Gypsum industry news

France/Switzerland: Saint-Gobain plans to acquire a controlling stake in Sika, a construction chemicals producer. The transaction involves Saint-Gobain's purchase of Schenker Winkler Holding AG, which owns 16.1% of Sika's capital and 52.4% of voting shares, for Euro2.3bn.

After the acquisition, Saint-Gobain will be able to fully-consolidate Sika into its operations, which will have a positive impact on net income in the year after consolidation. Saint-Gobain Group does not intend to make an offer for the remaining shares of Sika.

Sika has 16,000 employees in 84 countries. Its total sales in 2013 amounted to Euro4.3bn. It has experienced an average of 8%/yr growth in 2007-2013. Given the similarity in the activities of Sika and Saint-Gobain, it is expected that the acquisition will generate Euro100m in synergies from the second year of consolidation (2017) and Euro180m by 2019.

The deal requires the permission of the competent antitrust authorities and is expected to be completed no later than the second half of 2015.

Indonesia: Saint-Gobain has inaugurated its first wallboard plant in Indonesia, near Jakarta. With a production capacity of 30Mm², the new plant will enable Saint-Gobain to respond better to local demand and continue the group's growth on the rapidly-growing Indonesian wallboard market. Saint-Gobain has four other plants in south-east Asia, in Malaysia, Thailand and Vietnam.

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.

France: Saint-Gobain and EBRD (European Bank for Reconstruction and Development) have signed an agreement whereby EBRD will increase its participation in Saint-Gobain Construction Products Rus LLC from its current stake of 11% to 33%.

The EBRD equity injection will contribute to financing Saint-Gobain Construction Products' planned investments in Russia for the next three years, including projects in the gypsum, industrial mortars and insulation activities in several regions.

The investments will reflect the Environmental and Social Action Plan that was agreed with EBRD, thereby reaffirming the commitment of Saint-Gobain Group to the highest standards in environmental performance, corporate governance and business conduct.

This operation will contribute to the acceleration of Saint-Gobain's development in Russia, in alignment with the Group's strategy of strengthening its position in fast growing markets.

Thailand: Thai Gypsum Products Plc (TGP), a subsidiary of France's Saint-Gobain, expects sales of its Gyproc construction and finishing materials will expand by 5% in 2014, citing continuous growth in home renovations and building markets.

Thongchai Kamolpattana, the commercial director for the Gyproc brand, said that demand from housing projects and home renovations had increased since 2013 and would allow TGP to earn higher revenue in 2014. Kamolpattana added that provincial markets would keep Gyproc sales afloat even if political problems persist in Bangkok.

Earlier in 2014 TGP experienced a minor negative effect from the prolonged political impasse that caused consumers to delay decisions to buy condominium units in Bangkok. "Demand for condominiums declined because customers in Bangkok took a wait-and-see stance," said Kamolpattana. "However, our market still did well in other provinces." He added that if political problems continue until year-end, TGP's performance in Bangkok might be affected. "If so, consumer confidence would be badly affected and that might reduce demand for our products. However, business confidence has rebounded since the coup."

Gyproc has expanded into modern-trade malls, particularly in Chiang Mai and Chon Buri provinces, helping the brand to boost sales by 5%. The products are available in 400 malls, resulting in greater brand awareness and accessibility to its products among contractors and homeowners nationwide.

The company plans to open more Gyproc solution centres in 2014, including in Phuket, in order to prepare for rising opportunities under the Asean Economic Community, which is due to kick off late in 2015. According to Kamolpattana, gypsum boards have gained strong market recognition in 20 Asia-Pacific markets, particularly the Philippines, Malaysia, Indonesia and Australia.

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.

Belgium: During its General Assembly held in Brussels, Belgium on 21 May 2014, Eurogypsum elected the president of Saint-Gobain Gypsum Claude-Alain Tardy as president of Eurogypsum for the period of 2014 - 2016. Tardy succeeds Dott Maurizio Casalini, managing director of Knauf Italy, on the expiry of his statutory term of office.

Tardy is a civil engineer graduate of the École Centrale de Paris. He also has an MS in Industrial Engineering & Engineering Management from the University of Stanford, US. Tardy joined Saint-Gobain in 1981 and between 2005 and 2009 he was chief operating officer of Saint-Gobain Insulation, before being appointed as president of Saint-Gobain Gypsum in 2009.

"I am convinced that wallboard and plaster solutions will play a growing role in the future," said Tardy. "The unique attributes of our products; recyclability, ease of installation, fire resistance, acoustics and thermal properties make our systems inescapable for the construction and renovation of buildings. During my presidency I will concentrate my efforts on the promotion of gypsum industry solutions as the best option to create safe and comfortable interior spaces."

UK: Energy savings of 63% have been achieved following the installation of multiple Saint-Gobain systems in a world-first retrofit research project.

Saint-Gobain worked with the Energy House at Salford University, Greater Manchester, UK to prove that whole-house, fabric first retrofitting of homes can deliver significantly reduced energy costs, lower CO₂ emissions and remove 50% of air leakage.

The Energy House at Salford University is a typical 1919 terraced house that has been reconstructed in a fully environmentally controllable chamber, in which climatic conditions can be maintained, varied, repeated and patterns monitored. The type of building used in the study represents 21% of UK housing stock and is classed as a hard-to-treat property due to its poor energy efficiency derived from solid wall construction.

The Energy House at Salford University included Saint-Gobain systems from British Gypsum, Glassolutions, Isover and Weber to bring high levels of thermal efficiency. The approach of the project was to measure the whole-house performance post-installation using off-the-shelf Saint-Gobain systems and standard installation techniques, making the results repeatable across the UK's hard-to-treat housing stock.

US: Saint-Gobain's CertainTeed and home improvement retailer Lowe's have teamed up to offer the latest in backer board technology for easier, faster and more cost-effective tile installation projects.

Reinforced with embedded glass mats for added strength, moisture and mould resistance, Diamondback Tile Backer features a patent-pending polymer coating with a unique textured surface that creates a strong bond, reducing tile slippage during installation. Diamondback weighs 40% less than traditional cement boards and is much easier to handle, cut and install, saving installers valuable time. Highly mould resistant, CertainTeed's patented, proprietary Embedded Glass Reinforced Gypsum technology eliminates the need for an additional moisture barrier. Diamondback has also achieved GreenGuard Gold Certification.

"We are very excited about this partnership with Lowe's, which makes our innovative tile backer much more accessible to the homeowner DIY and contractor customer base," said Kelly Kuethe, marketing manager of CertainTeed.

US: Saint-Gobain has announced plans for a new, state-of-the-art North American corporate headquarters in Pennsylvania, USA.

Saint-Gobain said that the relocation will position it for greater growth and expansion in North America. The new headquarters will, for the first time, allow the company's local research team, which is currently based in Maryland, to be integrated with the company's operations team on one site. Saint-Gobain expects to accommodate future job growth and have the flexibility to relocate additional business units to the integrated site.

"This headquarters marks a step change in Saint-Gobain and CertainTeed's ability to serve our North American markets and it will be a shining example of a 21st century manufacturing business," said John Crowe, president and CEO of Saint-Gobain and CertainTeed Corporations. "With the building industry continuing to rebound, we've seized the opportunity to create a focal point for innovative design and development on the Eastern Seaboard, a place where our businesses and employees can continue to grow in a fully integrated, modern space that promotes collaboration across our business units, while offering significant room for future expansion."

By leveraging the full range of Saint-Gobain's portfolio of sustainable products and technologies, the headquarters is expected to achieve the US Green Building Council's LEED® Certification. The goal is to create a workplace that is energy-efficient, has superior air-quality and moisture management and makes a material difference in the comfort and health of employees.