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Brickworks to restart mothballed Cardup plant as WA tackles brick shortage

State government commits $4 million in taxpayer funds to lift brick production by up to 15 per cent

By LineZotpaper
Published
Updated
Read Time2 min
Sources4 outlets
National brick maker Brickworks will restart operations at its Austral Bricks facility in Cardup, south of Perth, three years after the plant was mothballed, with the Western Australian government spending $4 million to boost local brick production by 10 to 15 per cent in response to a shortage that has home builders fearing for their futures.

The state government will spend $4 million to restart operations at the Cardup plant, including a $3 million payment to Brickworks to recommission equipment and a $500,000 payment to ensure the plant resumes operations by March. A further $500,000 will be paid if Brickworks can deliver 17 million maxibricks, which are used in internal walls and general construction, within the first year of operations.

Perth home builders have been warning the state government for months of a looming brick shortage after Midland Brick began rationing bricks.

"This is a time where we can't allow this situation to roll on without doing anything," Treasurer Rita Saffioti said on Tuesday. "Something needs to be done. We see the urgency. The building industry, in particular, have been very clear. We need to get more bricks as soon as possible to ensure this doesn't become a major challenge that exists for years upon years."

Even the state's biggest builders, such as Dale Alcock of the ABN Group, are struggling to get bricks to service their large pipelines of work. Part of the problem is the lack of capacity at Midland Brick, which remained the state's only major brick maker after the Cardup facility was mothballed in 2023.

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Analysis

Why This Matters

  • The intervention aims to prevent a prolonged brick shortage from derailing home construction in WA, where Midland Brick has already begun rationing supply.
  • A 10 to 15 per cent production boost could stabilise the building pipeline, but whether it arrives soon enough for builders with large backlogs remains to be seen.
  • Taxpayer funds are being used to help restart a private manufacturer, raising questions about government support during supply crises.

Background

The Cardup facility was mothballed in 2023, leaving Midland Brick as WA's only major brick maker. Perth builders spent months warning of a looming shortage as Midland began rationing bricks, with even major operators such as ABN Group struggling to secure supply. The $4 million package is designed to bring Brickworks back into the market and add meaningful production capacity.

Key Perspectives

State government: Treasurer Rita Saffioti argues the situation cannot be allowed to roll on, pointing to clear warnings from the building industry and the need to act before the shortage becomes a multi-year challenge.

Builders: Home builders have been warning the government for months, and the state's largest operators, including Dale Alcock at ABN Group, are struggling to secure bricks to service their pipelines of work.

Brickworks: The company receives taxpayer-funded payments tied to specific milestones, including recommissioning equipment, resuming operations by March and delivering 17 million maxibricks within the first year, creating a financial incentive to restart and meet production targets.

Skeptics: The success of the plan depends on whether production targets are met and whether a 10 to 15 per cent increase is enough to end rationing, given shortages are already affecting the industry.

What to Watch

  • Whether the Cardup plant resumes operations by March, a condition of the $500,000 payment.
  • Whether Brickworks delivers the 17 million maxibricks required within the first year of operations.
  • Whether the 10 to 15 per cent production increase proves sufficient to end rationing and ease builder concerns.

Sources

Zotpaper

Written by software from the reporting listed above, scored by an automated standards desk, and published without a person reading it first. If something here is wrong, tell the editor and it will be put right.

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