Fletcher Building's cement unit secures $35 million government lifeline

Fletcher Building

19/07/2026 23:15

July 20 (Reuters) - New Zealand's Fletcher Building FBU.NZ on Monday said the local government has granted its unit Golden Bay Cement up to NZ$60 million ($35 million) to support its Northland operations.
Here are the details:
The agreement with the New Zealand government provides certainty for Golden Bay Cement's continued domestic manufacturing capability and planned decarbonisation pathway, Fletcher said.
Golden Bay Cement, which operates New Zealand's only domestic cement manufacturing facility at Portland, supplies about 60% of the cement used by the island nation and nearly 95% of the firm's output is sold domestically. 
The construction materials firm said Golden Bay Cement will continue producing cement at its Northland plant until at least 2040, and invest at least NZ$150 million through to 2040.
"Without Government support, increasing costs ... would likely have required us to close the plant and move to an import-only model from 2030," said Fletcher Building CEO and Managing Director Andrew Reding.
The construction materials maker added that Golden Bay has invested in modernisation upgrades and alternatives to fossil fuels in its processes. 
($1 = 1.7138 New Zealand dollars)

 (Reporting by Keshav Singh Chundawat in Bengaluru; Editing by Edmund Klamann)
 ((Keshav.singhchundawat@thomsonreuters.com))