Gypsum industry news

US: USG Corporation has reported results for the second quarter of 2015. On a consolidated basis, net sales grew by 2% year-on-year to US$970m. Operating profit improved by 7% to US$105m. Adjusted operating profit was US$118m in the second quarter of 2015, compared to an adjusted operating profit of US$87m in the second quarter of 2014. USG generated US$79m or, on an adjusted basis, US$78m during the quarter. Adjusted results exclude results from Gypsum Transportation Limited (GTL), a shipping operation that the company has exited, included in the gypsum segment.

"All of our businesses expanded their margins and contributed to our strong second quarter," said James S Metcalf, chairman, president and CEO of USG. "We generated the highest level of net income since the fourth quarter of 2006, when demand was 50% higher."

USG's gypsum segment generated US$98m of operating profit in the second quarter of 2015. On an adjusted basis, operating profit in the gypsum segment improved by US$20m, led by the US gypsum business. Wallboard provided US$14m of improved operating profit and the surfaces and substrates businesses contributed US$9m in total incremental profit. Favourable pricing and improved volumes coupled with lower natural gas costs and operational efficiencies drove the margin expansion in the US gypsum business.

"In the second quarter, our gypsum segment realised its strongest operating margin in over eight years," said Metcalf. "We are focused on expanding our margins and growing our non-wallboard portfolio of products in this business."

Commenting on the future of USG, Metcalf said that, "We made strides in all three phases of our 'Plan to Win' in the second quarter by strengthening our core operations, diversifying our earnings base and differentiating USG through innovation. The outlook for all of our businesses is bright."

Tanzania: Saint-Gobain has finalised the acquisition of 50% of the capital of Lodhia Gypsum Industries, a leading producer of wallboard in Tanzania. The deal is expected to consolidate Saint-Gobain's leadership in the wallboard segment in east Africa and is in line with the group's strategy to expand its presence in sub-Saharan Africa. Lodhia Gypsum, which makes and distributes wallboard in Tanzania, Kenya and neighbouring countries, employs 90 and has a production plant in Arusha, close to the border with Kenya.

Russia: According to ENP Newswire, VTB Bank and Volma have signed two loan agreements worth Euro9.55m over three years. Volma will use the funds to finance the construction of a new plant in the Republic of Adygea and to increase its working capital.

"Supporing manufacturers is one of the bank's priorities, given the importance of the real economy sector to Russia. Volma is a major producer of finishing materials and a serious competitor for West European companies. I'm sure that the bank's support will help it strengthen its position both in Russia and in foreign markets," said Mikhail Oseevskiy, deputy president and chairman of VTB Bank management board.

"VTB Bank is very important for Volma's growth, especially in the current difficult economic situation. It is a strategic financial partner and its assistance has helped us increase our business in recent years,' said Volma director general Vladimir Ovchintsev.

Russia: According to Interfax, Bratskekogaz, which is controlled by Rosneft subsidiary Itera, has concluded a contract to supply Knauf Gips Baikal with compressed natural gas from the Bratskoye field in Irkutsk.

Bratskekogaz has signed agreements to supply compressed natural gas to Knauf Gips Baikal, which has a current demand of 25Mm³/yr. The implementation period is 2016 – 2017. It was reported previously that Knauf CIS was in talks with Itera to supply compressed natural gas to Knauf Gips Baikal to reduce production costs. Knauf Gips Baikal currently operates on liquefied gas delivered from Krasnoyarsk, Tyumen and Omsk, which is 260% more expensive than natural gas delivered by pipeline. This has made it difficult to compete with imported gypsum wallboard and dry construction mixes from China and South Korea.

Knauf will invest US$1.5m in the project to switch to compressed natural gas. The money will be used to build a gas acceptance facility and rebuild the burners and pipelines. The supplier is responsible for building the compressor station and supplying the compressed natural gas tankers for transportation.

Romania: According to News website ZF English, Siniat Romania, part of Belgium's Etex Group, has completed the construction of its Euro50m, greenfield wallboard plant in the southern city of Turceni.