Gypsum industry news

US: Continental Building Products says it has been confronting a ‘sluggish’ new home construction market in the second quarter of 2019. Jay Bachmann, president and chief executive officer (CEO), said that the company was expecting the market to recover in the second half of the year and its improvement programme to reduce costs. Its net sales fell by 4% year-on-year to US$246m in the first half of 2019 from US$256m in the same period in 2018. Its net income dropped by 34% to US$28.8m from US$35.5m. Its gypsum wallboard volumes fell slightly by to 123Mm².

The wallboard producer also said that the shutdown of its Buchanan plant in New York due to mechanical failure might cause a boost operating income and earnings before interest, taxation, depreciation and amortisation (EBITDA) of up to US$2m once an insurance claim is settled. The plant was shut from January 2019 to 15 March 2019. The company increased production at its plants in Silver Grove, Kentucky and Palatka, Florida to offset a portion of the lost production from the Buchanan plant.

Vietnam: Vietnam National Chemical Group’s DAP No 1 – Hai Phong fertiliser plant is exploring options to use phosphogypsum as an additive in cement production. The company is working with the government on finding a use for the by-product of fertiliser production, according to the Viet Nam News newspaper. Duong Duy Hung, the director of the Planning Department at the Ministry of Industry and Trade, said the Ministry of Construction and the Ministry of Science and Technology have been developing new standards and regulations on the use of phosphogypsum plaster for use in the building materials sector. A phosphogypsum dump at the plant is expected to be utilised by 2025.

Oman: The Salalah Free Zone (SFZ) has signed three agreements worth US$80m to build three plants in the area, including two gypsum wallboard plants. The other factory will produce solar panels, according to the Times of Oman newspaper. The plants will be run by foreign companies including one from the US. They will create over 250 jobs.

US: Eagle Materials’ revenue from its gypsum wallboard business fell by 11% year-on-year to US$127m in the first quarter of its financial year to 30 June 2019 from US$142m in the same period in 2018. Its earnings dropped by 25% to US$37.9m from US$50.5m. Wallboard sales volumes decreased by 7% to 61Mm² from 66Mm². It attributed the loss of revenue on lower volumes and poor pricing although it said that buying activity around a price increase in July 2019 suggested that the market was ‘healthy.’

US: China National Building Material Company (CNBM) has proposed paying US$248m in one of its on-going legal cases related to alleged defective gypsum wallboard sold by Taishan Gypsum. This latest settlement agreement covers plaintiffs not previously covered by the Amorin Case, those in the Brooke Case and all other property owners with Chinese gypsum board alleged to be attributed to Taishan and connected partners. The settlement is dependent on all parties signing the agreement.