Gypsum industry news

Brazil: Trevo Drywall has appointed Paulo César Pereira Alencar as its new CEO. Alencar has 35 years of business experience as a tax lawyer, and holds a law degree from the Regional University of Cariri.

The company additionally appointed Gabriel Rodrigues Granja de Alencar as its chief financial officer. Granja de Alencar previously worked as a director at plaster producer Gesso Trevo, as well as in the area of compliance at consultancy firm Ernst & Young. He holds a postgraduate degree in business management.

Brazil: Trevo Drywall plans to invest US$25m in an expansion to its Juazeiro do Norte gypsum wallboard plant, scheduled for commissioning in 2025. This will initially raise the plant's capacity to 20Mm²/yr, and subsequently to 30Mm² by 2026. The expanded plant will be equipped with a new enterprise resource planning system to assist with the increased automation of its operations. Trevo Drywall also plans to build a second plant, the location of which is subject to on-going evaluations.

Chief financial officer Gabriel Rodrigues Granja de Alencar said "We will also strengthen compliance tools and soon announce the creation of a people development programme."

Brazil: The Administrative Court of the Brazilian Administrative Council of Economic Defence (CADE) has submitted for review the proposed acquisition by Knauf Brazil of a gypsum wallboard plant operated by Trevo Industrial de Acartonados. The Office of the Superintendent General (SG) noted after an investigation that the transaction would increase market concentration, exceeding the limits set out in the guides of CADE and the competition law. The gypsum wallboard market in Brazil has four suppliers, including Knauf and Trevo.

The review pointed out that imports are “unusual and cannot be considered a source of competition if Knauf raises the prices after merging with Trevo.” The SG also warned that other factors could lead to potential market collusion such the lack of history of competitive rivalry in terms of price, quality, or any other difference amongst the products.

Following its challenge to the proposed acquisition, the SG has submitted the case to a tribunal. At this stage a commissioner will review it and include it in the agenda for further adjudication.

Brazil: Trevo Drywall has begun raising funds for the construction of a new gypsum wallboard plant in Southeast Brazil. The company’s existing gypsum wallboard plant at Juazeiro do Norte, Ceará, is currently undergoing expansion to 16Mm²/yr from 14Mm²/yr. The plant will transition to natural gas power in January 2022. Trevo Drywall plans to further increase its capacity to 20Mm²/yr before 2024. Prior to this, it will use resources from its cash generation and proprietary and third-party capital to build the new unit in the Southeast. The company says that its location will be ‘closer to the main drywall consumer centres in Brazil.’ Currently, more than 80% of its sales are outside of the Northeast. The producer holds an 11% share of the Brazilian gypsum wallboard market.

CEO Sávio Maia said “We have been expanding our production potential at a rate of 26% per year since 2014 and, despite all the macroeconomic difficulties that Brazil went through during this period, we have always used 100% of our installed capacity.” He added “We generate more than 220 direct jobs, which has a great effect on the lives of many families in Juazeiro do Norte and the surrounding region, either by the income generated directly and indirectly, or by the company's prominent role among the largest local taxpayers.”