BNBM to invest $55m in Shandong gypsum board line

Beijing New Building Materials Public Company (BNBM) [SZSE:000786] will invest 395 million yuan (approximately $55 million USD) in a new gypsum fiberboard production line in Tai'an, Shandong province. The investment, announced on March 25, 2025, will be made through BNBM's wholly-owned subsidiary, Taishan Gypsum. The new production line will add 20 million square meters to Taishan Gypsum's annual capacity. BNBM expects the project to boost product performance, better meet market demand, and consolidate its brand. The construction is projected to take 12 months, with an estimated after-tax internal rate of return of 14.62%. The board of directors approved the project with 8 votes in favor and no objections. BNBM currently holds a leading market position in China's gypsum board market. The company is integrating idled land and resources to improve overall efficiency. Although the company faces complex market conditions, resource constraints, and volatility in raw material costs, the company’s investment strategy focuses on high-end capacity expansion with high levels of automation and environmental protections.