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News USG to shift focus to Asia

USG to shift focus to Asia

Written by Global Gypsum staff
03 November 2015
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Asia: USG has expanded its business in the Asian region with a joint venture with Australia's Boral to strengthen its foothold in the wallboard market.

"Korea is our second-largest market and is one of the big elephants along with Australia, Thailand and Indonesia," said James Metcalf, USG President and CEO.

USG Boral, a 50-50 joint venture formed in 2014, entered the building materials business with sales and operations across Asia, Australasia and the Middle East with a goal to grow earnings from the regions and to transform the business over the longer term through its product and manufacturing solutions, which include ceilings, cement board, fibreboard and lightweight wallboard.

Metcalf said that USG Boral has a five-year capital plan of investment in the areas and facility expansion, as well as transfer of technological know-how. He declined to disclose the exact amount of investment, citing confidentiality. "With strong GDP growth, Asian countries' adoption rate is expected to increase. The critical mass happening in Korea and the rest of Asian countries will continue to round out our portfolio," said Metcalf.

Metcalf said that the marriage between USG's building supply technologies and Boral's wallboard distribution footprint in the Asian and Australian markets is expected to create greater synergies in the next decade. "I wouldn't be surprised if this part of the business becomes larger than what we have in North America in the next 10 years," he said.

Published in Global Gypsum News
Tagged under
  • Asia
  • USG
  • USG Boral
  • Wallboard

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