Gypsum industry news

France: Saint-Gobain and EBRD (European Bank for Reconstruction and Development) have signed an agreement whereby EBRD will increase its participation in Saint-Gobain Construction Products Rus LLC from its current stake of 11% to 33%.

The EBRD equity injection will contribute to financing Saint-Gobain Construction Products' planned investments in Russia for the next three years, including projects in the gypsum, industrial mortars and insulation activities in several regions.

The investments will reflect the Environmental and Social Action Plan that was agreed with EBRD, thereby reaffirming the commitment of Saint-Gobain Group to the highest standards in environmental performance, corporate governance and business conduct.

This operation will contribute to the acceleration of Saint-Gobain's development in Russia, in alignment with the Group's strategy of strengthening its position in fast growing markets.

Saudi Arabia: The Khamis Mushayt Municipality has closed down 30 gypsum plants in Umm Srar neighbourhood for violating health and safety regulations. Mesfer Al-Wadai, mayor of the city, said that several plants were permanently closed, while others were closed temporarily until they correct their shortcomings.

"The municipality will be monitoring their activities to ensure they abide by the regulations," said Al-Wadai. "Some of the plants were found operating in old houses inside the neighbourhoods."

Al-Wadai said that the municipality's inspectors have also been conducting regular checks downtown in the Al-Darb area, where illegal workers sell goods from vehicles, pavements and on the streets. The inspectors confiscated more than 30 vehicles and fined their owners for selling goods without licenses.

"Members of the administrative control department in Khamis Mushayt conducted the inspections aided by the traffic department and other security bodies," said Al-Wadai. He added that the teams also removed two shacks on the Military City Road that were built without permits.

Azerbaijan: Export volumes of construction materials produced in Azerbaijan to Georgia rose by 13.5% in 2014, according to the report of the National Statistical Service of Georgia. Some 49,530t of gypsum wallboard and other anhydrite worth US$8.48m was exported from Azerbaijan to Georgia in January-May 2014, up from 41,080t worth US$7.47m during the same period of 2013.

India: The Haryana State government has prepared a contingency crop plan and has sought financial assistance as well as bonus on paddy and other kharif crops from the central government. Chief minister Bhupinder Singh Hooda said that the plan was formulated in consultation with CCS Haryana Agriculture University, Hisar. Hooda said that the State government has urged the central government to award an additional allocation of US$1.68m for gypsum during the current financial year.

Thailand: Thai Gypsum Products Plc (TGP), a subsidiary of France's Saint-Gobain, expects sales of its Gyproc construction and finishing materials will expand by 5% in 2014, citing continuous growth in home renovations and building markets.

Thongchai Kamolpattana, the commercial director for the Gyproc brand, said that demand from housing projects and home renovations had increased since 2013 and would allow TGP to earn higher revenue in 2014. Kamolpattana added that provincial markets would keep Gyproc sales afloat even if political problems persist in Bangkok.

Earlier in 2014 TGP experienced a minor negative effect from the prolonged political impasse that caused consumers to delay decisions to buy condominium units in Bangkok. "Demand for condominiums declined because customers in Bangkok took a wait-and-see stance," said Kamolpattana. "However, our market still did well in other provinces." He added that if political problems continue until year-end, TGP's performance in Bangkok might be affected. "If so, consumer confidence would be badly affected and that might reduce demand for our products. However, business confidence has rebounded since the coup."

Gyproc has expanded into modern-trade malls, particularly in Chiang Mai and Chon Buri provinces, helping the brand to boost sales by 5%. The products are available in 400 malls, resulting in greater brand awareness and accessibility to its products among contractors and homeowners nationwide.

The company plans to open more Gyproc solution centres in 2014, including in Phuket, in order to prepare for rising opportunities under the Asean Economic Community, which is due to kick off late in 2015. According to Kamolpattana, gypsum boards have gained strong market recognition in 20 Asia-Pacific markets, particularly the Philippines, Malaysia, Indonesia and Australia.