Gypsum industry news

Kenya: The Kenyan government says that it is intensifying efforts to curb illegal gypsum mining, which is ‘rampant’ in the cement industry. Kenya News has reported that Cabinet Secretary Hassan Ali Joho claimed that 3000 unlicensed mines have already closed due to government actions since the beginning of 2022.

Joho said that Kenya’s cement sector has been ‘buying and using gypsum in cement manufacturing,’ however “There is no record of anyone licensed to mine gypsum in Kenya. There are no records on production, payment of taxes and royalties or community programmes undertaken by any gypsum dealer.” He added that this is because “They are doing it illegally.”

Kenya: Gypsum traders in Garissa have called on the government to lift a ban on gypsum mining in the country. The ban also prevents land allocation and demarcation. The Star newspaper has reported that it resulted from a perceived security threat due to violence at local mines, in which 12 people have died.

Mine owner Issa Kuno invited Cabinet Secretary for Mining, Blue Economy and Maritime Affairs Hassan Joho to visit. He said “Personally, I have never experienced or witnessed any insecurity related to gypsum mining activities."

Natural gypsum mined in Garissa County previously sold for US$38.60/t.

France: Saint-Gobain’s sales grew by 15.8% year-on-year to Euro44.2bn in 2021 from Euro38.1bn in 2020. Its earnings before taxation, interest, depreciation and amortisation (EBTIDA) rose by 41% to Euro6.20bn from Euro4.42bn. Sales and earnings increased by 4% and 27% compared to 2019 levels before the coronavirus pandemic started. Sales revenue and operation income was reported up in all geographical regions. In North America the group noted that the integration of Continental Building Products had boosted its position in the US gypsum wallboard market and helped it to tap new sales channels.

“The records achieved in 2021 confirm that the group has entered a new post-transformation trajectory in terms of performance: market-beating sales growth, record earnings and margins, a high level of free cash flow generation that has more than doubled compared to previous years, and strong value creation for our shareholders thanks to strict capital allocation and the determined execution of our portfolio optimisation,” said Benoit Bazin, the chief executive officer of Saint-Gobain.

The group completed or signed 37 acquisitions in 2021, including Chryso and GCP Applied Technologies (GCP), marking its rapid expansion into the construction chemicals market. In November 2021 On November 15, 2021, Saint-Gobain said that it had acquired a gypsum plant in Nairobi, Kenya. It will be the company’s first production site in Kenya, where it will also invest in a construction chemicals production line.

Kenya/Mauritius: Saint-Gobain says that has acquired a gypsum wallboard plant in Nairobi, Kenya. The company says that it plans to build a construction chemicals line on the site of the plant. According to the Global Gypsum Directory 2021, Erdemann Gypsum and Tanzania Gypsum respectively operate 10Mm2/yr and 12Mm2/yr gypsum wallboard plants in the Kenyan capital city. Saint-Gobain has also taken over a majority stake in Chryso additives, mortars and waterproofers producer ABE Mauritius in Mauritius.

The company is seeking to expand its range of light and sustainable construction solution through the acquisitions. Its footprint in Africa extends over 12 countries across 29 facilities, nine of which it opened in the past two years.

Kenya: Erdemann Gypsum has warned of health dangers regarding indoor toxins from imported gypsum products made from synthetic gypsum. There is some concern that low levels of the heavy metals present in coal might be present in synthetic gypsum. The company mines gypsum in Kitui and makes gypsum wallboard, plasters, cornices, corners and medallions at its US$4.89m plant in the county.

"We should use natural gypsum building materials from natural gypsum, which is safe for our health," said Erdemann Gypsum Managing Director John Yang. "The government should inspect imported gypsum products to ensure they do not have chemical contaminants."

Yang has also asked the government to seal gaps used by 'unscrupulous importers' in dumping gypsum-based construction materials into the country, to protect local companies. He requested that the government protect local manufacturers of building materials, who, he said, faced unfair competition from imported building materials, which are sometimes under-taxed. "Recognition of players in the building materials industry by the government will go a long way in helping the investors feel secure in doing their business in the country," he said. "Our company is the first of its kind in Kenya and we have created a new avenue for government revenue collection, so we expect at least some protection from the government."