Gypsum industry news

Uzbekistan: Germany's Knauf International GmbH has opened its gypsum wallboard plant in Kagan, Uzbekistan. The project, which is run by Knauf Gips Bukhara, was built at a cost of around USD51.1m. Construction started in 2008 and was completed in June 2011. To date, the company has been operating the 20MM2/yr plant in test mode. The project is the second by Knauf in Uzbekistan.

Australia: Lafarge has announced the sale of its Australian gypsum operations to Knauf for net proceeds of Euro120m.

Lafarge's Australian Gypsum business represents two manufacturing facilities for gypsum wallboard and other compounds along with a national network of distribution and retail centres. In 2010, Lafarge's Australian operations generated EBITDA of Euro13m. The completion of this deal is expected to happen in the third quarter of 2011.

This news follows Lafarge's decision to sell its gypsum interests in Europe and South America to the Belgian Etex Group (announced on 14 July 2011 – read full story here). Under this proposed agreement, Lafarge would receive net cash proceeds of approximately Euro850m and in addition would receive a 20% interest in the new partnership. The partnership would combine the European and South American Gypsum activities of both groups.

Ukraine: Gross gypsum exports in the first five months of 2011 amounted to 27056 tons, bringing in USD2.01m. In May the country exported 6946t of gypsum, worth USD658,000. The values represent a 23% decrease in tonnage compared to the same period of 2010 and a financial decrease of 54.4%. May 2011 brought in 50.2% less than May 2010 in financial terms.

The leading exporters of gypsum in May 2011 were Knauf Gips Donbass LLC, Gipsovik OJSC, Ivano-Frankovsjiy Cement, Slate Combine OJSC and Mamalyzhskiy Gypsum Plant OJSC. The leading importer was Budfarfor Slavutsk Combine CJSC.

Uzbekistan: Germany's Knauf International GmbH (Knauf) has completed the construction of a 20MM²/yr wallboard production plant in Uzbekistan. The project, worth US$48m, was funded through a direct investment from Knauf. The contractor for the construction project was German Samo Engineering.

KnaufGipsBuhara, a wholly-owned subsidiary of Knauf International GmbH, will manage the plant. Following the full commissioning of the new production facilities, the wallboard production capacity in Uzbekistan will be doubled to 40MM²/yr, with demand closer to 60MM²/yr.