TREX CO INC 10-K

Item 2. Properties We own and lease certain properties, as noted in the below table: Square Footage/ Acres Leased / Owned Lease Expiration Dates Location Purpose Corporate Headquarters 39,250 SF Leased 2025 Virginia Office Space Trex Residential 1,806,942 SF Leased 2021 – 2028 Virginia / Nevada Warehouse, Research and Development, Storage, Training and Manufacturing Facilities Trex Residential 1,202,660 SF / 150 Acres Owned N/A Virginia / Nevada Manufacturing Facilities, Storage and Office Space Trex Commercial 142,808 SF Leased 2022 – 2028 Minnesota Warehouse, Facility and Office Space We regularly evaluate our various facilities and equipment and make capital investments where necessary. In 2020, we spent a total of $172.8 million on capital expenditures, including $162.9 million related to capacity expansion and general plant cost reduction initiatives, $6.2 million for other production improvements and $1.1 million for general support initiatives. In order to keep pace with demand, in June 2019, we announced a new capital expenditure program to increase production capacity at our Trex Residential facilities in Virginia and Nevada. The new multi-year capital expenditure program is projected at approximately $200 million through 2021 and involves the construction of a new decking facility at the existing Virginia site and the installation of additional production lines at the Nevada site. The investment will allow us to increase production output for future projected growth related to our strategy of converting wood demand to Trex Residential wood-alternative composite decking. When completed these investments will increase our Trex Residential production capacity by approximately 70 percent. For information about our leases, see Note 9 to our Consolidated Financial Statements appearing elsewhere in this report. The equipment and machinery we use in our operations consist principally of plastic and wood conveying and processing equipment. We own all of our manufacturing equipment. We lease some equipment, primarily forklifts, at our facilities under operating leases.