Gypsum industry news

Belarus: The Council of Ministers has issued Resolution 688, effecting a temporary ban on exports of most foreign gypsum from the country. Business World Magazine News has reported that the ban only affects gypsum that originates outside of Belarus and Russia.

Belarus: The Ministry of Antimonopoly Regulation and Trade has set new lower natural gas prices for industrial plants. Operators will pay US$0.15/m³, down by 2% year-on-year. Prime Press News has reported that the rate will be applied retroactively from 1 January 2024.

Belarus: Construction of Belgips new 30MM2/yr gypsum wallboard plant in Gatovo, Minsk District is expected to be completed in October 2018. The plant will then take another six months for start-up and commissioning before it starts commercial operation in mid-2019, according to Belarus Daily News. The unit is a joint venture between Russia’s Volma Corporation and Germany’s Knauf.

Belarus: Knauf Gips plans to invest around Euro70m in a gypsum wallboard plant at Gatovo near Minsk. The decision follows the announcement that Knauf has acquired a 50% share in the charter capital of Volma’s operations in Belarus, according to the Belarusian Telegraph Agency. Knauf arranged to become a joint-owner of Belgips with Russia’s Volma in early 2017

Construction of Belgips’ new plant started in late 2015. Once completed the unit plans to produce 30Mm²/yr of gypsum wallboard, 0.5m²/yr of gypsum partition blocks and 0.1Mt/yr of dry building mixtures. Products made at the plant will be used domestically and for export.

Belarus: Knauf is expected to become the joint owner of Belgips in April 2017 when Belorussian and Russian competition bodies approve its purchase of half of the company from Russia's Volma. Following the transaction Volma will own the remaining half of the gypsum wallboard producer, according to Business News Belarus. The move follows a decision by Volma to concentrate on the Russian market. The Belorussian government has already approved the deal.

Belarus: Construction of a new gypsum plant in Hatava near Minsk started on 7 October 2015. The project is financed by Russia's Volma Corporation, which acquired the Belarusian government's 99.5% stake in AAT Belhips, a Minsk-based manufacturer of gypsum products, for Euro4.65m in 2014. In 2014, Volma Corporation also signed an agreement whereby it would provide a total of Euro45.5m for the modernisation of the Belhips plant and the construction of a new gypsum plant.

Volma Corporation chose Belarus as the place for its new plant because of the country's 'stability and open economy,' according to Belarusian Deputy Prime Minister Anatol Kalinin. According to him, the future plant, which is expected to be completed in less than two and a half years, will provide a boost to the Belarusian economy and contribute to Volma's development as well. The plant will manufacture 30Mm²/yr of wallboard, 500,000Mm³/yr of gypsum blocks and 100,000t/yr of dry building mixes. Most of the output will be exported to western Europe when operations start in 2018. The new plant is expected to create at least 180 new jobs.

Chairman of the Board of Directors of Volma Company Yuri Goncharov stressed that the construction of a new plant is not a simple project from an economic point of view. "It is not the best time for return on investment. However, looking into the future we understand that the Belarusian construction sector has big potential," said Goncharov. "These are big capacities. Today, Belarus consumes 12Mm2/yr of gypsum. Our main objective is to prove to the Belarusian construction industry that gypsum materials are more efficient in terms of energy performance, environmental friendliness and economy."

Belarusian First Deputy Construction Minister Alyaksandr Kruchanaw described the project as very important for Belarus' construction sector. "It is important for Minsk as well because it is part of efforts to remove industrial facilities from the capital city, which will improve the environment in the city," said Kruchanaw.

Belarus: Belarusian gypsum wallboard demand will decrease by 12.5 - 17% in 2015, according to OJSC Belgips and FLLC Knauf Marketing, key players in the country. According to the companies' executives, the fall is a consequence of reducing funding of the construction industry and a decline in commercial real estate.

"In 2014, gypsum wallboard consumption in Belarus amounted to about 12Mm². In 2015, we estimate that the consumption will decrease to 10 - 10.5Mm²," said the director of Belgips, Stanislav Babitsky. The director of FLLC Knauf Marketing Alexander Babkin confirmed the 2014 market size at 12Mm² and said that he expects demand in 2015 to fall to 10Mm².

The head of corporate communications of Knauf for the Commonwealth of Independent States (CIS) Leonid Moose said that the main consumer of wallboard in Belarus was the business-to-business (B2B) sector, namely, the commercial real estate market. Out of the total wallboard consumption, the B2B sector had 70%, while the business-to-consumer (B2C) sector had 30%.

"The commercial real estate market is falling, while the population is beginning to save money and invest it in repairs. For this reason, we are observing the fall of consumption of gypsum wallboard and, at the same time, the growth of consumption, in particular, of dry building mixes, whose main consumer is the B2C sector," said Moose. "Meanwhile in Europe, wallboard is being increasingly used for partitions in individual building more than in Belarus."

Meanwhile, the demand for gypsum wallboard from the population has intensified, according to Babitsky. "The consumption of wallboard is increasing due to the growth in framed-monolithic housing in Belarus. During the last two years, the consumption growth was 20%. It smoothes the fall in demand from the commercial sector," said Babitsky. He added that another negative factor on the Belarusian market is the increased competition on the part of Russian players because of the Russian Ruble devaluation and the Russian wallboard market narrowing. Russia's wallboard production is around 600Mm²/yr, while consumption is 250Mm². As such, exports to Belarus have increased.

Belgips plans to develop new products for sale on the domestic and export markets. According to Gubanova, the company is considering entry into Lithuania and Latvia.

Belarus: According to Volma's chairman of the board of directors, Yuri Goncharov, a contract with Germany's Grenzebach for the supply of modernisation equipment for the Belgips plant in Minsk has been concluded. The plant will be operational by the middle of 2015.

Under presidential decree No.34, which was signed on 16 January 2014, Volma was required to invest Euro43m to modernise the Belgips plant by 1 July 2018, including Euro24.7m by 30 June 2016. Within the funding, Volma had to transfer at least Euro2.5m to Belgips. "We will meet the investment project deadline, " Goncharov noted.

According to local media, Belgips' business is being threatened by multiple factors. The supply volumes to Russia haven't changed, but the product prices have fallen by 20 - 25%. There's also a negative effect on Belgips' position by the Polish companies that, according to Goncharov, offer their products on the Belarusian market at much cheaper prices than their domestic ones. There are also challenges regarding the procurement of raw materials.

In response, Volma plans to improve the quality of products through modernisation of the operating facilities. It will also decrease its prices. However, according to Goncharov, prices cannot get much lower. Volma also plans to improve its raw materials supply chain via imports. Goncharov expects to see Belgips in profit in 2015.

Belarus: A new gypsum plant will be commissioned by Volma Corporation in the town of Gatovo, Minsk district in 2018.

Volma plans to construct a new gypsum plant in the town of Gatovo, Minsk. The new plant will produce 500,000Mm²/yr gypsum partition blocks, 100,000t/yr of dry construction mixes and 30Mm²/yr of gypsum wallboard. Construction is due for completion in 2018.

Volma also plans to modernise the existing Belgips plant in Minsk to increase its production capacity of gypsum wallboard to 10Mm²/yr. The upgrades are expected to be complete in 2016.

The projects will have a combined investment of Euro43m.

Belarus: Russian gypsum producer Volma plans to explore the city of Mozyr in Belarus for a new source of raw gypsum.

"The head of Volma Corporation is going to search for gypsum deposits in Mozyr. He believes that the deposits rich in sodium chloride might also be rich in gypsum. The company has quarries in Ukraine and brings gypsum from there. It would be good if they found this important raw material in Belarus," said chairman of the State Property Committee, Georgy Kuznetsov.

As part of Volma's recent acquisition of Belarus' Belgips, Volma pledged to upgrade Belgips' production facilities and construct a plant to produce gypsum materials in the village of Gatovo, Minsk District. The investment agreement provides that at least Euro43m should be invested in Belgips by 1 July 2018.