recent article in USA Today

Elementis PLC 5 February 2002 PRESS INFORMATION 5 February 2002 Elementis plc Elementis plc, the international speciality chemicals group, notes the article in a recent edition of USA Today regarding possible restrictions on the use of chromated copper arsenate ('CCA') as a wood preservative in the US. Elementis Chromium supplies chromic acid which is used in the manufacture of CCA and acts primarily as a binding agent. According to the USA Today article, manufacturers of CCA intend voluntarily to surrender licences from the US Environmental Protection Agency (EPA) to use CCA and cut production under graduated caps. Were this to happen, it would be likely to affect CCA applied to timber for consumer use but it is understood that industrial uses would still be permitted. Consumer use could include decking, playground equipment and timber used in construction which has contact with the ground; industrial uses would include utility poles. Elementis understands that the EPA is engaged in a risk analysis to evaluate the use of CCA's in consumer products, in particular in relation to arsenic. Elementis is concerned that if USA Today's report is accurate, the risk analysis by the EPA would not be completed in the normal course. Elementis believes that the risk analysis should be completed before further action is considered. Elementis estimates that were these possible restrictions to be put in place, the global and US demand for chromium chemicals would reduce by around 5 and 30 per cent respectively. Dependent on the extent of the US consumer market affected, Elementis Chromium's global sales could, over a period of time, be adversely affected by up to 15 per cent. - Ends - Enquiries Elementis plc 01784 224212 Geoff Gaywood Chief Executive George Fairweather Group Finance Director Anna Passey Head of Corporate Communications Brunswick 020 7404 5959 Andrew Fenwick Rupert Young This information is provided by RNS The company news service from the London Stock Exchange

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