Gypsum industry news

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."

US: Eagle Materials has reported financial results for the first quarter of fiscal 2015, which ended on 30 June 2014. First quarter earnings before interest and income taxes increased by 21% year-on-year to US$59.8m, as first quarter sales volumes improved across nearly all businesses areas and sales prices improved in all businesses.

Gypsum wallboard and paperboard reported first quarter operating earnings were US$45.0m, up by 27% from the same quarter of its 2014 fiscal year. Improved wallboard sales prices and increased wallboard and paperboard sales volumes were the primary drivers of the earnings increase. Wallboard and paperboard revenues totalled US$136m, an 18% year-on-year increase. The revenue increase reflects higher average wallboard sales prices and higher wallboard and paperboard sales volumes. The average wallboard sales price grew by 11% year-on-year. Wallboard sales volumes of 569Mft² represent a 7% year-on-year increase.

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.

Russia: The Peshelansky gypsum plant in the Nizhny Novgorod Region, Volga has started production of wall panels using gypsum chipboards. Such panels are used for interior finishing.

US: China's Taishan Gypsum Co Ltd, which was accused of manufacturing substandard gypsum wallboard, has been ordered not to conduct business in the United States.

The US District Court for the Eastern District of Louisiana found Taishan in contempt for failing to appear on 17 July 2014 for a hearing related to a US$2.6m judgment that it has refused to pay to seven Hampton Roads families.

The China-based company had previously claimed that US courts did not have jurisdiction in a lawsuit filed by the affected families. After losing that argument in the US 5th Circuit Court of Appeals in early 2014, Taishan chose not to file an appeal with the US Supreme Court. Taishan made no move toward paying the judgment or working out a settlement, so it was called into court to explain its actions.

"We will be pursuing them until hell freezes," said Arnold Levin, an attorney who had argued in New Orleans on behalf of the families.

For failing to appear, Taishan was ordered by US District Judge Eldon Fallon to pay US$15,000 in attorneys' fees and US$40,000 in penalties. He also prohibited the company from conducting business in America and declared that if it did, it would have to forfeit 25% of its profits. Fallon chided Taishan's leaders for participating in the legal process until they lost and then deciding to 'thumb their nose at the court' by not following his orders.

Fallon sent his ruling to the US secretary of commerce, the chair of the Senate Committee on Commerce, Science and Transportation and the US Attorney General's Office to take 'any appropriate action they may see fit.'