New Zealand funds Golden Bay Cement to support domestic production

New Zealand has granted NZ$60 million ($35.12 million) to Golden Bay Cement to support domestic cement production, the government said in a statement July 20.

The funds will allow GBC "to continue cement manufacturing at its Whangarei plant, maintain domestic clinker manufacturing capability and undertake at least NZ$150 million in investments needed to support cost-effective domestic cement production through to at least 2040," Finance Minister Nicola Willis said.

"The government is acting to maintain New Zealand's ongoing domestic cement manufacturing capacity and ensure our economy remains resilient to global supply chain shocks," Willis added.

The GBC plant is New Zealand's only fully integrated cement manufacturing plant.

In a separate statement the same day, Fletcher Building, GBC's parent company, said the agreement with the New Zealand government provides certainty for GBC's continued domestic manufacturing capability and planned decarbonization pathway.

According to Fletcher Building, GBC's cement plant at Portland, near Whangarei, supplies nearly 60% of the cement used in New Zealand, with about 95% of its output sold domestically. The plant has a production capacity of about 967,000 metric tons/year, GBC data showed.

Platts, part of S&P Global Energy, last assessed cement (ASTM type I) FOB Vietnam at $39/mt on July 15, down 50 cents/mt from the previous week.