Gypsum industry news

US: Gypsum Resources has filed for Chapter 11 bankruptcy at the Nevada US Bankruptcy Court. It is aiming to reorganise the business amid financial and operational difficulties, according to the Las Vegas Reiew Journal newspaper. The company operates a gypum mine at Blue Diamond Hill but it has been trying to develop a residential housing project at the site for over a decade. The development has been opposed by local environmentalists.

Company president James Rhodes blamed the bankrupty decision on ambitious growth plans, disrupted mining operations due to equipment failure and bad weather. He was optimistic that market demand for gypsum is steady and that the company will report positive net income later in 2019. The mine supplies gypsum to the wallboard, cement and agricultural industries.

US: Continental Building Products says it has been confronting a ‘sluggish’ new home construction market in the second quarter of 2019. Jay Bachmann, president and chief executive officer (CEO), said that the company was expecting the market to recover in the second half of the year and its improvement programme to reduce costs. Its net sales fell by 4% year-on-year to US$246m in the first half of 2019 from US$256m in the same period in 2018. Its net income dropped by 34% to US$28.8m from US$35.5m. Its gypsum wallboard volumes fell slightly by to 123Mm².

The wallboard producer also said that the shutdown of its Buchanan plant in New York due to mechanical failure might cause a boost operating income and earnings before interest, taxation, depreciation and amortisation (EBITDA) of up to US$2m once an insurance claim is settled. The plant was shut from January 2019 to 15 March 2019. The company increased production at its plants in Silver Grove, Kentucky and Palatka, Florida to offset a portion of the lost production from the Buchanan plant.

Vietnam: Vietnam National Chemical Group’s DAP No 1 – Hai Phong fertiliser plant is exploring options to use phosphogypsum as an additive in cement production. The company is working with the government on finding a use for the by-product of fertiliser production, according to the Viet Nam News newspaper. Duong Duy Hung, the director of the Planning Department at the Ministry of Industry and Trade, said the Ministry of Construction and the Ministry of Science and Technology have been developing new standards and regulations on the use of phosphogypsum plaster for use in the building materials sector. A phosphogypsum dump at the plant is expected to be utilised by 2025.

Oman: The Salalah Free Zone (SFZ) has signed three agreements worth US$80m to build three plants in the area, including two gypsum wallboard plants. The other factory will produce solar panels, according to the Times of Oman newspaper. The plants will be run by foreign companies including one from the US. They will create over 250 jobs.

US: Eagle Materials’ revenue from its gypsum wallboard business fell by 11% year-on-year to US$127m in the first quarter of its financial year to 30 June 2019 from US$142m in the same period in 2018. Its earnings dropped by 25% to US$37.9m from US$50.5m. Wallboard sales volumes decreased by 7% to 61Mm² from 66Mm². It attributed the loss of revenue on lower volumes and poor pricing although it said that buying activity around a price increase in July 2019 suggested that the market was ‘healthy.’

US: China National Building Material Company (CNBM) has proposed paying US$248m in one of its on-going legal cases related to alleged defective gypsum wallboard sold by Taishan Gypsum. This latest settlement agreement covers plaintiffs not previously covered by the Amorin Case, those in the Brooke Case and all other property owners with Chinese gypsum board alleged to be attributed to Taishan and connected partners. The settlement is dependent on all parties signing the agreement.

Spain: Saint-Gobain Placo’s gypsum wallboard board plant at San Martin de la Vega near Madrid has been awarded bronze status in the World Class Manufacturing program. The plant is the first Saint-Gobain unit in the world to achieve the certification. The scheme is intended to train individuals to assess operational excellence, as well as improve employee morale, individual and company performance, and company profits.

France: Saint-Gobain’s sales rose by 4.3% year-on-year to Euro21.7bn in the first half of 2019 from Euro20.8bn in the same period in 2018. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) grew by 8.4% to Euro2.42bn from Euro2.23bn. Growth was reported for its gypsum business in all territories apart from North America. Particular growth was noted in its Asia-Pacific region.

Switzerland: Sika’s net sales grew by 7.6% year-on-year to Euro3.38bn in the first half of 2019 from Euro3.14bn in the same period in 2018. Its operating earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 14.5% to Euro565m from Euro493m. The building chemicals producer noted that its takeover in the reporting period of Parex, a globally leading producer of facade mortar, technical mortar, tile adhesives, and waterproofing systems, was the largest acquisition in its history.

US: The Bureau of Land Management is seeking public comment on a proposed expansion of a USG gypsum quarry and associated water lines in Imperial County, California. USG wants to replace an existing water supply line to its Plaster City gypsum wallboard plant. The project will cost US$110m. The comment period will last until early September 2019.