Feb. 13 (Bloomberg) -- Hanson Plc, the world's biggest supplier of sand and gravel for construction, said one of its U.S. units reached an agreement to cap asbestos costs.

The subsidiary, responsible for about 20 percent of claims against Hanson, will pay $35 million over three years, with insurers covering all costs beyond that date, the company said in a statement today.

Hanson, based in London, faced about 133,600 outstanding asbestos claims as of June, it said on Aug. 10. Today's agreement will reduce annual costs from payments to about $48 million before tax from 2008, down from about $60 million.

Shares of Hanson rose 4 pence to 690 pence and were trading at that price as of 8:02 a.m. in London. The stock has added 19 percent in the past six months, valuing the U.K. company at 4.96 billion pounds ($8.64 billion).

A $140 billion fund for U.S. victims of asbestos exposure aimed at ending litigation which has forced almost 80 companies into bankruptcy is currently with the Senate. The plan would be financed by companies that sold or made products containing the cancer-causing mineral.

Hanson's settlement relates to insurance policies issued up to the mid 1980's and will cover asbestos claims against the subsidiary ``well beyond'' 2020, the company said. The deal is subject to undisclosed payment limits.

This is cache, read story here