A new $400 million cement plant near Weston and cement-handling facilities at Timaru's port remain in limbo because of ongoing uncertainty in the global economy and a flat demand for cement.
Holcim (New Zealand) Ltd has resource consents to build the plant and port facilities, but its parent company in Switzerland has delayed giving approval.
Holcim's New Zealand chairman, John Lindsay, and managing director, Jeremy Smith, in a recently released review of the 2012 calendar year, said while the project did not gain approval last year, various areas of work continued to ensure the project remained ready should funding become available.
''The company appreciates the uncertainty this generates for staff, communities and other stakeholders.
''However, unfortunately it is an inevitable outcome of the broader economic uncertainty in New Zealand and globally,'' they said.
While the market for cement in New Zealand remained flat or was decreasing in some parts of the country, this had been off-set by the start of the rebuilding in Canterbury after the earthquakes.
The higher New Zealand dollar had resulted in increased competition while cost pressures squeezed margins last year.
All these factors had contributed to the company taking a conservative approach to its activities and continuing the focus on reducing the delivered cost of product to the market, cash recovery and customer service.
Its outlook for this year was the construction industry in New Zealand remaining subdued, but with hints of recovery through increases in building consents, particularly in Christchurch. Auckland also looked poised for a gradual recovery.
The Weston plant could employ about 140 people directly and about 170 indirectly in services associated with it.
Holcim NZ sought approval from its parent company in October 2011, but that was delayed a year. Last year it was delayed again.
Once approved, it would take about two years to build and commission the plant, with cement being taken by rail to Timaru for distribution.
