Gypsum industry news

Spain: Knauf has received a 30 year extension to its quarrying permit supporting its Escuzar wallboard plant in Granada. The company also plans to increase production capacity at the unit, according to Europa Press. The plant was established in 2008 and it has a capacity of 50Mm²/yr.

Tunisia: Elizabeth Knauf has expressed Knauf’s interest in growing its production capacity for the local market and export. The group president of the board of directors met with Prime Minister Najla Bouden in mid-January 2022, according to the Agence Tunis Afrique Presse. Bouden praised the success of Knauf Tunisia’s training centres at Tataouine and Meknassy (Sidi Bouzid). The group acquired Plâtres Tunisiens in 2004 and operates a plaster plant at Meknassy.

Germany: Knauf Gips has partnered with Canada-based lithium hydroxide producer Rock Tech Lithium and waste management company Papenburg Entsorgung Ost to found the Institute for Technologies and Economics of Lithium (ITEL) at Halle (Saale) in Saxony-Anhalt. The institute aims to develop an inter-sector, CO2-neutral recycling economy for lithium in Germany. This will include the use of gypsum from lithium hydroxide production in gypsum wallboard production. ITEL has appointed Martin Luther University Halle-Wittenberg academics Ulrich Blum and Ralf Wehrspohn as its managing directors.

ITEL said “The switch to electromobility will make Germany the central location for battery production in Europe and thus also for the production of the crucial precursor lithium hydroxide. The reduction and reuse of the by-products generated during the refinement of lithium is the focus of the institute's work. Another focus is research into new production steps to optimise by-product value creation.”

Australia: Boral has sold its 50% stake in USG Boral to Germany-based Knauf for US$1.02bn. The profit on sale after tax will go towards reducing the group’s net debt by 21% to US$1.15bn from US$1.45bn. This will leave a US$763,000 surplus for reinvestment or return to investors.

Following on from the sale, Boral has launched a share buy-back, ending in April 2022. It intends to purchase 10% of shares on issue. The group says that the USG Boral sale proceeds will fund the investment.

Chief executive officer and managing director Zlatko Todorcevski said “The sale of our 50% interest in USG Boral to Knauf for an attractive premium creates substantial value for Boral’s shareholders. The sale enables Boral to reduce net debt to our current target and create surplus capital available for return to shareholders, which is consistent with Boral’s financial framework.” He added “We believe that an on-market buy-back is the most effective method of returning this surplus capital to our shareholders.”

Australia: Boral has given details of its US$1.02bn sale of the 50% stake in USG Boral to Germany-based Knauf. It said that it expects the transaction to close in the 2021 financial year, adding, “If the transaction has not closed by 30 September 2021 – where Knauf has not completed certain divestments required by regulators – then, if either party terminates, Knauf must pay Boral a termination fee of US$50.0m.”

Chief executive officer (CEO) and managing director Zlatko Todorcevski said, “We have been working with Knauf for some time to find the best path forward for the business following Knauf’s acquisition of our joint venture partner USG. We recognise that it makes sense for Knauf – being the world’s largest plasterboard player – to have 100% ownership of the business. USG Boral is a great business, and very well positioned to perform strongly under the ownership of Knauf. The strength of the joint venture business and its prospects are fully reflected in the sale price as demonstrated by the attractive premium, which is a great outcome for Boral shareholders. The sale of Boral’s interest in USG Boral to Knauf will be a step to simplifying Boral’s geographic footprint and product portfolio.”

Final cash proceeds “will be applied to reduce net debt and fund growth investment in the retained portfolio” and remain subject to “post-completion adjustments.”

Australia: Belgium-based Etex has agreed to buy Knauf Australia from Germany-based Knauf for an undisclosed sum. The company’s portfolio consists of three gypsum wallboard plants, located in Altona, Victoria, Matraville, New South Wales and Bundaberg, Queensland, and it employs over 300 people. The Australian newspaper has reported that Etex plans to treat the newly acquired asset as a going concern, in which it will retain existing staff, including management. The acquisition is subject to customary closing conditions, with finalisation expected in early 2021.

Paul Van Oyen, the chief executive officer (CEO) of Etex said, “This transaction is a major milestone in the execution of our strategic roadmap initiated two years ago. Since then, we progressively exited non-core activities, such as the clay and concrete roof tiles business, that no longer fits with our portfolio. Our strategy is focused on being a leader in lightweight solutions and modular construction, offering sustainable, cost-effective, high-performing and inspiring building solutions to our customers. Plasterboards play a key role in such solutions, and we are looking forward to collaborating closely with our new colleagues to open up new opportunities for growth.”

Etex previously acquired Lafarge’s European and South American gypsum wallboard assets at the same time as Knauf acquired the entity now known as Knauf Australia from Lafarge in 2011. Knauf maintains a presence in the Australian gypsum wallboard sector via its partnership with Boral, concluded in October 2020.

Australia: Belgium-based Etex has hired financial services provider JP Morgan to help it buy Knauf’s Australian gypsum wallboard portfolio, valued at around US$293m. The Australian newspaper reports that Saint-Gobain and China National Building Material (CNBM) are also interested in the sale.

Knauf is divesting the assets to satisfy the Australian Competition and Consumer Commission’s fair play rules following its purchase of Boral’s stake in the USG-Boral gypsum wallboard joint venture for US$1.05bn. The companies have until September 2020 to finalise the transaction.

Australia/Singapore: Knauf has agreed to buy Boral’s 50% stake in USG Boral for US$1.02bn, bringing its total stake in the former Boral and US-based USG joint venture to 100%. The joint-venture includes gypsum wallboard-based businesses in Australia, New Zealand, Asia and the Middle East. The deal is “subject to typical conditions precedent including in relation to regulatory matters.”

Boral chief executive officer (CEO) and managing director Zlatko Todorcevski said, “We have been working with Knauf for some time to find the best path forward for the business following Knauf’s acquisition of our joint venture partner USG. We recognise that it makes sense for Knauf – being the world’s largest gypsum wallboard player – to have 100% ownership of the business. USG Boral is a great business, and very well positioned to perform strongly under the ownership of Knauf. The strength of the joint venture business and its prospects are fully reflected in the sale price, as demonstrated by the attractive premium, which is a great outcome for Boral shareholders. The sale of Boral’s interest in USG Boral to Knauf will be a step to simplifying Boral’s geographic footprint and product portfolio.”

Australia: France-based Saint-Gobain is reportedly considering the purchase of Germany-based Knauf’s US$284m Australian gypsum wallboard business. The Australian newspaper has also named Saint-Gobain as a potential buyer of USG Boral’s US$2.48bn US business. Separately, China National Building Material (CNBM) has been linked to the Knauf sale. Any such deals would be subject to anti-competitiveness checks.

UK: Matt Pullen, the managing director of British Gypsum, says that the company intends to loosen restrictions on wallboard sales in August 2020. “Whilst we continue to see high levels of demand, we have sufficient capacity to supply your wallboard requirements without formal supply restrictions,” said Pullen. He added that the company’s plaster manufacturing plants continue to, ‘operate consistently at maximum capability.’

Gypsum plaster-based products have been in short supply in the UK since the local coronavirus-related lockdown started in March 2020. The subsidiary of Saint-Gobain suspended operations in April 2020 and Knauf stopped production at its wallboard plants in the UK at the end of March 2020. British Gypsum reported in late May 2020 that its wallboard capacity was at ‘approximately’ 80% of pre-coronavirus pandemic levels following the scaling up of its ‘Covid-19 safe’ operations and distribution plan. Etex’s Siniat said it was ending product allocation controls in early July 2020.