Gypsum industry news

Spain: Knauf will demonstrate its range of expanded polystyrene (EPS) and expanded polypropylene (EPP) boxes for the transportation of fresh and frozen fruit at the International Fair of the Fruit and Vegetable Sector in Madrid on 22 – 24 October. The boxes combine thermal insulation, lightness and shock absorption with 100% recyclability.

Australia: USG-Boral’s earnings have fallen due to a poor construction market in South Korea. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 6% year-on-year to US$170m in the financial year to 30 June 2019 from US$181m in the previous year. Its revenue grew by 2% to US$1.08bn from US$1.06bn. The joint venture said that, excluding South Korea, earnings were ‘steady’ as lower earnings from Indonesia, China and the Philippines were offset by increased contributions from Thailand, Vietnam and India, as well as a continued strong contribution from Australia.

The company also announced that Boral has entered into an agreement with Germany’s Knauf to form an expanded 50:50 plasterboard joint venture in Asia and for Boral to return to 100% ownership of USG Boral Australia & New Zealand. Completion of the deal is subject to regulatory approval. It follows the acquisition of USG by Germany’s Knauf in early 2019.

Chile: Germany’s Knauf plans to invest US$11m towards increasing the rate of gypsum extraction at a quarry its subsidiary Yesos Andinos operates at the Rubí deposit, in in San José del Maipo, Cordillera Province. The company said in an Environmental Impact Study (EIA) that it wants to raise extraction to 0.4Mt/yr, according to ValorFuturo. At present it is restricted to 35,000t/yr at the site.

Australia/US: USG-Boral will resume 100% ownership of its Australia and New Zealand gypsum wallboard operations, subject to a call option for Knauf to buy back 50% within five years.

Boral CEO Michael Kane has commended Boral’s Sheetrock brand’s substantially strengthened position by comparison to that at the time of Knauf’s US$7bn acquisition of USG in April 2019, since which time Knauf has held 50% of USG-Boral’s gypsum wallboard business in Australia and New Zealand.

Boral will continue its joint operations with Knauf across Asia, at the centre of which are USG-Boral Asia’s purchase of Knauf Asian Plasterboard for US$533m, and its sale of its Middle Eastern ventures to Knauf for US$50m.

Tanzania: Knauf Gypsum Tanzania has signed a five-year agreement with the Tanzania Petroleum Development Corporation (TPDC) to supply gas for a gypsum plant it is building at Kisemvule, Mkuranga District. The arrangement will started at the end of 2020, according to the Daily News newspaper. Commissioning at the plant is expected to start at the end of August 2019.

Spain: Alberto De Luca, the chief executive officer (CEO) of Knauf Spain and Portugal, has been appointed as the president of the gypsum technical and business association (ATEDY). The association represents gypsum and plaster product manufacturers in Spain and Portugal.

De Luca has been the general director of Knauf Spain and Portugal for four years. The Italian national studied in Brussels, Belgium and joined Knauf Group in 2002. He held the postion of general director of Knauf Insulation for Spain, Portugal, Italy and North Africa for over eight years.

Spain: Knauf has launched its Knauf Fino product, a fine, high-performance for indoor use. It is classified as lightweight construction gypsum C7 / 20/2 according to the UNE-EN 13279-1 standard. It has CE Marking.

Australia: Boral says that it may be ready to announce its plans with its USG Boral joint venture in August 2019. It is currently conducting due diligence on the joint venture’s operations in Asia following Knauf’s acquisition of USG in early 2019, according to the Australian newspaper. Forward options include established a new Asian joint-venture with Knauf or buying USG Boral’s gypsum wallboard business in Australia, New Zealand, Papua New Guinea and islands in the South West Pacific. However, Boral’s chief executive officer (CEO) Mike Kane said that there might not be enough time to arrange a deal by the publication of Boral’s full year results in August 2019.

US: Germany’s Knauf has completed its acquisition of USG. The company said that the purchase would create, “a global building materials industry leader that will be even better positioned to meet customers' needs by leveraging two highly complementary businesses, product portfolios and global footprints.”

"We greatly admire USG's strong brands, leading market positions in North American wallboard and ceilings, and highly talented employee base,” said Alexander Knauf, General Partner of Knauf. He added that the transaction was the largest acquisition in Knauf’s history.

Knauf agreed to buy USG in mid-2018 for US$7bn. The Australian Competition and Consumer Commission has approved the deal in late March 2019 subject to asset divestments relating to its Boral-USG joint venture.

Mexico: Saint-Gobain has completed the acquisition of Knauf Mexico for an undisclosed sum. Knauf operates a 26Mm² gypsum wallboard plant at Queretaro that it purchased from PPG in 2017.