Gypsum industry news

Vietnam: DAP Joint Stock Company has found a solution to deal with gypsum created during production processes. The public has criticised the company for many years because of the 'acid leaking from its gypsum dumping ground.' However, the problem will be solved as DAP has found a way to recycle gypsum, turning it into artificial plaster to be used as a cement additive.

Since 2009 DAP has produced some 2Mt of gypsum, which is being kept at its temporary dumping ground. The ground is surrounded by clay and stone embankments with high-density polyethylene (HDPE) stratum to ensure that the water does not leak. There is a reservoir to collect acid from the waste and pump it back to the plant for use. When the pH content falls below the allowed level, the gypsum will be relocated to a major gypsum gathering ground, covering an area of 0.4km², where it will be recycled into cement additives. A monitoring report from 30 September 2014 showed that the waste water was within the safety limits in accordance with the Ministry of Natural Resources and the Environment (MONRE) QCVN 09:2008/BTNMT standard on underground water quality.

Dinh Vu Gypsum JSC was established in 2010 following initial success in gypsum recycling tests. The company has finished the construction of a gypsum recycling plant and has installed 25% of the processing lines, with a capacity of 150,000t/yr per line. The plant, now in its trial run, has provided 10,000t of artificial plaster to the But Son Cement Plant in Ha Nam Province.

DAP has also joined forces with the Vietnam Cement Corporation (Vicem) to develop a project on processing gypsum. The two sides have signed a cooperation agreement, under which Vicem would be responsible for the consumption of the resulting cement additive.

Switzerland: Sika has claimed that its controlling family no longer has the right to call an extraordinary general meeting (EGM), marking the latest twist in a Euro2.76bn takeover battle for the company by France's Saint-Gobain. The sale has been opposed by Sika's board and executives, forcing the family to call an EGM where it aims to remove executives who object to it.

Sika insists that the Burkard family, who are descendants of the company's founder, are no longer exempt from a rule that restricts shareholders' to hold no more than 5% of all registered shares. An exception was originally made because of the family's close association with the company and its assertion that it would protect it against takeovers. The company said that the voting rights of the family should be restricted to 5%.

Saint-Gobain announced plans in December 2014 to acquire the holding company Schenker-Winkler Holding AG (SWH), which is the vehicle controlled by the Burkard family. It holds 16.1% of Sika's capital and 52.4% of its voting rights. Saint-Gobain is targeting the Sika stake in an attempt to kick-start its own earnings growth.

"Now that the Burkard family / SWH have formed a group with Saint-Gobain, this historical privilege must be considered lost, together with the right to convene extraordinary general meetings," said Sika. Sika said shareholders representing more than 35% of its total capital have given their assurance that they support the board of directors in its efforts to fend off the takeover.

Azerbaijan: Construction materials producers manufactured goods worth US$585m in 2014, some 22.2% more than in the same period of 2013, according to the Azerbaijani State Statistics Committee's report. During the period, Azerbaijan produced 2.98Mt of cement, a 40.5% increase compared to the same period of 2013 and 192,800t of gypsum, 23.3% more than in 2013.

Switzerland: On 15 January 2015, the Swiss National Bank (SNB) abandoned the Euro1.20 cap on the Swiss Franc, causing market turmoil. However, deals involving domestic companies Holcim and Sika are expected to survive the impact of the shock decision.

Bigger deals are insulated against the effects of the sudden surge in the value of the Swiss currency because the companies involved are able to to buy insurance to protect them against such moves. However, some bankers said that the volatility introduced by the SNB decision to scrap the cap after three years could dampen deal-making in the longer term.

France's Saint-Gobain, which is buying Sika in a Euro2.71bn (2.75bn Swiss Franc) deal and does most of its business in Euros, said that it had covered itself against exchange rate moves.

Sika was one of the companies caught up in a 10% all-in Swiss blue chip stocks on fears over the impact on their exporting power. Sika was down by 7.5% at one point.

US: Paul Johnson Drywall of Phoenix, Arizona has bought a 6500ft² office building for a Las Vegas, Nevada location, with plans to hire up to 100 office and field staff members by the end of the first quarter of 2015. Growing demand in local residential construction spurred the branch.

Paul Johnson Drywall's clients include Pulte Homes and Ryland Homes. Both are involved in two master-planned communities set to break ground on their first homes in 2015. Pulte will build at Skye Canyon, an Olympia Companies master plan in northwest Las Vegas. Ryland will build 179 homes on 76,890m2 in the first phase of Cadence, a revived master plan in Henderson that will have 13,250 homes.

Ron 'Chip' Brown, a 32-year veteran of Nevada's wallboard sector, is the company's local general superintendent in charge of construction services, hiring and sales. Lou Eltringham is executive project manager, assisting in opening the new office and managing payroll.

"The uptick in construction employment in Nevada is another signal that it is an opportune time for Paul Johnson Drywall to expand into the market," said president Cole Johnson. "We look forward to providing the Las Vegas area single-family and multi-family builders with reliable, professional wallboard services."