Gypsum industry news

UK: The Carbon Trust has awarded Knauf UK the Carbon Trust Standard for Carbon in recognition of its success in reducing its carbon emissions. The Carbon Trust is the world's leading independent certification organisation and the award is a step forward for the gypsum industry as a whole.

"We're particularly proud to have achieved the Carbon Trust Standard because it reflects the company's commitment to sustainability throughout its operations," said Lorna Stork, Knauf UK's sustainability manager. "We manufacture products that are energy-intensive to produce, so this achievement not only owes a lot to improvements at factory level, but also shows that we believe in managing carbon and energy use in other areas."

Knauf has re-formulated the composition of its wallboard to reduce water content and the energy consumption required to dry them. The result is that, across the company, the average board weight has fallen by 2% over the past five years, leading to a cut in energy consumption of over 5%. Knauf has also achieved considerable energy savings in the drying process. 10GWh of gas were saved at the company's Kent facility and a further 2.8GWh at its Hull plant. These savings have been reinforced with other initiatives, including the implementation of ISO 50001, energy targets for board production, monitoring programmes and sourcing lower moisture raw materials.

Knauf has also examined other elements of its business in terms of carbon use, including handling and distribution. There have been marked improvements in Knauf's own energy consumption by forklifts and other site vehicles due to monitoring of fuel usage and training staff on how to operate the plant and equipment optimally.

"Knauf's attitude towards carbon reduction is commendable and the company's efforts have led to a significant reduction of over 5%. The company is an example of what can be achieved going beyond business-as-usual and innovating to improve your environmental impact," said Darran Messem, managing director of certification at the Carbon Trust. "Achieving the Carbon Trust Standard is one thing, but keeping it is a constant task, not one that is achieved by a single initiative. As a company, we are committed to that aim and to everything that it implies."

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.

Azerbaijan: Azerbaijan exported 36,920t of gypsum in the first half of 2015, some 40.9% less than in the same period of 2014 as reported by the State Customs Committee of Azerbaijan. This was confirmed by the National Statistics Office of Georgia, which receives 100% of the Azerbaijani exports of gypsum.

According to the official figures of Azerbaijan, the declared revenue from gypsum sales abroad totalled US$566,580. However, Georgia has recorded US$5.1m of gypsum imports from Azerbaijan. Georgia has also reported that US$1.38m of gypsum was imported from Azerbaijan in July 2015. Azerbaijani customs issued the goods at the price of US$15.3/t, while in Georgia it was priced at US$138/t. In the first half of 2014, Azerbaijani gypsum was quoted in Georgia at the price of US$170/t.

In the first half of 2015, Azerbaijani gypsum production increased by 1.3% year-on-year to 92,200t, according to the State Statistics Committee. Azerbaijan also imports gypsum from Iran (860t) and Turkey (6.6t). One tonne of imported gypsum is registered for customs duties and taxes at the price of US$52.9/t, three times more expensive than in the first quarter of 2014.

India: Saint Gobain Gyproc will set up a new US$60m manufacturing plant in India. "We have identified western India as suitable location for the new plant," said V Subramanian, Managing Director of Gypsum Business for Saint Gobain India. A final decision on the location will be taken by the end of 2015.

Gyproc India already has three manufacturing plants in the country in Jind (near Delhi), Wada (near Mumbai) and Bengaluru. The combined production capacity of these plants is about 46Mm2/yr. "Our capacity utilisation ratio is very high. The proposed new plant will add another 30Mm²/yr of capacity,'' added Subramanian.

Brazil: Saint-Gobain will revise its year-on-year turnover growth projection of 7% in Brazil for 2015 as it is expecting volume sales to be lower than 2014, according to Thierry Fournier, the firm's president for Brazil, Argentina and Chile. Turnover is expected to still grow but at a slower rate than 7%, according to Valor Economico.

The building materials producer had to lift prices in the first half of 2015 to compensate for rising energy and US dollar-linked raw material costs. Despite this the group still continues to gain market presence in some segments like drywall.

Saint-Gobain holds a diversified presence in Brazil with divisions manufacturing fibre cement, mortars, wallboard, insulation and glass.

Colombia/Germany: Knauf International GmbH has announced that a definitive agreement has been signed with Gyptec, a Colombian wallboard producer, to acquire the assets of the company. As well as in Colombia, Gyptec has interests in Venezuela, Ecuador and Central America. The transaction also includes Hanetec, a supplier of building products associated with wallboards.

Serge Azaïs, member of the Knauf Management Committee in charge of South America, said, "It is a very significant move for our group to be part of the development of the northern part of South America, after our industrial presence for 15 years in Brazil and Argentina. We are extremely confident of the potential of this zone. We will very shortly increase capacity in order to deliver to Central America and the Caribbean countries from the facility in Cartagena. We look forward to welcoming the Colombian team into the Knauf family."

Australia: Boral has recorded an increase in full-year profit, buoyed by the return to profitability of its US business for the first time since 2007, a pick-up in local demand and cost-cutting initiatives.

Australia's largest building materials provider posted a net profit of US$183m in the year to 30 June 2015, a 48.3% increase on the previous year's US$123m. Underlying profit rose by 45% to US$178m. However, Boral's total revenue over the same period fell by 15.2% to US$3.15bn.

Boral chief executive Mike Kane said that the results reflected the benefits from the company's overhaul of its business which reduced the size of its workforce and resulted in the closure of some unprofitable operations. "We've improved Boral's cost base, strengthened the balance sheet and we are managing our portfolio of businesses more efficiently," he said.

In the current 2016 fiscal year, Boral said it will focus on maintaining underlying earnings from construction, materials and cement, while property earnings remain uncertain. Building products are seen remaining broadly steady, while USGBoral will deliver further underlying improvement.

Azerbaijan: Azerbaijan produced 108,100t of gypsum plaster between January and July 2015, a 0.4% decrease compared to the same period of 2014.

Romania: Siniat Romania, part of Belgian industrial group Etex, will open a Euro50m wallboard plant in Turceni, southern Romania in October 2015.

The company will create 80 new jobs in the production division of the plant. Some 80% of the staff has already been recruited. The plant will produce plasterboard using synthetic gypsum from power producer CET Turceni. It will be the only plant in Romania to use synthetic gypsum from the flue gas desulphurisation process at a thermal power plant, according to Siniat.

Qatar: SIG plc, a distributor of specialist building products in Europe, has acquired a majority shareholding in Drywall Qatar, an independent distributor and specialist installer of interior finishing materials in Qatar.

"We are excited to partner with SIG, a leading European player in the construction material procurement sector. SIG's financial strength and wide product portfolio of 30,000 products coupled to the key relationships with over 6000 suppliers will allow Drywall Qatar to provide an even deeper product supply chain and enhanced product offering to both new and existing clients," said Drywall Qatar's director, George Xydas.