Holcim said today it was consulting with staff over three options for its future supply, although a final decision was still a year away.
The company is importing cement to supplement production from its Westport plant, which is running at full capacity. Holcim is considering a medium-term option of maintaining the status quo, and building a new plant at either Westport or Weston, near Oamaru, to meet long-term demand."While no decision has yet been made, the findings so far indicate the existing Westport plant plus bulk imports offers a low capital cost option,’’ Holcim NZ general manager of strategy and development Paul Commons said. "When comparing the two new plant options, an Oamaru new plant option would appear to offer some advantages over a Westport new plant option."
The company expected to narrow down to two options by the end of this year, based on capital requirements and operating costs.
Holcim’s Swiss parent company, due to make the final decision late next year, was likely to consider factors such as government policy, economic confidence, availability of capital and how the options stacked up against other international investment options.