Gypsum industry news

US: Saint-Gobain has acquired the remaining equity interest and assets of Seven Hills Paperboard, including a gypsum paper board liner manufacturing plant in Lynchburg, Virginia, from its joint venture partner WestRock. The purchase adds to the gypsum wallboard operations of Saint-Gobain’s CertainTeed Interior Products Group. The company said that the internal integration of gypsum paper board liner production represented a “significant” step in strengthening the supply chain for this material.

Mark Rayfield, President and Chief Executive Officer of Saint-Gobain North America and CertainTeed Canada said “The acquisition of these assets represents our continued commitment to our customers to provide quality gypsum wallboard products.” He added, “I would like to welcome our 80 new team members in Lynchburg and look forward to your contributions to our purpose, ‘To Make the World a Better Home.”

Brazil: The Administrative Court of the Brazilian Administrative Council of Economic Defence (CADE) has submitted for review the proposed acquisition by Knauf Brazil of a gypsum wallboard plant operated by Trevo Industrial de Acartonados. The Office of the Superintendent General (SG) noted after an investigation that the transaction would increase market concentration, exceeding the limits set out in the guides of CADE and the competition law. The gypsum wallboard market in Brazil has four suppliers, including Knauf and Trevo.

The review pointed out that imports are “unusual and cannot be considered a source of competition if Knauf raises the prices after merging with Trevo.” The SG also warned that other factors could lead to potential market collusion such the lack of history of competitive rivalry in terms of price, quality, or any other difference amongst the products.

Following its challenge to the proposed acquisition, the SG has submitted the case to a tribunal. At this stage a commissioner will review it and include it in the agenda for further adjudication.

India: The Directorate General of Trade Remedies (DGTR) has recommended a five-year anti-dumping duty on gypsum tiles imported from China and Oman. Saint-Gobain India initiated the investigation that started in late 2022. It considered gypsum tiles laminated on one side with polyvinyl chloride (PVC) or wax paper that are typically used in ceilings. The study concluded that the product had been “exported to India at a price below the normal value, resulting in dumping.”

India: Saint-Gobain plans to invest over US$400m in its different businesses, including gypsum wallboard, in Tamil Nadu. Company chair Pierre-Andre de Chalendar and chief executive officer Benoit Bazin met the Chief Minister MK Stalin, senior ministers and officials of the government of Tamil Nadu as part of the announcement. The new funding brings the company’s total investment in the state to over US$950m.

Oman: Oman exported 8.75Mt of gypsum in the first nine months of 2023, a rise of 23% year-on-year from 7.09Mt in the same period in 2022. Data from Oman-based Zawawi Minerals shows that 48% of exports were sent to India.