Chairman's AGM Statement

Avon Rubber PLC
19 January 2000

                     CHAIRMAN'S STATEMENT
                  FOR ANNUAL GENERAL MEETING
                       19th JANUARY 2000
                               
                               
The first quarter of our financial year has continued the mixed
trading pattern seen at the end of the previous financial year.
In  North America, sales volumes were flat while operations  in
Continental  Europe,  including  our  newly  acquired   Spanish
businesses,  performed  in line with our  expectations.   Price
pressure remains a feature in most of our business areas.

Sales  from  our  UK facilities were generally lower  than  the
comparable  period  in  the  previous  year  and  results  were
disappointing.   At current exchange rates and with  a  further
increase  in  interest rates last week, we expect a  continuing
difficult environment for our operations in the UK.

We  continue  to invest in product and process development  and
over the coming months the transfer of manufacturing to the new
facility  at  Hampton  Park West and  full  production  at  the
Westbury  Mixing Plant will be achieved.  The building projects
were  completed on time and within budget and we  expect  these
factories  to  provide  competitive world  class  manufacturing
sites.

The  North  American  economic picture  remains  strong.   With
labour shortages becoming a feature in many parts of the United
States,  we expect to develop further our facilities in  Mexico
in readiness for new business in 2001 and beyond.

We  anticipated that the 1999/2000 financial year would be  one
of transition, with major relocations in the first half and new
orders  scheduled to begin later in the year.  Reflecting  this
and  current  trading,  profits for  the  first  half  will  be
significantly lower than last year.  However, a rigorous review
of  our  cost structure and manufacturing facilities  is  being
undertaken  to  ensure  that  we  remain  competitive  in   the
challenging  pricing  environment in  which  we  operate.   The
second  half  and  thereafter  are  expected  to  benefit  from
improved volumes, the new facilities and a lowered cost base.


Enquiries to:

Ludgate Communications
Richard Hews                                 Tel: [phone]
Leone Lewis


Avon Rubber p.l.c.
Bill Taylor, Business Services Director       Tel: [phone]