Forterra is planning a £90-95m investment at Desford to increase production capacity from 85 million bricks a year to 180 million bricks a year.
The existing plant will remain operational until the new facility, to be built alongside, is completed.
A planning application is now being prepared. Subject to approval, it is anticipated that the new plant will be commissioned in late 2021.
The Desford expansion project is anticipated to deliver an internal rate of return (IRR) over 20 years in excess of 15% after tax.
Chief executive Stephen Harrison said: “The high level of capacity utilisation in the UK brick industry, together with the attractive long term fundamentals on housebuilding supported by government policies, provides a sound basis for this major investment.
“We have chosen redevelopment of the Desford site as the favoured option of those considered as it enables us to replace the existing plant with a larger modern facility, providing both additional capacity and the benefit of a lower production cost. This will give us the flexibility to continue to serve our customers and meet their requirements as the market grows.
“The project is a key part of our strategy to grow our core business and pursue manufacturing excellence, driven by our strong customer relationships as well as our people. It will enable us to continue delivering sustainable shareholder value.”