Holcim New Zealand considers findings
Media Release: Thursday, 25 October 2007
Holcim New Zealand considers findings
Holcim New Zealand is
consulting with its staff as it considers findings relating
to investigations into the three priority options being
considered for meeting the projected growth in domestic
cement demand.
Holcim is considering one
medium-term (continuation of the Westport works with bulk
imports) and two long-term options (a new plant at either
Westport or Weston, Oamaru) for meeting cement demand in New
Zealand.
“We intend by the end of the year to
narrow from three to two priority options, using a number of
evaluation criteria,” says Paul Commons, Holcim New
Zealand General Manager of Strategy and
Development.
Holcim New Zealand will recommend two
options to its parent company, Holcim Limited, which will
make the final decision about which, if any, of the options
is pursued. This decision is not expected before late
2008.
For the past five years Holcim has been
importing cement to supplement production from its Westport
cement plant, which is operating at full capacity. The
current method of bulk bag importing of cement is not
considered a sustainable long-term option.
“This
is a complex task and there are many factors to consider,
including staff feedback on the three options being
investigated.
“The three options have some
differences in terms of the capital and operating costs.
It is our intention to supply to Holcim Limited for
consideration two distinct alternatives in terms of capital
requirements and operation costs.”
The key
criteria used during investigations of the options have
been: geology, energy, logistics, economics, consents, and
services (for more detail please see the separate documents:
Findings from Investigations – Cement Supply Options
Project; and Findings from Investigations – Questions and
Answers).
Parent company Holcim Limited is also
likely to consider, when looking at the two priority
options, other factors such as Government policy, economic
confidence, how the New Zealand options compare with other
international investment options, as well as timing factors
and the availability of capital.
“While no
decision has yet been made, the findings so far indicate the
existing Westport plant plus bulk imports offers a low
capital cost option
“When comparing the two new
plant options an Oamaru new plant option would appear to
offer some advantages over a Westport new plant option,”
says Paul
Commons.
ends