Encore Wire To Enter MC Cable Market, Plans To Open Manufacturing Plant

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.”

According to Jones, Encore Wire had looked at getting into the MC cable market for the last six to eight months by either buying a company that was already making MC cable or by reselling MC cable.

“We tried several avenues. We just couldn’t find anyone who would be willing to supply us,” said Jones, adding that the company decided the best strategy would be to enter the MC cable market on its own.

Jones said he sees Encore’s two main competitors as Alflex, a Southwire-owned company and American Flexible Conduit, a Tyco-owned company. Both companies “do a really nice job in the MC cable market,” he said. “It’s a serious move for the industry,” said Gary Brusacorum of Andrews-Johnson-Brusacoram, a manufacturers’ rep for Encore Wire headquartered in Minneapolis. “This is a first-class company, first-class people. He’s going to bring service and he’s going to bring quality to the market, the same way Encore is today.

“There are going to be others who are going to think about going into MC cable who would have to think twice when they see that an Encore is getting into it. They will have the most modern technology, the fastest machines and inventory. This is going to be done right. They will have a complete line. This will be typical Encore, Daniel Jones and Vince Rego, and the same service philosophy.

“I think the competition is going to perk its ears up. They know it’s a good guy coming into the business, not just someone looking for a price wedge. They’re going to come in with a service wedge.”