History
Forterra was formed as Hanson Building Products as the building products division of Hanson Plc.[2] It has acquired numerous other companies during its existence, including The Butterley Company in 1968,[3] London Brick in 1984,[3] Red Bank Manufacturing Company[4] and Marshalls Flooring in 2002,[5] Marshalls Clay Products and Thermalite in 2005,[6] and Formpave Holdings in 2006.[7]
In September 2007, Hanson was acquired by the German building materials company HeidelbergCement; eight years later, HeibelbergCement opted to sell the company and Hanson’s North American building products business to the American private equity firm Lone Star Funds in exchange for $1.4 billion.[8] Later that same year, Hanson Building Products was rebranded as Forterra plc.[9][10] The firm was first listed on the London Stock Exchange in April 2016.[11]
During July 2016, Forterra announced that, as a result of economic uncertainty and sufficient brick inventory levels, the firm was considering the temporary closure of its plants in Accrington and Claughton, Lancashire, comprising two of its nine British-based brick manufacturing facilities, which had a combined annual production capacity of roughly 570 million bricks.[12] In early 2017, Forterra reported that annual profit and sales had both risen, which it attributed to activity within the housebuilding sector.[13] During July 2017, it purchased the Derbyshire-based pre-cast concrete specialist Bison Manufacturing from the construction company Laing O'Rourke in exchange for £20 million; furthermore, Laing O’Rourke and Forterra agreed at the time to collaborate on product development in this sector.[14][15]
In mid-2020, amid the COVID-19 pandemic, Forterra experienced a sharp downturn in the demand that led to the firm's management considering the loss of over a hundred jobs.[16] During July 2021, the company issued a public warning that, due to a combination of factors, including material, labour and transportation, their sales performance could be negatively impacted during the latter half of the year.[17] By the start of 2022, Forterra had increased the price of its bricks by more than 10 per cent and had openly stated that further price increases could be implemented;[18] the start of the Russian invasion of Ukraine in February 2022 also added further pressure on the market.[19] During May 2022, after a decade in charge of Forterra, chief executive Stephen Harrison announced his intention to step down.[20] Later that same year, further prices increases were implemented as a result of cost inflation.[21]
By May 2023, the company was experiencing the consequences of a downturn in the housebuilding sector, which included a decrease in turnover being recorded.[22] Two months later, the company was in the process of scaling back its production activities as well as consulting on the restructuring of its commercial and support functions.[23] During November 2024, Forterra was holding talks with customers on planned price increases amid rising inflation and labor costs.[24]
