Rinker Group Obtains Permits for New Florida Cement Mill

Sydney, Oct 31, 2005 AEST (ABN Newswire) - Additional bolt-on acquisitions in US Rinker Group Limited (RIN.AX)(RIN)(RIQ.BE)(RIQ.MU) announced today that its US subsidiary Rinker Materials Corporation ("Rinker Materials") has commenced detailed plant engineering after receiving all necessary permits for the construction of its proposed new cement mill in central Florida.

Construction of the one million tons (0.9 million tonnes) per annum cement mill is expected to commence in the second half of next year, subject to final board approval. Construction and commissioning is expected to take around two years.

The plant will involve construction of a second kiln and related equipment, adjacent to the existing 800,000-tons p.a. Rinker Materials cement plant on a 9,000-acre site near Brooksville. The new mill will increase Rinker Materials' cement production in Florida by 50%, and improve flexibility with regard to cement sourcing. Rinker Materials currently manufactures around two million tons of cement each year from its two mills in Brooksville and Miami, and imports or purchases locally a further two million tons a year.

"We are confident that the ongoing growth in the Florida market, together with the additional strategic flexibility that this project will provide, will deliver a very satisfactory return on investment," said Rinker Group Chief Executive Officer David Clarke. Mr Clarke said Rinker Materials has received the necessary Hernando County and Florida Department of Environmental Protection permits, and is committed to constructing a state-of-the-art plant that will more than meet emission and operating criteria. He said the plant would provide employment for up to 50 new employees, and involve up to 400 people during the construction phase.

A further US$38 million in bolt-on acquisitions completed Rinker Materials has also completed several bolt-on acquisitions in the US, including a sand quarry in Las Vegas, Nevada, a concrete pipe and products operation in Colorado and Wyoming, and additional quarry reserves in southern Florida. The sand quarry, Infiniton Sand, is a high quality natural sand source about 40 miles (64 kilometres) north-east of Las Vegas. Natural sand is in short supply in the Las Vegas market, and the acquisition is expected to be earning above its cost of capital within the first 12 months.

The assets of Carder Concrete Products were acquired in October. Carder comprises concrete pipe plants in Littleton and Colorado Springs, Colorado and Casper, Wyoming. Total production capacity is over 400,000 tons. The acquisition will strengthen Rinker Materials' leading market position and lower production costs in the Colorado operations, while enabling entry to a new market in Wyoming.