Gypsum industry news

Kenya: Gypsum traders in Garissa have called on the government to lift a ban on gypsum mining in the country. The ban also prevents land allocation and demarcation. The Star newspaper has reported that it resulted from a perceived security threat due to violence at local mines, in which 12 people have died.

Mine owner Issa Kuno invited Cabinet Secretary for Mining, Blue Economy and Maritime Affairs Hassan Joho to visit. He said “Personally, I have never experienced or witnessed any insecurity related to gypsum mining activities."

Natural gypsum mined in Garissa County previously sold for US$38.60/t.

Canada: GMS has acquired retailer Yvon Building Supply and its affiliates. Yvon Building Supply operates at seven locations in Ontario, supplying gypsum wallboard and other construction products to the local market.

GMS president and CEO John C Turner said "We are pleased to enhance our service and product offerings in the Greater Toronto market with the successful completion of this transaction. We are excited to welcome the Yvon team to GMS Canada and look forward to expanding our core and complementary products in southern Ontario."

New Zealand: The Commerce Commission has said that builders have found it difficult to substitute alternative brands of gypsum wallboard because the building material is commonly specified by brand in building plans. Differences in consenting decisions by local government authorities and quantity-forcing rebates for wallboard have also been identified as making it harder for builders to source supplies. The regulator has been investigating general residential building supplies since November 2021 and made the comments as part of a draft report.
Commission chair Anna Rawlings said “Our preliminary view is that competition for the supply of key building supplies is not working as well as it could, and would be improved if it was easier for building products to be introduced and for competing suppliers to expand their business.”

The draft report has found certain brands of product have become ‘embedded’ in home-building practice in New Zealand and has recommended that the building regulatory system should include competition as a deliberate objective. It added that, in some circumstances, some types of rebates paid by established suppliers to merchants appeared to be reinforcing difficulties faced by competing products. The commission will now take comment on its draft report until September 2022. The final report will be published in December 2022.

Winstone Wallboards’ GIB product range is the main brand of wallboard used in the country. The company is reported to hold around a 95% share of the local market. Wallboard shortages have been reported since mid-2021.

Russia: Belgium-based ETEX has announced the suspension of all of its Russian activities ‘immediately and until further notice.’ The gypsum wallboard producer operates two sites for the import and sale of fibre cement façade materials near Moscow. It says that it will take care of the 50 colleagues it employs there.

The group said “We will continue to do everything we can for the safety and well-being of all our teammates and hope that peace will prevail quickly.”

US: Cameron Ashley Building Products has opened its new Denver, Colorado, distribution centre, which will stock gypsum wallboard.

Manager Chase White said “I’m excited to join the Cameron Ashley team in the Denver market.” He added “We’re ready to hit the ground running, providing top quality products to a new group of customers.”

US: GMS has agreed to acquire gypsum wallboard retailer Westside Building Material for US$135m. The trader operates nine sites across California and Nevada. The producer says that the company’s current management will continue to lead the business.

President and chief executive officer John Turner said, “The acquisition of Westside reflects the continued execution of our growth strategy and brings together two leading organisations with shared cultures and entrepreneurial values. Westside’s differentiated platform provides a unique opportunity for GMS to expand our reach and capture significant growth opportunities in strategically important West Coast markets.” He added “We believe that through this combination we will create new opportunities to deliver world-class service to our customers and value to our stakeholders for years to come.”

Germany: Saint-Gobain has completed the sale of its Saint-Gobain Building Distribution Deutschland (SGBDD) business to the Stark Group. The divestment is based on an enterprise value of Euro335m. The finalisation of this transaction follows the approval of the European competition authority in early September 2019. The sale of its building merchants retail business marks the continuation of Saint-Gobain’s portfolio optimisation strategy.