Brazilian Acquisition of Reax Industria for £12m

Burmah Castrol PLC 20 January 2000 BURMAH CASTROL FURTHER EXPANSION OF CONSTRUCTION CHEMICALS Burmah Castrol plc ('Burmah Castrol'), the international specialised lubricants and chemicals group, announces the further expansion of its Fosroc Construction business with the acquisition of Reax Industria e Commercio Ltda, Brazil, for £12 million in cash. Reax is the leading supplier of concrete admixtures to the Brazilian civil engineering and construction industries, and also has a strong position in cement-based mortars and specialised coatings for the refurbishment market. The total market for construction chemicals in Brazil is around £200 million. Reax will complement Fosroc's existing Brazilian operations, creating a market leading company with sales of around £10 million, and will provide a platform for penetration of the Latin American market. This move follows Fosroc's acquisition of CIA, France, and Holderchem Euco SA (HESA), Spain, for £15 million in June 1999, and will further strengthen Fosroc's global position and technological capabilities. Tim Stevenson, chief executive of Burmah Castrol, comments: 'Fosroc Construction has a powerful technical and market position and we intend to expand this business as part of our strategy to enhance shareholder value. Following its excellent results in 1999, a programme of significant revenue investment in geographic expansion and technology development is planned for 2000, which will be supported by further acquisitions as appropriate.' For further enquiries, please contact: James Alexander, Corporate Affairs Director, Burmah Castrol plc 0171 499 9533 Sharon Ostaszewska, External Relations, Burmah Castrol plc 01793 452946 Rachel Hirst/Harriet Keen, Hogarth Partnership Limited 0171 357 9477 A copy of this release plus further company information is available on our website: www.burmah-castrol.com Notes to editors: Note 1 Burmah Castrol businesses market specialised lubricant and chemical products and services on a worldwide basis. The group had a turnover close to £3 billion and operating profits of £255 million for the full year 1998. It has over 150 subsidiaries operating in some 55 countries and employs just under 20,000 people. Burmah Castrol is based around a series of international businesses, each focused on the specific requirements of its own market place but sharing common characteristics. Four of the group's businesses trade under the Castrol brand name and the remaining businesses operate in speciality chemicals. Note 2 Fosroc Construction provides formulated products for the civil engineering and construction industries worldwide, including repair and maintenance. The Fosroc brand is recognised at every stage of the construction process, from foundation to completion. Products include admixtures to give improved workability, strength and durability to concrete in different climatic conditions; sealants for reservoirs, dams and tunnels; and products to protect new concrete and extend the life of old structures. Note 3 The acquisition of CIA, France, and Holderchem Euco SA (HESA), Spain in June 1999 enhanced Fosroc Construction's position in Western Europe, most particularly in the fast growing Spanish market where HESA's activities complement Fosroc's existing operations. Fosroc's position worldwide was also strengthened by the acquisition of CIA through its development and application of new types of polycarboxylate concrete admixture technology and cement additives. Note 4 Within the construction industry, the use of admixtures, mortars and coatings, is increasingly important. * Admixtures are added to concrete in the new construction process to improve the concrete by minimising the amount of cement required to obtain a certain strength. They also enhance the performance and durability of concrete. * Mortars are mixtures of sand, cement and small sized aggregates which are designed to remediate concrete where it has been incorrectly placed or used to repair damaged concrete. There is a wide range of mortars available for different applications and strengths. Ancillary products are used with the mortars to minimise further corrosion. * Coatings are applied to steel and concrete to prevent the ingress of aggressive elements, such as chloride, de-icing salts, acid gases in the atmosphere, which attack concrete.

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