Ibstock has announced it is to invest £45 million in the re-development and expansion of its brick factory in Atlas, West Midlands.
The project is set to be completed by 2022, when the factory will be commissioned.
Ibstock says the investment should enable the Atlas site to deliver 80 million bricks each year.
Ibstock Brick Chief Executive Joe Hudson said: “Within our clay division, which is operating in a market in which demand for bricks exceeds that available from domestic manufacturing capacity, we have a number of opportunities to enhance capacity in both our wire-cut and soft mud operations.
“To this end, we will initiate construction in 2020 of a new, state-of-the-art factory, at an existing site. This investment will further expand our capacity against a backdrop of a significant UK housing deficit and robust demand from the new build housing sector over the medium term.”