New Zealand Government backs domestic cement production
Sydney (21 July)
The New Zealand Government has agreed to give Golden Bay Cement (GBC), the country’s only cement producer, NZ$60 million to guarantee continued production at its Whangārei plant until the end of 2040.
The Government plans to support GBC with a one-time grant, Fletcher Building – GBC’s parent company – confirmed to Lithos on 20 July. But it will be able to claw back the grant if GBC fails to meet investment, reporting, and production obligations, Economic Growth Minister Nicola Willis said.
“GBC must maintain domestic manufacture of cement until at least 31 December 2040, commit at least $150m of its own investment, maintain jobs, and submit to additional reporting and auditing requirements,” Willis added.
GBC accounts for about 60% of New Zealand’s cement supply, according to Fletcher Building, while global manufacturers account for the rest. Japanese and Malaysian producers supplied New Zealand with 86% and 3% of its cement imports, respectively, in 2024, data from the Observatory of Economic Complexity show.
“[But the] Government [has] determined that losing domestic cement production would leave [New Zealand] massively exposed to potential global supply disruptions,” Willis said. “Any reductions in its availability could bring essential construction and infrastructure development, and the economic activity they support, to a standstill,” Willis added.
Northland NZ – a Whangārei-based economic development agency – has welcomed the Government’s support for GBC. “As one of the region’s largest private employers, [GBC] makes a significant contribution to the Northland economy and Northland NZ celebrates the company’s success,” Northland NZ CEO Paul Linton said in a statement to Lithos.
GBC employs more than 150 staff at its Whangārei plant and accounts for 1% of the district’s GDP, according to a 2026 study. It also runs the plant’s kiln using fuel produced from waste tyres, rather than traditional fossil fuels, according to Fletcher Building.
The Government’s support for GBC comes less than a week after Japanese-owned producer Juken New Zealand announced the imminent closure of its Northland Mill in Kaitāia, a small settlement in New Zealand’s Far North District.
“The current plan is for the mill to close by 21 August 2026. Production activity will gradually reduce over the coming weeks as remaining work is completed,” Juken New Zealand Director Yasufumi Tsuchiya said on 15 July.
“[The closure] follows an extensive process to identify a buyer or alternative arrangement that would allow the mill to continue operating in a financially sustainable way. Over recent months, we explored a range of options … [but] were unable to identify a viable pathway forward,” Tsuchiya added.
But developers have proposed non-public plans to repurpose Juken’s Northland Mill. “[The plans could] see good financial returns, jobs and capability retained in the region,” Linton said. “[Northland NZ encourages] the Government to also look at this investment that [could] protect local jobs,” Linton added.
By Avinash Govind