Encore Wire Corporation (NASDAQ/NMS:WIRE) announced today that the
Company's Rod Mill recently eclipsed the two
billion pound mark of copper rod produced since the mill commenced
operations in June of 1998. Copper rod is rolled to a 5/16-inch diameter
from molten copper and is the raw material consumed in the Company's
wire mills to make building wire.
Commenting on the announcement, Daniel L. Jones, Company President and
Chief Executive Officer said, ?We are very
proud of our Rod Mill team and the milestone they have achieved. This
achievement points out what a sound investment the Rod Mill has been.
Prior to building the Rod Mill, we purchased rod to make wire, as most
of Encore's building wire competitors still do
today. The vertical integration we achieved by producing our own rod has
resulted in significant cost savings. This vertical integration has been
economically enhanced due to our single location manufacturing strategy,
which eliminates the cost of shipping to multiple wire plants across the
country. Our strong balance sheet and access to financing has enabled us
to fund the Rod Mill and other cost saving projects. Beyond the facility
itself, the key has been our industrious team of employees who run the
equipment at exceptional efficiency levels. On behalf of the Board of
Directors and our stockholders we congratulate the employees on an
outstanding performance. We will continue to seek profit enhancing
efficiencies in all segments of our operations.?
Encore Wire Corporation manufactures a broad range of electrical wire
for interior wiring in homes, apartments, manufactured housing and
commercial and industrial buildings.
The matters discussed in this news release, other than the historical
financial information, including statements about the copper pricing
environment, profitability and stockholder value, may include
forward-looking statements that involve risks and uncertainties,
including fluctuations in the price of copper and other raw materials,
the impact of competitive pricing and other risks detailed from time to
time in the Company's reports filed with the
Securities and Exchange Commission. Actual results may vary materially
from those anticipated.