Brickmaker to close South Yorkshire plant in November and December
Brickmaker Michelmersh said it will close its factory in South Yorkshire for two months later this year to carry out maintenance work while the demand for bricks stays quiet in the wake of the housing slowdown.
Revenue in the first half was down 16% to £35m while pre-tax profit fell a third to £4m in the six months to June.
Chief executive Peter Sharp said the shutdown at its Carlton site, which had been due to happen next spring, was being brought forward to November and December this year.
“We need to do some kiln upgrades and in a buoyant market, you’re struggling to find time to do that.”
The firm, which has five factories, closed its factory in Belgium earlier this year for the same reason but Sharp said the firm was expecting the housing market to improve next year.
Around two-thirds of Michelmersh’s business is in the new build and RMI sectors and Sharp added: “We are optimistic about next year. Our order intake is ahead of budget expectations.”
He said the firm had been encouraged by the new Labour government’s commitment to build more homes. But he added: “That will take time to filter through [although] anything that get more house built will help the sector.”
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