Gypsum industry news

US: A shareholder in Continental Building Products is taking legal action against the company over its acquisition by France’s Saint-Gobain on 14 October 2019. The claimant alleges that company withheld necessary information from shareholders prior to the transaction, in violation of Securities and Exchange Commission regulations.

UK: Saint-Gobain subsidiary British Gypsum has announced the removal of customer Gyproc gypsum plasterboard allocations with the resumption of normal distribution of its flagship product on order for up to next day delivery. The company said that capacity increases in 2019 solved its supply issue. “The level of effort, innovation and ingenuity that has gone into improving our supply capability has been significant,” said British Gypsum managing director Matt Pullen. “We go into 2020 with renewed confidence and positivity.”

UK: British Gypsum’s mine at Brightling near Robertsbridge has provided gypsum samples to researchers from the Natural History Museum. The rock specimens are intended to aid the scientists in looking at signs of past life in preparation for a joint European Space Agency and Russian Roscosmos State Corporation mission to send a robotic rover to mars in July 2020, according to the Rye & Battle Observer newspaper. Previously, NASA's Mars Rover Opportunity found bright veins of a mineral, which appeared to be gypsum, in 2011.

"Minerals like those found at Brightling hide clues within them that can tell us about the history of liquid water where they formed, and they have the potential to trap and preserve organic material. Studying these natural fresh samples on Earth that mimic not just the minerals, but also the formation environments we see on Mars, will give us an insight into the potential for life to be detectable at the ExoMars2020 landing site," said Louisa Preston, UK Space Agency Aurora Research Fellow and member of the Department of Earth Sciences at the Natural History Museum.

France: Saint-Gobain has entered an agreement with US-based Continental for the acquisition of the latter’s Building Products section at an estimated value of Euro1.4bn. Saint-Gobain stated that the North American plasterboard producer has ‘strong geographic complementary’ with its existing operations in the continent, with a possible gain of Euro45.3m in cost synergies and performance improvements. It also noted Continental Building Products’ good positioning in its Eastern and South-Eastern United States growth regions and strong profitability.

UAE: French-based Saint-Gobain Gyproc’s Habito gypsum wallboard has received the Green Product of the Year Award at the Middle East and North Africa Green Building Awards for setting standards in environmentally friendly production. Saint-Gobain says that sustainability is at the core of its long-term strategy.

France: Saint-Gobain has reported nine-month sales of Euro31.1bn, down by 4.1% from Euro32.5bn in the nine months to 30 September 2018. Saint-Gobain has already achieved it annual divestment sales target of Euro3.0bn, further setting the group on track for a reduction in costs of Euro80m in 2019, Euro45m of this in the second half of 2019. The group was able to buy back 8.5 million of its shares over the period.

Denmark: Saint-Gobain has completed the sale of its Optimera construction materials distribution business to Davidsens Tommerhandel. The sale is part of its portfolio optimisation strategy. It follows the divestment of its Saint-Gobain Building Distribution Deutschland (SGBDD) business in Germany, its construction glass business in South Korea and its K Par K wood and windows business in France.

UK: Logistics company AV Dawson has officially opened a Euro1.1m new canopy at its Teesside terminal in Middlesbrough to support its contract with British Gypsum. The 100m canopy provides dry-loading capabilities for imported raw materials for plaster and wallboard products to be stored and then loaded onto trains for delivery to British Gypsum’s operations in the East Midlands. Delegates from British Gypsum, the North East England Chamber of Commerce, Department for International Trade and rail freight operator, GB Railfreight attended the opening ceremony. AV Dawson’s contract with British Gypsum was signed in 2018.

Germany: Saint-Gobain has completed the sale of its Saint-Gobain Building Distribution Deutschland (SGBDD) business to the Stark Group. The divestment is based on an enterprise value of Euro335m. The finalisation of this transaction follows the approval of the European competition authority in early September 2019. The sale of its building merchants retail business marks the continuation of Saint-Gobain’s portfolio optimisation strategy.

Ireland: Gyproc has confirmed that it did not carry out subsidence monitoring on a disused County Monaghan gypsum mine which subsided in September 2018, damaging community buildings and sports fields. The company revised its position on the checks after a ‘fresh and detailed analysis of records’ following an investigation by the Irish Independent. The newspaper reported that, having recorded a slowing of subsidence to millimetres per year, the company decided that six monthly monitoring, the norm in the area according to the Department of Communications, Climate Action and the Environment, was unnecessary.

Gyproc’s activities further caused a road to fall into a sinkhole in December 2018.

The subsidiary of Saint-Gobain has applied to install an open cast mine on a site including that of the erstwhile popular sports facility.