Tarmac PLC - Subsids Acquisition

RNS No 4628u
TARMAC PLC
15 July 1999



TARMAC ANNOUNCES 30 YEAR DEAL WITH BRITISH STEEL

The new Tarmac Group, due to complete its demerger at the
end of this month, announces that its principal UK
subsidiary, Tarmac Quarry Products (TQP) has acquired
British Steel's interests in Cambrian Stone Limited and East
Coast Slag Products Limited to secure sole ownership of the
two companies.

The acquisition of British Steel's 49 per cent shareholdings
gives Tarmac exclusive rights to all slag arising from
British Steel's four integrated works for the next 30 years
and will further strengthen its leading position in the UK
aggregates market.

In 1998, Tarmac's aggregate sales of recycled materials and
processed industrial products amounted to approximately six
million tonnes, or 7 per cent of its primary aggregate
output.

Tarmac's recycled materials and processed industrial
products businesses have expanded in the UK and the US over
recent years and its Polish business started Warsaw's first
concrete recycling operation.

Tarmac is leading the way in the UK heavy building materials
industry in seeking innovative applications for recycled
materials and processed industrial products.  Further
development of the current slag product range is underway
and will increase the proportion of materials utilised in
the cement industry and in agricultural applications.

Cambrian Stone and East Coast Slag Products currently
process over 5 million tonnes of slag products annually.

Roy Harrison, Chief Executive of  the new Tarmac Group,
said:

 "We are committed to achieving a world class performance in
environmental practice and to developing solutions to
improve the built environment.  This contract for British
Steel's slag over 30 years means we can continue to offer
our customers realistic and proven alternatives to precious
primary aggregate products.  The new Tarmac Group fully
intends to continue Tarmac's existing commitment to the
environment."

Enquiries:

Kurt Calder        Tarmac plc        01902    307407
Sophie Fitton      Brunswick         0171  404 5959


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