Hanson, the buildings materials company, said one of its US subsidiaries has reached a settlement deal with its insurers over future asbestos costs.
Hanson said that under the terms of the deal, the subsidiary will pay the first $35m of its future asbestos costs.
The company said the payment is likely to be made over a period of three years and thereafter, the subsidiary's asbestos claims will be paid in full by its insurers up to agreed, undisclosed limits.
Hanson said in a statement that those limits were expected to provide asbestos cover for the subsidiary beyond 2020, provided they are not used for non-asbestos claims.
According to the statement, the settlement deal will reduce Hanson's total annual cost relating to asbestos claims by 20% per year after 2008.
That cost, before tax, is currently estimated to be about $60m per year over the next eight years.
