Gypsum industry news

US: GMS’ net sales from its wallboard products rose by 5% year-on-year to US$1.33bn in the financial year to 30 April 2020 from US$1.27bn in the same period in 2019. Its overall sales grew by 4% to US$3.24bn from US$3.12bn. Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) increased slightly to US$300m. Wallboard sales were stable in the fourth quarter of its reporting year as coronavrius-related market declines in late March and April 2020 caused total company sales to decrease in the period.

“Through mid-March 2020 we experienced favourable end-market trends and generated robust volume growth. Even as disruptions from COVID-19 began to escalate in the second half of March 2020, construction and building products distribution were deemed essential in the majority of our markets, which enabled us to keep most of our locations open. However, demand weakened significantly in late March 2020 and in April 2020 as customers delayed orders and building projects were paused due to mandated shutdowns in certain markets or as they focused on responding to the effects of COVID-19 on their businesses,” said John C Turner, Jr, president and chief executive officer of GMS.

US: Gypsum wallboard distributor Foundation Building Materials reports that sales of wallboard fell slightly to US$202m in the first quarter of 2020. This was attributed to disruption caused by the coronavirus outbreak. Overall its sales across all business lines rose, in part due to an additional business day in the reporting quarter compared to the same period in 2019. It noted lower sales growth in states with stronger lockdown measures, including Washington, California, Michigan, New Jersey and Pennsylvania. Overall sales in April 2020 were reported as being 20% down year-on-year.

UK: Saint-Gobain subsidiary British Gypsum has announced the removal of customer Gyproc gypsum plasterboard allocations with the resumption of normal distribution of its flagship product on order for up to next day delivery. The company said that capacity increases in 2019 solved its supply issue. “The level of effort, innovation and ingenuity that has gone into improving our supply capability has been significant,” said British Gypsum managing director Matt Pullen. “We go into 2020 with renewed confidence and positivity.”

US: USG has won two manufacturing awards from Frost & Sullivan's Manufacturing Leadership Council. The building materials manufacturer earned an award in the 'Improving Operational Excellence' category for its Lean Six Sigma (LSS) programme achievements and its Mexican subsidiary, USG Mexico, earned an award in the category of 'Supply Chain Leadership' for the optimisation of its import logistics and distribution programs. The Manufacturing Leadership Awards recognise manufacturing organisations and individual leaders shaping the future of global manufacturing.

"USG is committed to manufacturing excellence and it is an honour to receive these prestigious Manufacturing Leadership Awards," said Dom Dannessa, USG's Executive Vice President and Chief Operations and Innovation Officer. "Investments in Lean Six Sigma and our Supply Chain have allowed us to better anticipate our customers' needs so that we can continue to provide them with superior solutions."

USG says that its LSS programmes have enabled it to optimise production and pricing, cut transportation costs and reduce excess inventory, leading to more than US$250m in operational savings and significantly improving team productivity. USG Mexico meanwhile invested in local distribution centres to increase its product range in the region.

Brazil: Saint-Gobain has finalised its purchase of the distribution network of Tumelero Materiais de Construção sales outlets in Rio Grande do Sul. The distribution company operates a portfolio of building materials and services for the construction industry including 29 sales outlets and nearly 1000 staff.

Following the acquisition Saint-Gobain says it will run the country's largest network of distribution sales outlets for home improvement products and services in Brazil with a total of 70 outlets operating under the Telhanorte, Telhanorte Conceito, Pro Telhanorte and Tumelero brands in 46 cities in São Paulo, Minas Gerais, Paraná and Rio Grande do Sul states. The transaction has been approved by the Brazilian competition regulator CADE.

Vietnam: Knauf Vietnam has signed a strategic cooperation agreement for the distribution of gypsum wallboard with Zinca Vietnam. A ceremony marking the signing was held on 12 March 2016 and attended by about 300 guests, including gypsum wallboard distributors, dealers, contractors, developers, and architects, according to local press.

"I believe this remarkable milestone will help us strengthen our nationwide coverage and promote brand awareness," said David Thomas, General Director of Knauf Vietnam. He added that the company's 20Mm² wallboard plant in Hai Phong has started commissioning and is due to started selling commercial products by May 2016.

Knauf Vietnam was licensed in 2013 to build a gypsum wallboard plant. It has since established offices in Hai Phong, Hanoi, and Ho Chi Minh City and has been developing a distribution network throughout the country. In the meantime it has been selling products locally including StandardShield, MoistShield, FireShield, Knauf Danoline and Cleaneo.

Zinca Vietnam is a Vietnamese building materials manufacturer and distributor that was founded in 1995. It previously signed a cooperation deal with Saint-Gobain in 2007 to distribute Gyproc branded products in the country.

New Zealand: Canterbury Earthquake Recovery Minister Gerry Brownlee has officially opened a distribution centre for Knauf Plasterboard in Christchurch. Kanuf's distribution centres in Christchurch and Auckland consists of a 5000m² warehouse, showrooms and offices.

"Knauf Plasterboard is a competitive supplier to be reckoned with having significant scale and resource to enter a dominated market. An impressive worldwide operation, with two manufacturing facilities on Australia's eastern seaboard and superior technical expertise, puts Knauf Plasterboard in a strong position to service the growing needs of New Zealand's housing and commercial market," said Mark Norris, Managing Director, Knauf Plasterboard, Australia & New Zealand.

Norris also revealed that Knauf's rollout plans will include a network of independently-owned PlastaLink Trade Centres to sell Knauf products across New Zealand. The company was selected as a partner for the New Zealand government to rebuild Christchurch in January 2013 following the earthquake in 2011.