Forterra pauses brick production at Lancashire site

Forterra has announced that it will temporarily close its brick manufacturing plant at Claughton as demand for its products declined.

The company announced in its third quarter trading update that it expects year-end profits to fall short of predictions.

Signs were looking positive when demand for bricks increased in May and June of this year. But brick dispatches in July and August were 16 per cent lower than June and 28 per cent lower than the same period last year.

Forterra also temporarily shuttered another of its factories earlier in the year in a bid to save £10m.

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.”