Adelaide Brigton has voiced concerns that it could be forced to leave the Port of Adelaide if residential encroachment in the area is not abated.

The Australian cement producer informed the State Government the potential prospect at a state Environment, Resources and Development Committee (ERDC) meeting last week. The ERDC had recommended reducing a separation boundary to a residential development from 800m to 400m from the company’s southern stockpiles of cement – meaning new homes could be built closer to the cement producers operations. It says 400m would have "minimal impact on resident and long-term accommodation".

But Ms Lloyd told the meeting the 400m limit might eliminate the risk from dust particles, but noise pollution would remain an issue. "As a result we believe the changes to the development plan policy that may allow an encroachment of sensitive land uses into this zone may have ... a very real impact on the operations of the Birkenhead plant in this state in terms of employment and wider economic benefit," she said.

When asked by the committee’s presiding member, Labour MP Tom Kenyon, if the plant could be relocated to make way for nearby housing developments and how much such a move would cost?

The cement works’ operations manager, Felicity Lloyd, replied: "From a cost perspective it is highly unlikely in my view that it would be replaced (in South Australia)."

Greens MP Mark Parnell then suggested the company would choose to relocate in China and Ms Lloyd nodded in agreement.

Adelaide Brighton Cement, which has been in the port for more than 100 years, contributes AUD400m (US$314m) to the state’s economy and employs 400 staff at its facility in Adelaide.

Adelaide Brighton has now made a recommendation to Planning Minister John Rau that the amendment be altered to only allow accommodation at a distance of 800m.