Gypsum industry news

Uzbekistan: Knauf is planning to invest Euro40m to expand production of gypsum boards and gypsum-based mortars, Dmitry Deripalko, the director-general of Knauf Gips Bukhara, has said. Knauf operates a gypsum wallboard business and a gypsum-based mortar company in Uzbekistan, according to Uzbekistan Daily.

The gypsum wallboard plant run by Bukharagips will be expanded first with a 30% increase in production capacity to be completed by early 2017. Then a new plant will be built at Knauf Gips Bukhara to increase production of gypsum-based mortars. Deripalko said that the project will be paid for via re-investment. Around Euro10m will be spent on construction and the remaining Euro30m on buying equipment. Kanuf also plans to launch a floor gypsum boards in the country.

Bukharagips produces 25Mm²/yr of gypsum wallboard. Knauf Gips Bukhara produces up to 60,000t/yr of mortars.

Honduras: Knauf International has acquired Caspian International in Honduras. Caspian International operates a gypsum wallboard plant in Choloma. The transaction also includes Cateras de Sula, a gypsum quarry in Honduras, and Caspian Panama, a commercial office.

"After our two recent acquisitions in Colombia, we are extremely pleased to strengthen our geographical footprint in the central American market... We are convinced that this acquisition is the beginning of a strong evolution in Central America and in the Caribbean Islands. As we have done in other countries, we will bring our expertise in plasterboard manufacturing to Central America, but also in other construction fields such as Aquapanel cement board, ceilings, jointing and Cleneo, our decorative boards," said Serge Azaïs, member of the Knauf Management Committee and CEO for South America. "Knauf Honduras will benefit from the strong knowledge of our Argentinian team, leading the integration process of the former Gypcen brand."

Russia: The Federal Antimonopoly Service (FAS) has approved an application by Knauf Gypsum Kuban to acquire a 100% stake in ZZSG. FAS ruled that the takeover would not have any effects for competition in the market sector.

ZZSG is a producer and seller of gypsum products in the Mari El federal region of Russia. Knauf Gypsum Kuban is a Russia subsidiary of Knauf.

Vietnam: Knauf Vietnam has signed a strategic cooperation agreement for the distribution of gypsum wallboard with Zinca Vietnam. A ceremony marking the signing was held on 12 March 2016 and attended by about 300 guests, including gypsum wallboard distributors, dealers, contractors, developers, and architects, according to local press.

"I believe this remarkable milestone will help us strengthen our nationwide coverage and promote brand awareness," said David Thomas, General Director of Knauf Vietnam. He added that the company's 20Mm² wallboard plant in Hai Phong has started commissioning and is due to started selling commercial products by May 2016.

Knauf Vietnam was licensed in 2013 to build a gypsum wallboard plant. It has since established offices in Hai Phong, Hanoi, and Ho Chi Minh City and has been developing a distribution network throughout the country. In the meantime it has been selling products locally including StandardShield, MoistShield, FireShield, Knauf Danoline and Cleaneo.

Zinca Vietnam is a Vietnamese building materials manufacturer and distributor that was founded in 1995. It previously signed a cooperation deal with Saint-Gobain in 2007 to distribute Gyproc branded products in the country.

Colombia: Knauf Colombia has acquired Paneltec, a local gypsum wallboard producer. The acquisition enlarges the wallboard manufactures footprint to a second plant in the country.

"We at Knauf are happy to welcome into our family Paneltec, a company that has earned recognition in our country and the region," said Miguel Rangel Galvis, Knauf Colombia General Manager. "With two industrial plants, the education and service that this operation will bring about in the next months and years, many more customers will be able to enjoy all the benefits of technology that Knauf develops for drywall construction in Colombia."

Knauf Colombia has a wallbaord plant in Cartagena. Paneltec began to produce plasterboard in its Barranquilla plant in 2008. Wallboard sales grew by 10% in 2015 in Colombia.

Australia: Knauf Plasterboard has started building a new wallboard plant at the Port of Bundaberg, Burnett Heads, Queensland, according to local media. The project was announced in January 2016 and was subject to approvals before construction could start.

The project comprises the construction and operation of a wallboard plant at the Port of Bundaberg, including gypsum handling and processing facilities to support wallboard production and for on-sale of gypsum into the agriculture sector.

The project has been made possible by funding from the Queensland Government for the construction of a 26km gas pipeline from the Australian Gas Network's Wide Bay gas transmission line at Bundaberg to Burnett Heads. This gas supply supplies capacity for the Knauf plant and other industrial users in the region.

"Knauf is very pleased to be playing its part in working collaboratively with the State Government to help build new industries and boost regional and state economies," said Knauf CEO of Asia Pacific, Murray Read. He added that the Bundaberg plant was a great investment for Knauf, as it expanded Knauf's wallboard manufacturing network into Queensland to better serve its customers, create additional trade through an under-utilised port facility, support regional development and, in partnership with the State Government, helped to develop critical infrastructure for Knauf and other industrial users in regional Queensland.

The plant is expected to create up to 200 jobs during the construction of the plant and around 55 new positions when operational.

Australasia: LafargeHolcim is believed to be considering an exit from Australia and New Zealand, with the region under the spotlight as part of a strategic review globally of non-core assets. It is understood that a private equity firm has already made an approach for some assets, amid a period of global consolidation in the industry.

Lafarge sold its Australian gypsum operations four years ago for US$127m to Knauf, but Holcim has remained one of the most dominant suppliers in the Australian and New Zealand market of aggregates, concrete and concrete pipe and products. While the division is likely to be too large for Boral, it may pursue parts of the business or partner with another buyer to secure some of the LafargeHolcim assets. However, it is believed that the most likely acquirers include CRH and Votorantim.

Australia's construction industry has been enjoying strong conditions on the back of a recent boom in residential house prices in Melbourne and Sydney. Brickworks, the country's largest brick and tile maker, recently flagged a lift in its earnings for the 2016 financial year on the back of the strong momentum in its building products group.

Chile: Knauf Gips KG has purchased a gypsum quarry from cement producer Cementos Bio Bio for US$20m. The acquisition will allow Knauf to consolidate its presence in South American. The company, which already owns three gypsum plants in Argentina, Brazil and Colombia, plans to expand its geographical reach to Ecuador, Venezuela, Central America and the Caribbean.

Russia: Knauf has begun the construction of a Euro16.8m gypsum dry building mix plant in Chapayevsk, Samara. The plant is expected to be commissioned at the end of 2016. The 170,000m² plant area is under municipal ownership and will be leased by Knauf for 49 years. The plant will be Knauf's 15th production enterprise in Russia.

"In the region there is a raw materials base, which is important for Knauf. As there is quite a large amount of construction in the region currently, construction materials producers are needed. We understand that it is much more advantageous to localise production here, than to transport materials from other regions and engage in, in particular, international logistics," said Samara's Regional Economic Development Minister Alexander Kobenko. "It is planned for the plant to reach full capacity in two and a half years. It will produce about 240,000t/yr of gypsum binder and 130,000t/yr of building mixes. This is about Euro25m/yr," said Kobenko.

Europe: USG has entered into a definitive agreement for the sale of its interest in Knauf-USG Verwaltungs GmbH and Knauf/USG Systems GmbH and Co KG to Knauf Aquapanel GmbH for approximately Euro48m in cash.

The Knauf-USG joint venture manufactures and distributes Aquapanel brand cement panels throughout Europe (excluding Turkey) and all countries that were part of the former Soviet Union.

USG's equity method income in the Knauf-USG joint venture amounted to Euro1.79m for the year that ended on 31 December 2014. Upon the close of the transaction, USG anticipates recording a Euro2.68 – 6.26m gain. The closing of the sale is subject to the receipt of necessary governmental approvals and other customary closing conditions and is expected to take place by the end of 2015.