-23. Northeast Recycling Council. en.
  8. Web site: Product of the Month: Composite Decking. 18 September 2013. Natural Element Houses.
  9. Web site: Method of producing a wood-thermoplastic composite material. United States Patent. USPTO Patent Full-Text and Image Database.
  10. Web site: 2020-02-24. Trex Company Announces Succession Plan. 2020-05-06. www.businesswire.com. en.
  11. Web site: 2020-04-20. Trex Company Names Dennis Schemm Vice President and Chief Financial Officer. 2020-05-06. www.businesswire.com. en.
  12. Web site: Tully. Shawn. May 29, 2021. Insane lumber prices are supercharging Trex's composite wood business—and making it a top-performing stock. Fortune.
  13. Web site: 526 Media Group. November 16, 2020. Trex Teams up with Albertsons to Keep Plastic out of Landfill. Building Product Digest.
  14. Web site: Kavanaugh. Catherine. June 6, 2019. Deck maker Trex investing $200M at two US sites. Plastics News.
  15. Web site: Roach. John. Are Plastic Grocery Bags Sacking the Environment?. https://web.archive.org/web/20031008072828/http://news.nationalgeographic.com/news/2003/09/0902_030902_plasticbags.html. dead. October 8, 2003. National Geographic News. National Geographic. 14 October 2013. September 2, 2003.
  16. Web site: Introducing "NexTrex™": Composite Decking Leader Announces New Name For Successful Retail Recycling Program. GlobalNewswire. 22 April 2019. 6 December 2019.
  17. https://www.winchesterstar.com/winchester_star/open-forum-trex-is-still-noisy-a-year-later/article_04e76b4e-9e7b-5db7-9e42-72626fef6755.html
  18. Web site: 2019 Readers' Choice Awards - A Sustainable Brands Survey. Media. Green Builder. www.greenbuildermedia.com. en. 2019-12-06.
  19. Web site: Green Builder Media's 2019 Eco-Leaders. Media. Green Builder. www.greenbuildermedia.com. en. 2019-12-06.
  20. Web site: 2016 Reader Choice Awards. Green Builder. 8 April 2016.
  21. Web site: GAIA Awards 2014 Winners. GAIA. 8 April 2016.
  22. Web site: America's Best Mid-Sized Companies 2021. 2021-02-23. Forbes. en.
  23. http://www.builderonline.com/products/2017-builder-brand-use-study-results_o 2017 BUILDER BRAND USE STUDY RESULTS
  24. Web site: 2019 BUILDER BRAND USE STUDY RESULTS. www.builderonline.com. 2019-12-06.
  25. Web site: Best of Houzz Award Winners. www.houzz.com. 28 January 2019.
  26. Web site: 2016 Builder Brand Use Study Results Builder Magazine.
  27. Web site: Four LCWA Campaigns Honored at Publicity Club of Chicago Golden Trumpet Awards. 28 January 2019.
  28. Web site: Best of Houzz Award Winners. www.houzz.com. 28 January 2019.
  29. Web site: Trex Company. ADEX Awards. 8 April 2016.
  30. Web site: Golden Hammer Update: Decking honors. HBS Dealer. 8 April 2016.
  31. Web site: Brand Use Study. Remodeling. 8 April 2016.
  32. Web site: Inc. Trex Company. Trex Company Reminds Consumers of Replacement Program for Defective Decking Manufactured between 2002 and 2007 for Sale in the Western United States. 2021-02-23. www.prnewswire.com. en.

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