Gypsum industry news

Australia/US: USG-Boral will resume 100% ownership of its Australia and New Zealand gypsum wallboard operations, subject to a call option for Knauf to buy back 50% within five years.

Boral CEO Michael Kane has commended Boral’s Sheetrock brand’s substantially strengthened position by comparison to that at the time of Knauf’s US$7bn acquisition of USG in April 2019, since which time Knauf has held 50% of USG-Boral’s gypsum wallboard business in Australia and New Zealand.

Boral will continue its joint operations with Knauf across Asia, at the centre of which are USG-Boral Asia’s purchase of Knauf Asian Plasterboard for US$533m, and its sale of its Middle Eastern ventures to Knauf for US$50m.

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.

Spain: Alberto De Luca, the chief executive officer (CEO) of Knauf Spain and Portugal, has been appointed as the president of the gypsum technical and business association (ATEDY). The association represents gypsum and plaster product manufacturers in Spain and Portugal.

De Luca has been the general director of Knauf Spain and Portugal for four years. The Italian national studied in Brussels, Belgium and joined Knauf Group in 2002. He held the postion of general director of Knauf Insulation for Spain, Portugal, Italy and North Africa for over eight years.

Spain: Knauf has launched its Knauf Fino product, a fine, high-performance for indoor use. It is classified as lightweight construction gypsum C7 / 20/2 according to the UNE-EN 13279-1 standard. It has CE Marking.

Australia: Boral says that it may be ready to announce its plans with its USG Boral joint venture in August 2019. It is currently conducting due diligence on the joint venture’s operations in Asia following Knauf’s acquisition of USG in early 2019, according to the Australian newspaper. Forward options include established a new Asian joint-venture with Knauf or buying USG Boral’s gypsum wallboard business in Australia, New Zealand, Papua New Guinea and islands in the South West Pacific. However, Boral’s chief executive officer (CEO) Mike Kane said that there might not be enough time to arrange a deal by the publication of Boral’s full year results in August 2019.

US: Germany’s Knauf has completed its acquisition of USG. The company said that the purchase would create, “a global building materials industry leader that will be even better positioned to meet customers' needs by leveraging two highly complementary businesses, product portfolios and global footprints.”

"We greatly admire USG's strong brands, leading market positions in North American wallboard and ceilings, and highly talented employee base,” said Alexander Knauf, General Partner of Knauf. He added that the transaction was the largest acquisition in Knauf’s history.

Knauf agreed to buy USG in mid-2018 for US$7bn. The Australian Competition and Consumer Commission has approved the deal in late March 2019 subject to asset divestments relating to its Boral-USG joint venture.

Mexico: Saint-Gobain has completed the acquisition of Knauf Mexico for an undisclosed sum. Knauf operates a 26Mm² gypsum wallboard plant at Queretaro that it purchased from PPG in 2017.

Australia: The Australian Competition and Consumer Commission (ACCC) has approved Knauf’s acquisition of USG subject to asset divestments. The ACCC’s review focused on competition for the supply of wallboard, joint plaster compounds and treatments, metal profiles, fixed and modular suspended ceilings and insulation.

USG has a presence in Australia through its USG-Boral joint venture, which the ACCC says competes with Knauf and with Armstrong World Industries. The commission requires Knauf to divest USG’s interest in the joint venture, either entirely or just in Australasia, to a buyer approved by the ACCC. If divestiture of the joint venture interest is not achieved within a certain period, Knauf has agreed to divest certain other assets.

“The transactions raised some significant concerns as it would lead to Knauf owning a 50% in the joint venture, which is a significant competitor in several markets, including markets with limited alternatives for customers,” said ACCC Commissioner Roger Featherston.

Each acquisition is subject to review by different international competition agencies given the global nature of the Knauf’s acquisition of USG.

US: USG’s net sales grew by 4% year-on-year to US$3.34bn in 2018 from US$3.20bn in 2017. Its operating profit fell by 36% to US$227m from US$353m. Sales from its wallboard and surfaces division were stable at US$1.93bn but its operating profit fell by 19% to US$248m. The building materials company said that its operating profit in the fourth quarter was negatively affected due to lower sales caused by the timing of when it announced wallboard price increases. USG’s takeover by Germany’s Knauf is expected to close in early 2019.

Ghana: Germany’s Knauf plans to open a training centre to provide knowledge and skills to construction professionals. It will be opened by Isabel Knauf, Member of the Knauf Group Management Committee, Gerd Müller, the German Federal Minister for Economic Cooperation and Development (BMZ) and Christiane Laibach, chairwoman of the Management Board of Deutsche Investitions- und Entwicklungsgesellschaft (DEG), according to the Ghana News Agency. The opening is part of the German African Business Summit. The centre will offer up to 800 training positions per year. It is part of a wider training initiative being organised by Knauf, DEG and the BMZ in Nigeria, Tanzania, Egypt, Algeria and Tunisia.