Gypsum industry news

South Korea: Wacker Chemie has broken ground on a new expansion project at its Ulsan plant. The group is building a new spray dryer for dispersible polymer powders at the unit, which will have a total capacity of 80,000t/yr. It is also constructing an additional reactor for dispersions based on vinyl acetate-ethylene copolymer (VAE), which are needed as the raw material for the spray dryer to produce dispersible polymer powders. Wacker says that the Ulsan’s plant complex, which covers the entire production chain from VAE dispersions to dispersible polymer powders, will be one of the largest of its kind in the world. Investments will total around Euro60m and production is scheduled to start in the first quarter of 2019.

The expansion is intended to meet growing demand for its binder products in the construction industries in South Korea and Southeast Asia. Wacker dispersions and dispersible polymer powders are used in a variety of construction industry applications including modifying gypsum plasters and fillers.

Germany: Australia’s James Hardie is to buy Fermacell for Euro473m. The Australian company has entered into a definitive agreement to buy XI (DL) Holdings and its subsidiaries, including the gypsum fibreboard producer. The deal is expected to close in the first quarter 2018.

“Fermacell’s market position, go-to-market strategy and strong management team will enable us to scale and accelerate our European business, which has long been a strategic goal. Fermacell will diversify our geographic, product and end-market portfolio, complementing our strong positions in North America and Australasia, and will create significant growth opportunities and drive long-term value for customers, employees and shareholders,” said Louis Gries, chief executive officer (EO) of James Hardie.

Jack Truong, President, International Operations of James Hardie, added that Fermacell’s ‘broad’ European footprint and capabilities were expected to ‘accelerate’ his company’s fibre cement business growth in Europe. James Hardie is also ‘excited’ about the future growth opportunities of Fermacell’s core business in regions such as the UK, France, and Scandinavia.

Australia: The Construction, Forestry, Mining and Energy Union (CFMEU) has claimed that workers at Knauf’s Bundaberg wallboard plant have been bullied and intimidated over safety issues. The CFMEU has released information that claims that Workplace Health and Safety Queensland has hit the plant with eight safety improvement notices since it opened in late August 2017.

The CFMEU’s divisional branch assistant secretary Jade Ingham said said that workers had been greeted with a hostile response when they attempted to take their safety concerns higher. “These workers have been bullied and intimidated for raising concerns about the safety and wellbeing of them and their workmates,” she said. “To have a brand new state-of-the-art factory like this have eight safety improvement notices cast upon it in the first two months of being open is a disgrace.”

Knauf Plasterboard Operations Director Sean Wareham confirmed that the factory had received eight work improvement notices but that ‘none of the items found were deemed to warrant the issue of an infringement notice.’ He said that, throughout its commissioning, the company had maintained its goal to ensure that all factory, engineering, safety practices and legal compliance requirements were adhered to.
“WorkSafe Queensland was invited to attend the Bundaberg site yesterday and determined six of the eight improvement notices have been closed out,” he said. “Of the two remaining notices, one is complete, awaiting official close out, and the other is on track to be completed ahead of time.”
Wareham said as part of Knauf’s commitment to providing a safe place to work, the company actively encouraged employees to raise safety matters, took any improvement recommendations extremely seriously and continued to work closely with its employees and WorkSafe Queensland.

US: USG plans to upgrade its Jacksonville gypsum wallboard plant in Florida. As part of the investment, a new production line will be added to manufacture USG’s Securock ExoAir 430 panels. Investments will be made at the site to improve overall plant efficiency, including upgrades to modernise process mill equipment.

Construction and plant updates are expected to be completed by the end of 2018. The company also plans to add approximately 20 new jobs as a result. The addition of the high-speed, automated production line in Jacksonville is intended to allow USG to distribute Securock ExoAir 430 to more customers throughout the US and Canada.

US: USG’s operating profit for its gypsum business has fallen by 4.5% to US$85m in the third quarter of 2017 from US$88m in the same period in 2016. The gypsum wallboard producer blamed this on falling prices, rising input costs and poor weather. It said that the average realised selling price for US wallboard decreased by approximately 2% sequentially and was impacted by freight costs and changes in wallboard product mix due to hurricanes Harvey and Irma. US wallboard manufacturing costs also increased by US$10m due, primarily to increased waste paper costs. Despite this, overall net sales for the quarter increased.

“We had positive momentum in the third quarter, with increased net sales and wallboard volume,” said Jennifer Scanlon, president and chief executive officer (CEO) of USG.

Gypsum segment net sales rose by 5.4% to US$2bn for the first nine months of 2017 from US$1.9bn in the same period in 2016. Operating profit fell by 14% to US$266m from US$310m.