Re Agreement

RNS Number:2649E
CSR Ld
26 November 2002

CSR JOINS HANSON AND QUEENSLAND CEMENT TO FORM AUSTRALIA'S LARGEST CEMENT GROUP

CSR Limited announced today that its 50-50 cement joint venture with Hanson PLC,
Australian Cement Holdings Pty Ltd (ACH), will merge with Queensland Cement Ltd
(QCL), to form Australia's largest cement group, with turnover around $750
million.

The new group - which is still to be named - will be an Australian company,
owned 50% by Holcim and 25% each by CSR and Hanson.

It will produce around three million tonnes of cement annually, from three
principal plants - Gladstone, in Queensland (currently a QCL plant), Railton in
Tasmania (ACH) and Kandos in New South Wales (ACH).

CSR Limited Managing Director Peter Kirby welcomed the merger. "The new company
will have a network of plants and terminals capable of providing better service
to a wider group of customers in the eastern states," he said.

"It significantly enhances the utilisation of capital for all parties, and will
enable us to compete more effectively in a very competitive international
market.

"ACH mainly supplies the NSW and Victorian markets, whilst QCL mainly supplies
Queensland and export markets, so there is very little overlap.  However, the
merger offers cost savings in areas such as logistics and corporate overheads.
QCL's excess cement capacity at Gladstone will be used to supply Hanson and CSR
in the NSW market, which will obviate the current need for ACH to invest heavily
in lifting capacity in NSW," he said.

The transaction is expected to be earnings neutral in the first year, and
earnings positive thereafter.  The Board and management are still to be
appointed.  The board appointments are expected to reflect the shareholdings of
the new company.

Subject to regulatory approval by the ACCC and the due diligence process, the
merger is scheduled for completion during the first quarter of 2003.

26 NOVEMBER 2002                                           CA&IR 04/03


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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