Construction is set to start this year in a move which will boost brick production by 80m units on completion in 2022.
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.
“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.
“This factory will cost around £45 million, and is expected to be commissioned during 2022.”
Ibstock is also planning to redevelop an existing manufacturing site to “expand capacity and improve our lower production cost profile” in its concrete division.
The announcements came as Ibstock posted results for the year to December 31 2019 showing a 12% drop in pre-tax profit to £82m on turnover up 5% to £409m.
