In May 2006 it was announced that a number of options are being looked at, including:

• Various upgrade alternatives for the company’s cement production plant at Cape Foulwind, Westport
• Importing, either to supplement the Westport operation, or total imports.
• A new plant at Weston near Oamaru.
• A new plant on one of several possible sites in the South Waikato/King Country

A year later, after 12 months of investigations, these options were prioritised.

Discarded:

• Significant plant upgrade options for the Westport plant (semi-wet plant or combination of old and new kilns)

Viable but no further investigation at this stage:

• A new plant in the South Waikato/King Country.
• Importing of cement to meet ALL of Holcim's needs.

Further work carried out:

• Continuation of the existing Westport plant (with an appropriate maintenance and capital works programme) in combination with supporting imports on a bulk basis
• Construction of a new cement plant at Weston, near Oamaru
• A full new replacement dry process cement plant at Westport

Investigation findings reviewed:
Holcim New Zealand has reviewed the findings from its investigations into the three options above, and has consulted with staff to get their feedback prior to identifying the two priority options that will be put to our Swiss-based parent company Holcim Ltd.

Two Priority Options Identified:

Holcim New Zealand has made a decision on the two cement supply options it will put forward to parent company, Holcim Limited:

• A new plant option - a new dry process plant at Weston, near Oamaru (long term option, 50 years)
• A low capital cost option - continuation of the existing Westport plant, with an appropriate maintenance and capital works programme, in combination with imports on a bulk basis. These imports would be shipped direct to market terminals in contrast to the current method of importing cement in bulk bags (medium term option, 20-30 years)

Preferred Option Stated:

In putting forward two priority options to parent company, Holcim Ltd, Holcim New Zealand management will indicate its preference for the option it feels best meets New Zealand requirements. Subject to workable consents being gained, Holcim New Zealand will recommend the Oamaru new plant option as its preference.

Final Decision:

When the two priority cement supply options are put forward to Holcim Ltd they will first be considered by the Holcim Ltd Executive Committee, with the final decision made at Board level.
As well as considering information provided on the two priority options, and Holcim New Zealand's stated preference, other factors influencing Holcim Ltd's decision could include:

• Satisfaction with the information provided by Holcim New Zealand
• New Zealand Government policy
• Confidence in the economy
• How New Zealand options compare with other international investment opportunities
• Timing factors and availability of capital