Gypsum industry news

Algeria: Groupe des Ciments d’Algérie’s (GICA) is in discussions to export gypsum. The Algerian cement producer has announced plans to export up to 1.5Mt of cement in 2018, according to the Algeria Press Service. The company handles its exports via the ports of Arzew and Djendjen.

Belarus: Construction of Belgips new 30MM2/yr gypsum wallboard plant in Gatovo, Minsk District is expected to be completed in October 2018. The plant will then take another six months for start-up and commissioning before it starts commercial operation in mid-2019, according to Belarus Daily News. The unit is a joint venture between Russia’s Volma Corporation and Germany’s Knauf.

US: German building materials company Gebr. Knauf KG is set to acquire Chicago-based USG Corporation in a US$7bn deal, following months of discussion and heated exchange between the two companies. USG shareholders will receive US$44/share, according to the terms of the agreement. This consists of US$43.50/share in cash payable and US$0.50/share in a special dividend after shareholders approve the deal, which is expected to close in early 2019.

Knauf intends to continue operations from USG’s headquarters in Chicago.
Berkshire Hathaway and its subsidiaries, which own a collective 31% of USG, have agreed to vote in favour of the acquisition. The deal allows Berkshire to leave what CEO Warren Buffet deemed a ‘disappointing’ investment, according to Bloomberg.

In 2001, USG filed for bankruptcy protection and was later saved by an investment from Berkshire in 2006. Knauf has been pursuing USG since November 2017. In March 2018, USG rejected an offer by Knauf to purchase the construction materials company for US$5.9bn.

“We are excited to enter into an agreement to acquire USG,” said Alexander Knauf, general partner of Knauf, in a company statement. “As a long-term USG shareholder, we greatly admire USG's strong brands, leading market positions in North American wallboard and ceilings and highly talented employee base."

Jennifer Scanlon, president and chief executive officer of USG, added, “Our Board has worked diligently to evaluate all strategic options to maximise value for our shareholders, and we are pleased to have reached this agreement, which provides our shareholders with significant and certain cash value. We believe this transaction will create new opportunities for both companies' customers and will benefit USG's employees who will be part of a truly global building products company.”

Spain: Saint-Gobain Placo Iberia plans to spend Euro4.5m on upgrades to its Fábrica de Quinto wallboard plant in Zaragoza. The project started in 2017 with an investment of Euro1m, according to the Heraldo de Aragón newspaper. In July 2018 the company plans to spend Euro0.5m towards improving the quality of its wallboard and preparing a production line for new products. The majority of the investment will go towards improving logistics at the unit and expanding its storage capacity. A new wallboard recycling plant is also planned.

India/Pakistan: Raw gypsum exports are growing at the Wagah border crossing between Pakistan and India. Around 3000t/day or 80 trucks of gypsum cross the border into India, according to the Nation newspaper. Exports have been increasing due to demand from Indian importers. Most of the commodity is used to make cement although it is also used to produce fertiliser and make plaster products such as gypsum wallboard.