RINKER Announces Major New Quarry Operation in Las Vegas
02 May 2007 - 11:00PM
PR Newswire (US)
SYDNEY, Australia, May 2 /Xinhua-PRNewswire-FirstCall/ -- Rinker
Group Limited ("Rinker") (ASX:RIN)(NYSE:RIN) today announced a
significant expansion to the group's US business in Las Vegas,
Nevada, with a major new quarry operation that will lift aggregates
production in that region by more than 40%. The new quarry
operation will source its aggregates raw feed under a long- term
supply agreement with Chemical Lime Company of Arizona ("Chemical
Lime") -- processing and marketing around two million tons a year
of high quality limestone aggregates from Chemical Lime's Apex
quarry operation in Las Vegas. The Apex site is about 25 miles (40
kilometres) north of the Strip and adjacent to Interstate 15.
Aggregate reserves at Apex are extensive. The supply agreement is
between Rinker's US subsidiary ("Rinker Materials") and Chemical
Lime. Chemical Lime is a subsidiary of the privately-owned Lhoist
Group, based in Brussels, Belgium. Rinker Materials intends to
install an aggregate processing plant on the site, to be fully
operational within about 12 months, subject to obtaining the
necessary permits. Rinker Chief Executive David Clarke said the
Chemical Lime agreement would significantly expand the existing Las
Vegas operations -- the second major expansion of that business in
recent months. In January, Rinker announced the acquisition of the
aggregates and concrete producer JR & Sons Ready Mix, in the St
George area of Utah, about 120 miles (190 kilometres) north-east of
Las Vegas. JR & Sons is now part of the Rinker Materials Las
Vegas business. "This new agreement will further strengthen our
aggregates and downstream positions in one of the fastest-growing
regions of the US," said Mr Clarke. Rinker has invested around US$2
billion in 53 acquisitions since 1998, together with around US$1
billion in the development of new quarries and operating plants and
expansion of the base business. One of the world's top 10
construction materials groups, Rinker has operations in aggregates,
cement, concrete, asphalt and concrete pipe and products. Annual
revenue is over US$5.3 billion. Rinker has over 13,000 employees in
795 sites across the US, Australia and China. Around 80% of group
revenue comes from the US. Recent Developments On 10 April 2007,
CEMEX Australia Pty Ltd., a wholly-owned subsidiary of CEMEX S.A.B.
de C.V., announced an increase in the price offered under its
takeover offer from US$13.00 to US$15.85 per Rinker share. CEMEX
also varied other terms of its offer, including removing all
defeating conditions other than the 90% minimum acceptance
condition that remains in place. Rinker's directors have
recommended unanimously that, in the absence of a superior
proposal, acceptance of the revised offer is in the best interests
of Rinker's shareholders. Further details regarding CEMEX's revised
offer are contained in Rinker's First Supplementary Target's
Statement and amendment to its Solicitation/Recommendation
Statement on Schedule 14D-9, each of which have been filed with the
Australian Stock Exchange (ASX) and the U.S. Securities and
Exchange Commission (SEC). Important Legal Information This
communication has been made public by Rinker Group Limited
("Rinker"). Investors are urged to read Rinker's Target's Statement
and First Supplementary Target's Statement (collectively, the
"Target's Statement") and Rinker's Solicitation/Recommendation
Statement on Schedule 14D-9 (including each exhibit thereto), and
all amendments thereto, each of which have been filed by Rinker
with the ASX and the SEC, as they contain important information.
Copies of the Solicitation/Recommendation Statement (including the
Target's Statement and the other exhibits thereto), and all
amendments thereto, are, and other public filings made from time to
time by Rinker with the SEC which are related to the offer (the
"Offer") by CEMEX Australia Pty Ltd, a wholly-owned subsidiary of
CEMEX S.A.B. de C.V., will be, available free of charge from the
SEC's website at http://www.sec.gov/ or at Rinker's website at
http://www.rinker.com/ . This communication contains a number of
forward-looking statements based on management's current views,
expectations and beliefs as of the date of this communication. Such
statements can be identified by the use of forward- looking
language such as "may," "should, "expect," "anticipate,"
"estimate," "scheduled," or "continue" or the negative thereof or
comparable terminology. Such forward-looking statements are not
guarantees of future results or performance and involve risks,
uncertainties and other factors, including: the general economic
and business conditions in the United States and Australia; trends
and business conditions in the building and construction
industries; the timing and amount of federal, state and local
funding for infrastructure; competition from other suppliers in the
industries in which Rinker operates; changes in Rinker's strategies
and plans regarding its ongoing business strategy, acquisitions,
dispositions and business development; Rinker's ability to
efficiently integrate past and future acquisitions; compliance
with, and potential changes to, governmental regulations related to
the environment, employee safety and welfare and other matters
related to Rinker; changes in interest rates, weather and other
natural phenomena, energy costs, pension costs; healthcare costs;
outcomes of legal hearings such as the Lake Belt challenge and
other risks and uncertainties identified in our filings with the
ASX and the SEC. Rinker can give no assurances that actual results
would not differ materially from any forward-looking statements
contained in this communication, particularly in light of the many
risks and uncertainties regarding the Offer. None of Rinker,
Rinker's officers, any persons named in the Target's Statement with
their consent or any person involved in the preparation of the
Target's Statement makes any representation or warranty (express or
implied) as to the accuracy or likelihood of fulfilment of any
forward-looking statement, or any events or results expressed or
implied in any forward-looking statement, except to the extent
required by law. You are cautioned not to place undue reliance on
any forward-looking information. For further information, please
contact: Debra Stirling Tel: +61-2-9412-6680 Mobile:
+61-419-476-546 DATASOURCE: Rinker Group Limited CONTACT: Debra
Stirling of Rinker Group Limited, +61-2-9412-6680, or
+61-419-476-546 Web site: http://www.rinker.com/
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