Gypsum industry news

US: Gypsum production in the US has increased by 11% to 9.9Mt in 2012 compared to 8.9Mt in 2011, according to a report from the United States Geological Survey (USGS). The USGS attributed this rise to increases in activity in the US housing and construction markets.

In its Mineral Commodity Summary for Gypsum in 2012, the USGS reported that the apparent consumption of gypsum increased by 4% to 24.6Mt in 2012 compared to 23.7Mt in 2011. Wallboard products sold rose slightly from 1.60BM2 in 2011 to 1.63BM2 in 2012. Overall, 47 companies produced gypsum in the US at 54 mines and plants in 34 States. Approximately 90% of domestic consumption, with a total of approximately 22Mt, was accounted for by manufacturers of wallboard and plaster products. At the beginning of 2012 the production capacity of operating wallboard plants in the US was about 3.07BM2/yr.

In its overview of the industry the report commented that the US ranked fourth in the world for gypsum production after China, Iran and Spain. An increased use of wallboard in Asia, coupled with new gypsum product plants, spurred increased production in that region. The report expected that the worldwide production of gypsum would rise driven by the increasing popularity of wallboard due to its economy and efficiency.

Lastly, it was noted that if the construction of wallboard plants designed to use synthetic gypsum from flue gas desulfurisation (FGD) units continues this will result in less mining of natural gypsum. The availability of inexpensive natural gas, however, may limit the increase of future FGD units and, therefore, the production of synthetic gypsum.

Bulgaria: Bulgarian gypsum producer Gips has reported that its net loss in the first nine months of 2012 has increased by 80% to Euro1.28m from Euro0.71m in the same period in 2011. The company's revenue rose by 35.7% to Euro4.35m in the same period, according to a bourse filing. Gips, Bulgaria's sole producer of natural gypsum, was set up in 1965. The company has absorbed a total of Euro11.2m in investments since it was privatised in 2006.

New Zealand: A US$34m New Zealand government procurement deal to supply wallboard for the rebuilding of Christchurch has been split between New Zealand's only wallboard manufacturer, Winstone Wallboards, and multinational manufacturer Knauf. Home affordability and a lack of competition for building supplies in the country were cited by a Productivity Commission report as key issues in making the decision.

"Having Knauf set up shop in New Zealand will see increased industry competition that will provide consumers with more choice and could potentially drive down prices," said Economic Development Minister Steven Joyce. The government expects to save around 6% on wallboard costs.

Knauf, the world's second-largest wallboard manufacturer and one of only seven firms that dominate four-fifths of global production, already has a New Zealand operation, selling wool-based insulation material. The contracts will cover wallboard and associated fasteners, adhesives and jointing compounds being used in the Earthquake Commission and Southern Response Earthquake Services Limited reconstruction programmes. The contracts were let after a competitive tender that attracted nine bids.

Australia: Boral, Australia's largest building materials supplier, has said that it will cut 1000 jobs from its global operations this fiscal year as part of a restructuring initiative intended to improve competitiveness. It is hoped that the changes will save US$95m/yr, with estimated savings of US$39m in 2013.

CEO and managing director Mike Kane described the company as 'burdened' with excessive overhead costs. "While this may be less obvious during the good times, it becomes critically exposed when times are tough," he said. The restructuring follows a 100 day review of the business conducted by Kane.

The majority of job losses are in Australia, where 885 positions will be axed. This includes the 90 roles Boral said that it would cut in December 2012 as it announced plans to suspend the production of clinker at its Waurn Ponds cement plant in eastern Australia. 15 jobs will be cut in the US.

In June 2012 the company reported that it had 14,740 employees, with around 8730 in Australia. A further reduction of 1420 employees will also take place due to Boral's previously announced divestment of assets in Asia and Australia.

US: Legislation intended to better regulate the use of wallboard in homes and buildings is headed to the desk of US President Barack Obama, several years after the emergence of the 'toxic' Chinese wallboard saga.

The US House of Representatives approved the Drywall Safety Act of 2012 on 1 January 2013, amid the chaos regarding the 'fiscal cliff.' It approved the measure on an overwhelming 378-37 vote.

In December 2012 Senator David Vitter successfully pushed a Senate amendment to loosen some of the bill's language and to win the support of the National Association of Home Builders, which had previously opposed the bill. Once the bill was amended, it sailed to congressional approval.

"Many families were faced with the nightmare of building or repairing their homes with toxic wallboard after Hurricane Katrina and I want to make sure this doesn't happen again. This is good news for homeowners that we were able to pass this swiftly before the new Congress starts," said Vitter on 2 January 2013. "This legislation will make sure unsafe wallboard won't be sold in the future and that wallboard manufacturers are held accountable."

The Drywall Safety Act sets chemical standards for domestic and imported wallboard, and also establishes guidelines for its disposal. The bill allows the Consumer Product Safety Commission to set rules to ensure that existing 'toxic' wallboard is properly disposed of. The legislation also requires all wallboard used in the country to be labeled with the manufacturer's name.