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Persimmon’s timber-frame arm to double capacity with new factory
Timber-frame manufacturer Space4, a subsidiary of house builder Persimmon, is set to double its capacity after plans for a new factory were approved.
Timber-frame manufacturer Space4, a subsidiary of house builder Persimmon, is set to double its capacity with plans for a new factory #UKhousing The proposed new 493,000 sqft facility in Loughborough was given the planning green light by Charnwood Borough Council last week.
The factory, which is expected to be fully operational by the end of 2025, will produce timber-frame units for “up to” 7,000 homes a year, Space4 said.
It comes at a time of heightened focus on modern methods of construction (MMC), with two of the biggest players in the volumetric modular space – Legal & General (L&G) Modular Homes and Ilke Homes – facing an uncertain future.
L&G Modular Homes has halted production of new homes, while Ilke is seeking a buyer or new investment to ensure its survival.
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However, Space4 does not produce whole homes. It manufactures timber frames, insulated wall panels and roof cassettes from a factory in Castle Bromwich near Birmingham, which has a capacity between 5,000 and 7,000.
The majority of the shells it produces are sold to companies in the wider Persimmon group. A review by the FTSE100 house builder found that construction of timber frames by Space4 was around seven weeks faster than traditional build.
Persimmon originally acquired Space4’s factory in 2006 as part of its takeover of house builder Westbury.
In its last reported full-year to December 2021, Space4 posted a £242,000 pre-tax loss on turnover of £16.3m.
The new facility will be located at Persimmon’s 3,000-home Garendon Park scheme and create “up to” 120 jobs, the firm said.
Gareth Wicks, managing director designate at Space4, said the factory will “further our goal to place sustainable practices at the very heart of our developments”.
He added: “We’ll continue to work in partnership with the council and other stakeholders to ensure our new Space4 factory delivers real benefits for local industry and the wider Loughborough community.”
In April, Persimmon acquired an undisclosed stake in Goldman Sachs-backed modular house builder TopHat for £25m. Insurance giant Aviva also took a stake with a £20m investment.
Persimmon’s timber-frame business came under scrutiny in late 2019, after a review by Stephanie Barwise KC concluded it had a “systemic nationwide problem” with missing and/or incorrectly installed cavity barriers in its timber-frame properties.
The builder has since put new processes in place to address this issue.
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