Gypsum industry news

Australia/New Zealand: Belgium-based Etex has signed an agreement with building materials company BGC to acquire the latter’s gypsum and fibre cement businesses. The gypsum business consists of wallboard, plasters, compounds and cornice production units, and includes the Perth gypsum wallboard plant in Western Australia. BGC also operates nine warehouses across Australia and New Zealand. Etex says that the deal expands its activities in the ‘attractive’ local market, with significant growth opportunities. Finalisation is expected in early 2024.

Etex CEO Bernard Delvaux said “This deal is a strategic opportunity for Etex to complement our footprint in Australia and further increase the accessibility of our products and services for customers. This will both reinforce our gypsum wallboard offering and position us well in the growing fibre cement activities through a broad product range and good channel access.”

US: Georgia-Pacific has officially opened its new gypsum wallboard plant at Sweetwater in Texas. The project had a budget of US$325m and it is the first new wallboard plant that Georgia-Pacific has built since 2004.

David Neal, president of Georgia-Pacific Gypsum said “The two operations combined will supply customers and distribution partners with more than 92Mm² of gypsum products each year and create more than 100 new jobs. This investment strengthens Georgia-Pacific's capacity to meet growing customer needs in Texas' residential, commercial, and industrial construction markets.”

The new plant is adjacent to Georgia-Pacific’s first gypsum wallboard facility in Sweetwater, purchased by the company in 1996. The existing facility has been operating in Nolan County since the 1950s. Over the last year, Georgia-Pacific has invested approximately US$16m in technical and safety upgrades at the plant, including an Energy Optimization System (EOS), auto-guided vehicles (AGVs), an automated robotic riser system, auto-splicing equipment, and upgraded packaging equipment. It has also upgraded the employee facilities.

US: Saint-Gobain has acquired the remaining equity interest and assets of Seven Hills Paperboard, including a gypsum paper board liner manufacturing plant in Lynchburg, Virginia, from its joint venture partner WestRock. The purchase adds to the gypsum wallboard operations of Saint-Gobain’s CertainTeed Interior Products Group. The company said that the internal integration of gypsum paper board liner production represented a “significant” step in strengthening the supply chain for this material.

Mark Rayfield, President and Chief Executive Officer of Saint-Gobain North America and CertainTeed Canada said “The acquisition of these assets represents our continued commitment to our customers to provide quality gypsum wallboard products.” He added, “I would like to welcome our 80 new team members in Lynchburg and look forward to your contributions to our purpose, ‘To Make the World a Better Home.”

Brazil: The Administrative Court of the Brazilian Administrative Council of Economic Defence (CADE) has submitted for review the proposed acquisition by Knauf Brazil of a gypsum wallboard plant operated by Trevo Industrial de Acartonados. The Office of the Superintendent General (SG) noted after an investigation that the transaction would increase market concentration, exceeding the limits set out in the guides of CADE and the competition law. The gypsum wallboard market in Brazil has four suppliers, including Knauf and Trevo.

The review pointed out that imports are “unusual and cannot be considered a source of competition if Knauf raises the prices after merging with Trevo.” The SG also warned that other factors could lead to potential market collusion such the lack of history of competitive rivalry in terms of price, quality, or any other difference amongst the products.

Following its challenge to the proposed acquisition, the SG has submitted the case to a tribunal. At this stage a commissioner will review it and include it in the agenda for further adjudication.

India: The Directorate General of Trade Remedies (DGTR) has recommended a five-year anti-dumping duty on gypsum tiles imported from China and Oman. Saint-Gobain India initiated the investigation that started in late 2022. It considered gypsum tiles laminated on one side with polyvinyl chloride (PVC) or wax paper that are typically used in ceilings. The study concluded that the product had been “exported to India at a price below the normal value, resulting in dumping.”