Item 2. Properties
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
Corporate Headquarters
8 Acres
Owned
N/A
Virginia
Land
Trex Residential
1,573,424 SF
Leased
2021 – 2028
Virginia /
Nevada
Warehouse, Research and
Development, Storage, Training and Manufacturing
Facilities
Trex Residential
1,202,660 SF /
439 Acres
Owned
N/A
Virginia /
Nevada /
Arkansas
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 2021, we spent a total of $159.4 million on capital expenditures, primarily at our Trex Residential facilities, including $126.3 million related to capacity expansion and general plant cost reduction initiatives, $24.9 million for other equipment expenditures and production improvements and $6.4 million for general support initiatives. In order to keep pace with demand, in June 2019, we announced a capital expenditure program to increase production capacity at our Trex Residential facilities in Virginia and Nevada. The multi-year capital expenditure program involved 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, completed in 2021, allowed us to increase production output for future projected growth related to our strategy of converting wood demand to Trex Residential wood-alternative composite decking. In addition, our engineering team installed incremental decking lines within our new Virginia facility that further expanded our production capability.
Additionally, we recently announced plans to develop a third U.S.-based Trex Residential manufacturing facility on approximately 300 acres in Little Rock, Arkansas. We plan to invest approximately $400 million in this project over the next five years, funded primarily through ongoing cash generation. With the potential to become our largest manufacturing facility over time, the Arkansas manufacturing campus will address increased demand for Trex Residential outdoor living products. Construction is slated to begin early in 2022 with a modular development approach calibrated in alignment with demand trends. We expect initial production output to begin in 2024 and, over time, the facility will employ approximately 500 people.
These expansion activities provide Trex Residential with additional capacity to flex with demand by adding capacity as needed, while providing bandwidth to pursue opportunities to expand domestically and internationally as we continue to drive wood conversion and capture incremental market share from the strength of Trex products and the brand.
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.
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