The New Zealand government has committed up to $60 million to keep Fletcher Building's Golden Bay Cement plant in Northland operating. The plant is the country's only fully integrated cement manufacturer, supplying nearly 60% of domestic cement. Without the support, rising carbon costs and import competition would have forced closure by 2030, shifting to an import-only model. In return, Golden Bay Cement has agreed to keep producing until at least 2040 and invest at least $150 million in decarbonization and plant upgrades. The government says the deal protects supply chain resilience for infrastructure projects and avoids shifting emissions overseas, as the domestic plant has a lower carbon footprint than many foreign producers. The plant also burns end-of-life tyres as fuel through the national Tyrewise scheme. The funding is a one-time response to exceptional circumstances, with clawback provisions if obligations are not met. Critics may question precedent, but the government's supply chain assessment concluded domestic cement production meets a high bar for taxpayer support.
