An alternative lumber company that’s recently seen financial success is set to sell recycled plastic resin.
Trex, the publicly traded firm popular for making decks and rails out of a composite of recycled wood and reclaimed plastic bags, says sales from recycled polyethylene resin pellets will bring an additional $50 million to $80 million in annual sales to the company within four years.
The company began moving leftover PE through an extruder at its Winchester, Virginia headquarters earlier this year, and it sold the resulting resin pellets to bag and film manufacturers.
“One production line is installed and operational,” the company’s chairman and CEO Ron Kaplan said on an Aug. 4 conference call with investors. “Others are in the pipeline.”
Trex is riding high after posting year-over-year second quarter gains of 23 percent. The company, which sells its products at retailers around the world, netted sales of $121.3 million during the second quarter of 2014.
The company’s composite decking is made out of 95 percent recycled wood and plastic, the company’s website states.
