Encore Wire Corp., McKinney, Texas, plans to enter the MC (armored cable) market with the planned construction of a 150,000-square-foot manufacturing plant at its McKinney facility.
The company forecasts expenditures of $25 million to $27 million for the plant and new equipment. Development is currently underway with completion and start-up scheduled for the first quarter or second quarter of 2006.
The move pits Encore, which has become a big player in the building wire market, against established manufacturers of armored cable, including Alflex, a Southwire Co., Carrollton, Ga., and AFC/Tyco, New Bedford, Mass.
“This new product line is a natural extension of our existing building wire business,” said Daniel Jones, Encore's president and COO. “We decided to go forward at this time as a result of increasing demand for MC cable from our existing customers and the growing demand for the product in commercial construction. MC cable offers substantial savings over conventional conduit and wire installations and is being specified on more electrical installations. Sales of this product line will be handled by our existing sales representatives to our existing customer base. We are excited at the prospect of offering our valued customers this new product line and feel it will add substantially to our revenues.”
Gary Brusacoram of Andrews-Johnson-Brusacoram, a manufacturers' rep for Encore Wire headquartered in Minneapolis, said “I think the competition is going to perk its ears up. They know it's a good (company) coming into the business, not just someone looking for a price wedge. They're going to come in with a service wedge.”