Fletcher Building secures $50m funding from NZ government to save cement plant
Make us a preferred source
Make us a preferred source on Google
The news: Fletcher Building has received NZD60 million ($50 million) in funding from the New Zealand government for the continued operation of its Golden Bay Cement manufacturing facility, extending operations until at least 2040.
The context: This follows an independent assessment for Golden Bay Cement which confirmed that, without ongoing financial support, elevated carbon costs would force the closure of the facility and shift to an import-only model from 2030.
Golden Bay operates New Zealand’s only domestic cement manufacturing plant at Portland, supplying nearly 60% of the cement used in New Zealand with 95% of its output sold domestically.
Fletcher stated that by securing government support, Golden Bay can retain its domestic manufacturing facilities and invest in modernisation upgrades and alternative fuels to remove fossil fuels from its process. This secures a materially lower-carbon product than the imported cement that would otherwise displace it.
What they said: “Without government support, increasing costs, including carbon emission costs that our competitors importing cement from overseas do not currently incur at the same level, would likely have required us to close the plant and move to an import-only model from 2030,” Fletcher CEO Andrew Reding said.
“This agreement removes that risk, providing the certainty to keep investing in domestic manufacturing, operational resilience and lower-carbon production. It’s a strong example of business and government working together in the national interest,” he added.
The source: ASX
