Brickability and Nelskamp Launch Roof Tile Joint Venture

Brickability Group plc has formed a joint venture with La Perla Participaties BV and Harold Kock for the manufacture of clay roof tiles.

The joint venture company is Schermbecker Building Products GmbH and will be operating from a factory in Germany leased from Nelskamp, the German tile manufacturer and producer of roofing materials and suppliers for UK roofing brand Crest Slate & Tile

The Joint Venture, once fully operational, is expected to produce approximately 45,000 tonnes of clay roof tiles annually for distribution into the UK and European markets. The Group currently imports around 25,000 tonnes of clay roof tiles annually.

This production will provide around 22 million additional clay roof tiles annually for the Group which will generate approximately £9 million of additional annual revenue for the Group.

The production of clay roof tiles for the UK market is expected to start-up in Autumn 2022, once the necessary modifications to the factory have been fully completed.

Brickability will hold a 50% interest in the joint venture company following a €0.5 million investment by the company. They will also provide a term loan to the joint venture of €3.5 million, due for repayment at the end of June 2025, to fund working capital, the purchase of assets and new capital investment required to produce tiles for the UK market.

Alan Simpson, CEO, Brickability Group plc, said: “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.”

Joint Venture Agreement

The joint venture agreement involving Brickability Group is with La Perla and Harold Kock. Under the terms of the agreement, Brickability will have an interest of 50% of the venture’s issued share capital and La Perla and Harold Kock holding 40% and 10% interests respectively.  Joint contributions of an aggregate of €1.0 million will be made to capitalise the venture, pro-rated to the participants respective shareholdings.

Harold Kock, Sales Director of Dachziegelwerke Nelskamp GmbH will represent the Nelskamp group’s interest in the joint venture. Harold Kock and Arnold van Huet, Managing Director of Brickability’s wholly owned subsidiaries which make up the Crest Group of companies, will serve as Co-Managing Directors of the joint venture.

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