Brickworks Plans Plant Upgrade to Increase Production by 60pc

Brickworks is planning to up increase capacity to 130 million bricks annually after a stellar year for construction supply orders.

The building material manufacturer has lodged a State Significant Development modification for its 780 Wallgrove Road, Horsley Park plant west of Sydney.

The plan would increase capacity by 62.5 per cent, from 80 million bricks a year, by upgrading the twin-tower scrubber, hardstand area and extending the stormwater detention basin.

The plans also included the creation of a new entry, parking spaces and gatehouse to improve the site’s efficiency, environmental performance, employment opportunities and reduce workplace risks.

This is an expansion on last year’s development consent, granted by the NSW planning minister, to demolish the plant two facility, install a new kiln and extend the production building.

In the 2021 financial year Brickworks recorded an underlying profit of $285 million, up 95 per cent on the previous year.

The massive increase was driven by demand for the company’s industrial land and the value of its portfolio.

At the end of June Brickwork’s leased property trust assets stood at $2 billion, generating $89 million in gross annual rent.

Unlike many other ASX200 companies, Brickworks increased its dividends during the pandemic due to its position within the market.

This result was achieved despite disruptions in its US portfolio and lockdowns in Australia costing between $3 million and $5 million.

The company’s building products also had significantly higher earnings as “changing consumer preferences towards lower density living” reflected positively on its portfolio.

Across the construction industry, supply of timber and steel has been disrupted, however, bricks were largely unaffected.

In fact, bricklayers were the most in-demand trade in the country due in part to the large volume of HomeBuilder projects under way.