Govt grants Golden Bay Cement up to $60m to keep Northland plant running
The New Zealand government has provided a $60 million grant to Golden Bay Cement to ensure the continued operation of its Northland plant until 2040. This move aims to secure domestic supply chain resilience and prevent reliance on imported cement for national infrastructure projects.
Why it matters
It highlights the tension between industrial decarbonization costs and the strategic necessity of maintaining domestic manufacturing capabilities for critical infrastructure.
The Government has granted Golden Bay Cement up to $60 million to keep New Zealand's only domestic cement manufacturer operating in Northland, in return for a commitment to produce cement at the plant until at least 2040. The deal, announced on the NZX by Fletcher Building today, was intended to provide certainty for the continued operation of the Portland plant near Whangārei, which supplies nearly 60% of the country's cement. Economic Growth Minister Nicola Willis said ministers had been advised that rising costs had led Fletcher Building to consider closing the clinker facility in favour of a cheaper import-only model, and that Cabinet had weighed the case for time-limited support in May.
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