Readymix enters agreement with CEMEX

The Board of Readymix plc announced today that it has entered into an arms length commercial agreement with CEMEX S.A. for the implementation and ongoing servicing of a proprietary business model and information technology systems.

The agreement also grants Readymix the right to use the CEMEX brand name and trademarks in Ireland.

Initially for a three year term, Readymix has the option of extending the agreement for a further five years.

The cost of adopting the business practices and the technological platform has been estimated at €3.7m, with estimated annual running costs of €2.3m.

The running and installation costs are expected to have a two year pay-back, with annual savings to the bottom line exceeding the running costs thereafter.

Chairman of Readymix Mr Adrian Auer said: "This Agreement secures for Readymix the benefits of a unique and sophisticated suite of operating systems and processes developed by our majority shareholder CEMEX, which will greatly enhance operating effectiveness and lower costs."

Readymix recently announced results for the 6 months to 30 June 2006 which showed a 25% increase in operating profits to €10.1m.