Gypsum industry news

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: Continental Building Products’ net sales in the second quarter of 2018 have risen due to higher gypsum wallboard sales volumes driven by ‘strong’ demand. The company reported an 11.6% increase year-on-year on wallboard volumes to 67Mm² from 60Mm². Its net sales rose by 6% to US$256m in the first half of 2018 from US$241m in the same period of 2017. Its net income rose by 44% to US$35.5m from US$24.6m.

France: Saint-Gobain’s sales rose by 1.9% year-on-year to Euro20.8bn in the first half of 2019 from Euro20.4bn in the same period in 2017. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) fell very slightly to Euro2.07bn.

"The second quarter marks a return to supportive trends in all our main markets. After a disappointing first quarter, affected by harsh winter weather in Europe, which weighed on results, the second quarter was far more encouraging in terms of volumes and prices. The group succeeded in further raising sales prices amid continued raw material and energy cost inflation. Despite a combination of temporary one-off factors, our first-half results progressed once again,” said Pierre-André de Chalendar, chairman and chief executive officer (CEO) of Saint-Gobain.

The group’s Interior Solutions division, including gypsum wallboard and insulation production, reported 7.1% organic growth, with rising sales prices in the period although raw material and energy costs inflated. The group noted that although its operating margin was held back by weather conditions in Europe in the first quarter and by the on-going shift from synthetic to natural gypsum, it benefited over the half-year period from a positive price-cost spread in terms of raw materials and energy.

US: USG has blamed falling operating profits on costs relating to its ‘Customer-First’ strategy and rising general costs, including those from transportation. Its operating profit fell by 32% year-on-year to US$121m in the first half of 2018 from US$179m in the same period in 2017. Its net sales rose by 6% to US$1.67bn from US$1.58bn.

For its wallboard and surfaces business the company said that its wallboard price increased by 2% from the second quarter of 2017 due mostly to a price increase in January 2018. Wallboard sales volumes increased by 2% compared to the second quarter of 2017. However, wallboard costs were US$12m higher than the previous year primarily due to rising input and transportation costs.

The building materials producer confirmed that its merger with Germany’s Knauf is expected to complete in early 2019, subject to shareholder and regulatory approval.

US: A team from Washington State University have developed bricks made from recycled gypsum wallboard. The blocks are made from 80% drywall waste and a binder made from industrial by-products. They are waterproof and lighter than earth blocks, bricks or concrete blocks. The researchers are partnering with local contractors to get the waste, and architecture students are using a press to build the blocks, which look like masonry bricks.

The researchers, including Taiji Miyasaka, professor in the School of Design and Construction, David Drake, adjunct faculty in the School of Design and Construction, and Robert Richards, a professor in the School of Mechanical and Materials Engineering, began developing the wallboard blocks in 2017 with a grant from the American Institute of Architects. They have also received an Amazon Catalyst grant to move the project from laboratory scale to a demonstration structure. In the next year, the researchers will be testing the blocks to meet building, seismic and fire codes. They also aim to build a 15m² demonstration structure.

A prototype structure featuring the wallboard-based bricks will be displayed as part of the ‘Make/Do: A History of Creative Reuse’ exhibition that is running at the Washington State History Museum until December 2018.

New Zealand: Fletcher Building has appointed Michele Kernahan as Chief Executive Building Products. His former position of Chief Executive Construction will be taken by Peter Reidy, currently Chief Executive KiwiRail. Both appointments are effective from early November 2018. David Thomas, currently serving as the Interim Chief Executive Building Products, will return to his role as General Manager Winstone Wallboards once the appointments are effective.

Uzbekistan: Knauf holds a 70% share in the gypsum wallboard market. The German building materials producer sold 22.8Mm² of wallboard in 2017, according to the Trend News Agency. It increased the production capacity of its Bukhara wallboard plant in mid-2018 by 30% with an investment of US$22m. Knauf is also planning to build another wallboard plant in the country with an investment of over US$20m. This project is currently at the design stage.

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.

India: USG Boral has held a ground breaking event for a new 30Mm² gypsum wallboard plant that it is building at Sri City in Andhra Pradesh. The project has an investment of US$39m. The new plant will be operated by local subsidiary USG Boral Building Products India. The site is expected to become operational by the end of 2019. It will create over 100 new jobs. It joins USG Boral’s 9Mm² wallboard plant at Khushkhera, New Delhi.

"This facility offers us the ability to significantly increase our operations in India and provide our customers in the region with the best plasterboard products," said Frederic de Rougemont, the chief executive officer (CEO) of USG Boral.

Spain: Saint-Gobain plans to invest Euro120m over the next three years in its local subsidiary. In an interview with the Cinco Dias newspaper, Gianni Scotti, the chief executive officer (CEO) for Spain, Italy, Portugal, Greece and North Africa warned against rising electricity costs in the country. The bulk of the investment will go towards upgrading the Fábrica de Quinto wallboard plant in Zaragoza.