Gypsum industry news

Oman: Gypsum exports fell by 2% year-on-year to 8.81Mt in 2020 from 9.01Mt in 2020. This has been attributed to weaker demand in key markets caused by a global economic slowdown and the coronavirus pandemic, according to the Oman Daily Observer newspaper. However, industry figures remain optimistic about the future for the sector given the country’s continued position as the world’s largest exporter of gypsum. In 2020 the country exported 2.49Mt of gypsum to Vietnam, 1.49Mt to India, 1.41Mt to Bangladesh, 0.8Mt to Indonesia, 0.78Mt to Japan, 0.49Mt to South Africa and 0.37Mt to South Korea.

Australia: USG-Boral’s earnings have fallen due to a poor construction market in South Korea. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 6% year-on-year to US$170m in the financial year to 30 June 2019 from US$181m in the previous year. Its revenue grew by 2% to US$1.08bn from US$1.06bn. The joint venture said that, excluding South Korea, earnings were ‘steady’ as lower earnings from Indonesia, China and the Philippines were offset by increased contributions from Thailand, Vietnam and India, as well as a continued strong contribution from Australia.

The company also announced that Boral has entered into an agreement with Germany’s Knauf to form an expanded 50:50 plasterboard joint venture in Asia and for Boral to return to 100% ownership of USG Boral Australia & New Zealand. Completion of the deal is subject to regulatory approval. It follows the acquisition of USG by Germany’s Knauf in early 2019.

South Korea: USG Boral has appointed Hyuk-Joon Kwon appointed as its chief executive officer (CEO) for its South Korean operations. Prior to his role at USG Boral, Kwon was President & Zone Operations Director of Otis Elevator Korea. He was also previously the General Counsel who advised on various aspects of the business, including corporate restructuring, investments and strategy for the company.

Australia: USG Boral’s earnings fell in the first half of its financial year due to a slowdown in South Korea. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) dropped by 16% year-on-year to US$89.3m in the half-year to 31 December 2018 from US$107m in the same period in 2017. Its revenue grew by 2% to US$594m from US$583m. This was attributed to sales volumes growth in Australia, Indonesia, Vietnam and India.

Australia: Boral has warned that its USG Boral joint venture has suffered from market decline and competition in South Korea. It operations in the country were also negatively affected by Typhoon Soulik in August 2018. However, the company reported ‘strong’ results in Australia. Overall, Boral expects that USG Boral will contribute less earnings to the company in the first half of its financial year to the end of 2018.

Australia: USG Boral’s earnings have been hit by competition in Indonesia, Thailand and Vietnam, higher input costs including paper and a one-off cost. Earnings before interest, taxation, depreciation and amortisation (EBTIDA) were negatively affected by a one-off cost of US$8m associated with a three-month closure of the port of Thevenard in South Australia and an unfavourable operational reserve adjustment in India. Its EBITDA fell by 6% year-on-year to US$196m in the financial year to 30 June 2018 from US$207m in the same period in 2017.

However, despite this its sales revenue rose by 7% to US$1.15bn from US$1.08bn. This was attributed to continued adoption of its Sheetrock products and technical board in Australia, Korea, China and Thailand. Overall board volumes increased by 3% year-on-year and technical board, which represents 20% of volumes, grew by 20%. Gypsum wallboard volumes grew in Australia and China, and ‘strong’ price gains were achieved in South Korea and China.

“This long-term growth business has delivered impressive and uninterrupted year on year growth since the formation of the joint-venture in 2014, with FY2018 being a consolidation year. Australia, Korea and China delivered strong top line growth in FY2018, offsetting pressures in countries such as Indonesia, Thailand and Vietnam and some unexpected one-off cost impacts,” said chief executive officer and managing director Mike Kane. He added that the company is currently considering an expanded joint-venture with Germany’s Knauf in relation to its proposed acquisition of USG. However, Boral is also considering a return to 100% Boral ownership.

South Korea: Wacker Chemie has broken ground on a new expansion project at its Ulsan plant. The group is building a new spray dryer for dispersible polymer powders at the unit, which will have a total capacity of 80,000t/yr. It is also constructing an additional reactor for dispersions based on vinyl acetate-ethylene copolymer (VAE), which are needed as the raw material for the spray dryer to produce dispersible polymer powders. Wacker says that the Ulsan’s plant complex, which covers the entire production chain from VAE dispersions to dispersible polymer powders, will be one of the largest of its kind in the world. Investments will total around Euro60m and production is scheduled to start in the first quarter of 2019.

The expansion is intended to meet growing demand for its binder products in the construction industries in South Korea and Southeast Asia. Wacker dispersions and dispersible polymer powders are used in a variety of construction industry applications including modifying gypsum plasters and fillers.

South Korea: KCC has completed the third gypsum wallboard line at its Seosan plant in South Chungcheong. Following the upgrade, the plant has increased its production capacity by 40% to 24.2Mm2, according to the Maeil Business Newspaper. Commercial production on the new line is expected to start in July 2017. KCC also says that it has become the largest wallboard producer in the country.

South Korea: USG Boral plans to increases production at its Dangjin, South Chungcheong wallboard plant by at least 30Mm². Currently the plant, operated by USG Boral Korea, has a production capacity of 70Mm². Work on the upgrade will start in the fourth quarter of 2016 and the extra manufacturing lines are expected to be fully operational by the end of 2018, according to the Korea Times.