Forterra to spend £27m on high-end brick factory

Aaron Morby 4 years ago
Share

Masonry products giant Forterra is planning to spend £27m on its Wilnecote brick factory to produce a wider range of high-end bricks for commercial and specification markets. 

Wilnecote brick factory to be closed in 2022 for modernisation
Wilnecote brick factory to be closed in 2022 for modernisation

The investment will up production capacity by 20% or 6m bricks a year, including greater numbers of the famous Staffordshire blue bricks.

But in the short term the factory will be closed for 9 months in 2022, while a new kiln, dryers and handling equipment are installed.

Forterra also announced plans to close its general precast facility at Swadlincote, Derbyshire following a review of the Bison precast business.

The firm said: “Significant progress has been made in focusing upon added value products over commoditised grey concrete where margins have been under growing pressure.

“Focusing on a smaller range of higher value products will necessitate a reduction in the required production capacity and manpower and as such we have now taken the decision to close the general precast facility at Swadlincote.”

Production will now be focused on its Somercotes manufacturing facility in Derbyshire which is targeting higher margin modular façade products for the fast-growing off-site sector.

This encompasses both heavy precast concrete products such as brick-faced concrete sandwich panels and also its SureBrick mechanically fixed brick slip façade system and the Quickwall glued masonry solution.

Announcing the outcome of the strategic business review and strong first-half results, Stephen Harrison chief executive officer, said: “The current strong trading conditions appear set to continue in the second half of the year with our customer base signalling that they expect current levels of demand to continue.

“However, we remain watchful that ongoing economic uncertainty surrounding the longer-term impacts of the pandemic, coupled with the shorter-term effects of the present shortages of labour, materials and transport across the wider sector could potentially impact demand for our products.”

Harrison added that with production generally running at full capacity and with inventory levels across the industry now at historic lows there was little opportunity to significantly increase sales volumes in the short-term.

He said in order to ease pressure on deliveries Foterra had recently agreed to buy 20 delivery vehicles at the end of their lease term.

“With replacement new vehicles now arriving this will allow us to increase our fleet of specialised crane equipped delivery vehicles to 175, providing a valuable uplift in capacity once the additional drivers have been recruited and trained. ”

Over the first half, Forterra returned a £27m pre-tax profit after a £23m loss over the same period in 2020. Revenues from bricks and blocks are now slightly ahead of 2019 levels helping to restore revenue to £180m.

Latest news

Comment: Gateway is acting like a barricade

Contractors left banging their heads on an (unbuilt) brick wall
16 hours ago

Final phase of £1.5bn Elephant and Castle revamp hits planning

Get Living submits revised plan for 500 homes and 450-bed student block
2 days ago

Ealing backs final phase of £1.3bn estate rebuild

Friary Park estate rebuild in Acton reaches end stage
16 hours ago

Green light for scaled-down Nottingham student tower

Glasshouse Street scheme will deliver 247 student rooms
16 hours ago

Aston Villa to revamp North Stand

Club to reuse existing structure rather than complete rebuild
1 day ago

Mace signs ex-ISG director to lead Euro health and tech push

Gary Sweeney to head up healthcare and life sciences consultancy arm
15 hours ago

Sir Robert McAlpine claws way back into profit

Firm says return to profit and strong cash balance validates new strategy
2 days ago

Severfield to cut staff by 6% amid pricing pressure

Steelwork contractor warns of extended tighter pricing due to project delays
2 days ago

JRL completes sale of 50% stake to Malaysian giant IJM

Deal boosts balance sheet and kicks starts growth plan
2 days ago

Green light for £100m Liverpool Baltic station build

Enabling highway works to start in the autumn
2 days ago

First live tests for flying construction robots

Drones can lay construction materials at height on site
2 days ago

Three firms land £170m Gentoo Sunderland housing deal

PHS Solutions, Esh and RE:GEN to deliver 10-year home upgrade plan
2 days ago

Gateway gridlock hits build-to-rent delivery as starts nosedive

Build to rent starts plunge 18% in the capital
3 days ago

Call to shift Gateway 2 checks to end building bottleneck

"The current system isn't working but we all want to see safe buildings"
3 days ago

GBN launches £600m bid race for SMR engineer roles

Owner engineers to provide technical and assurance services
3 days ago

Wates hires ex-Homes England chief to head public sector push

Robert Stone to spearhead its public sector and national frameworks strategy
3 days ago

Acheson Construction collapse costs suppliers £8.5m

One frustrated creditor seized a telehandler after contractor went into administration
3 days ago

Dominus wins go-ahead for 173-bed Glasgow scheme

Old Wynd Street job expected to cost around £25m to build
3 days ago

Safety Regulator misses deadline to clear Gateway 2 backlog

Investors pulling out of funding high rise buildings
4 days ago

CITB still sitting on £95m cash pile

Staff numbers jump from 666 to 763 as training body wage bill soars
4 days ago

£500m road surfacing framework market call

NEPO goes out to consultation on north east regional highways deal
4 days ago

Two share £220m Scottish rail repairs and minor works deal

AmcoGiffen and CPMS win civils and building repair deals
4 days ago

Builder wanted for £60m London leisure and flats job

Tower Hamlets aims to replace St George’s Leisure Centre in Shadwell
4 days ago

Contractor confirmed for business park expansion

Roe Developments to start on next phase of Castle Donington scheme
4 days ago

Driver escapes injury as scaffold collapses onto van

Major three-lift scaffold fall blocks north London high street
1 week ago

Gilbert Ash to be sold to staff

£267m turnover contractor to transition to an Employee Ownership Trust
1 week ago

M Group seals biggest-ever deal with Telent takeover

Digital infrastructure specialist deal lifts turnover to £3bn
1 week ago

Aggregates firm Ashville went down owing more than £3m

Debts revealed in Companies House update
1 week ago

Cardo saves 100 jobs at Breyer roofing arm

Private equity-backed Welsh maintenance group continues to expand
1 week ago

Excavator knocked off lorry going under bridge

Traffic Commissioner inquiry after accident in south London
1 week ago

Contractor services