Ibstock to build new £60m factory as brick demand soars

Grant Prior 4 years ago
Share

Ibstock has revived plans to build a new £60m factory in the West Midlands as industry demand for bricks is set to soar.

Expansion plans for the Atlas site in Aldridge were first unveiled in early 2020 but put on hold due to the Covid pandemic.

But improved trading conditions have seen the plan revived and upgraded.

Ibstock said: “UK housing market fundamentals remain strongly positive, with a structural undersupply of new build housing which is expected to continue over the medium term.

“As the residential housing market recovers, domestic demand for clay bricks will continue to exceed that available from domestic manufacturing capacity.”

The existing Atlas site will be replaced with a wire cut clay brick factory and the adjacent Aldridge brick factory upgraded.

The redeveloped facilities will deliver annual capacity of 115 million bricks – a net increase in current capacity of 75 million bricks.

The new Atlas factory and the upgraded Aldridge factory will be completed in the second half of 2023 delivering an anticipated annual £12m boost to profits.

Joe Hudson, Chief Executive Officer of Ibstock said:”We’ve made an encouraging start to 2021, supported by robust demand in both the new build housing and RMI markets.”

“With the market outlook now clearer, we are refocusing on growth.

“Redevelopment of our wire cut brick facilities in the West Midlands will deliver a significant capacity expansion, further demonstrating our leadership in the clay brick market, which is expected to continue its long-term growth over time.

“The project is another tangible example of our commitment to the net zero carbon journey and provides a great exemplar of British building products manufacturing.”

“We have a number of additional organic investment opportunities under evaluation and expect to update shareholders on these as the year progresses.”

Latest news

Problem contracts send Robertson into the red

Contractor confident of return to profit this year after review of jobs
15 minutes ago

National Grid names key suppliers for £59bn HVDC deal

Cable and converter station supply chain firms named
11 minutes ago

Muse hires London Crown Estate MD

Simon Harding-Roots will lead regeneration specialist's south office
33 minutes ago

Contractors wanted for £215m care home framework

Firms invited to express their interest in projects across South West
38 minutes ago

Pellikaan wins £25m Wiltshire leisure centre job

Work to start next month on Trowbridge swimming pool and gym
32 minutes ago

Cat deal sees Flannery plant investment top £100m this year

Leading plant hirer continues to invest in fleet
3 days ago

Fall in office and housing activity dents industry output

Confidence fragile after 0.2% dip in output for second month
3 days ago

Lendlease OK’d to start Birmingham’s £1.9bn Smithfield scheme

First phase of 400 build to rent homes at Manor Square approved
3 days ago

Fresh plan for £170m Newcastle resi tower and hotel

Gainford Group scales down New Bridge Street scheme to 29 storeys
3 days ago

Berkeley warns over-regulation a drag on planning reform gains

House builder joins calls for urgent Gateway 2 building safety regulator reform
3 days ago

Mace confirmed for £140m Gatwick Airport Pier 6 extension

Contractor PJ Hegarty has started enabling works in middle of busy airport
4 days ago

Cost of M3 upgrade soars by £70m

Budget for VolkerFitzpatrick/Balfour Beatty road job jumps to £280m
3 days ago

Graham takes on ISG £45m Coventry cultural hub job

Firm will start conversion work in the Spring on former IKEA store
4 days ago

Alun Griffiths to “restructure and resize” after £95m loss

Redundancies due to be announced at Welsh civils contractor
5 days ago

Fire safety project approval delays hit Van Elle profits

Piling specialist also reviews future of Canadian operation amid fresh economic uncertainty
4 days ago

JRL Malaysian backers plan £150m London city office refurb

Ardmore set to deliver landmark 25 Finsbury Circus building overhaul
4 days ago

500-home block to replace 19 storey Sutton office tower

Landmark project to deliver 312 Build to rent and 195 co-living homes
4 days ago

Building envelope specialist Bailey buys Comar

Specialist now offers complete building envelope solutions
4 days ago

Subcontractors wanted for work across Wales

Big name buyers at latest Constructionline event: Register now
4 days ago

Balfour Beatty profit dented by £83m building safety hit

Increased order book at £18bn secures growth over next two years
5 days ago

Expanding utilities specialist Ipsum buys Matrix Power

Power engineering contractor takeover will strengthen offer in North East
5 days ago

Historic scaffolding firm files administration notice

Hertfordshire based Rodells has been trading since 1898
5 days ago

Planning Bill to have “seismic” impact on construction

Building-boosting reforms go before Parliament
6 days ago

Briggs & Forrester hits record revenue and orders

M&E specialist rebounds with strong growth across three divisions
5 days ago

Man Utd confirm plan for £2bn ‘super-tent’ stadium

Club to press ahead with 100,000-seat 'Wembley of the North'
6 days ago

Government spending keeps profits edging-up at Kier

91% of work now with public sector and regulated companies
6 days ago

Costain on track for step change to 5% margin

Alex Vaughan says order book has jumped £1.5bn to £5.4bn
6 days ago

Mace tops February contracts league

Confirmation of £300m London Victoria Street project lifts firm to pole position
6 days ago

Wates raids Laing O’Rourke for new construction operations chief

George Mosey leaves Laing O'Rourke after 16 years
7 days ago

Travis Perkins CEO Pete Redfern steps down due to ill health

Redfern joined builders' merchant last year after 14 years at Taylor Wimpey
7 days ago

Contractor services