Gypsum industry news

Brazil: Etex has started the construction of a new wallboard plant in Santa Cruz, Rio de Janeiro with an investment of Euro60m. The plant will open in mid-2015.

"The investment enables Etex to expand its footprint in Latin America, an emerging market of strategic importance. Brazil plays a leading role in the economic development of the region. The country's wallboard market is growing rapidly, at twice the rate of the construction industry,'' said Fons Peeters, Etex's CEO.

Construction work for the new plant started on 31 March 2014. An estimated 150 employees will manufacture three types of high-performance wallboard: standard, humidity-resistant and fire-resistant. The plant will serve markets in the south and southeast regions of Brazil. The new plant will be Etex's third wallboard production facility in the country joining its existing plants in Pernambuco state.

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.