Fletcher Building is in the throes of a $40 million, three-year investment to upgrade and improve the manufacturing process and national cement supply operation of subsidiary Golden Bay Cement.

The programme is pivotal to ensuring the commercial viability of the business in competition with cement importers and sustaining its position as the only fully-integrated cement manufacturer in New Zealand, explains Golden Bay Cement general manager Paul Thorn.

“These upgrades include new storage and loading facilities at the Portland site, including a new 7,000 tonne silo and commissioning of a new ship loader for the 9,000 tonne transportation ship, Aotearoa Chief, which started delivering cement nationwide in November 2016.”

“A reduction in truck road dust contamination will be achieved with the installation of a state-of-the-art truck wheel wash and we are introducing new storage pods.”

“A refurbishment of our New Plymouth Service Centre will allow the Aotearoa Chief to replenish this region on an ongoing basis. A recent geological review of our cement quarry resources has ensured a 50-plus-year visibility window for operations at Portland and the associated supply chain links to the various regions of New Zealand.”

Furthermore, having gained a grant from the Ministry for the Environment’s Waste Minimisation Fund, Golden Bay Cement is planning additional modifications to the cement manufacturing process so as to accommodate tyre-derived fuel (TDF).

“This new sustainable fuel project will enable the Portland plant to use shredded tyres in its fuel mix and therefore reduce reliance on coal by around 15 percent.”

“The investment, which has recently been consented by the Northland Regional Council, amounts to a further $25 million investment and is in addition to the previously-mentioned $40million capital works programme at Portland. Collectively, they will future-proof the cement manufacturing facility.”

Currently about halfway through the upgrades, Golden Bay Cement is undergoing a period of significant overall operational change following the 2015 conclusion of the over 20-year reciprocal transport agreement with Holcim (New Zealand) Ltd - formerly Milburn Cement.

“Golden Bay Cement now services our bulk customers nationwide with a national supply chain model made up of coastal shipping from Portland into our various service centres in Auckland, Tauranga, Napier, Wellington, New Plymouth and Picton. The South Island (Canterbury-south) is serviced via a fleet of 700 ISO tanks that are filled in Portland and Auckland and shipped into Lyttelton.”

Currently employing 228 staff, Golden Bay Cement is headquartered in Penrose and operates a number of service/distribution centres throughout the country. Its Portland manufacturing site, which employs 130 personnel, is also noted to be a “key contributor” to the Northland community.

“The manufacturing volume was yet another record-high for the Portland plant at over 915,000 tonnes for the year-ending June 2018. This output volume is a testament to the genuine commitment the Portland team has to continually improve and get the most out of the cement plant.”

“It doesn’t stop there, as high volumes mean our supply chain team has to work equally as hard distributing the cement around the country in an efficient manner. We will continue to work on keeping a balance between sales and manufacturing volumes.”

Mr Thorn says Golden Bay Cement fully embraces its role as operator of the last-remaining, fully-integrated cement-making plant in New Zealand.

“By that we mean we manufacture the precursor material to cement called clinker and then mill the clinker into cement. Other producers either import the finished product to New Zealand or import the clinker and mill the cement in New Zealand.”

“The key advantage of this is that we are in full control of the quality and can provide a level of product consistency that our customers value.”

“This position is an extremely privileged one, as it affords Golden Bay Cement the ability to help influence the performance outcomes of the built environment and the infrastructural fabric of our country.”

Taken from Concrete magazine.