Gypsum industry news

France: Saint-Gobain’s sales rose by 1.9% year-on-year to Euro20.8bn in the first half of 2019 from Euro20.4bn in the same period in 2017. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) fell very slightly to Euro2.07bn.

"The second quarter marks a return to supportive trends in all our main markets. After a disappointing first quarter, affected by harsh winter weather in Europe, which weighed on results, the second quarter was far more encouraging in terms of volumes and prices. The group succeeded in further raising sales prices amid continued raw material and energy cost inflation. Despite a combination of temporary one-off factors, our first-half results progressed once again,” said Pierre-André de Chalendar, chairman and chief executive officer (CEO) of Saint-Gobain.

The group’s Interior Solutions division, including gypsum wallboard and insulation production, reported 7.1% organic growth, with rising sales prices in the period although raw material and energy costs inflated. The group noted that although its operating margin was held back by weather conditions in Europe in the first quarter and by the on-going shift from synthetic to natural gypsum, it benefited over the half-year period from a positive price-cost spread in terms of raw materials and energy.

Spain: Saint-Gobain plans to invest Euro120m over the next three years in its local subsidiary. In an interview with the Cinco Dias newspaper, Gianni Scotti, the chief executive officer (CEO) for Spain, Italy, Portugal, Greece and North Africa warned against rising electricity costs in the country. The bulk of the investment will go towards upgrading the Fábrica de Quinto wallboard plant in Zaragoza.

UK: Logistics company AV Dawson has signed a deal with British Gypsum to import materials for gypsum wallboard and plaster production. Raw materials will be imported through AV Dawson’s Teesside marine terminal in Middlesbrough and then transported by train to British Gypsum’s operations in the East Midlands. The deal will see AV Dawson invest over Euro2m in new facilities and equipment, including a new canopy to stores import materials. The deal will also create 10 new jobs at AV Dawson.

Canada: The Canada Border Services Agency has started an investigation into gypsum board products being imported from the US. The probe has been initiated by a complaint by CertainTeed Gypsum Canada about the products being imported into British Colombia, Alberta, Saskatchewan and Manitoba, as well as the Yukon and Northwest Territories, according to the Canadian Press newspaper. It is the second complaint that CertainTeed Gypsum Canada has made in recent years, following a similar allegation in 2016.

In 2016 preliminary tariffs were imposed on US imports and then reduced after being blamed for raising the price of wallboard. The increases were linked to higher costs for domestic customers in Fort McMurray, Alberta following destruction caused by wildfires. The Canadian International Trade Tribunal later ruled that US imports had caused injury to local producers but that maintaining duties would not be in the country's trade interests.

Spain: Saint-Gobain Placo Iberia plans to spend Euro4.5m on upgrades to its Fábrica de Quinto wallboard plant in Zaragoza. The project started in 2017 with an investment of Euro1m, according to the Heraldo de Aragón newspaper. In July 2018 the company plans to spend Euro0.5m towards improving the quality of its wallboard and preparing a production line for new products. The majority of the investment will go towards improving logistics at the unit and expanding its storage capacity. A new wallboard recycling plant is also planned.

UK: British Gypsum has appointed Stacey Temprell as Marketing Director and Paul Lake as Sales Director. Both directors will work together to develop and roll out plans for the company’s range of products and services.

Temprell was previously responsible for supporting the development of Saint-Gobain’s Habitat strategy in the UK and Ireland, leading its marketing function. She first joined the Saint-Gobain Group with British Gypsum, where she had responsibility for the Gyproc range of plasterboards and plasterboard accessories and managing the product range transition to meet new building regulations, before moving into the role of Residential Market Manager.

Lake previously led the Ecophon organisation in the UK and Ireland. He brings to the role experience in both sales and general management at Ecophon and latterly as Business Units Director responsible for Saint-Gobain Ceilings for the UK, Ireland, South Africa and Benelux countries.

Switzerland: Saint-Gobain has ended its takeover battle for Sika by reaching an agreement with the company and the Burkard family. The deal will see it retain a 10.75% share in Sika. However, it has acquired Schenker-Winkler Holding’s 6.97% share from the Burkard family and it has sold this stake to Sika for Euro1.74bn. Saint-Gobain is expected to make a profit of Euro600m on this sale. Saint-Gobain will gain additional voting rights and all legal proceedings will be dropped. Saint-Gobain and Sika have also agreed to extend their business relationship in the future.

"This is a very positive settlement for Saint-Gobain, both from a financial and a strategic perspective. We materialise a substantial positive net result in excess of Euro600m for our shareholders. We also retain a minority stake in a great company and will enhance the relationship between the two groups," said Pierre-André de Chalendar, chairman and chief executive officer of Saint-Gobain.

Saint-Gobain attempted to takeover Sika through acquiring a share of the company owned by the Burkard family in 2014. However, legal counteraction followed and an attempt to transfer shares of Sika from the Burkard family was blocked by a Swiss court in late 2016.

Spain: Saint-Gobain Ibérica’s Sorbas gypsum quarry has marked a record of 17 years without any accidents. The local subsidiary of Saint-Gobain has gone 6500 days without incident. The milestone was recognised as the company signed an agreement to join a workplace health promotion program with the local government.

France: Saint-Gobain’s Interior Solutions division has grown its sales in Asia and emerging countries in the first quarter of 2018. Its sales rose by 2.4% year-on-year to Euro1.75bn in the first quarter of 2018 from Euro1.71bn in the same period of 2017. The group reported that trading in Western Europe was partly affected by weather conditions, although the underlying growth trends were good, except in the UK. North America posted growth, led by prices. Overall, the group’s sales fell slightly to Euro9.76bn due to poor weather and reduced working days.

Spain: Saint-Gobain España’s sales rose by 8% year-on-year to Euro1.18bn in 2017. In an interview with the Expansión newspaper, Mediterranean Region chief executive officer (CEO) Gianni Scotti said that increased housing construction in Spain had driven demand for building products. He added that Spain represents 58% of the sales from the eight countries in the company’s Mediterranean region. The majority of the division’s sales come from products for the construction industry including gypsum wallboard and insulation. However, Scotti wanred that high energy costs in Spain are making the country less competitive compared to other parts of Europe.