New Zealand Grants $60 Million to Save Domestic Cement Plant

The New Zealand Government provided a $60 million non-repayable grant to Golden Bay Cement, a subsidiary of Fletcher Building, to prevent the closure of the nation's only domestic cement manufacturing plant. Located in Portland, near Whangārei, the facility supplies approximately 60 percent of the country's cement. Without this intervention, rising carbon emission costs from the Emissions Trading Scheme would have forced the plant to shift to an import-only model by 2030.

In exchange for the funding, Golden Bay Cement committed to maintaining domestic production and investing $150 million through 2040 in operations, resilience, and decarbonization initiatives. Economic Growth Minister Nicola Willis described the support as an exceptional case necessary to secure national economic resilience and protect the supply chain from global shocks.

Fletcher Building CEO Andrew Reding stated that the agreement removes the risk of closure and provides certainty for continued investment in domestic manufacturing. However, the move drew criticism from ACT party spokesperson Simon Court, who argued that the need for taxpayer funds proves that New Zealand's current climate targets are driving jobs and production offshore.