Gypsum industry news

China: Rescuers have dropped provisions to four Chinese mine workers trapped for 10 days in a wrecked gypsum mine and are slowly drilling a route to save them, according to Reuters.

The men are trapped more than 200m below the surface and state media has reported that they are in good condition. Because the ground is so fragile, the rescuers managed to drill only 25m deep after more than 40 hours. Rescue leader Du Bingjian said that he could not give a time when the men would be pulled up. The mine collapse on 25 December 2015 in Shandong killed at least one person. 13 others are missing and 11 made it to safety or were rescued earlier.

China's mines have long been the world's deadliest, but safety improvements have reduced deaths in recent years. In 2014, some 931 people were killed in mine accidents in China, drastically down from the year 2002, when nearly 7000 miners died.

UK: About 90,000t/yr of testliner capacity will soon be lost from the UK market. DS Smith will close its Wansbrough mill in Somerset, which also produces other products such as gypsum wallboard liner, on 23 December 2015.

DS Smith had announced a possible closure at the end of August 2015. At that time, the company had said the decision had been made after an assessment of the facility's long-term prospects.

The Wansbrough mill operates two paper machines. According to the plant manager, they manufacture roughly 90,000t/yr of testliner III, 30,000t/yr of coreboard, 18,000t/yr of recycled paper for bags, 12,000t/yr of recycled envelope paper and 10,000t/yr of other products such as wallboard liner.

DS Smith operates another paper mill in the UK, the Kemsley mill in Kent, where the company produces corrugated case material on three machines with a total capacity of around 800,000t/yr.

Kyrgyzstan: On 11 December 2015, Prime Minister Temir Sariyev inaugurated the Kyrgyz-Iranian gypsum plant in Ak-Suu, Issyk-Kul.

UK: Wastecycle's recycling facility in Colwick, Nottinghamshire is now one of the largest in the UK after an expansion of the site. By acquiring seven acres of property, which the company previously leased, and buying an additional four acres, Wastecycle has extended its site to nearly 20 acres.

"It's an exciting time for us because this expansion provides us with the platform we need to reach the next stage of growth as a company," said Financial Director Nathan Cole. "Over the long term, we plan to use the additional land to expand our extensive recycling and resource management activities. This will help us broaden the services we offer our customers while improving the quality and sustainability of the recycled products we manufacture."

The company has also completed an expansion of its main office to accommodate its growing workforce. After a 20% growth in staff 2015, it now employs almost 300 people across its Colwick site and its two sites in Leicestershire. "Ensuring our teams are comfortable in their working environments is very important to us because, not only does it increase productivity, but it also creates positive morale," said Cole. "Larger premises also provide the opportunity to open up new jobs, while improving the quality of service we can provide to customers."

Wastecycle separates 500,000t/yr of waste, including 18,000t/yr of recycling from 126,131 homes in the Nottingham City Council area. Some of the waste is turned into refuse-derived fuel (RDF) for use at cement plants. It also sorts through the rubbish of thousands of businesses across Nottinghamshire, runs a skip hire service and operates a wallboard recycling facility, which it developed with British Gypsum.

In 2014, Wastecycle's turnover increased to Euro42.8m from Euro35.9m in 2013. In 2015, it won four awards, including a bronze environmental best practice accolade at the Green Apple Awards in November 2015. It was recognised for the success of its wallboard recycling scheme, which has prevented more than 30,000t/yr of wallboard from reaching landfill.

Romania: Siniat Romania, part of Belgium's Etex, will close its plant in Bucharest and quarry in Nucsoara in February 2016 in order to concentrate production at its recently-opened Turceni plant.

The decision was taken because Turceni has a better geographic proximity to the company's sales markets in south-east Europe, according to General Manager Marc-Andre Fritsche. The Turceni plant was opened in October 2015 in Gorj, south-west Romania, with an investment of Euro50m. It will incorporate the company's wallboard production activity and extend the portfolio with more complex products.

Siniat Romania has another plant in Aghiresu, Cluj. It posted a Euro25.8m turnover in 2014 and a loss of Euro1.15m.

Thailand: SCG-Dow Chemical does not plan to shut its 200,000t/yr styrene monomer (SM) and 300,000t/yr polystyrene (PS) plants in 2016 for maintenance, according to an unnamed company source. The facilities in Map Ta Phut were shut in the first half of 2015 for a turnaround. SCG-Dow Group is a joint venture between Thailand's Siam Cement Group (SCG) and US' Dow Chemical.

US: Gypsum Management and Supply, Inc. (GMS), a leading North American distributor of wallboard, suspended ceiling systems and other specialty building products, has acquired Badgerland Supply and its six locations in Wisconsin and Illinois.

Badgerland has served the Wisconsin and Northern Illinois markets for over 25 years through its diverse offering of high-quality wallboard and construction products. Badgerland has an established market presence with a strong customer base primarily in the remodeling, residential, commercial and institutional sectors.

"We are pleased to have Badgerland Supply join our growing network of GMS companies," said Jerry Speights, Vice President of the Central Division of GMS. "Its longstanding presence in these dynamic Midwest regions, paired with its employees' in-depth knowledge of the local markets, makes Badgerland Supply an invaluable addition to the GMS family."

Australasia: LafargeHolcim has said that, despite what has been reported recently in the media, its Australian and New Zealand operations are not for sale.

LafargeHolcim recently announced a plan to divest almost US$5bn of assets in 2016 after posting unexpectedly weak third-quarter results. Speculation had emerged that it might exit from the Australasia region.

However, according to local media, an internal email sent to staff on 30 November 2015, Holcim Australia Chief Executive Mark Campbell said the company was 'not currently being sold,' but could not rule out an exit in the long term.

"I have checked whether the LafargeHolcim group had made a decision to sell the businesses in Australia and New Zealand and started a sale process without my knowledge and the answer I have received is 'no,'" said Campbell. "That said, organisations change focus over time and it is impossible to say that we will always be part of the LafargeHolcim group."

Australian-listed rivals, including Boral, Fletcher Building and Adelaide Brighton, are seen as potential acquirers, should the multinational giant choose to sell off its local arm. Ireland's CRH may also be interested. However, Morgan Stanley said that many of LafargeHolcim's local competitors might run into competition issues, given that the market is concentrated among several large players. "Should Adelaide Brighton fully participate, we cannot rule out that the 50% share in Cement Australia would be divested due to Australian regulations, given Adelaide Brighton's already strong share in cement," said Morgan Stanley Analyst James Rutledge. "While we think Fletcher Building is unlikely to be in a position to participate in industry consolidation, a change in owner that was less integrated into the region may be a positive for Fletcher Building at the margin," said Rutledge. "Given Boral's strong share in aggregates and the concrete market, we believe it will be difficult to participate in industry consolidation."

While Lafarge has a limited local presence in Australia and New Zealand, Holcim bought a string of Australian assets from Mexico's Cemex in 2009 for US$2bn and now boasts more than 350 sites nationwide.

Mexico: Panel Rey has announced that it will begin construction of a new wallboard plant in Cuidad Jurez, Chihuahau, Mexico. It will begin production in December 2016.

The plant is located 30km away from the US border at El Paso, Texas and will service the northwest markets of Mexico and Southwest in the US markets.

The company states that the production capacity of the plant is 15,000,000 boards/yr. It will also produce joint compounds and metal studs in the future.

The company states that it will continue its expansion in Central and South America.

Oman: Growing demand for gypsum, mainly from cement and wallboard manufacturers, should see exports from Oman reach 10Mt/yr by 2018, nearly double the present level, making it the fourth largest gypsum producing country, according to industry experts. Gypsum production is expected to hit 12Mt/yr by 2020.

Gypsum exports from Salalah Port rose from 4.15Mt in 2014 to 4.8Mt in the first 10 months of 2015. Exports are expected to reach 5.5Mt for the entire of 2015. Oman is the 10th-largest gypsum producing country in the world and is expected to become the sixth-largest in 2016, according to Zawawi Minerals' CEO Ramachandran. The US Geological Survey has estimated gypsum resources of around 950Mt in the southern part of the country. The gypsum demand growth is mainly from Asian countries like India, Japan, Indonesia, Vietnam and Bangladesh. There was a supply crunch from Thailand, where mineral mining had become heavily-regulated.

Zawawi Minerals partnered with United States Gypsum Corporation in 2012 and with Australia's Boral to launch the largest gypsum mining facility in the country. The US$16m, 3Mt/yr facility exports gypsum rock to India, Japan, Taiwan, Indonesia, Vietnam, South and East Africa, the UAE and Bangladesh. Zawawi Minerals also set up the Middle East's first Sheetrock brand gypsum wallboard plant in the Salalah Free Zone for US$37m. It has a production capacity of 10Mm².

"Oman has emerged as the single most important source for high grade natural gypsum for cement and gypsum wallboard manufacturers across Asia and South and East Africa. With higher production and little significant change in domestic consumption, Oman may continue to export the majority of its gypsum," said Ramachandran.