Gypsum industry news

US: Continental Building Products sales fell slightly to US$422m in 2015 from US$425m in 2014. Despite this its net income rose by 5% to US$16.7m from US$15.9m. Wallboard volumes sales rose by 0.9% to 204Mm² from 203Mm².

Colombia: Knauf Colombia has acquired Paneltec, a local gypsum wallboard producer. The acquisition enlarges the wallboard manufactures footprint to a second plant in the country.

"We at Knauf are happy to welcome into our family Paneltec, a company that has earned recognition in our country and the region," said Miguel Rangel Galvis, Knauf Colombia General Manager. "With two industrial plants, the education and service that this operation will bring about in the next months and years, many more customers will be able to enjoy all the benefits of technology that Knauf develops for drywall construction in Colombia."

Knauf Colombia has a wallbaord plant in Cartagena. Paneltec began to produce plasterboard in its Barranquilla plant in 2008. Wallboard sales grew by 10% in 2015 in Colombia.

New Zealand: Fletcher Building has reported that its net profit rose by 51% year-on-year to US$114m in the half year that ended on 31 December 2015 from US$75.6m in the same period in 2014. Its sales rose by 2.5% to US$2.94bn from US$2.87bn. It attributed this to growth in its building products and distribution businesses making up for weaker earnings from Formica and New Zealand housing developments.

Fletcher Building reported that gypsum wallboard volumes via its Building Products division rose by 9% in the half year. Volumes of performance board rose by 12%. Sales volumes of insulation rose by 12% in New Zealand and 9% in Australia. It noted that its market share has also improved in both insulation markets due to competitive pricing following the strengthening of the US Dollar.

Canada: Gypsum revenues grew at Superior Plus in the fourth quarter of 2015. Revenue for its Construction Products Distribution division grew by 11% year-on-year to US$244m from US$220m in the previous period in 2014. It attributed the growth to improved US sales volumes as a result of on-going improvements in the US residential construction sector, an increase in average selling prices and currency effects. Canadian revenues fell slightly year-on-year for the quarter.

Overall Superior Plus reported an increase in its gross profit of 11% year-on-year to US$241m for the fourth quarter from US$248m in the previous year. However, its revenue fell by 15% to US$814m from US$957m. The company operates a diverse portfolio of businesses in construction products distribution, propane distribution, speciality chemical supplies and energy services.

Australia: Knauf Plasterboard has started building a new wallboard plant at the Port of Bundaberg, Burnett Heads, Queensland, according to local media. The project was announced in January 2016 and was subject to approvals before construction could start.

The project comprises the construction and operation of a wallboard plant at the Port of Bundaberg, including gypsum handling and processing facilities to support wallboard production and for on-sale of gypsum into the agriculture sector.

The project has been made possible by funding from the Queensland Government for the construction of a 26km gas pipeline from the Australian Gas Network's Wide Bay gas transmission line at Bundaberg to Burnett Heads. This gas supply supplies capacity for the Knauf plant and other industrial users in the region.

"Knauf is very pleased to be playing its part in working collaboratively with the State Government to help build new industries and boost regional and state economies," said Knauf CEO of Asia Pacific, Murray Read. He added that the Bundaberg plant was a great investment for Knauf, as it expanded Knauf's wallboard manufacturing network into Queensland to better serve its customers, create additional trade through an under-utilised port facility, support regional development and, in partnership with the State Government, helped to develop critical infrastructure for Knauf and other industrial users in regional Queensland.

The plant is expected to create up to 200 jobs during the construction of the plant and around 55 new positions when operational.