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21/12/2007

Wienerberger to build further hollow brick plant in France

- First hollow brick plant in the north of France
- Expansion of hollow bricks growth segment and strengthening of market position
Vienna, December 18, 2007 - Wienerberger AG, the world's largest producer of bricks and the number two in clay roof tiles in Europe, is continuing to pursue its expansion strategy in France and strengthen the hollow bricks growth segment with the construction of a plant in Hulluch, 26 km from Lille in the region of Nord-Pas-de-Calais. Hulluch represents the first hollow brick plant in the northern region of the country, and will be built at a cost of roughly € 22 million with a capacity of 80 million NF (=standard format for bricks). The start-up phase is scheduled for late fall 2008.
Strengthening of hollow brick segment
Heimo Scheuch, member of the Managing Board of Wienerberger AG with responsibility for North-West Europe and Germany, explained the reasons for this investment: "France is a very dynamic market with a rapidly growing population that currently equals roughly 60 million and a high level in new residential construction. Wienerberger hollow bricks have established a solid position on the French construction market in recent years, despite the traditional focus on concrete products. The favorable trend in this segment lead us to expect additional opportunities for growth in this country, even though we see a slight weakening in new residential construction over the coming years."
Strategic development of site concept and product line
The north of France between the Belgian border and Paris - in particular the departments of Somme, Nord and Pas-de-Calais with a population of roughly 4.5 million and a construction market that is currently characterized by strong development - represent a great potential for Wienerberger. At the present time the company meets the demand for hollow bricks in this area from its plants in Alsace. The conversion of the current facility in Hulluch from the production of facing bricks to hollow bricks will optimize deliveries not only to this region, but also to the neighboring Belgian market. In order to meet the demand for facing bricks, this production will be relocated from Hulluch to the Bar plant in Flines Les Raches near the Belgian border and to other nearby facilities. "The strategic improvement of our site concept for the region between France and Belgium as well as the coordination of our production capacity for hollow bricks and facing bricks will allow us to further strengthen our market positions in this region", explained Heimo Scheuch in conclusion.

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