Gypsum industry news

Members of Eurogypsum, the European Gypsum Association, gathered at the Les Atelier des Tanneurs in Brussels on 27 - 28 April 2022 to formally celebrate the 60th Anniversary of their association, despite a delay of 12 months due to Covid restrictions. Over two days, they participated in meetings and panel sessions reminiscent of pre-pandemic times. Attending the Open Congress session on 28 April 2022, Global Gypsum found the event to be very dynamic and surprisingly open.

The Open Congress began with welcomes from the moderator, Knauf Insulation’s Sian Hughes and outgoing Eurogypsum President Emmanuel Normant, of Saint-Gobain. He introduced the past 60 years as one of ‘enormous change’ for the sector, but this was not meant to be a retrospective. Turning to the next 60 years, Normant said that gypsum’s inherent benefits, including its low embodied CO₂ emissions, recyclability, high degree of safety and ease of use, would make it even more crucial to global development in the future than in the past.

A series of quick-fire presentations from the industry’s big hitters then highlighted a wide range of ways to increase the sustainability of our sector.

Saint-Gobain’s Klaus Birk introduced Gyproc's project to switch its Fredrikstad wallboard plant in Norway to use a 100% electric wallboard production process by 2023. This will use renewable energy, predominantly sourced from hydroelectric power, and lead to a 70% drop in CO₂ emissions. This approach could be applicable to any wallboard plant with access to sufficient renewable power.

Knauf's Jörg Demmich then spoke about a project to extract gypsum from the ‘waste’ from the lithium production process. Even the best lithium ores only contain 3 - 6% lithium by mass, leaving 94 - 97% currently unused. As electric mobility grows, by-product gypsum from the lithium sector could partly offset the expected fall in flue-gas desulphurisation (FGD) gypsum supplies.

Iryna Yermakova introduced the Etex Group's approach to the wallboard plant of the future. One area she highlighted was the potential for prefabrication at the wallboard plant before panels reach the job site. This has the potential, on some projects, to save up to 10% of the wallboard cost, transport cost and CO₂ emissions of the board used. Surely a quick win for contractors.

Nikolai Halle from Cobuilder introduced the Define tool, freely-available to the construction sector. Define will act like the Swift payment system, but for sustainability data instead of financial data. This would unify different sustainability metrics to cut through the confusing terms used by producers and reveal the 'real' performance of different products, rather than how effectively their attributes are marketed.

The keynote presentation, from the former European Commissioner for the Environment Janez Potočnik – ‘The Father of the Circular Economy’ - then highlighted why innovation is key, not only to the future of the gypsum sector, but to the planet itself. At current rates, the mass of man-made material will be three times larger than all biomass by 2040.

To avoid this, Potočnik argued that the entire economy needs to become service-based, rather than product-based. Under such a model, wallboard producers would become part of the ‘building envelope services sector’ rather than selling wallboard. The desire is then to sell wallboard with a long service life, that can be repurposed and recycled, rather than selling ever-increasing volumes of board.Taking this approach across the entire economy would help society to maximise gross domestic product while reducing environmental impacts, eventually decoupling them from each other entirely. Potočnik concluded that nature is already the 'perfect' circular economy. Humans just need to reintegrate into it.

To say that the panel discussion that followed was ‘lively’ would be an understatement. Member of the European Parliament Iskra Mihaylova, speaking the day after Russia halted gas supplies to her native Bulgaria, said that talk of energy independence and solidarity was 'not enough' and that Europe needed to act on the European Union Green Deal, particularly with a view to energy and resource efficiency and security.

Josefina Lindblom, the European Commission’s Policy Officer for Sustainable Buildings for Circular Economy, introduced what she hoped would become the next buzzword: ‘sufficiency’ - properly taking pause to consider what is truly required of new buildings. This includes the need to apply full circularity to renovation projects.

Adrian Joyce, from the European Alliance of Companies for Energy Efficiency in Buildings, asked the audience to think not in terms of 'energy efficiency,' but 'conservation of energy.' The two terms are subtly different, with the latter akin to ‘sufficiency.' Both point to the need to reduce the use of resources, not just the effectiveness which we use increasing amounts of resources.

Tristan Suffys, Secretary General of Eurogypsum, said that gypsum is well suited to fit into the low-CO₂, low-resource-use sector of the future. He called for re-use of derelict buildings, re-purposing and optimising the use of space by building above existing buildings.

The Open Congress drew to a close with a speech by the incoming President of Eurogypsum (and Head of Corporate Social Responsibility at Etex) Jörg Ertle. He told Eurogypsum members that the 'doors' marked 'Green Deal,' 'Decarbonisation,' and 'Recycling' were all 'open' and that they should be making the most of the opportunities behind each. From Global Gypsum’s perspective, it seems that they have burst through each of the doors into the rooms behind. Some are even measuring up for wallboard.

In conclusion, it appears that the European wallboard sector is at the start of a major increase in sustainability efforts. This will be backed by politicians who are keen to decouple their economies from Russia’s and a public that is increasingly asking for change. And, with three major global producers - Knauf, Saint-Gobain and Etex - based in Europe, between them sharing 47% of the world’s wallboard capacity, we can expect to see these innovations spread to other regions rapidly.

Here’s to the next 60 years!

New Zealand: Winstone Wallboards says it will increase the supply of gypsum wallboard available for distribution by merchants by 1Mm² from July to September 2022. It said this will equate to a 7 – 8% increase of various types of plasterboard.

Fletcher Building chief executive Ross Taylor said “The increases we will be bringing to market are possible because we will soon commission changes to the configuration of our manufacturing that we have been working on over the past three months which will produce extra, locally produced, volumes. We have also been able to secure and will import additional board from an Australian manufacturer that we can feed into our supply chain.” He added that the allocation model the company has introduced had started to help supply levels and that the completion of the new plant at Tauranga in June 2023 would also help.

In early June 2022 social housing developer Simplicity Living said it had cancelled all of its orders of Fletcher Building Gib board. In an interview with Stuff, Shane Brealey - the managing director of Simplicity Living, said that the company had decided to import wallboard instead. It said it could source equivalent wallboard products at a 20% discount or more. It added that it was taking it eight weeks to import wallboard from South-East Asia compared to eight months from Auckland.

Winstone Wallboards responded to the criticism by saying it previously had been importing wallboard from Etex Australia for around six months until the end of 2021. The arrangement ended as Australia also has a wallboard shortage. However, it added that the import arrangement might restart from August 2022 onwards.

Romania: Belgium-based Etex invested Euro1m on upgrades to the logistics capacities of its Turceni gypsum wallboard plant and its Aghiresu plaster plant. It also started work on a Euro6m sludge drying unit at coal-fired power plant in Oltenia that will supply synthetic gypsum for use at Turceni, according to See News. The company operates locally under the Siniat Romania brand. It reported a 20% year-on-year rise in turnover to Euro59.6m in 2021.

Canada: Saint-Gobain plans to carry out a US$70.9m upgrade and 40% capacity expansion of its 30Mm²/yr Montreal gypsum wallboard plant in Quebec. The project includes the replacement of natural gas with renewable electricity and a 30% reduction in energy consumption through efficiency improvements. As a result, it will turn the facility into North America’s first zero-carbon gypsum wallboard plant. Work will commence in mid-2023, with the commissioning of the upgraded plant following in late 2024.

Saint-Gobain’s vice president environmental, social, governance (ESG) North America and managing director, circular economy solutions Dennis Wilson said "Today we begin a historic new chapter at our Montreal gypsum plant, leading our industry towards a more sustainable future while increasing our production capacity at a time of unprecedented customer demand," said. "We thank our partners in the Quebec Government, the City of Saint-Catherine and Hydro-Québec for their support, and we thank our team for pushing the limits of technology and imagination to bring this bold project to life. The electrification of our Montreal plant is a massive step forward in our broader goal to decarbonise construction materials and a significant step towards our global goal of carbon neutrality by 2050."

US: CertainTeed has completed a US$1.3m upgrade to its Nashville wallboard plant in Arkansas to use recycled waste gypsum and paper. The plant will reuse 65,000t/yr of waste materials generated from the production process. The company plans to increase the amount of recycled materials in its gypsum wallboard in the future.

“In Nashville and at our manufacturing sites around the world, we remain laser-focused on reducing waste, reducing our consumption of natural resources, and increasing recycling and circularity throughout our value chain,” said Jay Bachmann, Vice President and General Manager of CertainTeed Gypsum.

US: Georgia-Pacific has opened a new gypsum quarry near Sweetwater in Texas. The 240 hectare site is located next to a new unit being built at the company’s Sweetwater gypsum wallboard plant, according to the Sweetwater Reporter newspaper. Once operational, the quarry will supply the plant with around 2000t/day of raw gypsum.

The gypsum wallboard producer is currently building a new 65Mm²/yr gypsum wallboard plant adjacent to its existing 30Mm²/yr Sweetwater gypsum wallboard plant. Production at the new site is expected to start in late 2022.

Japan: Data from the Gypsum Board Industry Association shows that domestic shipments of gypsum wallboard fell by 0.9% year-on-year to 455Mm² in 2021. This is the second consecutive annual decline, according to Nikkei. Local wallboard production is reportedly linked to new housing starts in the country. Recovery in non-residential markets, such as office interiors, has been slow.

Japan: Chiyode Ute has launched Chiyoda Virus Guard Board, a gypsum wallboard product with antibacterial and antiviral properties. The board’s lining is coated with an antibacterial and antiviral agent. It carries the Society of International Sustaining Growth for Antimicrobial Articles (SIAA) ISO21702 and ISO22196 markings.

Peru: Etex says that an upgrade to its Huachipa gypsum wallboard plant is currently being built and should be operational by mid-2023. It is intended to double the production capacity of the unit, according to the Gestión newspaper. The company has invested Euro36m in the project.

Etex markets its wallboard under the Gyplac brand locally. Robert Haanschoten Rodríguez, Etex’s Andean Region Marketing Manager, said that the country exhibits a strong self-build market. Gypsum wallboard sales represent 20 – 25% of the group’s sales in the country. Since 2018 sales of wallboard have grown by 50%. The country reportedly has a wallboard consumption of 0.7m²/capita compared to 4m²/capita in Chile. However, increases in the cost of raw materials have led Etex to put its product prices up by 5 – 12% across all lines.

UK: The Competition and Markets Authority (CMA) is considering whether the proposed acquisition by Saint-Gobain of GCP Applied Technologies could result in the creation of a relevant merger situation or lessen market competition generally. It has asked any interested party to comment on the transaction by mid-June 2022.

Saint-Gobain said it had agreed to buy construction chemicals producer GCP Applied Technologies for Euro2bn in late 2021 with a conclusion date to the transaction by the end of 2022.