Fletcher Building jumps after cement unit secures $35 million government lifeline (updated)

Fletcher Building

20/07/2026 02:27

Updates with share moves in second bullet
July 20 (Reuters) - New Zealand's Fletcher Building FBU.NZ said on Monday the government has granted its unit Golden Bay Cement up to NZ$60 million ($35.05 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 in a statement.
Shares of the construction materials firm climbed as much as 2.4% to NZ$3.840, their highest since January 29. The stock was among the top gainers on the benchmark S&P/NZX 50 index .NZ50.
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 company 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 said Golden Bay has invested in modernisation upgrades and alternatives to fossil fuels in its processes. 

($1 = 1.7117 New Zealand dollars)

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