Gypsum industry news

Australia: The Gladstone Port Corporation has approved construction of a US$54m Knauf Plasterboard manufacturing plant at Bundaberg Port, Queensland to begin by the end of 2015. The project is anticipated to create up to 100 local jobs over the next 18 months, according to local media. The plant is due to be completed in January 2017.

Egypt: Sales from Knauf's recently opened wallboard plant in Suez could reach US$15m in Egypt and Africa during the first year of production, according to Alexander Knauf, managing partner of the company. The company plans to sell 8Mm2 of gypsum wallboard during the first year of operation, Knauf said in a statement.

Egypt: The German-Arab Chamber of Industry and Commerce (GACIC) has announced the opening of a new US$50m Knauf Egypt plant. The plant has a capacity of 15Mm²/yr of gypsum wallboard, 90,000t/yr of other gypsum products and 25Mm/yr of metal cutters. Construction in the Ataqa Suez industrial zone began in 2010. Suez was selected as the plant site because of its strategic location between raw materials sites, local markets and major export markets.

Uzbekistan: Knauf has started a new US$52.5m investment project at two of its plants in Bukhara. The move follows the signing of a new agreement in 2014 by Knauf and Uzstroymateriali JSC to boost economic cooperation between Uzbekistan and Germany.

Knauf has already invested US$51m in Uzbekistan. It has two plants in Bukhara: JV JSC Bukharagips, which produces dry building mixes and Knauf Gips Bukhara, which produces gypsum wallboard. The 60,000t/yr capacity Bukharagips plant started operations in August 2009, while the 20Mm³/yr capacity Knauf Gips Bukhara plant was built in 2011.

Azerbaijan: Gypsum exporters in Azerbaijan deliberately reduced export prices of gypsum by a factor of 10 in 2014 to evade tax, according to research by the Turan Information Agency conducted on data from Azerbaijan and Georgia state sources.

According to the research, the export and import values for gypsum failed to match between Azerbaijan and Georgia in 2014, leading to a US$24.1m tax shortfall. Gypsum exported from Azerbaijan was valued at US$17/t but gypsum imported into Georgia was valued at US$170/t. Almost all export of gypsum of Azerbaijan appeared to go to Georgia according to data from the National Statistics Office of Georgia. Turan dubbed gypsum producers in Azerbaijan as the 'Gypsum Mafia'.

The main producers of plaster in Azerbaijan are Garant Holding and Gilan Holding. Both companies are located close to gypsum deposits in the Goranboy region. Gilan Holding has a joint venture with the German company Knauf for the production of wallboard.

Australia: Knauf Plasterboard is expected to announce that it will begin the construction phase of a new plant at the Bundaberg Port in south-east Queensland. Knauf Plasterboard currently manufactures and distributes plasterboard and accessories out of its Melbourne and Sydney plants.

In 2014, the company bought land from Gladstone Ports Corporation at the Bundaberg Port and is expected to start building a new plant in March 2015. Company spokesman Brian Tisher said that the new plant would create 200 jobs in the construction phase and 55 new positions when the project was complete in 2016. Tisher said that most of the products made would be sold in Queensland, but some would be exported. He added that building the facility in Bundaberg was an obvious choice, as a 26km gas pipeline was recently installed. The plant should be operational by September 2016.

Australia/New Zealand: The Australian and New Zealand chiefs of Knauf's wallboard operations have resigned. Additionally, the New Zealand business is under review, having posted a loss in its first nine months of operations.

The head of the New Zealand wallboard unit, John Russ, has confirmed to local media that he has resigned and will leave the company in two weeks. Meanwhile Mark Norris, managing director of Knauf Plasterboard in Australia, resigned with immediate effect on 6 November 2014.

Knauf has struggled to gain traction in the New Zealand building market, which is dominated by Fletcher Building and it took Knauf longer than expected to gain approval for its products from BRANZ, a local independent research and testing institute, before it could start to sell to consumers. Even then, the company said that it faced resistance getting its products into stores, which had established relationships with Fletcher.

Uzbekistan: Knauf has launched a consulting centre at the Samarkand State Architecture and Construction Institute, named after Mirzo Ulugbek, on 4 September 2014 in Samarkand, Samarqand Province. This is Knauf's second consulting centre in Uzbekistan. The first was opened in June 2008 under Tashkent State Architecture and Construction Institute, which has proven its efficiency in training skilled builders.

The centre will provide training to all interested parties on the use of modern construction materials. The training programmes are designed for various groups, including individuals who repair their houses on their own as well as professionals. Each trainee will receive technical documentation, manuals and other literature. Dmitry Deripalko, director general of Knauf Gips Bukhara, underlined that the centre will assist young people and builders to receive theoretical and practical skills.
Knauf purchased 30.8% of state assets in Bukharagips for US$1.55m and invested US$6.3m over a three-year period. Knauf currently holds 98.98% stake in the enterprise, while employees and other shareholders hold 1.02%. The enterprise specialises in the production of dry gypsum mixtures and was founded in 1934. Bukharagips owns a gypsum mine with 45Mt of reserves with 90-100% calcium content, a lime mine with 7.8Mt of reserves and several other mines. Knauf launched production of dry gypsum mixtures in 2009 at the 60,000t capacity Bukharagips plant.

Vietnam: Knauf Vietnam has commenced construction of its first gypsum wallboard plant in the northern port city of Hai Phong on 16 July 2014. Located in Dinh Vu Industrial Zone, the plant has been one of the largest foreign direct investment projects in the city. Covering an area of 63,000m², the plant has a total investment of US$40m. When the plant is operational it will have a wallboard production capacity 12Mm²/yr.

"We have just launched two distributors in Vietnam, one in the south and one in the north and now we are starting the construction of our plant," said David Thomas, Knauf's general director. "We believe that, once completed by mid-2015, the plant will help us to gain a considerable market share in Vietnam in general and in the north in particular."

Thomas said that Knauf plans to expand its relationship with key partners such as distributors, architects, developers and government authorities, with an aim to widely introduce its products to the Vietnamese market.

"Dinh Vu Industrial Zone is a strategic location in terms of transportation and manufacturing that would provide the market with high quality products at competitive prices and improve the standards of the whole industry," said Thomas.

Vietnam: Knauf Vietnam has introduced Duc Nam Construction and Trading Company as its first gypsum wallboard distributor in Hanoi in northern Vietnam. This is its second distributor in Vietnam after assigning one in the Cuu Long Delta region. Having received an investment license in 2013, Knauf Vietnam is building a 12Mm²/yr capacity gypsum wallboard plant worth US$40.7m in the northern province of Haiphong.