Gypsum industry news

Colombia/Mexico: Mexican gypsum wallboard producers including USG Mexico and Abasteco Maxima (Abamax) will have to pay anti-dumping duties on imports to Colombia following an investigation by the Committee on Trade Practices. USG Mexico will be required to pay a 25% tariff, Abamax will have to a pay a 7.15% tariff and all other importers will face a 42.86% tariff, according to the Sentido Común website. The government will implement the tariffs over the next two years and will then reassess the situation.

US: USG has won two manufacturing awards from Frost & Sullivan's Manufacturing Leadership Council. The building materials manufacturer earned an award in the 'Improving Operational Excellence' category for its Lean Six Sigma (LSS) programme achievements and its Mexican subsidiary, USG Mexico, earned an award in the category of 'Supply Chain Leadership' for the optimisation of its import logistics and distribution programs. The Manufacturing Leadership Awards recognise manufacturing organisations and individual leaders shaping the future of global manufacturing.

"USG is committed to manufacturing excellence and it is an honour to receive these prestigious Manufacturing Leadership Awards," said Dom Dannessa, USG's Executive Vice President and Chief Operations and Innovation Officer. "Investments in Lean Six Sigma and our Supply Chain have allowed us to better anticipate our customers' needs so that we can continue to provide them with superior solutions."

USG says that its LSS programmes have enabled it to optimise production and pricing, cut transportation costs and reduce excess inventory, leading to more than US$250m in operational savings and significantly improving team productivity. USG Mexico meanwhile invested in local distribution centres to increase its product range in the region.

Mexico: PPG has completed its sales of its Plaka plasterboard and cement-board business to Knauf. No financial value for the deal has been disclosed. PPG originally purchased its Plaka business in 2014 when it acquired Consorcio. The company produces wallboard, plasterboard and cement board primarily for the Mexican market.

Mexico: PPG has agreed to sell its Plaka gypsum wallboard and cement board business to Knauf. The transaction is expected to close in the first half of 2017, subject to regulatory approvals and other customary closing conditions. No financial details have been released.

PPG acquired the Plaka business in 2014 as part of its acquisition of Comex. Plaka, with sales of around US$30m in 2015, produces wallboard, plasterboard and cement board primarily for the Mexican construction market. The business employs about 200 people and operates a plant in Querétaro.

Mexico: Panel Rey has announced that it will begin construction of a new wallboard plant in Cuidad Jurez, Chihuahau, Mexico. It will begin production in December 2016.

The plant is located 30km away from the US border at El Paso, Texas and will service the northwest markets of Mexico and Southwest in the US markets.

The company states that the production capacity of the plant is 15,000,000 boards/yr. It will also produce joint compounds and metal studs in the future.

The company states that it will continue its expansion in Central and South America.

US: Cemex USA, the US subsidiary of the Mexican building materials company Cemex, has signed an agreement for the sale of its gypsum wallboard business based in Florida to US LBM. Terms of the deal were not disclosed.

The proceeds obtained from this transaction, which Cemex said will not be for a material amount, will be used mainly by Cemex USA's affiliates for debt reduction and for general corporate purposes. Cemex said that the closing of this divestment is subject to the satisfaction of standard conditions for this type of transaction.

The company currently expects to finalise this transaction at any time prior to the end of 2015.

Mexico: Mining and metallurgic production dropped 6% in Mexico in the first four months of 2014, the steepest fall for a similar period since 2009, according to the national institute of statistics and geography (INEGI). The drop was attributed to a fall in coal, gold, iron ore, silver, fluorite and lead production. In contrast, gypsum, coque, sulphur, zinc and copper output rose in the same period.

Germany/Brazil/Mexico: Wacker Chemie AG, the Munich-based gypsum additive producer, is extending its existing technical centre in São Paulo, Brazil, and creating a new technical centre in Mexico City, Mexico. The company will also expand its training centre in São Paulo and open a new one in Mexico City. Both projects have a combined investment of Euro1.2m and are scheduled for completion in the first quarter of 2013.

"Central and South America are key future markets for Wacker. Our sales in these regions have grown by an annual average of 15% over the past five years," said president and CEO Dr Rudolf Staudigl.

World: With Boral's recent acquisition of Sunshine Coast Quarries, the company has spent USD250m in Queensland since April 2011. Boral's head of strategy and mergers and acquisitions, Matt Coren, said this move did not necessarily reveal a special focus on the state (or indeed on cement and concrete), saying, "You'll see us continue to invest in other markets."

Boral's recent acquisition spree, along with Coren's comments, has raised speculation that the group may be eyeing up bigger and more lucrative offshore investments. Following the decision by France's Lafarge to sell 80% of its European gypsum assets to Etex Group (announced on 14 July 2011 – read full story here), the spotlight has again swung to the possibility that Boral may be considering the French gypsum and plaster company's Asia-Pacific and North American assets. Boral and Lafarge have an existing joint venture plasterboard business in Asia and it is thought the Australian building group would like to increase its 50% stake or even buy out its partner entirely.

Credit Suisse has indeed recently labeled Boral as the 'natural owner' of Lafarge's remaining gypsum assets. Rohan Gallagher, an analyst with Credit Suisse said that Boral would need to raise equity to do the deal, but expressed doubt that facilities in the United States and Mexico (including six wallboard plants with over 300Mm2/yr wallboard capacity), would not be a wise choice for Boral in the present climate.

Nomura analyst Simon Thackray said that if Boral could increase its stake in the Asian joint venture by a further 10% and purchase a 60% interest in Lafarge's US business the group would need to spend about USD300m, which could be heavily dilutive.