Michelmersh plans to invest 拢2.5m at its Freshfield Lane brickworks to increase output by six million bricks a year.
Freshfield Lane currently produces a range of traditional clamp fired machine and handmade stock bricks at a maximum saleable output of approximately 30 million units a year.
To increase this to 36 million, the company will buy new machinery as well as used plant and equipment from within the European brick industry.
With average brick selling prices on the rise, the investment was 鈥榲ery timely鈥�, chief executive Martin Warner said, adding that it would 鈥榖oost significantly our potential鈥�.
The company will use the remainder of the net proceeds of the share placing to reduce its overall gearing, for general working capital purposes and to look for acquisition opportunities as and when appropriate.
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