Brick maker set to invest £95m in Leicestershire plant

Brick manufacturer Forterra is set to submit a planning application to significantly expand its brick production plant in Desford, Leicestershire.

In a statement to the London Stock Exchange this morning (22 May), Forterra said the new facility will more than double its production to 180 million bricks a year, at a cost of £90-95m.

The existing plant will remain operational until the new facility built alongside is completed. Subject to planning consent being received, it is anticipated that the new plant will be commissioned in late 2021 and that the capital expenditure will be spent over the period 2019 to 2022. Enabling and preparation costs of £1.5m relating to the project have already been committed and included in the capital budget for the current year.

Stephen Harrison, chief executive, said: “The high level of capacity utilisation in the UK brick industry, together with the attractive long term fundamentals on housebuilding supported by government policies, provides a sound basis for this major investment.

“We have chosen redevelopment of the Desford site as the favoured option of those considered as it enables us to replace the existing plant with a larger modern facility, providing both additional capacity and the benefit of a lower production cost. This will give us the flexibility to continue to serve our customers and meet their requirements as the market grows.

“The project is a key part of our strategy to grow our core business and pursue manufacturing excellence, driven by our strong customer relationships as well as our people. It will enable us to continue delivering sustainable shareholder value.”