Gypsum industry news

US: Eagle Materials has reported that in the first quarter of its 2016 fiscal year, which ended on 30 June 2015, its revenues grew by 7% to US$285m, its earnings before interest and income taxes grew by 1% to US$60.4m, its earnings before interest, taxes, depreciation and amortisation (EBITDA) grew by 10% toUS$84.6m and its net earnings grew marginally to US$37.8m.

First quarter net sales prices improved across nearly all businesses, with the most notable increases in the cement and concrete businesses. Extraordinarily wet weather in many of itscement markets, including Texas, Oklahoma and Colorado, adversely impacted the timing of cement sales volumes during the first quarter. However, Eagle Materials reported that its underlying demand for its cement continues to remain strong. In addition, all of its cement facilities completed their planned annual outages during the first quarter and cement maintenance costs were approximately US$3m higher than the prior year's first quarter.

Gypsum wallboard and paperboard revenues for the first quarter totalled US$136m, which were slightly lower than the same quarter of 2015. The average gypsum wallboard net sales price grew by 1% year-on-year, while wallboard sales volumes grew by 1% to 577Mft². Gypsum wallboard and paperboard reported first quarter 2016 operating earnings grew by 4% to US$46.9m. The earnings improvement reflects improved wallboard net sales prices, sales volumes and lower energy and paper costs.

US: In November 2015 Fenner Drives will launch PowerTwist Wedge Belts, a long-lasting upgrade to rubber wedge belts.

As the only twist-lock belt available in a wedge profile, PowerTwist Wedge Belts are engineered to combine the performance of a rubber wedge belt with the added-value design of link belting. PowerTwist Wedge Belts will be available in SPA and SPB profiles. 

The link design of PowerTwist allows for simple inventory management with easy, fast installation even on captive or fixed center drives. With a high resistance to abrasion and shock loads, PowerTwist is constructed to withstand extreme temperatures and is unaffected by oil, grease, water and common industrial solvents. 

PowerTwist Link Belting is the proven choice for a variety of industrial power transmission applications including cement, mining, aggregate, metal manufacturing, forestry and any wedge or V belt applications.

South Africa: Belgium's Etex Group has announced the acquisition of Lafarge's South African gypsum business. An Etex press release stated that Lafarge Gypsum South Africa and its local company Marley Building Systems, two businesses of equal size, will team up to create a 'unique and competitive offer that capitalises on today's Southern African building trends.'

The deal is in line with Etex's aims of strengthening its position in Africa, with the Southern African region and Nigeria its main drivers of growth. In South Africa, the demand for housing has been on the rise, driven by a growing population and an emerging middle class. In addition, the market is becoming increasingly regulated. Consequently, alternative building methods like dry construction are gradually replacing traditional construction methods.

"Combining these two product offerings enables us to provide the full scope of Etex's portfolio," said Paul van Oyen, CEO of Etex. "That way, we can answer the changing local demand with a global approach for the whole southern African market, including South Africa, Namibia, Botswana and Mozambique."

For factory personnel, Etex has said that everything will remain as it is. Meanwhile, the support teams at Marley will be strengthened by teams from Lafarge Gypsum. "Lafarge Gypsum (adds) the technical and innovation support an international group can offer," added van Oyen. A transition team will ensure the smooth merger of both companies once the deal has been finalised. The acquisition is subject to the customary closing conditions.

US: Saint-Gobain has signed an agreement to purchase Structus Building Technologies, Inc (SBTI) of Bend, Oregon. The company owns one production plant and with 60 employees.

Founded in 1996, Structus is a leading manufacturer of high-performance wallboard corner solutions with a very strong focus on innovation, improving the way the building industry designs and constructs wall systems. Saint-Gobain has distributed Structus products for many years in North America and Europe, making this project a 'natural fit.'

Tanzania: Saint-Gobain has finalised a deal to form a joint venture in which it owns 50% of the capital of Lodhia Gypsum Industries based in Arusha, Northern Tanzania, according to the National Iraqi News Agency. Lodhia Gypsum Industries makes and sells wallboard in Tanzania, Kenya and neighbouring countries.