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Warren Buffett invests in gypsum industry

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A recent report published by Roskill, which profiles producers and end users of gypsum the world over, indicates India becoming the largest gypsum importer in the world. Big investors like Warren Buffet are picking up the cue.

In the December edition of ICR, we had published an article on gypsum shortage and its impact on India (Gypsum Demand and Supply Scenario in India by Ramachandran, CEO, Zawawi Minerals, December 2013, Pg 60). A recent report published by Roskill, which profiles producers and end users of gypsum the world over, too indicates India becoming the largest gypsum importer in the world. Market leaders have picked up the cue and have started making significant investment in gypsum.

Warren Buffett is one of the world’s most successful long-term investors. His company, Berkshire Hathaway, maintains large positions in several well-known North American companies such as Heinz and Coca-Cola, and wholly owns several large businesses, such as Burlington Northern Santa Fe Railroad.

In January 2014, regulatory filings revealed that Berkshire Hathaway had acquired more shares in USG Corporation by exchanging US$243.8M of convertible notes it held in the Chicago-based company. This exchange made Berkshire Hathaway the largest single shareholder in USG.

USG Corporation, formerly known as United States Gypsum Company, is the largest producer of gypsum plasterboard in North America, and the producer of several other homebuilding products. USG’s plaster board is sold under the trademarked brand name SHEETROCK® USG is also a leading producer of ceiling tile.

Berkshire Hathaway’s exchange followed the news in October 2013 that USG would be forming a new US$1.67 Bn joint venture with Boral of Australia. The two companies will hold an equal share in the venture, called USG Boral Building Products, which values Boral’ s assets at A$1.35 Bn and USG’s at US$250M.

USG will gain Boral’s Gypsum Asia and Australian assets in the agreement, while USG will contribute a ceiling factory in China and its Middle East assets, including a gypsum asset in Oman that will supply the lucrative Indian market. In February 2014 it was reported that USG and Boral continue to progress toward completion of their 50:50 strategic joint venture. While completion was originally anticipated to occur by the end of January 2014, it is now expected to occur on or before the end of February 2014, due to additional time required to obtain regulatory approvals.

Knauf has quietly increased its plasterboard production capacity by approximately 0.5 Bnm2py. It also acquired the businesses of USG in Europe and Lafarge in Australia and has announced plans to add substantial capacity in China during 2014. Etex has acquired all of Lafarge’s South American and European plasterboard operations. Lafarge, in selling almost 1Bnm2py of plasterboard production, has enabled these changes and is focusing on its core businesses.

The boom in global construction prior to the onset of the global financial crisis plus the adoption of construction methods that employ plasterboard had resulted in a 28 per cent increase in plasterboard production capacity worldwide between 2004 and 2009, from 7.8Bnm2py to 9.7Bnm2py. Capacity then increased by a further 33 per cent to 12.9Bnm2py but in early 2014 relatively few plants are under construction or planned before 2018.

Asia is expected to overtake North America and become the largest geographic market for gypsum plasterboard during 2014 with India, as the largest global gypsum importer. Roskill’s Gypsum report. The 11th edition of this Roskill report profiles over 300 producers and end users of gypsum, providing an overview of the entire supply chain.

For further information on this report, please contact Alison Saxby, asaxby@roskill.co.uk

Concrete

HeidelbergCement India Receives Consent For Khandwa Grinding Unit

Consent granted by Madhya Pradesh Pollution Control Board

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HeidelbergCement India (HeidelbergCement India) has received regulatory consent to establish a cement blending and grinding unit at Village Dongaliya, Tehsil Punasa, District Khandwa in Madhya Pradesh. The consent was granted by the Madhya Pradesh Pollution Control Board under the Water (Prevention & Control of Pollution) Act, 1974 and the Air (Prevention & Control of Pollution) Act, 1981 and is dated 17 May 2026. The company disclosed the development in a filing made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The project plan envisages procurement of long term availability of fly ash and the allotment of land on lease for setting up the unit. The proposed facility is described as a blending and grinding installation which will process cementitious materials sourced from nearby operations and suppliers. Company filings state the measures required to secure raw material logistics and statutory compliance before commencing construction.

The addition of a grinding unit in Khandwa is intended to strengthen regional supply and improve logistical efficiency by reducing haulage distances for finished product. The unit is expected to complement existing capacities in central India and to offer flexibility in product mix through blending operations. The reliance on fly ash as a supplementary cementitious material will necessitate long term supply agreements with thermal power producers and coordination with waste utilisation policies.

The disclosure to the regulator and to the stock exchanges follows standard corporate governance practice and aims to keep investors apprised of capital expenditure initiatives. The company indicated that subsequent permits and clearances would be sought in accordance with applicable environmental and land use rules. The project is presented as part of HeidelbergCement India’s broader strategy to optimise capacity distribution and to respond to regional demand dynamics.

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PROMECON introduces infrared-based tertiary air measurement system for cement kilns

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The new solution promisescontinuous, real-time tertiary air flow measurement in cement plant operations.

PROMECON GmbH has launched the McON IR Compact, an infrared-based measuring system designed to deliver continuous, real-time tertiary air flow measurement in cement plant operations. The system addresses the longstanding process control challenge of accurate tertiary air monitoring under extreme kiln conditions. It uses patented infrared time-of-flight measurement technology that operates without calibration or maintenance intervention.

Precise tertiary air measurement is a critical requirement for stable rotary kiln operation. The McON IR Compact is engineered to function reliably at temperatures up to 1,200°C and in the presence of abrasive clinker dust. Its vector-based digital measurement architecture ensures that readings remain unaffected by swirl, dust deposits or drift. Due to these conditions conventional measurement systems in pyroprocess environments are often compromised.

The system is fully non-intrusive and requires no K-factors, recalibration or periodic readjustment, enabling years of uninterrupted operation. This design directly supports plant availability and reduces the maintenance overhead typically associated with process instrumentation in high-temperature zones.

PROMECON has deployed the McON IR Compact at multiple cement facilities, including Warta Cement in Poland. Plant operators report that the system has aided in identifying blockages, optimising purging cycles for gas burners, and supplying accurate flow data for AI-based process optimisation programmes. The practical outcomes include more stable kiln operation, improved process control, and earlier detection of process disturbances.

On the energy side, real-time tertiary air data enables reduction in induced draft fan load and helps flatten process oscillations across the pyroprocess. This translates to lower fuel and energy consumption, fewer unplanned shutdowns, and a measurable reduction in NOx peaks. This directly reflects on the downstream cost implications for plants operating SCR or SNCR systems for emissions compliance.

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Adani Group To Set Up Cement Factory In Madhya Pradesh

Chief Minister Mohan Yadav inaugurates plant in Guna

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Adani Group (Adani) will set up a cement factory in Madhya Pradesh, the chief minister of the state announced after an inauguration ceremony in Guna. The chief minister, Mohan Yadav, described the occasion as a historic day for the state and said the project will strengthen industrial capacity. The event was presented as a milestone in efforts to broaden manufacturing and attract large-scale investment. Officials said the facility will add to regional production capability and support related industries.

State officials outlined that the plant will enhance supply chains for construction and infrastructure projects across the region. The company will bring technical expertise and logistical resources to the site, with government agencies coordinating approvals and land allocation. Local suppliers and service providers will benefit from increased demand, and training initiatives will be developed to build workforce readiness. Officials indicated that the project complements broader plans to modernise industrial clusters in the state.

The state administration said it has facilitated clearances and infrastructure support to accelerate implementation. Local officials have coordinated with the company to ensure connectivity and utilities are in place ahead of commissioning. The chief minister emphasised that collaboration between private investors and the government aims to create sustainable economic growth. Community outreach programmes will address local concerns and establish grievance mechanisms as construction proceeds.

Officials said the inauguration in Guna marks a new phase in the state industrial story and will serve as a reference for future investments. Administrators noted that close monitoring and periodic reviews will guide timely execution and adherence to environmental and safety norms. The government affirmed its commitment to facilitating responsible industrial expansion while ensuring benefits reach local communities. Stakeholders will continue discussions on supply chain integration and long term maintenance arrangements.

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