Gypsum industry news

China: China National Building Material’s (CNBM) gypsum wallboard sales rose by 1.5% year-on-year to 866Mm² in the first half of 2018 from 853Mm² in the same period in 2017. Its wallboard production remained stable at 874Mm². Average wallboard prices at both of its New Materials division subsidiaries also increased.

The group’s sales revenue from its New Materials division rose by 10.3% to US$1.66bn from US$1.5bn. Its adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) increased by 30% to US$452m from US$346m. Overall, group sales revenue rose by 22% to US$14bn from US$11.5bn.

The company said that its BNBM subsidiary set up a company, Tanzanian Company Limited, in Tanzania and that BNBM refocused Wanjia Building Materials for the global market

CNBM’s subsidiaries that produce gypsum wallboard include BNBM and Taishan Gypsum.

US: Taishan Gypsum and its owner China National Building Material Company (CNBM) have reached a US$1.98m settlement in one of its on-going legal cases related to alleged defective gypsum wallboard. The Chinese manufacturer says that it has reached settlement with the plantiffs. The case is a third-party claim initiated by original claimants Venture Supply and Porter-Blaine. Following receipt of the payment the plantiffs have agreed to waive all liabilities with respect to Taishan Gypsum.

China/US: China’s Ministry of Commerce has proposed placing retaliatory tariffs on products from the US, including gypsum and gypsum products. The list covers 5207 items and proposes adding import taxes of up to 25% on them. It includes gypsum and gypsum wallboard. The ministry said that the new tariffs will take effect at a date to be announced later on.

US/China: The Office of the US Trade Representative has proposed placing a 10% tariff on mineral products from China, including gypsum products. The list includes over 600 items and it will come into force after a period for public comment in August 2018.

Mineral products affected by the proposed tariffs of interest to the gypsum wallboard industry include gypsum, anhydrite and plaster products made from calcined gypsum or calcium sulphate. Lime, cements and additives for cements, mortars and concretes are also affected.

The inclusion of additional products to a tariff list follows an earlier decision by the US government to tax imports from China worth US$34bn that came into force in early July 2018.

China/Tanzania: China National Building Material (CNBM) has started work on a gypsum wallboard plant in Tanzania. The project is part of its participation in the government’s ‘One bet, one road’ industrial strategy.

Revenue from the group’s new materials division that produces gypsum wallboard rose by 25% year-on-year in 2017 to US$2.03bn from US$1.62bn in 2016. Its adjusted earnings before interest, taxation, depreciation and amortisation (EBTIDA) rose by 40% to US$577m from US$413m. Its production volumes of gypsum boards rose by 12% to 1826Mm² from 1632Mm².

US: Taishan Gypsum and its owner China National Building Material Company (CNBM) have reached a US$1.38m settlement with Meritage Homes of Florida. According to the terms of the agreement Taishan and its fellow subsidiary Beijing New Building Material (BNBM) have agreed to pay Meritage in instalments by the end of March 2018. In return Meritage has agreed to withdraw all claims and allegations against Taishan Gypsum and BNBM following full receipt of the payment.

China: Yau Woon Foong has resigned as an independent director of Sincap Group. His stated reason was, ‘…to pursue other interests.’ Sincap Group mines and sell gypsum in China as well as trading alumina and thermal coal.

India: The government has extended an anti-dumping duty on imports of gypsum wallboard from China, Indonesia, Thailand and the UAE to protect local producers. Saint-Gobain India asked for an extension of the duty on the imports of the boards from these four countries, according to the Press Trust of India. The tariff was originally implemented in 2013 at US$73.8/m² to run until 7 June 2017. It has now been extended to 6 June 2018.

China: China National Building Material Company's (CNDM) gypsum wallboard sales volumes rose by 13.1% year-on-year to 1.64Bnm² in 2016. Sales revenue from the group's lightweight building materials section, that produces wallboard, rose by 8% to US$1.12bn in 2016 from US$1.03bn in 2015. The building materials producer said that improved marketing had helped it maintain its lead as the largest wallboard producer in China. The group runs BNBM and Taishan Gypsum.

China: 19 people have been prosecuted for misconduct related to the collapse of a gypsum mine in Shandong Province in December 2015 that killed one worker and left 13 persons unaccounted for. Yurong Company, owner of the mine, bears the principal responsibility for the incident, for failing to monitor and safely maintain the mine, according to the Xinhua news agency. Poor risk awareness and safety control, as well as inadequate regard for possible dangers in room-and-pillar mining were also causes the of the collapse. Yurong has been fined US$0.43m.

Three mine controllers, believed to be liable for the fatal accident, have been arrested by local police and two officials from the local land and resources bureau were found guilty of dereliction of duty. 14 other local officials have also been punished for violating the Communist Party rules. Ma Congbo, president of Yurong, who committed suicide after the accident, will not be subject to criminal liabilities.