UK brick maker Forterra is bringing in a new chief executive to build on what it calls a robust year of trading, impacted by high inflation.
The Northampton business – which is in the process of opening Europe’s biggest brick factory in Desford, Leicestershire – is bringing in Neil Ash to head up the business from next April. He will replace current CEO Stephen Harrison, who is stepping down from the company.
Mr Ash has a background in the sector stretching back almost three decades, and currently heads up the building performance division at Etex, a €2 billion revenue Belgium building materials business.
Forterra chairman Justin Atkinson said: “We are very pleased to appoint Neil as the next CEO.
“His business leadership and extensive building materials sector knowledge will be invaluable to Forterra in the next stages of our development and the Board looks forward to working with him.
“The board and I are grateful to Stephen Harrison for the significant contribution he has made to the business during his tenure as CEO.
“We wish him all the best for the future after he leaves Forterra in the second quarter of 2023.”
It comes as Forterra reported a strong 2022 so far despite high price rises, ongoing production capacity constraints and record low inventory levels.
The business said revenue was up a quarter on this time last year after putting prices up twice – including a 16.5 per cent rise on October 1. It said it had told customers that prices would go up again on January 1.
In a trading update the business said the new Desford factory was now online with the first bricks coming through, and the first of the two kilns now lit.
It said: “We expect to be offering bricks from the new factory for sale to customers early in 2023 with production ramping up throughout the year.
“Despite the widespread inflationary pressures, we continue to expect to deliver the project within the original £95 million budget.”
Forterra said its Wilnecote brick factory, near Tamworth, closed at the end of September to make way for a £27 million refurbishment. It is expected to reopen in October 2023.
Current CEO Stephen Harrison said: “Trading remains robust although we are watchful of the impact of the recent instability in financial markets and the reported negative impact this is currently having on the housing market.
“The group enters this uncertain time in a position of strength having a strong balance sheet with low levels of debt and high levels of cash generation.
“Inventories remain at record low levels and despite the current uncertainties we remain well-placed to mitigate the effects of a softening of demand by substituting imported bricks with domestically manufactured product.”
