Housebuilder Wilson Bowden is building a factory that will double its prefabrication capacity, but will not make timber-frame houses.
Chief executive and chairman David Wilson said the 33,000 ft2 plant in Leicester would only make pre-fitted doors and wardrobes.
There is growing evidence that the industry is becoming sceptical about the benefits of prefab housing. Persimmon is rumoured to be considering closing Beazer's prefab factory in Ipswich, Suffolk.
Wilson said the time taken to install the doors would be cut because they would be fitted with hinges at the factory, reducing joinery work on site.
The factory, which opens in June, is being built in an industrial park two miles from the group's head office.
