Marshalls said that the construction sector had remained strong over the last six months and its manufacturing network continued to be fully operational and busy, despite the escalating health crisis.
Revenue growth progressively improved in the second half of 2020 and autumn sales were ahead of 2019.
This has given the landscaping products company the confidence to invest in expansion, it said.
The St Ives project is designed to increase capacity and enable more finishes to be offered to customers.
Chief executive Martyn Coffey said: “Reflecting our increasing market confidence, in 2021 we will commence construction of a flagship dual block plant at our St Ives manufacturing site, which will be the first facility of this nature in the UK. This represents a significant capital investment, of approximately £20m over three years, which will provide more manufacturing flexibility and efficiencies when fully operational.
“St Ives is an exciting investment for Marshalls and along with our other investments reflect our commitment to continually develop and strengthen our product offer. By investing heavily in our UK manufacturing capabilities we are giving our customers more opportunities to source products from mainland Britain, which reduces lead times and the impact their projects have on the environment. This is a key part of our investment strategy and our sustainability work too.”
He added: “Although market demand remains uncertain, we remain focused on developing future growth opportunities and delivering the strategic objectives in our five-year strategy. Our strategy is underpinned by strong market positions, focused investment plans and an established brand.”