Ports thought to be in Holcim $100m race

Port Otago and the Port of Timaru are both thought to be among New Zealand ports vying for a potential $100 million investment from cement firm Holcim New Zealand Ltd, after the company announced it would stop making cement in New Zealand, as it was cheaper to import it.

Holcim (NZ) managing director Jeremy Smith said yesterday the company would spend more than $100 million over the next three years building an import terminal and related infrastructure, at an as-yet-unnamed port, to allow it to distribute bulk cement for supply to the New Zealand market.

Once the terminal was operational in 2016, cement production at the company's Westport plant would end.

In January, the Overseas Investment Office granted the company a leasehold deal for 2.26ha of wharf and cement storage facilities at Evans Bay in Timaru, but a final decision on where the import terminal would be located would not be made for another ''few months'', Mr Smith said.

Port Otago commercial manager Peter Brown yesterday declined to say if the port was one of those under consideration.

A decision on whether to go ahead with the estimated $400 million Weston project, which would have employed 140 people and another 170 people indirectly, had been delayed constantly since the Environment Court approved resource consent for the dry process plant in Weston-Ngapara Rd in 2009.

However, the proposed Weston plant was now ''on hold for the foreseeable future'', Mr Smith said.

''We recognise that this decision has an impact for our staff, customers and for the Westport and Weston communities.

"It's one we've arrived at after extensively investigating a range of cement supply options and we will be working through the implications with those who will be impacted by the move.''

Holcim would retain the land it owned in the Weston area, he said.

He acknowledged that the Weston proposal had generated ''considerable interest and support'' from the local community.

Weston supermarket owner Phil McNamara, said he had ''certainly hoped'' the plant would be approved and built.

''It would have benefited the whole town. We definitely would have opened longer and were planning to upgrade the shop.''

Otago Chamber of Commerce North Otago advisory board chairman and Weston resident Gary Kircher said the decision was ''disappointing''.

''Not only are these jobs being lost in Westport, but they are not being picked up in Weston.

''The local situation is we had the chance to get a good number of good-quality jobs, which would help diversify our economy and that opportunity has been put on hold.''

Waitaki Mayor Alex Familton said although he was ''disappointed'', he still saw a future, ''albeit some time'' out, for Holcim in the district.

- andrew.ashton@odt.co.nz

 

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