A CONSTRUCTION materials business says a greater focus on housebuilding and infrastructure projects can be a catalyst for growth.

Breedon Group says anticipated demand across traditional building markets leaves it well placed.

Bosses also revealed the company is continuing to feel the benefits of deals for North- East operators.

The firm, which supplies a range of aggregates, asphalt and concrete, last year bought Sherburn Minerals Group, based at Sherburn Hill, County Durham, in a £15.7m agreement.

That came just months after Breedon took on Hope Construction Minerals, known for running sites in Darlington and Bishop Auckland, and Peter Tom, Breedon chairman, said the ventures will play a key role in the company’s future in a stronger building environment.

Speaking at the business’ annual general meeting yesterday (Tuesday, April 25), Mr Tom said: “We have made excellent progress with the integration of the former Hope Construction Materials and Sherburn Minerals businesses.

“Their operations have all been integrated into Breedon Northern, Breedon Southern and Hope Cement, each of which is now operating as a fully autonomous division.

“Meanwhile we are continuing to invest in capacity and operational improvements and the outlook for our industry continues to be positive.

“The Construction Products Association is forecasting a five per cent increase in construction output between 2017 and 2019, with the strongest growth expected to be in infrastructure and housing, which together have historically accounted for approximately two-thirds of our end-use markets.

“Against this backdrop, we remain confident of delivering a performance in line with market expectations for 2017.”

At the time of the acquisition, Sherburn employed 110 people and operated four quarries and five ready-mixed concrete plants in Shadforth, County Durham, Richmond, North Yorkshire, Hartlepool, South Shields and Cumbria.