Against the background of continuing good growth in US demand for wallboard, and with very high current levels of capacity utilisation, BPB is now progressing plans for the commissioning of further manufacturing capacity to meet medium-term sales growth and improve customer service levels in the eastern US region.

BPB is therefore pleased to announce the completion of a long-term agreement with American Electric Power, the largest coal-fired power utility in the US, for the supply of desulphogypsum to a new 700 million square feet capacity wallboard plant to be located near the Mitchell power station in West Virginia. This planned $100 million investment complements the group’s agreement last year with Progress Energy to supply desulphogypsum to a new $100 million wallboard plant alongside their coal-fired generator at Roxboro in North Carolina.

The new Mitchell-sourced plant will be commissioned in the second half of 2007, with the previously announced 700 million square feet of additional capacity at Roxboro expected to come on-stream in late 2008.

Commenting on the group’s planned $200 million capacity expansion in the growing US market, Richard Cousins, BPB chief executive said:

"The agreements with American Electric Power and Progress Energy provide BPB with secure sources of high quality desulphogypsum for two well-located US wallboard plants which will operate at world class manufacturing standards, establish a more efficient cost base and significantly strengthen our market representation in the east, where we are currently under-represented."

• BPB is the world leader in the supply of plasterboard and gypsum plasters, and a major supplier of insulation, ceiling tiles and related products for interiors, serving growing markets for building systems in over 50 countries.



• BPB published a trading update for 2004/05 on 17 March 2005, expecting full year underlying profit before tax (before goodwill and exceptional items) to advance by some 28% to about £285 million, with North American underlying operating profit up by nearly 75% to about £70 million. The group’s announcement of preliminary results and recommended final dividend for the year to 31 March 2005 is due on 19 May 2005.