Holcim calling for expressions of interest

Ken Cowie
Ken Cowie
Contractors are being asked to register their interest in building a $400 million cement plant near Weston and a shipping terminal at Timaru's port, even although Holcim New Zealand still needs final approval for the projects.

Yesterday, Holcim New Zealand on its website invited contractors to register their interest, capital projects manager Ken Cowie saying the marketplace needs to be aware of what will be required if the company's parent board in Switzerland approves the project.

"Getting some preliminary information from the marketplace now would help us get the project under way in a timely manner if the Holcim Ltd board approves it later this year.

"It's also about getting an indication of what contractors are in the marketplace with suitable qualifications and experience to undertake the various aspects of work that will be required," Mr Cowie said.

A tentative timetable to construct the plant on a 40ha site indicated that, if the board gives approval, site preparation could start late this year, equipment ordered later this year and early next year and pouring of foundations in the third quarter of next year.

At peak of construction, almost 500 people would be employed.

Commissioning of the plant would be in early 2014 with production starting by the middle of that year.

Actual dates for work on the project would depend on if and when approval was received.

The decision to call for expressions of interest from contractors followed the executive committee of parent company Holcim Ltd last month recommending the proposal go forward to its board for a decision.

The general scope of works outlined in the expressions of interest document includes the Weston cement plant, associated quarries and pits and a new clinker and cement shipping terminal at Timaru.

The main raw material quarries and pits - limestone, tuff and siltstone - were immediately next to the plant site and silica sand would be trucked from a pit near Windsor. Coal to fuel a kiln would be trucked from an open cast pit at Ngapara.

KiwiRrail would reconstruct the branch line from the South Island main trunk line at Waiareka to the plant to haul cement to Timaru.

"Aspects of the work, such as cement plant mechanical and electrical equipment, would require the involvement of specialist international suppliers, and we've been in discussion with a number of these companies about our potential requirements since late last year," he said. Expressions of interest close on July 29.

Holcim New Zealand said it was looking for contractors who had an excellent record of working collaboratively with both the client and other contractors to successfully complete "a world-class project".

Completing the project with the least possible impact on the environment was also a project goal.

Holcim New Zealand would have overall management of the project and contract out a number of packages of work related to quarry operations, construction of the plant and the Timaru shipping terminal.

Following a review of applications, selected contractors will be provided with detailed specifications and drawings, and invited to submit bids for the various packages of work.

Once the Weston plant is completed, Holcim will close its Westport plant which is more than 50 years old, unable to satisfy future demand for cement, and has an outdated process.

- david.bruce@odt.co.nz

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