Gypsum industry news

Indonesia: PT Saint-Gobain Construction Products Indonesia (SGCPI), a subsidiary of Saint-Gobain Group, has invested approximately US$45m in the construction of a gypsum wallboard plant within the Cikande industrial estate in Serang, Banten. The 33Mm²/yr capacity plant, which is located on a 60,000m² plot of land, will be officially opened on 28 October 2014 after 18 months of construction.

According to Edward Loy, SGCPI's managing director for Indonesia, Malaysia and Singapore, production will start in November 2014 and the plant is expected to operate at full capacity by the end of 2015. Loy said that the plant was a first for the firm's industrial mortars division in Indonesia, hinting that there would be more investments to come from its glass and abrasives production in the near future.

"We want to position ourselves as strategic investors in Indonesia and we have more investments coming through in the next few years as well," said Loy.

With the opening of the plant, Loy suggested that the company would become more efficient in terms of pricing. "The opening of the plant will allow us to position ourselves as a local player in the market, so even though we started in 2007 with imports, it wasn't competitive. Now we'll have no more freight charges or shipping and handling," said Loy. In spite of his optimism, the regional managing director acknowledged that his firm would need to face the challenge of competing against cheaper, readily available yet unsustainable construction materials like asbestos and sand bricks.

"We can't compete with clay and sand bricks when the labour is still very cheap, but we can make sure the price difference is small and they are not offering the same kind of quality that we are," said Loy. "We'll deliver quality and performance to the homeowner." According to him, three factors will be decisive in driving the adoption of SGCPI's Gyproc brand of gypsum boards in the country; rising labour costs, knowledgeable consumers and the shift toward using green and sustainable construction materials.

Loy said that around 40-45% of the firm's business would be in the residential sector, while the rest of his clients would come from the commercial and public sectors, catering to spaces such as shopping malls, airports and hospitals.

Russia: The Ural-based company Bergauf Building Materials has purchased a production facility in Sterlitamak in the Bashkortostan Republic, Volga, from HeidelbergCement. The deal included a plant producing dry mortars under the brand Bystroy and a gypsum production complex. The price of the assets has not been reported.

UK: Cuddy Recycling Ltd, a start up company that is supported by the Welsh Government, plans to invest Euro1.49m to create the first wood, wallboard and gypsum recycling centre in South Wales. It will create 22 jobs.

Backed by Euro285,000 from the Welsh Economic Growth Fund, the purpose-built centre will be based on the former Wern Works site in Briton Ferry, Neath Port Talbot which, subject to planning, will be partially demolished and redeveloped. The new centre will process and recycle demolition aggregate from construction and demolition projects across Wales, as well as waste timber and wallboard from the construction industry and civil amenity sites.

It aims to provide a green alternative to landfill with waste timber used for animal bedding, panel board manufacture and biomass fuel, with the option of introducing a garden mulch product at a later date.

Aggregates will be sorted for reuse in construction companies. Wallboard will, where possible, be taken back to wallboard manufacture, or the gypsum recycled as a soil conditioner for agricultural purposes. There is also potential for use as a cement additive.

"This project supports two of our key economic sectors, providing a specific service for the construction sector while the new business will operate in the energy and environment industry, one of the fastest growing sectors in the Welsh economy with waste management - the largest sub sector," said economy minister Edwina Hart. "Companies working in this area are not only making a significant contribution in terms of job creation and financial impact, but by reducing waste to landfill they are helping us achieve recycling targets and ensure that we create a sustainable environment for future generations. The proposed new centre will provide an important facility to deal with construction and demolition waste and I am pleased to support this new start up through the Economic Growth Fund."

Peru: Wallboard producer Eternit, which is owned by Etex, will inaugurate its 12,000Mm²/yr capacity wallboard plant under the Gyplac brand in Huarochiri, Peru, in March 2015. Investments in the new infrastructure have reached the US$33m. Eternit sees opportunities in the residential segment, while any excess production will be exported to Ecuador, Bolivia and Central America.

All Eternit operations will be concentrated in Huarochiri by 2019. Gyplac wallboard sales are expected to grow by 20%. Eternit company sales of more than US$210m are projected in Peru during 2014, 8% more than in 2013. Revenues are expected to double in the next five years. Other product lines could be incorporated from 2018 if operations prove to be successful. Eternit, which controls 45% of the Peruvian wallboard market, is introducing Equitone and Promat products as well.

Vietnam: Knauf Vietnam has commenced construction of its first gypsum wallboard plant in the northern port city of Hai Phong on 16 July 2014. Located in Dinh Vu Industrial Zone, the plant has been one of the largest foreign direct investment projects in the city. Covering an area of 63,000m², the plant has a total investment of US$40m. When the plant is operational it will have a wallboard production capacity 12Mm²/yr.

"We have just launched two distributors in Vietnam, one in the south and one in the north and now we are starting the construction of our plant," said David Thomas, Knauf's general director. "We believe that, once completed by mid-2015, the plant will help us to gain a considerable market share in Vietnam in general and in the north in particular."

Thomas said that Knauf plans to expand its relationship with key partners such as distributors, architects, developers and government authorities, with an aim to widely introduce its products to the Vietnamese market.

"Dinh Vu Industrial Zone is a strategic location in terms of transportation and manufacturing that would provide the market with high quality products at competitive prices and improve the standards of the whole industry," said Thomas.

Brazil: Knauf has inaugurated its second wallboard plant in Camacri, Bahia. The US$66m plant will increase the company's annual production in Brazil by 80% to 45Mm²/yr. The company has forecast a 15% increase in sales volume in 2014, with the new plant supplying the north, north east and part of the central west regions of the country, with the possibility of exporting to the Caribbean and Africa. The plant is expected to be operating at full capacity within four to five years.

Russia: Saint-Gobain has announced that it intends to build a gypsum plant in one of the lime fields in Chelyabinsk Oblast. The plant will produce products under the Gyproc name. The investment amount has not been reported. Saint-Gobain also has a company producing Linerock basalt fibre at the Minplita plant in Chelyabinsk Oblast.

US: United States Gypsum (USG) has announced that it has no plans to build a wallboard plant in Crystal River, Florida.

Although the company has received approval from the Southwest Florida Water Management District for a 1.750ML/day general water use permit, USG officials said that the company doesn't need the plant right now. However, officials said that USG is keeping its options open for the future.

Read the original story here: USG gets water permit for wallboard plant

US: United States Gypsum (USG) has received a 1.750ML/day water use permit for a planned wallboard and joint compound (spackle) manufacturing plant near the Duke Energy complex in the city of Crystal River, Florida.

In 2011 USG bought 0.716km² of land near the Progress Energy Florida power plant, now Duke Energy, to warehouse synthetic gypsum that is created by scrubbers at the coal-burning plants. USG takes all of the gypsum produced at the plant and moves it to the site by conveyor belt.

USG now plans to construct a gypsum processing facility at the site. Part of the water permit detailed a request for two 30.5cm wells to be located on the plant site, to which water will be piped. The plant will run six days a week, possibly seven during the peak building season.

Progressive Water Resources, which is handling the application process for USG, also investigated using reclaimed wastewater from Crystal River. However, that water has already been committed to Duke Energy.

Brazil: Etex has started the construction of a new wallboard plant in Santa Cruz, Rio de Janeiro with an investment of Euro60m. The plant will open in mid-2015.

"The investment enables Etex to expand its footprint in Latin America, an emerging market of strategic importance. Brazil plays a leading role in the economic development of the region. The country's wallboard market is growing rapidly, at twice the rate of the construction industry,'' said Fons Peeters, Etex's CEO.

Construction work for the new plant started on 31 March 2014. An estimated 150 employees will manufacture three types of high-performance wallboard: standard, humidity-resistant and fire-resistant. The plant will serve markets in the south and southeast regions of Brazil. The new plant will be Etex's third wallboard production facility in the country joining its existing plants in Pernambuco state.