Unicon sells ready-mix activities in the US

Unicon has today agreed to sell its US-based ready-mix concrete activities to Ready Mixed Concrete Co. of North Carolina, which is part of Southern Equipment Company, Inc. The approximately DKK 580m contract to sell the business will come into effect on 2 December 2002 subject to the anticipated approval of the US antitrust agencies.

The last few years have seen steady increasing consolidation within the ready-mix concrete industry on a global basis. Unicon's objective is to maintain market leadership in the regions served. However, to retain a leading position in such diverse markets as Northern Europe and North America is highly capital-demanding. It has therefore been decided to concentrate ready-mix concrete resources on the North European markets and, consequently, dispose of the activities in the US. Besides, the performance of the North American ready-mix business in recent years has not lived up to expectations. Unicon's ready-mix concrete facilities have a total turnover of some DKK 2.3bn, North America accounting for DKK 0.8bn whilst Northern Europe, comprising Denmark, Norway, Sweden and Poland, accounts for 1.5bn.

By concentrating the company's future activities in Northern Europe, the Group will have the necessary capital and managerial resources to consolidate and expand its leading position in the region. The similarities among the North European markets in terms of technology, product requirements, raw materials and customer expectations will enable further industrialisation of the business through joint production, distribution and other concepts, while simplifying systematic knowledge sharing.

The disposal of Unicon's American activities will not affect the previously announced EBIT forecast for the FLS Group. The some DKK 50m profit from the sale will be reflected in the earnings before tax (EBT).

Unicon gained a foothold on the North American market in 1984 through the acquisition of three facilities near Charleston in South Carolina. The business has grown over the years, organically and through acquisition, to become a leading supplier in both North and South Carolina with a 15 percent market share. Unicon's ready-mix business in the US employs a total workforce of about 450 people at 30 sites in North and South Carolina.

FLS Industries A/S
Corporate Public Relations