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Housebuilder constructs own brick factory

Housebuilder constructs own brick factory

Housebuilder Persimmon is adopting a very direct approach to tackling the potential brick supply problem as it continues to expand its operations.

The company is building its own plant in South Yorkshire that will be able to produce up to 88 million concrete bricks a year when it is finished.

Work on the plant is already underway and was highlighted by the firm as it announced its latest results.

The project will be complete in the first quarter of next year and will be used to help ensure there is sufficient supply for the firm's projects as it seeks to move from strength to strength.

Indeed, the latest results have indicated that growth has continued since July, with demand apparently unaffected by the Brexit vote.

Commenting on the project, Persimmon said: "Strong discipline over procurement and tight control of all development costs provide critical support to the trading performance of the business.

"We are pleased, therefore, to announce a further investment in the group’s manufacturing capability with the construction of our new 'Brickworks' factory.

"This new facility will provide a substantial proportion of the group’s requirement for bricks."

According to Persimmon's statement, the first half of this year saw 108 new housebuilding sites being established, with 102 projects already begun in the second half of the year and around 45 more expected to start before the end of this year.

Help-to-Buy has been pinpointed by the firm as one reason for its recent increase in activity. Figures from Persimmon Homes South West revealed 64 per cent of its homes bought in the region last year were purchased by first-time buyers via the scheme, something that may have proved invaluable in a region where high levels of second home purchasing make it harder for people in many places to buy.

Image: iStock

 

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