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ENCORE WIRE PLANS TO BUILD NEW PLANT

 MCKINNEY, Texas, May 4 /PRNewswire/ -- Encore Wire Corporation (NASDAQ-NMS: WIRE) announced today that it intends to build a new plant, adjacent to its existing facility in McKinney, to manufacture type THHN building wire, a general purpose copper electrical wire for use primarily in commercial and industrial buildings.
 In jointly announcing the new plant, Vincent A. Rego, chairman, and Donald M. Spurgin, president of Encore Wire, said, "Since inception in 1990, we have had a focused product line consisting principally of non- metallic sheathed cable for interior wiring in homes, apartments and manufactured housing. The addition of THHN building wire will greatly expand our product line and permit us to offer our existing wholesale distributors electrical wire not only for residential but also commercial and industrial construction. This step will enable us to enter a large new market which approaches the size of the market we now serve."
 The new plant will be located on a recently purchased eight acre site and will consist of a building containing approximately 230,000 square feet of floor space, of which approximately 180,000 will be used for manufacturing operations and the balance for warehousing and office space. The capacity of the new plant, running three shifts, is expected to be approximately 320,000 pounds of finished product per day. The total cost of the new plant, including, land, building and manufacturing equipment, is estimated to be approximately $15 million.
 Encore Wire intends to finance the new plant principally through bank borrowings and has obtained a loan proposal from its current bank lender to provide a $10 million term loan and a $20 million line of credit. The line of credit will be available for capital improvements as well as working capital requirements and will be renewable annually at the bank's discretion.
 Construction and equipping of the new facility is expected to commence in May 1993, subject to finalizing financing plans, with completion expected in early 1994.
 Encore Wire, founded in 1989 and based in McKinney, is a manufacturer of copper electrical wire, principally NM cable for interior wiring in homes, apartments and manufactured housing.
 -0- 05/04/93
 /CONTACT: Vincent A. Rego of Encore Wire Corporation, 817-469-9473/
 (WIRE)


CO: Encore Wire Corporation ST: Texas IN: SU:

AH -- NY032 -- 4235 05/04/93 10:32 EDT
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Publication:PR Newswire
Date:May 4, 1993
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