WINCHESTER, Va. (AP) — Trex Co., which makes composite decking and railing, said Thursday will suspend operations at a manufacturing facility in Olive Branch, Miss. for an indeterminate period, as the company contends with softness in the homebuilding and remodeling sectors.
The closure will affect about 115 employees, who will receive pay and benefits through Nov. 12. The company will consolidate its manufacturing operations into two other plants located in Winchester, Va., and Fernley, Nev.
Trex said weakness in the homebuilding and remodeling sectors, recent upgrades at the two other plants and the economics of the Olive Branch plant necessitated the closing.
The Olive Branch plant served markets in the South and Midwest, and contributed 10 percent of the company's manufacturing capacity.
In July, Trex said its second-quarter profit dropped 65 percent due to falling lumber prices and difficult conditions in the housing and remodeling industries.
Shares of Trex slipped 36 cents, or 2.9 percent, to finish at $12.19.