Gypsum industry news

US: USG Corporation (USG) has reported that its net sales rose by 15% year-on-year to US$916m in the second quarter of 2013 from US$798m in the same period in 2012. Net income rose to US$25m in the quarter compared to a loss of US$57m in 2012.

"We are pleased to generate net income for the second consecutive quarter," said James S Metcalf, Chairman, President and CEO. "Results in all major business units have improved from one year ago, including L&W Supply, which achieved an operating profit for the first time since 2008." Metcalf attributed the results to the success of the company's 'Plan to Win' business strategy.

Business unit highlights from the second quarter of 2013 included a 12% rise in wallboard shipments to 120MM2 from 107MM2.

Russia: A US$150m upgrade to a wallboard plant producing GIPSELL brand products in the Kabardino-Balkaria republic has been announced, according to a statement from the local government. Wallboard output is anticipated to grow to 3MM³/yr. After the upgrade the plant will employ at least 400 workers. The launch is planned for August 2013.

US: International Paper has finalised the sale of its Temple-Inland Building Products division to Georgia-Pacific Building Products for US$710m in cash, subject to a customary closing adjustment. The division's assets comprise 15 manufacturing facilities including four gypsum wallboard plants. The facilities are located across eight states, primarily in the south-eastern and eastern portions of the US. The deal was originally announced in late 2012.

UK: Fairport Engineering has appointed Jeff Buxton as the Sales Manager for Heavy Industries. Buxton holds over 35 years of experience working in the bulk materials processing and handling industries and is a fully-qualified mechanical and electrical engineer. His industry knowledge includes the technologies and systems used in the cement, gypsum, aggregates and alternative fuels sectors, amongst others. Previously Buxton has worked for a number of the leading suppliers of proprietary equipment to these markets.

Canada: The NuGyp Corporation is entering into discussions with major equipment suppliers, plasterboard manufacturers and other plaster product manufacturers in the gypsum industry in order to commercialise its patented technology for gypsum, 'The NuGyp Process,' which enables major savings in water consumption and operating costs in plaster production.

The technology, which was voted Best New Product at the Global Gypsum Conference & Exhibition in 2010, has now been proven at full commercial scale and the company's directors believe that it will best be exploited by and benefit a major organisation with established resources, expertise and international distribution networks.

The company has been approached during the development process by a number of interested parties and has now decided formally to offer the technology for sale or possible joint venture.

Russia: Saint-Gobain has started production at its first wallboard plant in Russia. Pierre-André de Chalendar, chairman and CEO of Saint-Gobain, officially opened the plant, located near Gomzovo in the Nizhny Novgorod region, on 10 July 2013. The new Euro70m plant, which also contains a gypsum quarry, has a workforce of 87 employees.

"The start-up of this new plant is an important step in the group's development within the Russian habitat and construction markets," said de Chalendar. "With its unique portfolio of products and solutions, Saint-Gobain serves rapidly-growing construction markets worldwide. Russia's climate, its rising purchasing power and pressing need for housing means that it's a country with great potential for the group."

Russia: Matanat-A, the Azerbaijani building materials producer, has re-registered land in Uspensk district of Krasnodar region of the Russian Federation intended for a industrial complex including a gypsum wallboard plant. Company president Elkhan Bashirov said that they Matanat-A is continuing negotiations with the district administration about the start of construction.

"The point is that the purchased land is registered as agricultural land. In this respect we submitted the documents for re-registration of land for industrial work," said Bashirov.

The agreement to build the complex has originally signed on 16 September 2011 at the Jubilee X Investment Forum in Sochi. The plans consist of five plants, including a gypsum wallboard plant, built on a 37 hectares plot. Matanat-A has also purchased a 78 hectare site to mine gypsum at Otradnensky in Krasnodar region. The plant build will be funded by a Euro30m investment, of which 30% comes from Matanat-A and the remaining 70% from a loan.

US: Mined gypsum supply in the US has risen by 43% to 3.41Mt in the first quarter of 2013 from 2.38Mt in the same quarter of 2012, according to a report from the United States Geological Survey (USGS). Imported gypsum production rose in the quarter year-on-year to 0.85Mt and synthetic gypsum production fell year-on-year to 1.79Mt. The overall total supply of gypsum rose by 21% year-on-year to 6.05Mt from 5.01Mt.

Total supply of board products stood at 327MM² for the first quarter of 2013, a slight decline compared to 334MM² for the first quarter of 2012 and a 19% fall to 403MM² in the fourth quarter of 2012. Major crude gypsum importers in the first quarter of 2013 included Mexico (0.34Mt), Canada (0.27Mt) and Spain (0.24Mt).

US: Lafarge has announced that is preparing the sale of its North American gypsum business to US private equity firm Lone Star in a deal worth an enterprise value of US$700m.

Lafarge North America's Gypsum division manufactures gypsum wallboards and joint compounds throughout a network of plants in the United States and Canada, including three US gypsum wallboard plants. In 2012, these operations generated sales of US$310m. The assets have been held for sale in the Lafarge's consolidated balance sheet since 2011.

This transaction, which is expected to close very soon, is subject to the satisfaction of customary closing conditions.

Global building materials producer Lafarge reduced its net debt by Euro700m in 2012 to Euro11.3bn. It sold the majority of its worldwide gypsum business – in Asia, Europe, South America and Australia – to Boral and Etex in 2011. Lafarge retains a 20% stake in the joint venture with Etex.

Switzerland/UK: Swiss-based Sika, which produces additives for the gypsum and cement industries, has acquired Everbuild Building Products Ltd, the UK's largest independent manufacturer of sealants, adhesives and chemicals for the construction industry. Everbuild is located in Leeds with annual sales revenue of Euro73m and a workforce of 270 employees.

Everbuild, founded in 1994, will now operate as a subsidiary of Sika UK and will be led by the existing management team. Its founder David Seymour will stay with the company to drive the continued success of the business and ensure a smooth transition. "With Sika we have the possibility to further grow our business and to benefit from the broad research and development capabilities for further product innovation," said Seymour.

Jan Jenisch, CEO of Sika, said, "We are very proud to welcome the successful team of Everbuild to the Sika family. The acquisition will give us a strong position in the UK distribution market and offers considerable potential to further leverage Everbuild's sales channels with Sika's product range."