NEW YORK Copper wire producer Encore Wire Corp. will slowly ramp up aluminum wire production at its new plant in McKinney, Texas, this year.
Staying competitive in this industry will be challenging as competitors are willing to cut prices in order to keep customers, Encore said.
"Were trying to be really careful with how we go to market with that product," Encore president and chief executive officer Daniel Jones said of aluminum wire. "The first line of defense of our competitors is price. They will cut the price to protect an order or a customer. Thats just not our style."
The McKinney-based company started aluminum wire production in the fourth quarter (amm.com, Feb. 21), and expects the final equipment to be installed in the second quarter of 2013.
"From a timing standpoint, its going to be a gradual ramp up. But again, the market itself will dictate to what level," Jones said.
Depending on demand, aluminum wire sales could account for 10 to 15 percent of the companys overall sales this year, he added.
First-quarter net sales totaled $265.4 million (amm.com, April 25), with aluminum wire sales representing 5.7 percent, or $15.1 million.