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Boral to Build New Clay Tile Plant in California

Boral Limited has announced that it will invest US$27.5 million to build a new clay tile facility in Ione, California. The new plant will produce 130,000 squares¹ of tile annually and is expected to be operational in the December 2007 quarter.

Boral is the largest clay roof tile manufacturer in the United States and currently services the West Coast markets from its single US Tile plant in Corona, Southern California. The new plant at Ione, which is 75 kilometres south east of Sacramento, will increase capacity to better service customers in Southwestern USA where clay tile is used predominately on higher value housing and design conscious commercial projects. The investment will result in a 50% increase in clay roof tile manufacturing capacity in Western US markets.

Emery Severin, President of Boral USA said: "We are pleased to announce further expansion of our clay tile manufacturing capacity in the USA. This new cost-competitive facility in California will be well positioned to serve high growth areas in Northern and Central California. It will also free up capacity to service unfulfilled demand in the other fast growing markets in the Southwestern United States, such as Nevada and Arizona, and will enable us to better serve existing customers in California by reducing lead times that have extended as a result of capacity constraints at our Corona plant."

Commenting on the US clay roof tile expansion program, Boral's CEO and Managing Director, Rod Pearse, said, "Boral is the market leader in clay roof tiles in the USA and we are committed to maintaining our leadership position and growing for value. This new plant complements the construction of a new clay tile plant in Trinidad to service the Florida and Eastern US markets, which is in joint venture with the ANSA McAL group. The Trinidad plant is progressing well and is expected to be completed in the first quarter of 2006.

http://www.boral.com.au

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