Gypsum industry news

Canada: The British Columbia government has granted an environmental assessment certificate for a 0.4Mt/yr opencast gypsum mine in West Kootenay proposed by CertainTeed Gypsum Canada. Construction of the project is expected to cost US$19m, according to the Canadian Press. Gypsum from the mine will be used to manufacture gypsum wallboard, cement and plaster products.

Ireland: Gyproc has launched what it says is the country’s first wallboard recycling service at its Kingscourt plant in County Cavan. The subsidiary of Saint-Gobain hopes to recycle 0.5Mt of wallboard by 2028. It has spent Euro1.5m on the upgrade to the plant and it has increased the number of employees to 220.

“We’re very proud to be the first and only plasterboard manufacturer in the country to offer recycling of our products on the island,” said Brian Dolan, Managing Director of Gyproc. “As a market leader in this sector we are determined to be at the forefront of innovation in new products and services, and in the sustainability and environmental benefits of those services.” The manufacturer sources gypsum from its Drummond mine in County Monaghan.

Australia/UK: Richard Cousins the former chief executive of UK-based wallboard producer BPB has died in a plane accident in Australia. He worked for six years as the chief executive officer for BPB following a number of previous roles at the company. Following its takeover by Saint-Gobain he subsequently joined the board of Compass group in the food services sector and became its group chief executive in 2006.

France: Saint-Gobain has continued growing its sales across all businesses in the third quarter of 2017. Its overall sales grew by 4.1% year-on-year to Euro10.2bn in the quarter from Euro9.76bn in the same period in 2016. This trend extends to the year so far, with a rise of 4.3% to Euro30.6bn in the first nine months of 2017, from Euro29.3bn in the same period in 2016.

“The third quarter confirmed the upbeat trends seen in the first half, excluding the impact of the cyber-attack. All business sectors and regions advanced, including France. We continued to see a good price effect against a tougher basis for comparison, but not yet sufficient in all of the group’s businesses given the more inflationary raw material and energy cost environment,” said Pierre-André de Chalendar, chairman and chief executive officer (CEO) of Saint-Gobain. He added that the group had signed 23 acquisitions since the beginning of the year, including the recently finalised Glava deal.

Sales from the group’s Interior Solutions division, which includes gypsum wallboard and insulation products, saw its saw increase by 3.6% to Euro5.11bn from Euro4.94bn. The group attributed the sales growth in this business to ‘healthy’ volume trends in Western Europe and in Asia and emerging countries. Trading in North America was reported as ‘stable’ but with a smaller pricing contribution in a more competitive environment. It added that pricing for the division lags behind rises in input costs such as a raw materials and energy.

France: Saint-Gobain has appointed Laurence Pernot as its Communications Vice President (VP). She joins the company from Vallourec Group, where she has been the Communications VP since 2013.

Following post-graduate studies in American History and Anthropology at the University of the Sorbonne, Pernot began her career with the advertising agency Saatchi & Saatchi. In 1993, she was appointed Communications VP for the Regional Council of Loire Atlantique, before moving to the industry and joining the Areva Group in 2001. She stayed there until 2013, initially as Communications VP for the Areva La Hague site and then as Communications VP for Areva North America, based in Washington DC, US, and finally as Deputy Communications VP for the Areva Group.

Finland: Construction materials manufacturer Saint-Gobain has transferred some of the manufacturing of Gyproc Habito wallboard from the UK to Kirkkonummi in Finland. Deliveries from Kirkkonummi started at the beginning of 2017. Habito products are exported from Kirkkonummi to the Baltic and the Nordic countries.

The company has invested Euro1m in Gyproc Habito production at its Kirkkonummi site in 2017. Investments have been made in the laboratory, product development, personnel training and the production line. Virpi Riekkinen, Business Director at Saint-Gobain Finland, expects further investments to be made in 2018. Gyproc Habito accounts for roughly 10% of the production of the Kirkkonummi factory. The company expects to recruit around five new employees for the Kirkkonummi site in 2018.

US: Saint-Gobain has appointed Mark Rayfield as the president and chief executive officer (CEO) of its subsidiary CertainTeed. He will also serve as the Region CEO of Saint-Gobain Construction Products for North America.

Rayfield has worked as the CEO of Saint-Gobain Building Distribution United Kingdom and Ireland since 2013. He started his career with Saint-Gobain in 1999 in a sales role within Abrasives North America, before assuming the role of Vice President of Saint-Gobain Abrasives North America from 2007 to 2011. Prior to moving to the UK, Rayfield was President of the CertainTeed Siding business from 2011 - 2013.

He succeeds Benoit Bazin, who has served as president and CEO of CertainTeed since January 2017. Bazin will continue to serve as president and CEO, Saint-Gobain’s Construction Products Sector and Senior Vice President, Saint-Gobain Corporation.

France: Saint-Gobain has grown its sales in the first half of 2017 despite a reported Euro220m impact from a cyber attack in June 2017. The building materials producer's sales rose by 4.4% year-on-year to Euro20.4bn in the first half of 2017 from Euro19.5bn in the same period in 2016. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 5.8% to Euro2.07bn from Euro1.96bn. It attributed the sales growth to rising prices, increased sales volumes and positive currency exchange rates.

"The first half of 2017 confirmed the encouraging trends seen in 2016, particularly in France. Excluding the one-off impact of the cyber-attack, the group grew at its fastest rate since the first half of 2011 translating into double-digit growth in operating income. The focus on sales prices paid off, allowing us to offset the rise in raw material and energy costs at group level. Overall, the results were in line with our expectations, and we can therefore confirm with confidence our 2017 objectives," said Pierre-André de Chalendar, the chairman and chief executive officer (CEO) of Saint-Gobain.

By business line the group's Interior Solutions division of its Construction Products (CP) business reported an organic growth of 4.1% in the first half of the year, along with both rising sales volumes and prices, despite rising raw material and energy costs. Trading in Western Europe and in Asia and emerging countries improved in terms of both volumes and prices, with prices continuing to rise during the second quarter. North America also advanced, with a slight acceleration in prices since the first quarter.

With respect the cyber attack the group said that the full year impact of the incident upon sales is expected to be under Euro250m. Just over half the impact of the attack affected its Building Distribution business and the rest affected its CP unit. Geographically, the worst affected areas were in Western Europe, especially in Scandinavia, Germany and France.

Germany: Rigips has inaugurated its first gypsum recycling plant at Gelsenkirchen in North Rhine-Westphalia. The subsidiary of Saint-Gobain will recycle gypsum with New West Gypsum Recycling Germany. Waste material from buildings from the Rhine-Ruhr region and the northern part of Rhineland-Palatinate will be sent to a reprocessing site operated by New West Gypsum first before being despatched to the Rigips plant where it will be returned to the production process. Rigips intends to open more gypsum recycling plants following the start-up process of its new unit.

"With the start of the plant, Rigips assumes a pioneering role for the entire drywall construction industry. As the first manufacturer, we in North Rhine-Westphalia are now able to implement the idea 'from gypsum to gypsum'. Thus we cover the complete product service life cycle, from the raw material extraction via the production and installation to the demolition and the recycling," said Werner Hansmann, chairman of the management at Rigips.

France: Saint-Gobain says that a cyber attack that hit its operations in late June 2017 is unlikely to negatively affect its first-half financial results by more than 1%. It is still investigating the impact of the incident and will report more fully in its results on 27 July 2017.

The building materials producer added that it had restored its remaining operations still 'experiencing difficulties' back to normal. It said that since early July 2017 the 'vast majority' of its businesses had been operating normally and that no personal data was disclosed to any third party. It does not expect the event to have any future commercial impact.