Gypsum industry news
Import duty change may hit Fletcher Building
19 May 2014New Zealand: Fletcher Building, which holds a 94% share of the New Zealand wallboard market, may be hurt by a Budget decision to remove tariffs on imported wallboard and duties on other building products, according to analysts. Building products provide about 20% of Fletcher's earnings.
The government said that it hoped to reduce the cost of a standard new home by US$3500, by temporarily dropping duties on 90% of the building materials used. The cost of building materials in New Zealand is around 30% higher than in Australia.
The Building Industry Federation's chief executive Bruce Kohn doubted the Government's claim that the move would save new-home builders US$3500 and said that similar moves in Australia saw that market 'flooded' with low-quality building materials.
Finance Minister Bill English said that reducing the tariffs would build on the government's previous reforms to deliver more competition to the building materials industry. However, Labour leader David Cunliffe said, "Average prices in Auckland rose by US$6208 in April 2014. The Government's levy changes will save just two to three weeks of Auckland house-price inflation."
The Budget announced that anti-dumping tariffs on wallboard, reinforcing steel bar and wire nails would be immediately suspended for three years and tariffs on other materials such as roofing, cladding, insulation and paint would be dropped from 1 July 2014, to be reviewed in five years.
New Zealand to review building materials import duties
07 November 2013New Zealand: The New Zealand government is considering cutting import duties on home building materials to help reduce rising house prices in the country.
"Building material costs are too high and can be as much as 30% more in New Zealand than in Australia according to the Productivity Commission. The industry needs a shake-up through increased competition and greater transparency to ensure kiwi families can get access to more fairly priced building materials and homes," said Housing Minister Nick Smith in a statement.
Smith and Commerce Minister Craig Foss released an options paper outlining possible measures to curb the cost of house construction. The paper said that 19% of the output of the home construction industry was made up of imported content. Tariffs notionally still applied to most items used in housing construction, such as wallboard, insulation, timber products, steel and aluminum joinery, particle board and roofing materials, but adjusted tariffs - the duty as a percentage of the value - were small and diminishing due to free trade agreements. Submissions to the options paper close on 18 December 2013.
New Zealand has imposed anti-dumping duties on imports of plasterboard from Thailand since 2011, wire nails from China since 2011 and reinforcing steel bar and coil from Thailand since 2004.
Knauf Plasterboard opens distribution centre in New Zealand
25 October 2013New Zealand: Canterbury Earthquake Recovery Minister Gerry Brownlee has officially opened a distribution centre for Knauf Plasterboard in Christchurch. Kanuf's distribution centres in Christchurch and Auckland consists of a 5000m2 warehouse, showrooms and offices.
"Knauf Plasterboard is a competitive supplier to be reckoned with having significant scale and resource to enter a dominated market. An impressive worldwide operation, with two manufacturing facilities on Australia's eastern seaboard and superior technical expertise, puts Knauf Plasterboard in a strong position to service the growing needs of New Zealand's housing and commercial market," said Mark Norris, Managing Director, Knauf Plasterboard, Australia & New Zealand.
Norris also revealed that Knauf's rollout plans will include a network of independently-owned PlastaLink Trade Centres to sell Knauf products across New Zealand. The company was selected as a partner for the New Zealand government to rebuild Christchurch in January 2013 following the earthquake in 2011.
New Zealand: A US$34m New Zealand government procurement deal to supply wallboard for the rebuilding of Christchurch has been split between New Zealand's only wallboard manufacturer, Winstone Wallboards, and multinational manufacturer Knauf. Home affordability and a lack of competition for building supplies in the country were cited by a Productivity Commission report as key issues in making the decision.
"Having Knauf set up shop in New Zealand will see increased industry competition that will provide consumers with more choice and could potentially drive down prices," said Economic Development Minister Steven Joyce. The government expects to save around 6% on wallboard costs.
Knauf, the world's second-largest wallboard manufacturer and one of only seven firms that dominate four-fifths of global production, already has a New Zealand operation, selling wool-based insulation material. The contracts will cover wallboard and associated fasteners, adhesives and jointing compounds being used in the Earthquake Commission and Southern Response Earthquake Services Limited reconstruction programmes. The contracts were let after a competitive tender that attracted nine bids.