Gypsum industry news

US: Jennifer F Scanlon, the chief executive officer (CEO) of USG, plans to leave the company following the completion of its acquisition by Germany’s Knauf. The acquisition is expected to complete in early 2019 subject to regulatory approval and certain closing conditions.

Scanlon has held leadership roles at USG for 16 years. As a senior executive, she was involved in the company establishing the USG Boral Building Products joint venture and the divestiture of L&W Supply Corporation. Scanlon became USG’s president and CEO in November 2016.

“It has been a great privilege to serve as president and CEO of USG, and I am very proud of the work done by the USG team to align our strategy with customer needs and accelerate innovation,” said Scanlon.

In addition to Scanlon’s anticipated departure other members of USG’s executive team are expected to leave the company. These include: Matthew F Hilzinger, Executive Vice President and chief financial officer (CFO); Brian J Cook, Executive Vice President and Chief Administrative Officer; Dominic A Dannessa, Executive Vice President and Chief Customer and Innovation Officer; Gregory D Salah, Senior Vice President, USG Corporation and President, Gypsum; and Michelle M Warner, Senior Vice President, General Counsel and Corporate Secretary.

Uzbekistan: Germany’s Knauf has increased the production capacity of its Bukhara wallboard plant by 40% to 33.5Mm²/yr. This follow an investment of Euro16m in mid-2018, according to the Uzbekistan National News Agency. Knauf was previously reported to be considering building another gypsum wallboard plant in the country.

Australia: Ord Minnett, a financial services company, estimates that Boral could pay as little as US$0.5bn to buy the other half of USG-Boral, the joint venture it runs with USG. The financial company has made the forecast following the on-going acquisition of USG by Germany’s Knauf, according to the Australian newspaper. It believes that Boral is in a strong position given falling value of the joint venture and problems with Knauf’s geographical asset base following its purchase.

Switzerland: Sika’s sales grew by 13.7% year-on-year to Euro6.3bn in 2018 in local currencies. It reported above-average growth rates in Eastern Europe, Africa, the Middle East, US, Indonesia, India, China, and in its Global Business segment.

“With 11 new factories, an additional national subsidiary and four acquisitions, we have invested a great deal in our supply chain in the past year so that we can benefit from the growth in global construction markets and further expand our market position,” said chief executive officer (CEO) Paul Schuler.

New Zealand: Germany’s Knauf and US-based USG have applied to the Commerce Commission asked for clearance for the two companies to merge. USG is active in New Zealand through its 50% interest in USG Boral Building Products, which supplies gypsum wallboard, suspended ceiling components and other building materials. Knauf is active in the import and supply of products used for modular suspended ceilings and insulation in New Zealand. The proposed merger is also to be assessed by competition authorities in several jurisdictions including Australia, USA and Singapore.