Gypsum industry news

France: Saint-Gobain's sales from its Interior Solutions division, comprising gypsum wallboard and insulation products, has risen by 2.1% year-on-year to Euro4.94bn in the first nine months of 2016 from Euro4.83bn in the same period in 2015. On a like-for-like basis the group said that its sales grew by 4.3%. It said that sales grew in all regions in the third quarter of 2016 and that despite a 'deflationary' environment prices remained under pressure in developed economies.

"The third quarter confirmed the upturn in volumes in Western Europe. France benefited from the steady improvement in new-builds; the UK showed no sign of weakness. Volumes continued to grow in US construction despite the lack of positive weather impacts for roofing in the quarter. Our businesses in Asia and emerging countries remained strong, delivering further robust growth. The price effect moved back into positive territory over the quarter, reflecting Saint-Gobain's strong positioning on its markets," said Pierre-André de Chalendar, chairman and chief executive officer of Saint-Gobain.

Overall, the group reported that its sales fell by 1.7% to Euro29.3bn from Euro29.8bn across all business lines although it said that on a like-for-like basis sales rose by 2.6%.

Chile: El Volcan, a company owned by Matte Group and Saint-Gobain, plans to spend up to US$50m on building a new gypsum wallboard plant in Puente Alto. The builder's merchant intends to upgrade an existing production site to produce wallboard and plaster, according to the El Mercurio newspaper. Permits have been secured for the project and the plant is expected to be ready by early 2018. The company also intends to start selling its full range of products in Peru.

France: Environmental concerns have been raised about Placoplatre's plans to develop a open-cast gypsum quarry at Fort de Vaujours near Paris. The site is believed to contain enough high-end gypsum for the Saint-Gobain subsidiary's nearby wallboard plant and for other plants in the group, according to Deutsche Welle. However, environmentalists have raised the risks of excavating a site near to the capital of France that was used for nuclear testing between the 1950s and 1990s.

"It's important to maintain our plant. We employ 400 people at the factory which generates 3000 indirect jobs and an additional average 1000 workers will be operating at the industrial site," said Gilles Bouchet, Placoplatre's head of mining development. He added that the wallboard producer has conducted impact and radiation studies that have been submitted to the French nuclear safety body ASN.

Christophe Nedelec, president of environmental non-government organisation Gagny-Les Abbesses-Chelles has queried the efficacy of Placoplatre's tests and has called for an independent body to conduct them.

UK: British Gypsum has released plans to use natural gypsum instead of synthetic gypsum at its Sherburn-in-Elmet wallboard plant in North Yorkshire. The company wants to extend its mill building to aid the conversion as well as make some minor logistical changes at the site. The details were released as part of a planning application made to the local council, according to the York Press. If approved, British Gypsum says that the conversion will safeguard 130 jobs at the plant.

According to the planning statement, the current forecast for synthetic gypsum supply to the Sherburn plant projects that in late 2017 or early 2018, the plant's ability to continue manufacturing would be under threat. The plant is currently unable to grind natural gypsum rock on-site and operates solely on the use of desulphurised gypsum supplied from the Drax Power Station. The statement claims adequate and appropriate infrastructure is in place to meet the needs of the proposed development, including appropriate drainage to ensure there would be no increased risk of flooding from surface water run-off. It adds that the proposed development will be energy efficient and minimise energy consumption.

Switzerland: Jan Jenisch, the chief executive of Sika, has said that he will resign if Saint-Gobain wins its bid to takeover the company. He added that he does not see a positive future for the growth of Sika should Saint-Gobain succeed, in comments at a company event reported upon by Reuters. The management of Sika have been fighting a takeover attempt by Saint-Gobain since December 2014.

France: Saint-Gobain has joined part of the 2016 Dow Jones Sustainability Index (DJSI), ranking among the top-three global companies and the number one European company for construction products. Special mention was given to the group's commitment and initiatives to tackle climate change. Established in 1999, the DJSI distinguishes best-in-class companies in the field of corporate social responsibility.

"I am very proud to see our group included in this renowned index, which is the benchmark for Corporate Social Responsibility. It is recognition of our commitment in this endeavour. We initially set out to be listed in 2017, so we met our target a year ahead of schedule. I would like to take this opportunity to thank our teams for achieving this excellent result," said Pierre-André de Chalendar, Chairman and CEO of Saint-Gobain.

France: Saint-Gobain's sales revenue has fallen by 1.6% year-on-year to Euro19.6bn in the first half of 2016 from Euro19.9bn in the same period of 2015. Its earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 3.8% to Euro1.89bn from Euro1.96bn. The group blamed the loss in sales revenue on negative currency changes, especially in Latin American, and to a lesser extent, in the UK following its decision to leave the European Union. Saint-Gobain's Interior Solutions division, which includes gypsum wallboard and insulation production, reported a 3.1% rise in sales revenue to Euro3.3bn from Euro3.2bn.

"Saint-Gobain's sales for first-half 2016 confirm our February forecasts, with France stabilising and all regions making strong contribution to growth. Our strategy of investing in emerging markets provides us with a diversified platform for profitable growth. Our first-half results also benefited from efforts to optimise our operations, particularly in Western Europe, and from upbeat trading in the US. The results are in line with our objectives and we expect alike-for-like improvement in operating income for second-half 2016 versus second-half 2015. While the 23 June 2016 Brexit vote in the UK has created a climate of uncertainty, it does not affect our objectives," said Pierre-André de Chalendar, Chairman and Chief Executive Officer of Saint-Gobain.

UK: Claude-Alain Tardy, the president of Saint-Gobain's gypsum and insulation activities, has warned that a UK exit from the European Union (Brexit) could 'destabilise' the wider European economy as well as impacting the UK market. Tardy made the comments while speaking to Building in Prague and Building News then reported his comments. France and western Europe represented 70% or Euro27.7bn of the group's sales revenue in 2015. The UK will hold a referendum on membership of the European Union on 23 June 2016.

Sweden: Gyproc Saint-Gobain has commissioned a new Claudius Peters type EM 65-592 grinding and drying mill, to be installed at its Gyproc Balsta plant.

The project, which includes dismantling of the existing mill and erection of the new one within a six-week time frame, uses Claudius Peters' newly developed hydraulic tensioning system for adjustment of grinding pressure. This system, installed here for the very first time, has been specially developed to optimize the efficiency of the grinding and drying processes and also to aid maintenance.

"This new EM drying and grinding mill, representing the very latest in technology from Claudius Peters, delivers unprecedented levels of efficiency and precision. We are delighted to be partnering with Gyproc Saint-Gobain in this project," said Stephan Oehme, sales director for Claudius Peters.

Commissioning of the new mill is planned for the middle of July 2016.

France/Switzerland: Saint-Gobain and the Burkard family have extended their agreement relating to the sale of shares of Schenker-Winkler Holding (SWH) and to extend the validity of the agreement until 30 June 2017. Saint-Gobain will then have an option to extend the agreement until 31 December 2018. SWH holds the majority of voting rights of Sika.

"Together, we are fully committed to this transaction. It makes sense from a strategic, industrial and financial standpoint for Saint-Gobain and for Sika, for their employees, for their customers and for all of their shareholders. The amendment to the agreement covers the longest of timelines to resolve related disputes, allowing SWH to regain its property rights," said Pierre-André de Chalendar, Chairman and CEO of Saint-Gobain.

In December 2014, Saint-Gobain announced its intention to buy a 16.1% stake in Sika for Euro2.6bn, thus acquiring control over the building materials producer. However, Sika's management and minority shareholders opposed the deal. At the end of January 2016, Saint-Gobain's finance chief Laurent Guillot told Reuters that the group still believed in a successful outcome despite the resistance it faced. In February 2016 Sika reiterated its opposition to the takeover in a financial statement saying that, "There is still no evidence to suggest there is any industrial logic behind the transaction."