Gypsum industry news

Australia: BGC Australia is considering selling its gypsum wallboard and fibre cement businesses. Roger Brynjulfsen, the general manager of BGC Plasterboard, told customers in a letter that the company's board of directors had brought forward plans for a possible sale of BGC Fibre Cement and BGC Plasterboard, with evaluations under way, according to the Business News newspaper. The company wants to sell both businesses as going concerns with the new owner to continue to supply plasterboard and fibre cement to BGC's existing customers. It is also considering selling parts of the business or changing its operating model.

BGC previously tried to sell its building materials subsidiaries in 2018. However, it deferred the sale in February2019 due to poor market conditions. It appointed a new chief executive officer (CEO), Daniel Cooper, in late June 2019.

India: GE Power India has won three wet flue gas desulphurisation (FGD) projects. A contract worth US$335m covers the supply and installation of FGD systems at two NTPC coal power plants, the Simhadri Super Thermal Power Station and the Sipat Super Thermal Power Station, and one Aravali Power Company plant, IGSTPP Jhajjar.

GE’s scope includes design, engineering, civil work, supply, erection and commissioning of Wet FGD systems along with auxiliaries, including limestone and gypsum handling systems and wet stack on full turnkey basis. In addition, GE’s scope for IGSTPP Jhajjar also includes 10 years of operation and maintenance including the supply of spare parts.

With these three wet FGD projects together, GE will help NTPC to treat 35Mm³/hr of flue gas and will remove up to 0.11Mt/yr of SO₂, which will be converted into gypsum by-product for use in the construction industry.

Spain: Alberto De Luca, the chief executive officer (CEO) of Knauf Spain and Portugal, has been appointed as the president of the gypsum technical and business association (ATEDY). The association represents gypsum and plaster product manufacturers in Spain and Portugal.

De Luca has been the general director of Knauf Spain and Portugal for four years. The Italian national studied in Brussels, Belgium and joined Knauf Group in 2002. He held the postion of general director of Knauf Insulation for Spain, Portugal, Italy and North Africa for over eight years.

US: Continuus Material Recovery has acquired ReWall, a company that manufactures building products from recycled materials. Continuus uses consumer and industrial paper and plastic waste to produce building material boards for exterior walls and commercial roofs. Its Everboard product uses a plastic and cellulose core.

“With this acquisition we can accelerate waste reduction opportunities through low cost, easily implementable solutions and generate a universal sustainable raw material for a multitude of new products. Design and engineering is underway for an even larger facility where we will be producing hundreds of millions of board feet of building materials, and then we’ll move into other areas,” said Carl Rush, the chief executive officer (CEO) of Continuus Material Recovery.

US: Eagle Materials has approved a plan to spin off its heavy materials and light materials businesses into two publicly traded entities, bowing to pressure from hedge fund Sachem Head Capital Management.

Sachem, which disclosed a 9% stake in Eagle Materials in March 2019, had earlier urged Eagle to separate its cement and wallboard businesses. After the split, Eagle’s heavy materials business will operate as a cement company, and the light materials business will continue to make gypsum wallboard and recycled paperboard.

“We believe that by pursuing the actions announced today the Eagle board is taking significant steps to unlock the company’s inherent value,” said Sachem Managing Partner Scott Ferguson, also commenting on planned changes to Eagle’s oil and gas proppants businesses.

The separation will be by a tax-free spin-off to Eagle shareholders and is expected to be completed in the first half of 2020. Both the new companies will have their headquarters in Dallas, Texas.