Brick manufacturer Ibstock is to build a new £45m clay brick factory in Walsall.
Chief executive Joe Hudson said: “Within our Clay division, which is operating in a market in which demand for bricks exceeds that available from domestic manufacturing capacity, we have a number of opportunities to enhance capacity in both our wire-cut and soft mud operations.
“To this end, we will initiate construction in 2020 of a new, state-of-the-art 80 million per annum brick factory, at an existing site, which will have an industry leading manufacturing cost and sustainability profile.
Construction will begin this year and the aim is to boost brick production by 80m units when it’s finished in 2022.
Ibstock’s results for the year to December 31 2019 show a 12% drop in pre-tax profit to £82m on turnover that was up 5% to £409m.
Hudson added: “This investment will expand further our capacity against a backdrop of a significant UK housing deficit and robust demand from the new build housing sector over the medium term.
Other plans include the redevelopment of one of Ibstock’s existing concrete manufacturing sites to expand capacity and improve the company’s lower production cost profile.