20 August 2007

Growth in Aggregate Sales in Second Quarter of 2007

Aggregate sales showed strong growth in the second quarter of 2007, compared with the same period of 2006, reflecting a general improvement in construction activity in this period. Sales of ready-mixed concrete, used widely throughout construction sectors, grew by 2% in the second quarter, confirming the growth trend evident in the first quarter.

Asphalt sales also showed a small improvement in the second quarter, although this improvement is more to do with a comparison with a very poor second quarter of 2006, rather than underlying market improvement.

We anticipate that overall aggregate and ready-mixed concrete values will remain positive for 2007, but there is likely to be another substantial reduction in asphalt sales for the year as demand for local and national highway authorities remains very depressed.

QPA Director General, Simon van der Byl, commented "The improvement in aggregate sales emphasises the need for the industry to work with Government and planning authorities to speed up the delivery of planning approvals for aggregates supply, so that the industry can meet the future needs of construction clients and society in general".

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ENDS

For more information please contact Tim Parry by tel: 0207 9638000 or e-mail parry@qpa.org, www.qpa.org