Holcim Ltd. intends to merge its Australian Group company Queensland Cement Ltd. (QCL) with Australian Cement Holdings (ACH), a joint venture between CSR Ltd. and Hanson PLC. The merger is conditional on regulatory approval and final due diligence, and is expected to be completed in the first quarter of 2003. With an annual production capacity of more than 3 million metric tons of cement, the merged company would become the largest cement group in Australia.

ACH and QCL have complementary positions in the Australian cement market. The QCL plant in Gladstone primarily supplies the Queensland and various export cement markets, while ACH focuses on the markets in New South Wales and Victoria. Together, the two companies serve a market representing 80% of the country's population. Holcim will inject all its Australian interest into the new venture, and will own 50 percent, with CSR and Hanson holding 25% each. The transaction is expected to be earning neutral in the first year for Holcim, and earning positive thereafter.

Hanson is the parent company of California-based Hanson Building Materials America and Hanson Permanent Cement Corp. CSR Ltd is the parent company of Florida-based Florida Crushed Stone Co. and Rinker Materials Corp.