Holcim New Zealand posts full-year loss

Holcim New Zealand, reported a loss of NZD12.3m (US$8.9m) for 2016 from a profit of NZD80m in the previous year, as it transitioned from ceasing cement production from its Westport facility to becoming an importer, thereby incurring higher distribution costs.

"We had higher distribution costs due to the transition of our business away from manufacturing," a company spokeswoman said. "Our results for 2016 and YTD 2017 are in line with expectations given our focus last year was on building the infrastructure to support our new business model and this year is about bedding down the changes."

Holcim ceased production from its Westport cement plant in mid-2016 and constructed a 30,000t cement terminal in Timaru to serve the market in Christchurch and the south, which started operation earlier in 2Q16. A 30,000t cement terminal in Waitemata, Auckland, was commissioned later in the year. The two terminals were budgeted at NZD105m (US$75m).

The 2016 accounts include a NZD10.9m provision for the closure of the Westport plant, down from a provision of about NZD21m a year earlier.