Gypsum industry news

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.

USA: Continental Building Products, which acquired Lafarge North America's gypsum wallboard assets on 30 August 2013, has announced results for the fourth quarter and fiscal year ending 31 December 2013.

In the fourth quarter of 2013, CBP saw its net sales increase by 30% to US$114m compared to Lafarge's like-for-like performance in the fourth quarter of 2012. Its operating income rose from US$2.8m for the 2012 quarter to US$15.9m and its adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) more than doubled to US$29.8m. Net income for the fourth quarter of 2013 was up by 125% year-on-year to US$6.7m. CBP sold 58.7Mm3 of gypsum wallboard during the fourth quarter, a rise of 18% year-on-year.

Over the whole of 2013, which necessarily includes results from Lafarge North America's former gypsum wallboard operations, CBP saw its net sales rise by 29% to US$402m and operating income improve to a profit of U$29.8m compared to a loss of US$45.4m in 2012. Adjusted EBITDA increased by 152% to US$103m for the year, while net income was positive at US$4.9m, compared to a net loss of US$68.7m in 2012.

"The positive momentum in our business continued into the year end, resulting in a net sales increase of 30% during the fourth quarter," said Ike Preston, CEO of CPB. "As we progressed though the year, rising housing starts provided favourable residential construction activity, our repair and remodel end markets improved and commercial orders started to show early signs of a recovery. The improvement in our performance reflects the improved demand environment but is even more reflective of our market-leading positions that we have forged in attractive regions throughout the eastern United States."

"The significant investments that we have made to modernise our capacity allowed us to more than double our adjusted EBITDA in the fourth quarter of 2013," continued Preston. "We believe we are well positioned to continue growing our business as we leverage our existing capacity and low cost production capabilities to support additional profit expansion and cash generation over time."

Vietnam: David Victor Thomas, general director of Knauf Vietnam, has announced that Thuan Hung Building Materials Co, based in Tien Giang Province, will be the first distributor of Knauf's gypsum wallboard in the region.

Knauf has imported its products to Vietnam since late 2013. The company was licensed to build a wallboard factory in the city of Haiphong in 2013 and its products will be launched in 2015.

Canada: Cory Schurman has accepted the role of national sales manager with Gypsoil, a division of Beneficial Reuse Management. He will oversee the Gypsoil sales team, coordinate marketing programs and work with customers, sales representatives and agricultural consultants.

"We are very excited to add Cory Schurman to the Gypsoil team," said Robert Spoerri, CEO of Beneficial Reuse Management. "He possesses a highly advanced understanding of soil improvement and agronomics and he is a leader in analysing agricultural business processes, identifying sales opportunities and executing integrated marketing programs. Schurman is a widely-recognised resource for helping crop growers incorporate efficient and effective agronomic solutions through careful management decision-making."

"I'm looking forward to building the Gypsoil sales team to help growers achieve maximum soil productivity and agronomic results through the use of Gypsoil brand gypsum," said Schurman.

Schurman replaces Steve Musser who was named director of new product development for Gypsoil. In his new role Musser will focus on advancing several initiatives to broaden the company's offerings and service to agricultural producers.

UK: The new Quality Protocol (QP) for recycled gypsum will put an end to its use in agriculture as well as impacting negatively on the plasterboard recycling industry, according to the Gypsum Re-processors' Association UK and Ireland (GRAUKI).

GRAUKI also believes that there will be a short-term increase in the illegal disposal of waste plasterboard due to the removal of agricultural soil treatment as an approved end-use for recycled gypsum in the QP.

The QP for the production and use of recycled gypsum from waste plasterboard was published by the Environment Agency and the Waste and Resources Action Programme (WRAP) in consultation with UK governments and other regulatory stakeholders. It was published in March 2014 and is applicable throughout the UK. The QP designates just two permitted end uses for the of recycled gypsum, which are wallboard manufacture and cement production. As a result, recycled gypsum can now only be spread to land as a waste, for which gypsum re-processors will need to apply for a permit.

According to GRAUKI, "In practice the cost and legislative constraints are such that GRAUKI members feel that this will put an end to the beneficial use of recycled gypsum in agriculture." The Association added, "This change will have a negative impact on the overall capacity of the plasterboard recycling industry in the UK, which is already struggling to cope with the amount of gypsum waste generated."

GRAUKI previously raised concerns in 2013 that the EA could 'strangle' the plasterboard recycling industry unless it permitted more end uses for recycled gypsum.