Encore Wire Corp. will soon break ground on an expansion of its distribution center at its McKinney, Texas, location. The expansion will add approximately 162,000 square feet to the present distribution center's 265,000 square feet.

The expenditures for this project, including related expansion and upgrades of railroad and road access to Encore's McKinney complex, will total approximately $6.5 million. The majority of these expenditures will be made in 2004. The distribution center expansion is part of the company's capital expenditure plan for 2004 that will also include the purchase of certain manufacturing equipment to address bottlenecks in the production process. Total capital expenditures for the year are estimated in the $15 to $18 million range.

Commenting on the announcement, Vincent A. Rego, company chairman and CEO remarked, “Encore Wire has experienced steady growth throughout its history that has accelerated in 2003. With our continued growth, it has become necessary to add more floor space to enable us to maintain the outstanding level of prompt order fill rates that our customers have come to expect.”

Encore Wire Corp. manufactures a broad range of electrical wire for interior wiring in homes, apartments, manufactured housing, commercial and industrial buildings.

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