Brickability Group PLC (AIM:BRCK) has entered into a joint venture to manufacture roof tiles in a deal worth around £9mln in revenue a year.
The AIM-listed group entered into an agreement with La Perla Participaties B.V. and Harold Kock via a jointly-owned venture vehicle Schermbecker Building Products, with Brickability holding a 50% stake.
Statring in Autumn this year, the joint venture is expected to produce about 22mln clay roof tiles, equivalent to 45,000 tonnes, into UK and European markets each year, offsetting the 25,000 tonnes the group currently imports.
Schermbecker Building Products will operate from a factory in Germany leased from Nelskamp, a leading German tile manufacturer and producer of roofing materials.
"This strategic partnership with Nelskamp will provide a much-needed solution to the severe shortage of clay roof tiles in the UK, in doing so further strengthening the Group's position in the market and further demonstrating both Brickability's expertise in procurement and the long and strong relationships we enjoy with our partners," said Brickability CEO Alan Simpson.
Brickability has invested €0.5mln in the Joint Venture and will provide a €3.5mln loan to be repaid at the end of June 2025.
Share in Brickability rose 0.55% to 91p.