Gypsum industry news

Tanzania: Knauf Gypsum Tanzania has signed a five-year agreement with the Tanzania Petroleum Development Corporation (TPDC) to supply gas for a gypsum plant it is building at Kisemvule, Mkuranga District. The arrangement will started at the end of 2020, according to the Daily News newspaper. Commissioning at the plant is expected to start at the end of August 2019.

US: Gypsum Resources has filed for Chapter 11 bankruptcy at the Nevada US Bankruptcy Court. It is aiming to reorganise the business amid financial and operational difficulties, according to the Las Vegas Reiew Journal newspaper. The company operates a gypum mine at Blue Diamond Hill but it has been trying to develop a residential housing project at the site for over a decade. The development has been opposed by local environmentalists.

Company president James Rhodes blamed the bankrupty decision on ambitious growth plans, disrupted mining operations due to equipment failure and bad weather. He was optimistic that market demand for gypsum is steady and that the company will report positive net income later in 2019. The mine supplies gypsum to the wallboard, cement and agricultural industries.

US: Continental Building Products says it has been confronting a ‘sluggish’ new home construction market in the second quarter of 2019. Jay Bachmann, president and chief executive officer (CEO), said that the company was expecting the market to recover in the second half of the year and its improvement programme to reduce costs. Its net sales fell by 4% year-on-year to US$246m in the first half of 2019 from US$256m in the same period in 2018. Its net income dropped by 34% to US$28.8m from US$35.5m. Its gypsum wallboard volumes fell slightly by to 123Mm².

The wallboard producer also said that the shutdown of its Buchanan plant in New York due to mechanical failure might cause a boost operating income and earnings before interest, taxation, depreciation and amortisation (EBITDA) of up to US$2m once an insurance claim is settled. The plant was shut from January 2019 to 15 March 2019. The company increased production at its plants in Silver Grove, Kentucky and Palatka, Florida to offset a portion of the lost production from the Buchanan plant.

Vietnam: Vietnam National Chemical Group’s DAP No 1 – Hai Phong fertiliser plant is exploring options to use phosphogypsum as an additive in cement production. The company is working with the government on finding a use for the by-product of fertiliser production, according to the Viet Nam News newspaper. Duong Duy Hung, the director of the Planning Department at the Ministry of Industry and Trade, said the Ministry of Construction and the Ministry of Science and Technology have been developing new standards and regulations on the use of phosphogypsum plaster for use in the building materials sector. A phosphogypsum dump at the plant is expected to be utilised by 2025.

Oman: The Salalah Free Zone (SFZ) has signed three agreements worth US$80m to build three plants in the area, including two gypsum wallboard plants. The other factory will produce solar panels, according to the Times of Oman newspaper. The plants will be run by foreign companies including one from the US. They will create over 250 jobs.