Holcim to prepare plans for NZ plant in 2010

Holcim to prepare plans for NZ plant in 2010
Published: 11 December 2009

Holcim Ltd said it will consider plans next year for a new plant on New Zealand’s South Island to reduce reliance on imports from Asia.

Detailed costings will be prepared for the 880,000tpa plant near Oamaru, reflecting conditions set by the nation’s Environment Court in August, Holcim New Zealand Ltd. said in an e-mailed statement today. A final investment proposal is unlikely to be submitted to the parent company before late 2010, capital projects manager Ken Cowie said.

Holcim makes about half New Zealand’s cement and has been considering the Oamaru project since 2006 to replace its ageing Westport plant and product it imports. The project, priced last year at NZ$500m (US$364m), includes new port infrastructure and ships.

While the company has consent for the project, an investment commitment still needs careful consideration, Cowie said. A final decision by the group will also reflect other international investments Holcim is considering, availability of capital and New Zealand government policy, he said.