Gypsum industry news

Thailand: Thai Gypsum Products Public Company Limited, which produces gypsum products under the Gyproc name, has launched a new distribution warehouse on Chaiyaphruk Road, Nonthaburi. The warehouse opening is part of its plan to support growth of the business sector before the introduction of the ASEAN Economic Community (AEC) by the close of 2015.
The new facility can support import-export operations between consumers and dealers more efficiently. It also benefits from an exceptional strategic location, Chaiyaphruk Road, which stretches from Pak-Kred Nonthaburi to an immediate road connection to central areas of Bangkok or regional destinations.

"Gyproc now has six distribution warehouses; in Bangkok, Nonthaburi, Chonburi, Ayutthaya, Suratthani and the newly-launched Samutprakan facility," said Thongchai Kamolpattana, commercial director of Thai Gypsum Products Public Company Limited. "Our latest Chaiyaphruk Road depot is a spacious hub and is located in a great spot strategically. It's an area in which we see opportunities for local product sales growth. It connects with the city easily and offers ready access to a six-lane road to allow cargo to go to different regions as quickly as possible."

Thailand: Thai Gypsum Products, the manufacturer of Gyproc brand gypsum products in Thailand, has reaffirmed its positive outlook regarding market conditions in the second half of 2014 with its commitment to build a new warehouse / distribution centre in Surat Thani Province. Following its strategic plan to achieve 5% growth before the introduction of the ASEAN Economic Community (AEC) in 2015, Thai Gypsum Products continues to expand its national footprint following the opening of the 5th Gyproc Centre, which was launched recently in Phuket.

"Gyproc aims to become the market leader in gypsum production following the AEC integration," said Thongchai Kamolpattana, commercial director. "As Thailand is located centrally within the region, we believe that many foreign investors will be attracted to invest in the country, whether by development of properties they own or the expansion of their regional offices, both sectors requiring materials for construction."

Thailand: Siam Gypsum Industry (SGI), a subsidiary of Siam Cement Group, expects sales of gypsum products to rise by 10% in its 2015 fiscal year, which started on 1 July 2014, to nearly US$182m due to the rebounding property market. SGI's managing director Soraphong Channarukul said that the property market was set to recover rapidly in the second half of 2014 after delays in the development of many projects.

SGI is launching its new gypsum wall product to spur sales growth in the second half of 2014. The country's overall gypsum demand should expand by 7% in the next 12 months, but SGI expects its sales will surge slightly beyond that thanks to its innovative gypsum product, Zolidwall.

Soraphong said that Zolidwall would save developers on costs, as it is stronger and lighter, requiring less time to install and decorate. Zolidwall costs 5 - 10% more than traditional wall materials such as cement, brisk and standard gypsum wallboard, but the cost will be offset by faster installation and decoration, plus it does not require the same level of skill as is required to build a traditional wall.

Yuthasak Naruchaipramote, SGI's innovation director, said that it took a year to develop a product that would satisfy the needs of customers seeking materials that save time but meet international standards. The development of Zolidwall followed close consultation from gypsum wallboard users and Pruksa Real Estate plc, Thailand's largest housing developer. Pruksa's housing projects and high-rise buildings will be among the first groups to use Zolidwall, according to Naruchaipramote.

SGI expects sales of 300,000Mm² of Zolidwall in the first year, with 30% growth within three to five years. It also plans to launch Zolidwall in Myanmar and Cambodia soon to tap their booming property markets. Zolidwall was developed at SGI's new US$627,550 product and system testing centre at the gypsum plant in Saraburi Province. The centre, which opened earlier in 2014, helps to ensure new products meet international standards. In the past only tailor-made products were launched.

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.

Thailand: BuilderSmart plc (BSM), which makes 51% of its revenue from gypsum products, aims to increase revenue to US$31.5m within the next two years after refocusing on its export markets, mainly India and Myanmar. The company said that the company projects revenue growth of 30%/yr and net profit growth of 50%/yr.