Brickmaker to invest £50m in unique manufacturing plant
Leicestershire-based brickmaker Ibstock is set to make a £50m investment to create the UK’s first automated brick slips factory.
The facility, to be based in West Yorkshire, is part of the launch of Ibstock Futures; a new business unit established to capture growth opportunities in new, fast-growth sectors of the UK construction market.
The investment will significantly increase Ibstock’s presence in the fast-growing market for brick slip clad walling systems in the offsite and modular construction sectors.
The planned £50m capital will provide capacity for up to 60 million brick slips per annum. An initial investment of around £38m, providing capacity to produce 30 million brick slips, will be spread evenly across 2022 and 2023, with the factory commissioning in late 2023. The second phase of investment is expected to be made shortly thereafter as additional capacity is required. EBITDA from the initial investment is expected to be at least £10m a year once the plant is operating at expected capacity levels from 2025.
The factory will be built within the existing footprint of the Ibstock’s Nostell facility, which operated as a brick factory until its closure in 2020. The planning application process has started, and construction on site is expected to start during Q1 2022.
The new factory will manufacture a wide range of different brick slip types and associated systems, and will incorporate the latest manufacturing technology to deliver a very significant reduction in carbon compared to both imported and domestically cut slips. In combination with high-quality offset projects, this will result in Nostell producing the UK’s first net-zero carbon brick slip.
Joe Hudson, chief executive officer of Ibstock, said: “Trading in the third quarter remained strong, with robust demand continuing across both the housebuilding and RMI markets. While, as expected, supply chain conditions have become more challenging, we have managed the impacts well and continue to work closely with our customers on service levels. Despite the more difficult supply chain backdrop, we remain confident of delivering an outcome for the year in line with our previous guidance.
“The launch of Ibstock Futures is an important strategic development for the Group and will directly address a number of exciting growth markets that complement our existing offer for conventional building methods as the focus on sustainability and the industrialisation of construction processes gathers pace. This investment in brick slips manufacturing capacity at scale will be a first for the UK and will enable us to take a leadership position in this fast-growing market. The Nostell plant is the first of a pipeline of growth initiatives we have in development for Ibstock Futures and we are excited about the potential this new business has to accelerate growth in the years ahead.”
