Hanson settles US asbestos claim

The pay-out should cut Hanson's asbestos claim costs

International building materials group Hanson has agreed to pay $35m (£20m) to settle asbestos claims in the US.

Under the deal reached with insurers, one of Hanson's US subsidiaries will pay the first chunk of future asbestos costs and insurers will cover the rest.

The settlement resolves a number of issues relating to policies issued before the mid-1980s, Hanson said.

It added that the move would cut the total cost of expected asbestos payouts pay 20% to around $48m after 2008.

In a statement, London-based Hanson said it had previously estimated such claims would average $60m a year over the next eight years.

A number of other Hanson subsidiaries in the US are currently taking legal action to resolve asbestos cases, the group added.