Forterra to mothball another brick factory

The materials giant is also cutting production at its Aircrete blocks business as demand from the housing market continues to deteriorate.

The moves were detailed in a trading update which warned that full year profits would now be below market expectations.

Forterra said: “Consultation is currently underway on the mothballing of a further brick factory at Claughton in Lancashire along with cuts to production in our Aircrete business.

“The market weakness seen in recent months, coupled with the lead time associated with efficiently reducing production, will lead to our inventory build in 2023 being higher than previously anticipated.

“Looking ahead we expect to manage our operations on the assumption that 2024 demand will be at a similar level to 2023 and, accordingly we will look to align production output with this level of sales, thereby limiting further inventory growth.

“Growing political focus on increasing housing supply ahead of a general election reinforces the Board’s confidence in the long-term industry fundamentals and the Board remains confident that the Group remains well placed to benefit when market demand recovers.”

The brick giant mothballed its Howley Park factory earlier this year in a £10m cost-cutting drive as the residential market slumped.

Read More

Share:

Leave a Reply

Your email address will not be published. Required fields are marked *

Search this website