Gypsum industry news

Australia/UK: Richard Cousins the former chief executive of UK-based wallboard producer BPB has died in a plane accident in Australia. He worked for six years as the chief executive officer for BPB following a number of previous roles at the company. Following its takeover by Saint-Gobain he subsequently joined the board of Compass group in the food services sector and became its group chief executive in 2006.

Australia: Clean TeQ plans to build a 2Ml/day DeSALx mine water treatment plant for Fosterville Gold Mine for its mine near Bendigo in Victoria. The US$2.7m unit will use an integrated precipitation and continuous ionic filtration process (DeSALx) that will produce a gypsum-based by-product. This by-product will be compatible with Fosterville’s existing lime treatment plant. Equipment supply, installation and commissioning of the water treatment plant are scheduled for 2018.

The precipitation process removes arsenic and antimony from the mine water as a co-precipitate. The water is then treated by the DeSALx process to remove hardness, sulphate and other dissolved metals. Clean TeQ is also in talks with other mining companies to test its continuous ion-exchange systems for the treatment of process water treatment for recycling or environmental discharge.

Germany: Australia’s James Hardie is to buy Fermacell for Euro473m. The Australian company has entered into a definitive agreement to buy XI (DL) Holdings and its subsidiaries, including the gypsum fibreboard producer. The deal is expected to close in the first quarter 2018.

“Fermacell’s market position, go-to-market strategy and strong management team will enable us to scale and accelerate our European business, which has long been a strategic goal. Fermacell will diversify our geographic, product and end-market portfolio, complementing our strong positions in North America and Australasia, and will create significant growth opportunities and drive long-term value for customers, employees and shareholders,” said Louis Gries, chief executive officer (EO) of James Hardie.

Jack Truong, President, International Operations of James Hardie, added that Fermacell’s ‘broad’ European footprint and capabilities were expected to ‘accelerate’ his company’s fibre cement business growth in Europe. James Hardie is also ‘excited’ about the future growth opportunities of Fermacell’s core business in regions such as the UK, France, and Scandinavia.

Australia: The Construction, Forestry, Mining and Energy Union (CFMEU) has claimed that workers at Knauf’s Bundaberg wallboard plant have been bullied and intimidated over safety issues. The CFMEU has released information that claims that Workplace Health and Safety Queensland has hit the plant with eight safety improvement notices since it opened in late August 2017.

The CFMEU’s divisional branch assistant secretary Jade Ingham said said that workers had been greeted with a hostile response when they attempted to take their safety concerns higher. “These workers have been bullied and intimidated for raising concerns about the safety and wellbeing of them and their workmates,” she said. “To have a brand new state-of-the-art factory like this have eight safety improvement notices cast upon it in the first two months of being open is a disgrace.”

Knauf Plasterboard Operations Director Sean Wareham confirmed that the factory had received eight work improvement notices but that ‘none of the items found were deemed to warrant the issue of an infringement notice.’ He said that, throughout its commissioning, the company had maintained its goal to ensure that all factory, engineering, safety practices and legal compliance requirements were adhered to.
“WorkSafe Queensland was invited to attend the Bundaberg site yesterday and determined six of the eight improvement notices have been closed out,” he said. “Of the two remaining notices, one is complete, awaiting official close out, and the other is on track to be completed ahead of time.”
Wareham said as part of Knauf’s commitment to providing a safe place to work, the company actively encouraged employees to raise safety matters, took any improvement recommendations extremely seriously and continued to work closely with its employees and WorkSafe Queensland.

Australia: After a construction period of just 11 months, the US$55m Knauf gypsum wallboard factory at Bundaberg, Queensland has produced its first wallboard. The plant received its first delivery of gypsum at the plant in late July 2017.

Australia: The Port of Bundaberg has received its first shipment of gypsum for the new Knauf Plasterboard wallboard plant that has been built there. The US$55m plant has recently been constructed at the port, according to Australian Government News. The port expects to receive a gypsum shipment every two to three months from now on. The wallboard plant is expected to officially open in August 2017.

Australia: Treasurer and Minister for Trade and Investment Curtis Pitt toured the construction site of Knauf Australia's US$53m wallboard manufacturing facility near Bundaberg on Wednesday 15 March 2017. Construction of the plant began in early 2016.

"Knauf Australia is well on the way to completing its plasterboard manufacturing factory at the Port of Bundaberg and is expected to commission the plant by mid-July and begin production in August," said Pitt. "Knauf considered a number of locations for its new plant to service the northern Australian markets, including some offshore options. Attracting a global operation like Knauf to Bundaberg offers many benefits for the local community, including the creation of 60 jobs in the region, and around 70 when full production is reached in two years."

Australia: Boral's revenue from its gypsum wallboard join venture, USG Boral, has risen by 2% year-on-year to US$566m in the first half of its financial year, which ended on 31 December 2016, from US$552m in the same period in 2015. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 18% to US$116m from US$98.5m. It attributed the sales growth to growth in its Sheetrock plasterboard product. The on-going rollout of Sheetrock is scheduled to continue until the end of 2017. Regionally, sales growth in South Korea, Australia and Thailand offset a declining market in China.

The building materials company added that its joint venture had started building a new warehouse at its USG Boral's Dangjin facility in South Korea in the reporting period. The upgrade at the site is intended to add incremental capacity and support the longer-term addition of at least 30Mm²/yr of plasterboard production capacity at the site, which has existing capacity to produce around 70Mm²/yr. The investment will be self-funded through the joint venture.

Overall, Boral's sales revenue fell by 5% to US$1.6bn from US$1.68bn. However, its profit after tax rose by 9% to US$114m from US$105m. It attributed this to a 'solid' performance in Australia combined with good earnings from Boral USA and USG Boral.

Australia: The framework is in place for a new wallboard plant that Knauf Plasterboard is building at the Port of Bundaberg in Queensland. A 27.8km gas pipeline that will support the project has also been laid, according to the Bundaberg Newspaper. The next step will be to commission the pipeline and commission off-takes. First gas flows are scheduled for mid-February 2017 whereupon it will supply the new Knauf plant that is expected to start production in June 2017.

Australia: Boral's profit after tax has risen by 8% year-on-year to US$204m in its financial year which ended on 30 June 2016 from US$190m in the previous year. Its sales revenue fell, by 2% to US$3.28bn, but revenue from continuing operations rose slightly. Revenue from continuing operations benefitted from stronger residential activity in Australia and the US, which offset the decline in resource-based and other major project activity. The company's earnings before interest and tax (EBIT) also rose due to operational cost improvements, lower fuel costs and some pricing gains.

"We have continued to improve our performance across our businesses in line with our strategy, managing our portfolio more efficiently and maintaining a strong balance sheet," said CEO and managing director Mike Kane. "The continued growth in Boral's earnings demonstrates the great work that has been done to improve our cost base, grow margins, and efficiently supply market demand, which continues to be strong in Australia and Asia, and is growing in the US."

The group's joint-venture with USG, USG Boral, saw its revenue rise by 10% to US$1.06bn from US$965m. This was attributed to growth in Sheetrock product
wallboard sales resulting in higher pricing, and growth in adjacent product (non-board) sales. Strong volume growth in Australia was offset by contraction in key Asian markets and price competition in South Korea. EBIT increased by 27% to US$136m from US$107m.