Australia’s largest brick and tile maker, Brickworks, has announced a scaling back of its Western Australian operations in response to weak demand and a drop in profits.
Last week the company reported a 54 per cent reduction in first half profit, which was attributed primarily to declines at the WA and Queensland Austral Bricks divisions.
It has now announced Plant 3 at its Cardup bricks factory will be closed in July to provide a more “appropriately sized manufacturing operation”.
Managing director Lindsay Partridge said: “these measures have been taken in response to the structural changes in the market and the continued subdued residential construction activity.”
The company’s Malaga plant will take over manufacture of the majority of products currently made at the Cardup plant.
The Cardup plant will remain in place for a number of years to give the company flexibility in potentially re-opening the site, should the market pick up.
The closure is the company’s third in four years after it closed Plant 2 at Cardup and the Waterloo plant in 2009 – a total reduction in output of about 25 per cent, or 60 million standard brick equivalents.
Perth's other brick manufacturers, Boral and BGC subsidiary Brikmakers, are also believed to have reduced capacity.
