Gypsum industry news

New Zealand: Parliament has passed the Building Act, allowing the import of ‘thousands’ of building products, including gypsum wallboard, insulation and cladding systems. The act allows for cited standards, according to which the Minister for Building Construction will be able to issue a notice to recognise overseas product standards and certification schemes for local use.

Scoop News has reported that the government introduced the bill to help lower prices, following 40% rises since 2019, and to ease shortages.

New Zealand: Fletcher Building has reported its financial results for the first half of its 2025 financial year, which began on 1 July 2024. The group recorded sales of US$2.05bn, down by 7% year-on-year from US$2.21bn, and negative earnings before interest and taxation (EBIT) at a loss of US$14.9m. It previously recorded a positive EBIT of US$44.1m in the corresponding first half of its 2024 financial year.

Sales in its Building Products division, which includes Winstone Wallboards, fell by 5% to US$380m, with EBIT of US$35.5m. Light building products contributed EBIT of US$32.6m. Winstone Wallboards retained its ‘strong’ market position, despite a recessionary environment, and successfully brought its new Tauranga gypsum wallboard plant to targeted performance efficiency.

New Zealand: The government has launched a ‘major’ review of competition rules to combat monopolies and improve economic productivity. Fuseworks Media News has reported that the review is partly a response to a gypsum wallboard supply ‘crisis’ in 2022.

Commerce and Consumer Affairs Minister Andrew Bayly said "We have launched a two-pronged approach: 1 – to update the competition settings in the Commerce Act to ensure our legal framework is right; and 2 – to review the governance and effectiveness of the Commerce Commission to ensure our regulatory and enforcement framework is right."

New Zealand: Winstone Wallboards’ parent company Fletcher Building says that it will ‘vigorously defend’ against charges by the New Zealand Commerce Commission of alleged anti-competitive customer rebates between 2017 and 2022. RNZ News has reported that rebates of the type allegedly deployed by Winstone Wallboards are ‘common’ competitive manoeuvres in the sector. The Commerce Commission says that it will file an action before the end of October 2024.

New Zealand: Fletcher Building has appointed Tony Dragicevich as a non-executive director and member of its board of directors, effective from 1 August 2024. Dragicevich previously served as managing director and CEO of aluminium producer Capral, and has held leadership positions at Wattyl Group, GWA Bathrooms and Kitchens, Red Paper Group and Carter Holt Harvey Insulation. He holds a commerce degree from the University of Auckland.

Acting chair Barbara Chapman said "Tony is a highly accomplished CEO and director who brings significant experience in leading distribution and manufacturing businesses across Australia and New Zealand. His successful career in the building products sector, combined with his strong track record of delivering value for shareholders, make him an excellent addition to Fletcher Building's Board."

New Zealand: Fletcher Building announced the retirement of its chief executive officer Ross Taylor on 14 February 2024. As part of a board renewal review, chair Bruce Hassall will also leave. Fletcher Building’s People and Remuneration Committee chair, non-executive director Barbara Chapman, will lead the search process for replacements. Handovers are scheduled to take place in October 2024.

The producer said “The board thanks Bruce and Ross for their leadership and contribution since 2017. During this period, they have led the turnaround of Fletcher Building, which has seen the core businesses becoming more focussed and profitable, with improved earnings, margins and returns.”

Australia/New Zealand: Belgium-based Etex has signed an agreement with building materials company BGC to acquire the latter’s gypsum and fibre cement businesses. The gypsum business consists of wallboard, plasters, compounds and cornice production units, and includes the Perth gypsum wallboard plant in Western Australia. BGC also operates nine warehouses across Australia and New Zealand. Etex says that the deal expands its activities in the ‘attractive’ local market, with significant growth opportunities. Finalisation is expected in early 2024.

Etex CEO Bernard Delvaux said “This deal is a strategic opportunity for Etex to complement our footprint in Australia and further increase the accessibility of our products and services for customers. This will both reinforce our gypsum wallboard offering and position us well in the growing fibre cement activities through a broad product range and good channel access.”

New Zealand: Winstone Wallboards has started despatching wallboard produced at its new Tauranga plant around New Zealand’s North Island. General manager David Thomas said that GIB wallboard products made in the new plant had achieved performance levels consistent with those of wallboard made in the company’s Auckland and Christchurch plants. Earlier in August 2023, Ross Taylor, the chief executive officer of Fletcher Building, Winstone Wallboards’ parent company, said that the Tauranga plant had commenced production. The site is scheduled to become fully operational by the end of October 2023.

New Zealand: Fletcher Building has managed to grow its earnings for its Building Products division in its 2023 financial year despite a weakened residential market in the second half of the year, poor weather and rising input costs. It noted that “substantial cost increases were absorbed on gypsum, paper, resin and freight, partially offset by lower utility costs from the drop in electricity prices.” It combated this through cost management and ‘pricing discipline.’ Revenue from the group’s Building Products division fell slightly to US$863m in the financial year to 30 June 2023 from US$873m in the same period in 2022. However, earnings before interest and taxation (EBIT) rose by 4% year-on-year to US$120m from US$115m.

Ross Taylor, the chief executive officer of Fletcher Building, said “Our US$240m investment in Winstone Wallboards GIB plasterboard manufacturing and distribution facility in Tauranga has now commenced production and will be fully operational by the end of October 2023. The new plant’s state-of-the-art technology delivers more production capacity allowing for product innovation and future growth.”

Overall the group’s revenue dropped slightly to US$5.07bn from US$5.08bn and EBIT dropped by 29% to US$298m from US$420m. The large drop in earnings was mainly attributed to additional costs allocated to the New Zealand International Convention Centre and Hobson Street Hotel project. Adjusted for significant items the group’s EBIT rose by 6% to US$477m from US$452m.

New Zealand: Winstone Wallboards says that it successfully started a test run on the new production line at its new Tauriko gypsum wallboard plant in mid-May 2023. In a statement general manager David Thomas said “The team successfully put ‘slurry on paper’ and ran board down the line and, beyond our initial plan, through the dryer.” He added the company was confident that it would be producing wallboard in the second half of 2023.