Gypsum industry news

France: Saint-Gobain's sales revenue has fallen by 1.6% year-on-year to Euro19.6bn in the first half of 2016 from Euro19.9bn in the same period of 2015. Its earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 3.8% to Euro1.89bn from Euro1.96bn. The group blamed the loss in sales revenue on negative currency changes, especially in Latin American, and to a lesser extent, in the UK following its decision to leave the European Union. Saint-Gobain's Interior Solutions division, which includes gypsum wallboard and insulation production, reported a 3.1% rise in sales revenue to Euro3.3bn from Euro3.2bn.

"Saint-Gobain's sales for first-half 2016 confirm our February forecasts, with France stabilising and all regions making strong contribution to growth. Our strategy of investing in emerging markets provides us with a diversified platform for profitable growth. Our first-half results also benefited from efforts to optimise our operations, particularly in Western Europe, and from upbeat trading in the US. The results are in line with our objectives and we expect alike-for-like improvement in operating income for second-half 2016 versus second-half 2015. While the 23 June 2016 Brexit vote in the UK has created a climate of uncertainty, it does not affect our objectives," said Pierre-André de Chalendar, Chairman and Chief Executive Officer of Saint-Gobain.

UK: Claude-Alain Tardy, the president of Saint-Gobain's gypsum and insulation activities, has warned that a UK exit from the European Union (Brexit) could 'destabilise' the wider European economy as well as impacting the UK market. Tardy made the comments while speaking to Building in Prague and Building News then reported his comments. France and western Europe represented 70% or Euro27.7bn of the group's sales revenue in 2015. The UK will hold a referendum on membership of the European Union on 23 June 2016.

Sweden: Gyproc Saint-Gobain has commissioned a new Claudius Peters type EM 65-592 grinding and drying mill, to be installed at its Gyproc Balsta plant.

The project, which includes dismantling of the existing mill and erection of the new one within a six-week time frame, uses Claudius Peters' newly developed hydraulic tensioning system for adjustment of grinding pressure. This system, installed here for the very first time, has been specially developed to optimize the efficiency of the grinding and drying processes and also to aid maintenance.

"This new EM drying and grinding mill, representing the very latest in technology from Claudius Peters, delivers unprecedented levels of efficiency and precision. We are delighted to be partnering with Gyproc Saint-Gobain in this project," said Stephan Oehme, sales director for Claudius Peters.

Commissioning of the new mill is planned for the middle of July 2016.

France/Switzerland: Saint-Gobain and the Burkard family have extended their agreement relating to the sale of shares of Schenker-Winkler Holding (SWH) and to extend the validity of the agreement until 30 June 2017. Saint-Gobain will then have an option to extend the agreement until 31 December 2018. SWH holds the majority of voting rights of Sika.

"Together, we are fully committed to this transaction. It makes sense from a strategic, industrial and financial standpoint for Saint-Gobain and for Sika, for their employees, for their customers and for all of their shareholders. The amendment to the agreement covers the longest of timelines to resolve related disputes, allowing SWH to regain its property rights," said Pierre-André de Chalendar, Chairman and CEO of Saint-Gobain.

In December 2014, Saint-Gobain announced its intention to buy a 16.1% stake in Sika for Euro2.6bn, thus acquiring control over the building materials producer. However, Sika's management and minority shareholders opposed the deal. At the end of January 2016, Saint-Gobain's finance chief Laurent Guillot told Reuters that the group still believed in a successful outcome despite the resistance it faced. In February 2016 Sika reiterated its opposition to the takeover in a financial statement saying that, "There is still no evidence to suggest there is any industrial logic behind the transaction."

Iran: Ammar Bashare, the director of the Middle East trade development section of Saint-Gobain, has expressed his company's desire to invest in the gypsum plaster industry in Semnan province. He made the comments in a meeting with Ali Asghar Joma'ei, the head of the province's Chamber of Commerce, Industry, Mine and Agriculture, as reported by the Islamic Republic News Agency.

Bashare said that Saint-Gobain is ready to invest in the local plaster industry and he hoped that his company could have more cooperation with local Iranian companies when the economic sanctions are lifted.

Joma'ei said that around 40 plaster producer companies are active in Semnan province and that foreign investors should bring modern technology into Iran. He also noted the readiness of a number of investors from Turkey and Germany in the industry. He added that the province is ready for 100% foreign investment or joint venture partnerships.

Semnan produces 40,000t/day of plaster. It exports plaster to Iraq, Turkmenistan and India.

UK: British Gypsum has partnered with contractor Willmott Dixon to enhance its existing site quality course with a bespoke training programme. As part of a new approach to industry training, British Gypsum built a custom made, full-scale construction site known as the 'Recapping Zone', in which Willmott Dixon employees were tasked with locating over 40 staged faults that could occur in real life scenarios on projects.

British Gypsum took a similar approach to that of a real-life build when constructing the zone, consulting with architects, designers and course facilitators. At present, 436 Willmott Dixon employees have completed the course, and a refresher programme will be run to recap and update the training.

"We worked in close collaboration with Willmott Dixon to deliver the course and also train staff to deliver the course themselves. We combined traditional training methods with hands-on activities to help Willmott Dixon employees take a more practical approach to training in a realistic scenario," said David Hall, National Technical Academy Manager for British Gypsum. "It is our aim to provide the next generation of installers in the interiors sector with information about the latest systems and techniques."

UK: British Gypsum has revealed the winners of its National Trophy Awards, which aim to celebrate craftsmanship and skills in using traditional plaster and modern plasterboard systems.

Now in its 10th year, the awards recognise the contribution that contractors make to the UK construction industry on a daily basis, with accolades presented to the following developments across six categories:

• Norwich Enterprise Centre (Innovation and Sustainability)
• Five Pancras Square, London (Plasterboard)
• Resort World, Birmingham (Commercial)
• Michael Sobell Sports Centre and School, Aberdare (Education, Hospitality & Healthcare)
• Great Minster House, London (Residential)
• Whitworth Art Gallery, Manchester (Plaster)

"The winning projects were selected due to their commitment to addressing common issues in the construction sector such as reducing carbon, overcoming poor acoustic performance and extending maintenance cycles," commented Alastair Bell, Managing Director of British Gypsum.

The winners will to join more than 33 different countries as UK representatives in the Saint-Gobain Gypsum International Trophy Awards in Prague later in 2016.

France: Saint-Gobain's net income has risen by 36% year-on-year to Euro1.3bn in 2015 from Euro953m in 2014. Its sales revenue rose by 3.3% to 39.6bn from 3.4bn. However, its overall sales volumes remained static with only 0.1% growth. Growth in the company's Flat Glass and Interior Solutions divisions, including wallboard and insulation, held up sales despite sharp declines in sales in France.

"Saint-Gobain delivered improved earnings in 2015 in a sharply contrasted economic climate. The improvement was dampened by continued weak trading in France, hurt in particular by the sharp contraction in our Pipe division in the second half of the year, despite the first signs of an upturn in construction indicators. The group completed a key stage in the reorganisation of its business portfolio, with the sale of Verallia on very favourable terms, and continues to pursue its plan to acquire a controlling interest in Sika after obtaining all antitrust approvals prior to closing the deal," said Pierre-André de Chalendar, Chairman and Chief Executive Officer of Saint-Gobain.

The group's Interior Solutions division reported a 7.1% rise in sales revenue to Euro6.49bn from Euro6.06bn. Reduced volumes and prices in the French market slowed growth in Western Europe, although this impact eased in the fourth quarter of 2015. Trading in North America was dented by a slight dip in prices in the second half and by the decline in the Canadian market. Asia and emerging countries continued to deliver growth.

UK: As part of the 350th Anniversary Celebrations of French building materials group Saint-Gobain, time capsules filled by more than 30 Saint-Gobain brands have been buried at the company's UK Headquarters in Binley, West Midlands followed by the unveiling of a specially-commissioned landmark sculpture designed by architectural students at the University of Nottingham.

The time capsules have been collected from brands across the country, including British Gypsum, Jewson and Celotex, and have been filled with products and innovations from each brand, as well as mementos from current employees.

Richard Halderthay, director of communications at Saint-Gobain UK and Ireland, said, "We hope that when our future colleagues, the 18th generation of Saint-Gobain employees, unearth these capsules in 100 years, they will see how our employees were innovators of the time. This is a great opportunity to celebrate our history as well as share our vision for the future."

India: Saint Gobain Gyproc will set up a new US$60m manufacturing plant in India. "We have identified western India as suitable location for the new plant," said V Subramanian, Managing Director of Gypsum Business for Saint Gobain India. A final decision on the location will be taken by the end of 2015.

Gyproc India already has three manufacturing plants in the country in Jind (near Delhi), Wada (near Mumbai) and Bengaluru. The combined production capacity of these plants is about 46Mm2/yr. "Our capacity utilisation ratio is very high. The proposed new plant will add another 30Mm²/yr of capacity,'' added Subramanian.