Gypsum industry news

Vietnam: Deputy prime minister Hoang Trung Hai has directed the implementation of solutions to treat waste at thermal power plants for energy conservation and environmental protection.

Trung Hai urged the concerned parties to more effectively implement Government Decision 1696/QD-TTg on measures to treat gypsum, ash and cinder from thermal power, chemical or fertiliser plants for the production of building materials. Special focus should be paid to the Vinh Tan in Binh Thuan, An Khanh in Thai Nguyen, Song Hau in Mekong Delta Hau Giang and Vung Ang in Ha Tinh thermal power plants, where waste treatment is a pressing issue.

He asked the Ministry of Industry and Trade and the Ministry of Construction to coordinate with localities to disseminate effective waste treatment models while supplementing and completing criteria on the quality of ash and cinder for recycling in cement and construction material production.

Vietnam is home to 19 operating thermal power plants with a total capacity of 14,480MW, which discharge about 15Mt/yr of ash and cinder. After 2020, the country is expected to have 43 thermal power plants with a combined capacity of 39,020MW, discharging over 30Mt/yr of ash and cinder.

Pakistan: DFB Gypsum Industries has announced that it is building a new gypsum facility in Hattar, Khyber Pakhtunkhwa. The new plant is expected to start production in the middle of 2016. It will have a 100,000t/yr plaster line and a 6Mm²/yr wallboard line.

Belgium: Etex has announced the addition of Caroline Thijssen, Guillaume Voortman and its CEO Paul Van Oyen to its Board of Directors. In addition, Marc Nolet de Brauwere, Amaury Pelgrims de Bigard and Philium bvba, represented by Philippe Coens, have left the board.

Caroline Thijssen is Head of Talent Banking and Management Dynamics at BNP Paribas Fortis. She gained a Master's degree in Economics and Management at the UCL, Université catholique de Louvain. She started her career in the financial world at BNP Paribas Fortis, with a two-year international management traineeship. Then, she fulfilled the roles of Deputy Branch Manager, Branch Manager and Group Branch Manager, before joining the HR department. She became a member of Etex's Board of Directors on 27 May 2015.

Guillaume Voortman is Head of Finance and Administration at Tropicore — a trading company for tropical commodities, such as rubber. He holds a Master's degree in Applied Economics and Management, which he obtained at the Facultés Universitaires Saint-Louis in Brussels and the UCL. He also gained an Advanced Master's degree in Financial Economics at the KU Leuven University. He began his career as equity trader at ING Bank Belgium. Afterwards, he moved to ING Bank Netherlands as Associate Relationship Manager, before joining Tropicore. He entered Etex's Board of Directors on 27 May 2015.

Paul Van Oyen has been attending the Board meetings since he was appointed CEO of Etex on 1 January 2015. On 27 May, he became a member of the Board in the role of Managing Director.

US: H.I.G. Capital, a global private equity investment firm, has announced that its portfolio company ACG Materials, a vertically integrated producer and processor of high-quality minerals and aggregates including gypsum, limestone, sand, gravel and downstream food, pharmaceutical and plaster products, has acquired Art Wilson Company (AWC). AWC mines, processes and markets anhydrite, gypsum and limestone products used in agricultural, industrial, and commercial applications across Nevada, California, Washington, Oregon, and Idaho. It owns and operates a quarry and downstream production facility in Carson City, Nevada with additional owned reserves under development nearby.

"We are excited about the continued expansion of our operations into the Western US," said Paul Harrington, CEO of ACG Materials. "Art Wilson Company not only allows us to acquire the market leading supplier of agricultural gypsum serving California's Central Valley and surrounding areas, but also broadens our customer footprint, product portfolio and end market diversification. AWC has had a long and successful history since its founding by Art Wilson in the 1950s and we look forward to serving as great stewards of the business going forward."

AWC is the fifth add-on acquisition that ACG has completed since H.I.G. acquired ACG at the end of 2012 and marks the second acquisition in 2015. In February 2015, ACG acquired JA Jack & Sons, a Seattle, Washington-based miner and processor of limestone products.

Canada: Continental Building Products has reported that its net sales, operating income and wallboard sales all grew in the second quarter of 2015.

"We produced another quarter of strong cash flow as a result of our disciplined operations, efficient cost structure and sharp focus on execution as we continue to grow our business," said Jay Bachmann, Continental Building Products' CEO. "During the quarter, each of our regions experienced stronger construction activity, enabling us to deliver solid growth in our wallboard shipments. We actively managed our costs to achieve significant operating leverage on higher sales and repurchased approximately 2% of our outstanding shares for US$20m while also reducing our debt leverage. We believe that we continue to be well positioned to capitalise on improving construction activity in our markets to enhance our profitability and deploy our capital into additional value-enhancing opportunities."

Net sales for the second quarter of 2015 grew by 7.9% to US$111m. The growth was primarily driven by 8.1% higher wallboard volumes to 567Mft2. The average mill net price grew by 0.7% year-on-year. At constant currency, the average mill net price increased by 1.5%. For US shipments, the average mill net price increased 1.4% year-on-year. Gross profit grew by 41.1% to US$29.5m and gross margin grew to 26.6% from 20.3% in the same quarter of 2014, primarily as a result of operating leverage achieved through higher wallboard volume and favourable energy costs. Operating income was US$4.3m compared to US$12.8m in the same period of 2014. Adjusted net income grew to US$10.2m from US$4.7m in 2014. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 24.4% to US$33.3m.

In the second quarter of 2015, Continental Building Products repurchased 913,200 shares of common stock at an aggregate purchase price of US$20m from an affiliate of Lone Star in a private transaction in connection with the secondary public offering in May 2015. It also used cash flow from operations for the voluntary repayment of US$10m of debt. The next principal payment on its debt not required until August 2020.

US: Eagle Materials has reported that in the first quarter of its 2016 fiscal year, which ended on 30 June 2015, its revenues grew by 7% to US$285m, its earnings before interest and income taxes grew by 1% to US$60.4m, its earnings before interest, taxes, depreciation and amortisation (EBITDA) grew by 10% toUS$84.6m and its net earnings grew marginally to US$37.8m.

First quarter net sales prices improved across nearly all businesses, with the most notable increases in the cement and concrete businesses. Extraordinarily wet weather in many of itscement markets, including Texas, Oklahoma and Colorado, adversely impacted the timing of cement sales volumes during the first quarter. However, Eagle Materials reported that its underlying demand for its cement continues to remain strong. In addition, all of its cement facilities completed their planned annual outages during the first quarter and cement maintenance costs were approximately US$3m higher than the prior year's first quarter.

Gypsum wallboard and paperboard revenues for the first quarter totalled US$136m, which were slightly lower than the same quarter of 2015. The average gypsum wallboard net sales price grew by 1% year-on-year, while wallboard sales volumes grew by 1% to 577Mft². Gypsum wallboard and paperboard reported first quarter 2016 operating earnings grew by 4% to US$46.9m. The earnings improvement reflects improved wallboard net sales prices, sales volumes and lower energy and paper costs.

South Africa: Belgium's Etex Group has announced the acquisition of Lafarge's South African gypsum business. An Etex press release stated that Lafarge Gypsum South Africa and its local company Marley Building Systems, two businesses of equal size, will team up to create a 'unique and competitive offer that capitalises on today's Southern African building trends.'

The deal is in line with Etex's aims of strengthening its position in Africa, with the Southern African region and Nigeria its main drivers of growth. In South Africa, the demand for housing has been on the rise, driven by a growing population and an emerging middle class. In addition, the market is becoming increasingly regulated. Consequently, alternative building methods like dry construction are gradually replacing traditional construction methods.

"Combining these two product offerings enables us to provide the full scope of Etex's portfolio," said Paul van Oyen, CEO of Etex. "That way, we can answer the changing local demand with a global approach for the whole southern African market, including South Africa, Namibia, Botswana and Mozambique."

For factory personnel, Etex has said that everything will remain as it is. Meanwhile, the support teams at Marley will be strengthened by teams from Lafarge Gypsum. "Lafarge Gypsum (adds) the technical and innovation support an international group can offer," added van Oyen. A transition team will ensure the smooth merger of both companies once the deal has been finalised. The acquisition is subject to the customary closing conditions.

Turkey: Onat GYPS has officially opened its new 25,000m²/day capacity gypsum wallboard plant near its gypsum plaster plant in Ankara, Turkey. The machine and automation systems were developed by Grenzebach Maschinenbau GmbH engineers.

New Zealand: Auckland's first comprehensive recycling facility for building industry waste, including wallboard, has been opened by the environment and building and housing minister Nick Smith, according to Live News.

"This new recycling facility is about greening the building industry, enabling 30,000t/yr of construction and demolition waste to be diverted from going to landfill. It will enable thousands of tonnes of wood, wallboard, steel, plastics and aggregates from the construction sector to be sorted and re-processed into a reusable form," said Smith.

The US$2.78m facility is part-funded by a government grant of US$1.39m from the Waste Minimisation Fund and has created 15 jobs in the local Onehunga community. The fund was established by the government from a US$6.6/t levy on waste going to landfill that was introduced on 1 July 2009. Over US$39.6m has been used to fund more than 100 projects in the past five years.

"The opening of this new facility is very timely with Auckland on the brink of its largest ever building boom. The house build rate has increased from 4000/yr to 8000/yr since 2011 and is expected to grow to over 12,000/yr. Each home constructed generates 4t of waste and it makes sense to recycle as much of this construction material as possible," said Smith.

Wood, plasterboard, steel, plastics, aggregates and cardboard are being targeted by CID Resource Recovery for recycling or reuse. Wood will be further processed into biofuel for industrial kilns, while old wallboard can be recycled for use as a soil conditioner. Scrap steel will be extracted by magnet and delivered to metal recyclers for processing and sale on the local or export markets. Various grades of plastic, card and paper will go to local recyclers for processing. Aggregates will be used locally for hardfill or drainage material on building or infrastructure projects.

"This sort of practical approach to recycling typifies the Government's Bluegreen approach to waste. We are partnering with business to find economically-viable ways to recycle waste and focusing on those areas where there are the biggest gains. This initiative is particularly significant as construction and demolition waste makes up half of New Zealand's total waste going to landfill," said Smith.

Russia: CJSC Knauf Gips Baskunchak, based in the Astrakhan region, plans to start developing the Kashara-Tugai gypsum deposit before the end of 2015, according to company director Sergei Michkov.

"We are commissioning the Kashara-Tugai deposit, located north of Lake Baskunchak. We have received the development license and the documentation has been agreed. The reserves are quite large: it will support production for 100 years," said Michkov in comments reported on by Interfax.

Astrakhan region has reported 67.5Mt of gypsum registered on its state records. Knauf Gips Baskunchak had a total of 111Mt of gypsum reserves recorded at the start of 2015. Knauf Gips Baskunchak, which joined the Knauf group in 1998, produces high-quality dry mixes from gypsum and supplies gypsum to Russian cement plants and other enterprises.