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New Zealand
Holcim New Zealand opens 30,000t Timaru cement terminal 26 February 2016
New Zealand: Holcim Zealand has officially opened its 30,000t cement terminal at Timaru port. Economic Development Minister Steven Joyce and Rangitata MP Jo Goodhew attended the opening. The US$34m project is intended to serve South Island and lower North Island, according to local press.
The terminal has unloaded two ships since December 2015. The cement producer aim’s for 18 inbound ships a year to Timaru, with the Holcim-owned Milburn Carrier II shipping outbound orders from its berth at the reconstructed No 2 wharf. Another cement terminal is being built in Auckland and is planned for opening in mid-2016.
Holcim plans rehabilitation of Westport cement plant 19 January 2016
New Zealand: Plans for the future use of Holcim's Westport cement plant after it closes are still unknown. Holcim plans to close its Westport plant in 2016 in favour of importing cement from Japan, resulting in 105 staff and contractors losing their jobs.
The company announced in September 2015 that the Westport plant might close at the end of May 2016 and plans were under way for the plant to be demolished and the quarry site rehabilitated. Holcim owned more than 500 hectares of land around Westport, including the Cape Foulwind cement plant and quarry, 11 houses at Cape Foulwind and a rail siding near Westport.
General Manager Ross Pickworth said that no decisions had been made on the future of the company's land and assets in Westport. "The focus is on looking after our people and the work that needs to be done before plant closure. Preparatory and planning work is being carried out with a focus mainly on the plant site, quarry and houses," said Pickworth.
The company was investigating what work was needed on the 11 houses occupied by staff near Westport so that they could be sold after the plant closed. The Buller District Council was looking for new businesses to occupy the plant site and make use of the town's port. The council owned the port and transporting Holcim's cement was its main source of income. Council Business Development Facilitator, John Hill, had been investigating turning the plant into an eco-park, which could include making energy from rubbish incineration or turning waste timber into diesel.
Pickworth said that demolition work was unlikely to commence until late 2016, so any potential users had, "Quite some time to register interest in the site and any equipment that may be of use."
The council had been trying to attract new industries to Buller to increase employment opportunities in the region. "Holcim is supporting this process by promoting its Cape Foulwind site to see if there is interest from other potential users of the site," said Pickworth. "An advisor has been appointed to assist Holcim with demolition planning and project management. The cost of demolition will depend on what buildings and assets may be left on site and tenders will be called for such work closer to the time."
LafargeHolcim says Australasian business is not up for sale 01 December 2015
Australasia: LafargeHolcim has said that, despite what has been reported recently in the media, its Australian and New Zealand operations are not for sale.
LafargeHolcim recently announced a plan to divest almost US$5bn of assets in 2016 after posting unexpectedly weak third-quarter results. Speculation had emerged that it might exit from the Australasia region.
However, according to local media, an internal email sent to staff on 30 November 2015, Holcim Australia Chief Executive Mark Campbell said the company was 'not currently being sold,' but could not rule out an exit in the long term.
"I have checked whether the LafargeHolcim group had made a decision to sell the businesses in Australia and New Zealand and started a sale process without my knowledge and the answer I have received is 'no,'" said Campbell. "That said, organisations change focus over time and it is impossible to say that we will always be part of the LafargeHolcim group."
Australian-listed rivals, including Boral, Fletcher Building and Adelaide Brighton, are seen as potential acquirers, should the multinational giant choose to sell off its local arm. Ireland's CRH may also be interested. However, Morgan Stanley said that many of LafargeHolcim's local competitors might run into competition issues, given that the market is concentrated among several large players. "Should Adelaide Brighton fully participate, we cannot rule out that the 50% share in Cement Australia would be divested due to Australian regulations, given Adelaide Brighton's already strong share in cement," said Morgan Stanley Analyst James Rutledge. "While we think Fletcher Building is unlikely to be in a position to participate in industry consolidation, a change in owner that was less integrated into the region may be a positive for Fletcher Building at the margin," said Rutledge. "Given Boral's strong share in aggregates and the concrete market, we believe it will be difficult to participate in industry consolidation."
While Lafarge has a limited local presence in Australia and New Zealand, Holcim bought a string of Australian assets from Mexico's Cemex in 2009 for US$2bn and now boasts more than 350 sites nationwide.
New Zealand: Two cement ship unloaders, a ship unloader and two conveyor belt systems purchased by Holcim are being shipped to New Zealand from the Netherlands on a heavy lift ship called the Happy Dragon.
One of the cement ship unloaders along with a ship unloader, which have a combined weight of 240t, will arrive in Timaru in early November 2015 and will be used by Holcim at its new dome at the Timaru Port. The other unloader and conveyor belts are bound for Holcim's Auckland dome.
Holcim's Capital Projects Manager Ken Cowie said that Holcim was excited to have the cargo in transit in the North Atlantic. "This signals the arrival on site of all the major equipment for the terminal and brings us closer to commissioning the operations later this year."
The cement ship unloaders were built by Van Aalst Bulk Handling in Hazerswoude. The largest of them is 33m long, 15.5m wide and 18m high. A logistics company brought the unloaders 20km east of Rotterdam, where they were placed on a pontoon by a floating crane and floated down to be loaded onto a ship.
Holcim's Westport job cuts near as cement import facilities open sooner 23 September 2015
New Zealand: Holcim, part of LafargeHolcim, is making faster than expected progress on an operational restructure that will lead to 120 job losses on the west coast.
The New Zealand operation has revealed plans to close its manufacturing plant at Cape Foulwind, Westport, with cement instead to be imported from the Mitsubishi Kanda plant in Fukuoka, Japan, via the Timaru and Auckland ports. Holcim will now close its Westport cement plant in the middle of 2016, with 120 job losses expected. The company said that some employees have switched to other roles.
Holcim is building a 30,000t cement silo at Timaru Port and is spending a similar amount at the Port of Auckland. The company had previously said that the silo and importing facilities would be finished in the second half of 2016. However, Holcim New Zealand country manager Glenda Harvey said that the Timaru facility could be operational in January or February 2016 and that the Auckland facility should be completed in May 2016 rather than June 2016. The Westport cement plant will remain operational until the Auckland import site is fully commissioned, then it will be closed.
When the Timaru and Auckland terminals are completed, there will be about 30 staff employed in sales, operations and technical laboratory roles. Westport cement plant staff have been able to apply for positions at Holcim's Timaru and Auckland operations and also overseas, with a small number having taken up roles in other parts of the business. Workers have redundancy provisions in their contracts. The company has about 40 staff within its Christchurch head office operation and 360 in the country across the cement and aggregates businesses.
Some Westport residents have said that the Westport cement plant site and buildings could be used as an industrial park, for electricity generation or as an eco park. Harvey said there has been no update on the site, or if alternative uses could be found. The cement plant has been operating for 57 years.
Fletcher Building earnings driven by New Zealand growth 19 August 2015
New Zealand: Fletcher Building has reported a gain in its 2015 fiscal year earnings before one-time charges, as strong growth in its biggest market of New Zealand offset a weaker performance in Australia and the rest of the world.
Operating earnings, excluding one-time items, rose by 5% to US$653m in the year that ended on 30 June 2015. Net profit fell by 20% to US$270m after US$150m of one-time charges for plant closures and impairments. Fletcher's US$150m of one-time charges included a US$78m impairment of goodwill relating to its Forman, Stramit, Tasman Insulation and Humes businesses. There were site closure costs of US$65m related to the Crane Copper Tube business and Iplex Australia. Operating earnings before one-time items in New Zealand rose by 24%, accounting for 69% of the group total, while in Australia earnings fell by 30% and by 7% for the rest of the world.
The heavy building products, which includes New Zealand cement, concrete pipes and quarry products, Australian concrete and quarry products, plastic pipes and steel and is Fletcher's biggest division, recorded a 6% decline in gross revenue to US$2.1bn. Operating earnings dropped by 17% to US$177m, as weaker trading in Australia offset gains in New Zealand. A US$8m loss from plastic pipes reflected a drop in demand from the coal seam gas sector and increased competition in Australia. Light building products, which takes in New Zealand and Australian building materials and roofing tiles, had little changed gross revenue at US$1.3bn, while operating earnings before one-time items rose by 2% to US$118m. New Zealand distribution revenue rose by 6% to US$1.76bn and earnings gained 29% to US$108m, with most of the growth coming from building supplies. In Australia, distribution revenue fell by 11% to US$826m and operating earnings before one-time items rose 6% to US$18m. Construction revenue jumped by 21% to US$1.58bn and earnings before items rose by 32% to US$140m.
In other news, Fletcher has conditionally agreed to sell the operations of Rocla Quarry Products to Hanson Construction Materials in a deal valued at about US$149m. The company expects a pre-tax gain of about US$73.5m from the sale, which requires Australian regulatory approval.
Holcim’s US$50m silo inflated on Auckland's waterfront 12 August 2015
New Zealand: A controversial new US$50m dome-shaped silo for storing cement has been inflated on Auckland's waterfront in New Zealand.
The state-of-the-art 28m-high silo holds 30,000t of cement and is located at a Ports of Auckland site on the corner of Plumer and Quay Streets, opposite Vector Arena. The dome's outer skin is made of a membrane similar to that used to build the Cloud on Queens Wharf. Consent to build the silo was granted on a non-notified basis, meaning the public did not have a say, angering groups concerned about the port's growing footprint on the waterfront.
Holcim New Zealand country manager Glenda Harvey said that the storage dome signalled a major milestone for the company. Holcim is investing US$100m to build two 30,000t new storage facilities in Auckland and Timaru as part of its business strategy of global sourcing for supply into the New Zealand market. The Auckland terminal will provide effective access to the major market of the greater Auckland and upper North Island while the terminal in Timaru would provide effective distribution to the whole of the South Island market and lower North Island.
"The project falls within the existing port operations and the company has all the approvals required," said Harvey. "We continue to work closely with the Ports of Auckland and the Auckland Council to ensure all regulatory requirements are met. We have contacted residents and businesses in the nearby vicinity of the new terminal in Auckland around the timing of the dome going up, as part of our commitment to keep them informed." Holcim hopes to have the terminal fully operational by the end of 2016.
James Hardie faces class action over HardieTex 11 August 2015
New Zealand: Victims of leaky homes are being urged to join a class action being formed against James Hardie over one of its fibre cement cladding products, HardieTex.
Law firm Parker & Associates has filed a High Court case on behalf of a Wellington couple, who have claimed that HardieTex was the cause of their US$200,000 leaky home problem. The claim alleges that James Hardie was negligent in the design, manufacture and supply of HardieTex, which was used to build thousands of houses through the 1990s and early 2000s. Building owners who have suffered damage have until December 2015 to join the action.
The country manager for James Hardie in New Zealand, Justin Burgess, said that HardieTex is no longer on the market.
Holcim New Zealand develops Waitemata Port 31 July 2015
New Zealand: Holcim New Zealand is building a new cement silo at the Waitemata Port. Cement ships will relocate from Onehunga to the new site, which is expected to be completed in the middle of 2016, according to the Manukau Courier. A Holcim spokesperson said that the Onehunga Port will continue to be used as a bagging plant and the silos will remain operational.
New Zealand: The third-largest lime producer in the world, US-based Graymont, has bought the Makareao lime plant in Otago from Holcim and took over the facility on 1 July 2015. Graymont, which has extensive interests in Canada, the US and Mexico, has also bought the McDonald's lime plant at Te Kuiti, Waikato, New Zealand.
Graymont Makareao's operations manager Craig Porter said that the lime plants' output had grown over the last two or three years and that he was excited about the new ownership. Staffing at the plant will not be affected.
Holcim's Weston cement plant project was put on hold in 2013 after it decided to import cement into New Zealand and build two new terminals, including one at Timaru, about four months from the completion of the plant. Waitaki Mayor Gary Kircher said that Holcim still owns the Weston site, associated quarries for limestone, coal and sand and consent for the cement plant that could be established there.