Gypsum industry news

New Zealand: Fletcher Building has managed to grow its earnings for its Building Products division in its 2023 financial year despite a weakened residential market in the second half of the year, poor weather and rising input costs. It noted that “substantial cost increases were absorbed on gypsum, paper, resin and freight, partially offset by lower utility costs from the drop in electricity prices.” It combated this through cost management and ‘pricing discipline.’ Revenue from the group’s Building Products division fell slightly to US$863m in the financial year to 30 June 2023 from US$873m in the same period in 2022. However, earnings before interest and taxation (EBIT) rose by 4% year-on-year to US$120m from US$115m.

Ross Taylor, the chief executive officer of Fletcher Building, said “Our US$240m investment in Winstone Wallboards GIB plasterboard manufacturing and distribution facility in Tauranga has now commenced production and will be fully operational by the end of October 2023. The new plant’s state-of-the-art technology delivers more production capacity allowing for product innovation and future growth.”

Overall the group’s revenue dropped slightly to US$5.07bn from US$5.08bn and EBIT dropped by 29% to US$298m from US$420m. The large drop in earnings was mainly attributed to additional costs allocated to the New Zealand International Convention Centre and Hobson Street Hotel project. Adjusted for significant items the group’s EBIT rose by 6% to US$477m from US$452m.

China: Finland-based Valmet has received an order from Shanxi Qiangwei Paper to supply a machine vision system. The scope of supply includes an IQ Web Inspection System, an IQ Web Monitoring System and winder control with target-stop functionality. The investment aims to improve the operating efficiency and optimise the final paper quality of a paper production line.

Valmet is a global developer and supplier of process technologies, automation and services for the pulp, paper and energy industries. It is based in Espoo.

Shanxi Qiangwei Paper is located in the Shouyang Industry District of Jinzhong in Shanxi province. It mainly produces paper for gypsum wallboard products as well as packaging paper. It has a production capacity of 1.4Mt/yr.