Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Holcim writes down NZ manufacturing assets ahead of closure

Holcim writes down NZ manufacturing assets ahead of closure

By Pam Graham

July 7 (BusinessDesk) – Writedowns ahead of the closure of Holcim New Zealand’s Westport cement manufacturing plant in 2016 have blown a hole in the company’s accounts.

The accounts for the New Zealand holding company, Fernhoff Ltd, for the year to Dec. 31, 2013 filed to the Companies Office on Friday show $31 million of charges for the plant, comprising a $23 million impairment and $8 million project cost writedown.

The plant will close by the second half of 2016 when new import facilities at Waitemata in Auckland and Timaru costing $100 million 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”.

“The directors note the impact on the financial statements due to the announced pending closure of the Westport cement manufacturing plant,” the Fernhoff accounts say.

The directors point out assets exceed liabilities in the balance sheet after the writedowns by $67.5 million. However, the balance sheet shows $55 million of intangible assets, most of which is goodwill for the cement, concrete, lime business.

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

McDonalds Lime 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.

Holcim had sales in New Zealand of $200.57 million in calendar 2013, down from $219.4 million the previous year. It did not comment on supplies to the Canterbury rebuild.

Depreciation and impairment charges are taken above the line, producing a loss before tax of $51.8 million compared to a loss of $10.2 million last year when there was also $26.8 million of depreciation and impairment charges.

The company has deferred tax losses, which provided a $15.9 million positive in the income statement, helping to after-tax loss of $35.9 million. Holcim’s local unit reported a net loss of $7.8 million in 2012.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Internet: NZ Govt Lifts Target Speeds For Rural Broadband

The government has lifted its expectations on faster broadband speeds for rural New Zealand as it targets increased spending on research and development in the country's information and communications technology sector, which it sees as a key driver for export growth. More>>


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Scouring: Cavalier Merger Would Extract 'Monopoly Rents' - Godfrey Hirst

A merger of Cavalier Wool Holdings and New Zealand Wool Services International's two wool scouring operations would create a monopoly, says carpet maker Godfrey Hirst. The Commerce Commission on Friday released its second draft determination on the merger, maintaining its view that the public benefits would outweigh the loss of competition. More>>


Scoop Review Of Books: She Means Business

As Foreman says in her conclusion, this is a business book. It opens with a brief biographical section followed by a collection of interesting tips for entrepreneurs... More>>


Hourly Wage Gap Grows: Gender Pay Gap Still Fixed At Fourteen Percent

“The totally unchanged pay gap is a slap in the face for women, families and the economy,” says Coalition spokesperson, Angela McLeod. Even worse, Māori and Pacific women face an outrageous pay gap of 28% and 33% when compared with the pay packets of Pākehā men. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news