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.

NEW ZELAND: Cement plant future little firmer after Swiss move

A proposed $400 million cement plant at Weston, near Oamaru, is a step closer to going ahead.

The executive committee of Swiss-based company Holcim has recommended the Weston proposal proceed to its board for a decision.

Holcim New Zealand capital projects manager Ken Cowie said he was "delighted".

"A key step remains however; gaining approval from the Holcim Ltd board."

In a newsletter distributed recently to 8000 Oamaru residents and other interested parties, Holcim New Zealand said it was hopeful a decision would be made this year.

Waitaki Mayor Alex Familton said yesterday that it was an important step in the process.

"It's encouraging to see that progress, and we are hopeful that the board will follow through with a positive decision."

He was cautious not to pre-empt a decision. "Until the board says go, nothing will happen."

Waitaki District Council chief executive Michael Ross told a meeting earlier this month that the board was expected to consider the proposal when it met in late August.

A decision had been hoped for at the end of last year.

However, the executive committee asked Holcim New Zealand to provide further details on some aspects of the project.

The project was given approval in the Environment Court in August 2009.

If built, the plant would create 100 to 125 jobs, worth about $8m a year, and a further $5m from downstream jobs, the company has said.

However, the Waiareka Valley Preservation Society the project's main opponent said the site was in front of a significant natural landscape in a valley full of Maori and Pakeha heritage.

NEW ZELAND: Cement plant planned for Waikato

Plans are under way for a $25 million cement plant near Te Kuiti, producing 80,000 tonnes a year, with Perry Group about to lodge a resource consent application for the project.

The planned site for the plant is at Te Kumi, five kilometres north of Te Kuiti at a lime quarry owned by Ravensdown Fertilizer, which Perry Resources has a long-term contract to supply.

The site is already intensively quarried, producing high-grade agricultural lime, and burnt lime for the pulp and paper and road industries.

Perry Resources general manager Peter Walsh said the company was hoping to have its resource consent application to the Waitomo District Council ready by May. Consultation was to take place after that.

The area was already zoned industrial and its location meant it was ideal for a cement plant, he said.

Construction was expected to take 12 to 18 months after consents are granted, and the plant was expected to be commissioned in mid-2013.

The plant would supply customers throughout Waikato, Bay of Plenty and Auckland.

"Our operation is close to major markets and decreases the significant costs associated with shipping and ports infrastructure," Walsh said.

He said the operation would be a lot smaller, at 80,000 tonnes per year, than the country's two biggest cement suppliers, Holcim and Golden Bay.