Thursday, June 30, 2011
NEW ZELAND: Cement plant plan moves step closer
A new $400 million cement plant near Weston, which will bring more than 300 new jobs to North Otago, has moved a step closer.
But Holcim (New Zealand) Ltd still needs approval from the board of directors of its parent, Holcim Ltd, in Switzerland, for the project to proceed. That decision is expected by the end of this year.
Last month, the proposed plant cleared a major hurdle when Holcim's international executive committee, made up of regional managers and key head office executive staff, recommended the project proceed to the board for its consideration.
That has made Waitaki Mayor Alex Familton "very optimistic" that it will go ahead.
Holcim NZ capital projects manager Keith Cowie was delighted yesterday the project had gone a step further.
The New Zealand project team made a presentation to the committee last month providing further information requested about the plant.
Expressions of interest from potential contractors would also be called within the next few weeks.
Construction could start next year year if approval is received this year.
Mr Familton described the committee's decision as a "very significant step", but urged caution.
"The chances of the project going ahead are obviously very good, but we still require that final tick-off from the board.
"Until then, we can't be certain," Mr Familton said.
If approved, construction of the plant at its peak would employ almost 500 people, about half from outside North Otago because of its limited labour market.
Once in full production, 116 workers and up to 25 management and technical staff would be required. Some would transfer from Holcim's Westport plant, which would close.
A further 180 indirect jobs would be created in North Otago's goods and services sector.
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