Ibstock closes another brick factory

Grant Prior 11 months ago
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Ibstock has shut down its South Holmwood brick factory in Surrey following an operational review of the whole business as sales slump due to a drop in the residential market.

The brick giant added that “the consequent restructuring plan included a number of actions to temporarily reduce capacity across the business.”

The latest shut down follows the closure of its Ravenhead factory in Lancashire last summer.

The one-off cost of closing both plants is £15m with the move expected to deliver £20m a year in savings.

In a trading update Ibstock said full year revenue is expected to have decreased by 21% to £405m with “residential construction markets expected to remain subdued in the near-term.”

Joe Hudson, CEO of Ibstock, said: “Against a challenging market backdrop, we are pleased to have delivered a resilient performance in the final quarter and for the year as a whole.  

“Throughout the period we have focused on taking the right actions in light of near term market conditions, which has led to the difficult but necessary decision to reduce headcount across the business. At the same time, we have continued to progress the projects that will underpin growth as our markets recover. 

While the pace and timing of the recovery remain uncertain, Ibstock is in robust financial health, with the balance sheet strength and financial flexibility to ensure we remain well-positioned for a return to growth over the medium term.”

 

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