Golden Bay Cement, which operates the Portland plant near Whangārei, said the rising cost of carbon credits had put it at a major disadvantage compared with imported cement, which is not subject to the same carbon costs.
Fletcher said an independent assessment found the plant would likely close by 2030 without Government support, leaving New Zealand reliant on imported cement.
Economic Growth Minister Nicola Willis described the payment as an exceptional one-off grant, justified by the strategic importance of maintaining domestic cement production and protecting New Zealand's infrastructure supply chain.
In return, Golden Bay Cement has committed to keep the plant operating until at least 2040 and invest a further $150 million in the business. Fletcher says the plant's total employment footprint exceeds 600 full-time equivalent jobs, both directly and indirectly.
The bailout highlights the significant financial burden the ETS is placing on major manufacturers, and the inflationary impact it is having on electricity prices, estimated to be between 8% and 14%.
NZ Herald: Government gives Fletcher Building $60m for Golden Bay Cement HERE >>>