NEW ZEALAND: Holcim's $50m cement terminal 'minion' opened at Timaru's port

The "minion" has been brought to life.

Holcim New Zealand's new $50 million cement terminal at Timaru's port was officially opened on Thursday afternoon.

The 30,000 tonne storage dome – the first of its kind in New Zealand – has unloaded two ships since December and is set to be an important gateway for cement for the South Island and lower North Island.

The company's aim is for 18 in-bound ships a year to Timaru with the Holcim-owned Milburn Carrier II shipping out-bound orders from its berth at the reconstructed No 2 wharf.

Another $50m Holcim dome in Auckland is under construction and on track to be opened by mid-2016.

Economic development minister Steven Joyce and Rangitata MP Jo Goodhew cut the ceremonial ribbon in Timaru in front of a 70-strong crowd including dignitaries, Holcim staff and customers.

Holcim New Zealand country manager Glenda Harvey said the so-called "minion" had been made a reality on time and within budget.

"This is an historic day for our company. Thank you to everyone for the teamwork required to achieve it."

Fifty people worked on the Timaru terminal's construction and six full-time employees had been on-site since the last quarter of 2015.

Holcim will now become PrimePort Timaru's single largest bulk customer.

Harvey said the terminal had "understandable" teething issues unloading its first shipment in December but things were back on track.

"We're obviously in a bit of a trial phase but the second shipment has been done in half the time so I am happy with where we are at."

Goodhew said having Holcim come to Timaru was a vote of confidence in the South Canterbury region.

"The first time I saw the dome I knew it was going to be there but I still thought it was bit of a spaceship," she said.

The company's sponsorship of local events and scholarships had shown Holcim had a genuine interest in being a part of the community and Goodhew said she hoped that continued.

Joyce said South Canterbury remained "durable" as its export-focused industries helped it get through a difficult time for dairying.

"Some would say it [South Canterbury] holds up the Canterbury economy," Joyce said. "I wouldn't say that but some would."

The minister, who had a dildo thrown at him at Waitangi earlier in the month, twitched as a passing car tooted during his speech.

"I had to make sure the window wasn't open," he said. "I'm slightly twitchy these days."

NEW ZEALAND: Holcim dome: 22,000 tonne of cement arrives in Timaru

Holcim's $50 million cement dome at Timaru's port is set to be fired up.

The company's first Timaru-bound order, 22,000 tonnes of cement, was being unloaded from the Esperance Bay ship on PrimePort Timaru's specially-constructed No 2 wharf on Wednesday.

Holcim capital projects manager Ken Cowie said the cement order, from Kanda port in Tokyo, was the first in-bound shipment for the company in Timaru.

Cowie said the Holcim-owned Milburn Carrier II, which will ship out-bound orders from Timaru, was scheduled to arrive in port for the first time later in December.

The Milburn Carrier II's home will be Timaru and it will be berthed on the south side of the No 2 wharf.

The 30,000 tonne cement silo facility was now in its completed form and no radical changes would be made to it, Cowie said.

The bright white would not be painted with a Holcim logo and would not be allowed to be painted in any way by the community either.

But if the council or members of the public were interested in shining light displays onto it, Holcim could be open to that, Cowie said.

When the pipes installed to the top of the dome were flushed for the first time, some rusty water had stained a part of the top of the dome.

This was not likely to happen again and Holcim hoped to have it cleaned soon, Cowie said.

PrimePort chief executive Phil Melhopt said the No 2 wharf was almost completed and ownership of it had been handed over to the port by Downer.

The only main part of the project that had yet to be completed was a widening of the land end of the wharf, which would allow trucks to drive onto it, Melhopt said.

"It's good to see the vessel arriving without incident and to see it safely secured on the wharf," Melhopt said. "We're pleased to have the project 99 per cent done."

Melhopt said he understood Holcim were aiming for 18 in-bound vessels a year to Timaru.

NEW ZEALAND: Onehunga wharf to lose cement boats

Cement boats docking at Onehunga port are set to become a thing of the past.

Holcim New Zealand is constructing a new cement silo at the Waitemata port and cement ships will relocate from the Onehunga Port to the new site.

At present the Ports of Auckland-owned Onehunga wharf is closed to the public.

Despite the relocation, a Holcim spokesperson says Onehunga Port will continue to be used by the company as a bagging plant and the silos will remain operational.

The port is also used for shipping container storage and as a base for the Sandford fishing fleet.

Bronwen Turner from the Manukau Harbour Restoration Society says the relocation of the boats provides an opportunity for the development of the wharf as a community amenity.

Results from an AUT University survey on the use of tourism potential of the Manukau Harbour were released in November 2014, showing overwhelming support for the redevelopment of the wharf.

An 18-month investigation carried out by ferry giant SeaLink was completed in September 2014. It looked at whether a service could operate from Onehunga to areas like Clarks Beach and Waiuku.

However a ferry service would need access to the port, Turner says.

"Its the only wharf we have in the Manukau Harbour. It is really the lynch pin to having a ferry service operating in the harbour."

A spokesperson for Ports of Auckland said the wharf will stay closed to the public for now, but did not rule out a change in the future.

"There are a lot of heavy freight movements associated with these operations and it would not be safe to open the port to the public.

"It is clear that there is potential for the wharf to be developed along the lines of the Wynyard Quarter at some point in the future. 

"It will be important for the community to be involved before any plans are put in place."

The new Holcim Waitemata terminal is expected to be completed by mid 2016, with the relocation of the cement boats planned shortly after.

NEW ZEALAND: Holcim NZ plant closure approaches

The Holcim cement factory site in Wesport could be used as an industrial park, for electricity generation or an eco park, locals say.

As the closure of Westport cement factory creeps closer, ideas keep circulating on how best the site might be used.

Holcim is an international company, headquartered in Switzerland, that owns about 400 hectares of land, the factory, buildings and a cluster of residential houses close to the Cape Foulwind, West Coast site.

When it deconstructs the cement making factory it wants to sell off the land, buildings and 10 houses for a few million dollars. More than 100 jobs will disappear.

The buildings have been suggested as a base for an industrial park, electricity generation or even an eco park where coal or waste are turned into other forms of energy.

Holcim general manager of cement Ross Pickworth said asset sale proceeds could be used towards the factory decommissioning and site rehabilitation which would cost some millions.

Much of the surrounding land was already leased to farmers, and there was interest to buy from farming groups, Pickworth said.

Buildings on the Holcim site could also be used by a new business including an industrial park.

"There's been a few ideas come up from interested parties on things that might happen, one of those being investigated at the moment is around a recycled fuel plant (or) a coal fired plant ...," he said.

"That's probably the most promising idea that someone has come up with yet (but) all of these things require a significant banker and some real credibility."

At least he thought there was "an opportunity for some sort of small commercial industrial site. We've got some good buildings and infrastructure there."

"The site will have some use, but our expectation is that the majority of our plant will get demolished because its a 60 year old cement (site)."

Holcim remained on track to close the plant early in the second half of 2016. But that date could "move out" depending on the planned commissioning of two new cement import terminals in Timaru and the Waitemata, Auckland in 2016, Pickworth said.

Holcim head of country for New Zealand Glenda Harvey said staff were also being offered to apply for positions at Holcim's Timaru and Auckland operations and also overseas including Australia. A couple had already won roles.

However, Buller mayor Garry Howard said there were underlying discussions about the need for new West Coast jobs. State-owned miner Solid Energy last week announced 113 job losses at its Stockton mine near Westport.

It was likely Holcim would maintain some staff even when the factory closure began around the middle of 2016 given the sizeable amount of decommissioning and restoration work needed, Howard said.

The Buller District council was in talks with various parties about opportunities including some on the Holcim land.

"We don't own any of the land at the site (but) we try to facilitate potential development."

One is former councillor John Hill (an industrial chemist) who suggests an eco industrial park for the site, to convert waste into energy. The Buller region already paid higher than usual electricity prices. West Coast coal could continue to be used at the Holcim kilns, converted for a coal fired electrical plant, he said.

Later the site could be converted to processing solid waste, perhaps railed from Canterbury, into energy, Hill has suggested. He has talked to French global group Veolia which had "expressed an interest" in the idea.

Howard said Holcim's restoration work on the site could also return some extra farmland. "Basically they have near enough to 400 hectares of land, and only approximately 10 hectares in plant and equipment. The balance is currently farmed (under a lease)," he said

The Holcim business with 111 staff has shown it can still hold its head up at an operational level. Last week it won a West Coast Leading Light supreme business award.

The cement factory has been operating for 57 years. Harvey and Pickworth said it was unlikely that Holcim would retain ownership of the site or remaining assets going forward.

NEW ZEALAND: Use of Cheap Cement Could Have Nasty Aftermath

Cheap cement imported from overseas has potential to cause significant building issues and costly legal battles in New Zealand, says New Zealand First.

"We have been informed that some concrete will crumble and weaken over time if a too highly alkaline cement is used," says New Zealand First Leader Rt Hon Winston Peters. "While New Zealand cement producers have regulated the alkaline content, overseas producers do not.

"New Zealand First calls on Building and Construction Minister Nick Smith to reassure New Zealanders that all imported cement will be required to meet strict standards.

"The Minister must consider if it is time to rethink the industry's self-imposed specifications, particularly if more and more cement is being imported.

"Where the strength of our buildings is concerned there is no place in New Zealand for cutting red tape, which the Minister spoke about recently in talking about shoddy builders.

"The potential detrimental reaction from some imported cement was discovered in the 1940s during dam construction.

"Some cements when combined with local volcanic aggregates caused an alkali silica reaction which meant the concrete would have a much shorter lifespan.

"In announcing moves to clamp down on shoddy builders, the Minister said there could be a temptation to cut corners with so much construction under way in the Christchurch Rebuild.

"We urge the Minister to ask questions around imported cement and put the appropriate guidelines in place," says Mr Peters. "The country can ill afford another leaky homes crisis."

NEW ZEALAND: Holcim progresses cement import plan, signals exit of lime business

Holcim New Zealand is moving ahead with plans to exit manufacturing in New Zealand and chief executive Jeremy Smith is losing his job as the business will be run from Australia in future.

The company's Westport cement plant will close by the second half of 2016 when new import facilities at Waitemata in Auckland and Timaru are fully operational.

Plans for a new cement manufacturing plant at Weston in North Otago remain on hold but the company is keeping the assets so it has the option of "eventually building a new cement plant". Cement for the rebuilding of Christchurch will be imported through Timaru's port.

The company is also trying to sell its lime business in New Zealand, which it no longer regards as core business.

McDonalds Lime Ltd is majority owned by Holcim NZ and part-owned by New Zealand Steel and it has the country's largest lime quarry at Oparure, north of Te Kuiti. The company also wholly owns Taylor's Lime at Dunback in North Otago.

The company announced in August 2013 that imported cement would replace local production at Westport.

"The company now has all the final approvals to go ahead with its investment of more than $100 million to build two 30,000 tonne import terminals, one in Timaru and one in Auckland," Smith said.

Construction will start at PrimePort Timaru during August and work will start in Auckland in December. Each site will employ 50 people during the construction phase and each terminal will have just six employees when operating.

"This confirmation of start dates can be taken as a sign of the global company's confidence in the strength of the New Zealand market and in particular opportunities with the rebuild of Christchurch post-earthquake," Smith said.

The changes in the business model reduce the scale of the New Zealand business so it will need fewer managers.

"The decision has been taken that it would be logical to now combine the New Zealand and Australian operations," Smith said.

The position of managing director held by Smith is being dis-established at the end of 2014 and he will remain with the company into 2015 to assist with the handover. A country manager will be appointed for New Zealand.

Smith said whilst his role was being dis-established he believed this was the right strategy for the industry and the New Zealand operation.

NEW ZEALAND:Golden Bay Cement earns top energy award

Northland's Golden Bay Cement has been hailed for its use of bioenergy to reduce CO2 emissions, winning the renewable energy category in the Energy Efficiency and Conservation Authority Awards.

The Portland-based company has cut CO2 emissions by a huge 58,000 tonnes a year and is saving $3 million every year in energy costs, as a result of substituting nearly a third of the coal burned for wood fuel.

This also includes wood sourced from demolition and construction waste that would otherwise be landfilled.

The project makes Golden Bay Cement New Zealand's largest known user of renewable wood energy outside the wood processing sector.

Its CO2 savings are the highest of any award finalist except the supreme award winner, Air New Zealand, which is avoiding 142,000 tonnes of CO2 a year.

EECA chief executive Mike Underhill said Golden Bay was setting the bar for other energy-intensive industries. "It's inspiring to see a big industrial user like Golden Bay take a leap of faith and start switching to renewable bioenergy, particularly sourced from wood waste."

Mr Underhill said the authority hoped Golden Bay Cement would inspire other energy-intensive industries like dairy.

"Industrial heat accounts for more than 30 per cent of our national energy use - and, along with transport, it has the most scope for improvement in terms of efficiency and increasing use of renewable energy," he said.