Brickworks to re-start mothballed facilities, says NSW housing affordability needs fixing

Brickworks is restarting some of its facilities due to demand for building products, though says more needs to be done to address housing affordability.

CEO Lindsay Partridge told The Australian Financial Review that a promise to double land releases by the NSW government – which goes to the polls this weekend – was an improvement but didn’t do enough to address house prices being inflated by a lack of supply.

"The government has said it will double supply if it gets re-elected, but in reality it needs to do what the Askin government did and put 20 years of land supply out in one go,” said Partridge.

“That will cool prices pretty quickly."

He also said there was a national shortage of about 200 bricklayers.

Demand is such that Brickworks is re-starting facilities. News Corp reports that the company will bring its Horsley Park plant on April 2 and prepare its second SA kiln for production by mid-year.

Brickworks – which predicts it will create about half of the 1.5 billion bricks made nationally this year – announced an increase in revenues of 7.4 per cent to $349.6 million for the half-year to January 31.

Business Spectator and others report that this was an overall decrease in net profit on the corresponding period a year earlier.

The result was affected by non-cash impairments on its Austral precast and Auswest timber businesses worth $10 million and $6.8 million respectively.

 

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