Gypsum industry news

World: Market research and consulting services provider Exactitude Consultancy has projected a composite annual growth rate in global gypsum demand of 4.2% between 2022 and 2029. The consultancy forecast that the market would reach US$2.14bn in value at the end of the period, up by 45% from US$1.48bn in 2021.

World: Market researcher IMARC Group has forecast a global gypsum wallboard market composite annual growth rate (CAGR) of 7.2% between 2021 and 2026. The prediction is based on a starting value of US$24.4bn in 2020. IMARC Group surmises that the residential sector will dominate demand, which will be strongest in the Asia Pacific region.

Worldwide: The NuGyp Corporation has reported that patent coverage of its NuGyp Process continues to expand. The granting of the 14th patent now gives protection in 20 countries and a further 18 applications are pending worldwide covering all existing and potential markets for low water demand plaster, including wallboard, blocks, floor screed and special plasters.

The process reduces the water demand of plaster to yield major cost savings in energy and water use during product manufacture. The new patents mean that the process is now covered in Australia, China, Columbia, Eurasia (Turkmenistan, Republic of Belarus, Republic of Tajikistan, Russia, Azerbaijan Republic, Republic of Kazakhstan, Kyrgyzstan and the Republic of Armenia), Israel, Malaysia, Mexico, Morocco, New Zealand, Saudi Arabia, South Africa, Ukraine and the United States.

Discussions are in progress with a number of companies interested in acquiring the intellectual property fully to exploit its market potential.

Worldwide: Holcim and Lafarge have announced their intention to merge the two companies. The new company, LafargeHolcim, will have a major presence in the global building materials sector with combined production sites in 90 countries across cement, concrete and aggregates sectors. Combined sales of the two companies would amount to around Euro32bn and earnings before interest, taxes, depreciation and amortisation (EBITDA) would be Euro6.5bn.

Lafarge and Holcim confirmed that they would sell businesses worth 10 - 15% of the group's EBITDA to satisfy antitrust concerns, worth about Euro5bn in total. Two-thirds of the asset sales would be in Europe. The companies also have overlapping business operations in Canada, Brazil, India and China.

Lafarge sold the majority of its worldwide gypsum wallboard businesses in 2011 followed by the sale of its North American gypsum wallboard assets in 2013. However it retains plants in Mexico, South Africa and Turkey.

World: In the first major gypsum deal since the onset of the recession on 14 July 2011 Lafarge announced that is would sell its gypsum interests in Europe and South America to the Belgian Etex Group, its current joint-venture partner in South America.

Under the proposed agreement, Lafarge would receive net cash proceeds of approximately Euro850m and in addition would receive a 20% interest in the new partnership. The partnership would combine the European and South American Gypsum activities of both groups.

Lafarge's European and South American Gypsum division manufactures gypsum wallboard and other gypsum-based products such as plaster, joint compounds and plaster blocks. In 2010 the European and South American operations generated combined sales of Euro895m and their combined earnings before interest, tax, depreciation and amortisation were Euro115m. The group's other gypsum interests, including its joint-ventures in Asia with Boral, represent sales of around Euro500m/yr.

The deal will have to receive the approval of the relevant anti-trust authorities and the group will also conduct an information and consultation process with the relevant employee representative bodies.

Above: Summary of Lafarge wallboard assets 2010. The Global Gypsum Directory 2010 lists 45 Lafarge wallboard plants across 30 countries, with a total capacity of approximately 1.3BnM²/yr in 2009-10. Nearly 8000 people are directly employed by the unit. Key: Number of plants (Capacity in MM²/yr).

In a conference call, Bruno Lafont, Chairman and CEO of Lafarge said that Lafarge's gypsum interests represented a modest 9% of its sales in 2010 and that the sale was consistent with Lafarge's plan to focus on its core activities, which he listed as cement, concrete and aggregates. He highlighed the group's focus on providing building materials to rapidly-growing, developing markets with fast population growth rates and a need for new housing and infrastructure development.

He stressed that Lafarge would keep a 20% in the new joint-venture, which he expected to contribute positively to the group's balance sheet and was in line with the best interests of its shareholders.

Lafont summarised the assets in the deal, stating that all of the European interests held by Lafarge in France, the UK, Germany, Italy, Poland, Romania and the Netherlands represented around 60 industrial sites and that the move would affect approximately 3300 employees. In Lafarge's native France, the move affects four wallboard plants, seven associated plants that make jointing compounds and metal studs, five gypsum quarries and a total of 1400 employees.

In South America, the move affects four countries, namely Brazil, Argentina, Chile and Colombia. In these countries, Lafarge and Etex have been engaged in a joint-venture project dating back several years.

Lafont added that despite it being a small component of its operations, Lafarge currently has gypsum interests on all continents and will, for the meantime, be keeping hold of those in Asia, Australasia, Africa and North America. He said that keeping a 20% stake in its existing interests in the affected areas would allow it to, "benefit from the upturn when it comes." He said that it was appropriate for the group to 'keep a link' to gypsum, adding that Lafarge has the right to sell its 20% interest after five years.

He also said that the transaction would help Lafarge improve its relationship with existing partner Etex and allow both groups to expand the positive relationship that has been developed in South America throughout their newly-combined European operations. Lafont commented that the two groups shared the same values and a similar management style.

Speaking personally, he said that he was pleased to announce the deal and concluded that it was a positive move for Lafarge through maintaining its 20% stake, Etex and the shareholders of both groups.

In a statement issued by Lafarge before the conference call Lafont said, " This project unlocks immediate value for the Group while allowing Lafarge to participate in the new entity's future success. We are very pleased with the future prospects of this reinforced partnership with Etex Group, a strong industrial company with expertise in building materials and systems. This operation is positive for Lafarge and its shareholders and will contribute to the strengthening of the group's balance sheet and to the optimisation of its portfolio."