Nonmetallics

Trex Company Inc., based in Winchester, Va., has announced that it has closed on $25 million in financing, the proceeds of which will be used to fund a portion of the construction and equipment costs associated with its new manufacturing plant in Olive Branch, Miss.

The plant, Trex’s third manufacturing facility, will initially supplement existing operations by serving markets in the Midwest and South. Production at the plant is anticipated to begin in mid-2005.

"We are very pleased with the progress of our Olive Branch plant," Trex Chairman and CEO Robert Matheny says. "The site, which has excellent access to raw materials and offers many distribution advantages, will provide the additional capacity we need to fulfill consumers’ growing demand for Trex’s decking and railing products."

The Mississippi Business Finance Corp. (MBFC) issued Variable Rate Demand Environmental Improvement Revenue Bonds due December 2029. J.P. Morgan Chase Bank, N.A., backed the bonds with a letter of credit. The bonds’ proceeds were loaned to Trex pursuant to a loan agreement between the company and the MBFC. Interest on the bonds will be payable at a variable rate established on a weekly basis.

Trex says that it purchases roughly 300 million pounds of reclaimed plastic—in the form of grocery bags and pallet wrap—and an equal amount of hardwood sawdust yearly to manufacture into its decking products. According to its estimates, Trex receives about 50 percent of the recycled grocery bags available on the market.