Gypsum industry news

Spain: France-based Saint-Gobain has announced plans for a new Euro40m production line at its Quinto gypsum wallboard plant near Zaragosa, Aragon. The line will integrate recycled raw materials use and an Industry 4.0 digitisation programme to increase production, warehousing, transport and delivery automation.The scheduled commissioning date for the expanded facility is in 2022. When operational, the line will generate 70 new direct jobs. The government of Aragon has declared the work a project of regional interest.

The group says that the new line will enable it to capture the growth of the Spanish market and its rapid shift towards more complex needs and especially more lightweight construction systems.

France: Belgium-based Etex has acquired a majority stake in offsite housing construction company e-Loft. The company employs 180 people and makes products in modular residential and other custom-designed buildings using its ‘3D wood’ building technology. It will join the group’s New Ways division. The division develops sustainable, industrialised and modular construction solutions.

Etex chief executive officer Paul Van Oyen said, “We are very pleased to welcome e-Loft into our New Ways division and enthusiastic about the growth opportunities that this strategic acquisition offers to both of our companies. The addition of e-Loft to our global team of experienced lightweight and modular construction businesses further reinforces our ambition to become a leader in future-focussed, sustainable building solutions.”

France: Saint-Gobain recorded fourth-quarter sales of Euro10.2bn in 2020, up by 6% year-on-year on a like-for-like basis. The group noted a ‘strong pricing dynamic’ in the quarter. Its operating margin in the second half of 2020 was over Euro2bn, up by 20% year-on-year on a like-for-like basis. ‘Upbeat momentum’ in most markets buoyed results in the half.

The company said that the record second-half operating margin was achieved in part thanks to “successful portfolio optimisation measures under the ‘Transform & Grow’ programme, reductions in discretionary spending and a very positive price-cost spread. Its full annual results for 2020 will be published in late February 2021.

China: France-based Saint-Gobain plans to establish ten gypsum wallboard plants under the Communist Party of China (CPC)’s 14^th five-year plan. China Daily News has reported that the move aims to ramp up production capacity in order to meet growing gypsum wallboard demand. In 2021 building materials company intends to open two more units to produce calcined gypsum in Yangzhou, Jiangsu Province and Huzhou, Zhejiang Province respectively.

Asia-Pacific regional senior vice-president and chief executive officer (CEO) Javier Gimeno said, “China has recovered from the Covid-19 pandemic in an exceptional manner. We have seen the quick recovery of the Chinese economy and the many industries that we serve. In our segment, the Asia-Pacific region has remained largely positive in the third quarter, driven by the continued strong demand in China." He added, “Our business growth in China is linked with the development of the Chinese society and the growth of China's middle-income earners, who are more demanding in terms of quality and performance of products.”

Argentina/Peru: France-based Saint-Gobain and Chile-based Compania Industrial El Volcan have signed an agreement to cooperate in the Argentine and Peruvian gypsum wallboard markets. The companies will finalise the agreement in January 2021.

In Peru, Saint-Gobain will purchase El Volcan Soluciones Constructivas , a company specialised in the production and sale of wallboard. After this new entity has been merged with SG Productos para la Construccion, which specialises in the production and sale of mortars and has been wholly owned by the Saint-Gobain Group since December 2019, Saint-Gobain will retain a 55% stake in the new consolidated group and will sell the remaining 45% to the El Volcan group.

In Argentina, El Volcan will purchase from Saint-Gobain a 45% stake in the group including Tuyango, the historical plaster business, and Aswell, the plasterboard business acquired in the first quarter of 2019, with Saint-Gobain owning a 55% stake in this Argentine gypsum group.

France: Saint-Gobain’s like-for-like sales fell by 7.2% year-on-year to Euro27.9bn in the first nine months of 2020 from Euro32.4bn in the same period in 2019. Particular declines were noted in its High Performance Solutions and Asia Pacific divisions. However, overall sales improved by 3.2% year-on-year to Euro10.1bn in the third quarter of 2020.

The group noted that in North America growth in the third quarter was, “driven by volumes in exterior solutions and gypsum in a much better environment for prices, which were up overall.” It also noted a ‘sharp’ increase in its gypsum sales, continuing a trend from the second quarter and capturing additional market share.

France: Saint-Gobain is among 157 businesses which signed a letter to European Union (EU) members’ governments urging the enactment of higher 2030 greenhouse gas emissions reduction targets. The letter calls on all EU leaders to target a reduction of 55% by 2030 in line with the European Green deal.

Chair and chief executive officer (CEO) Pierre-André de Chalendar said, “The right decisions now can help create and protect healthy, thriving and fair communities and secure a roadmap for a prosperous economy. From a business and investor perspective, clarity on the net zero transition pathway and timetables for each sector - as well as policy that enables substantial investments in carbon neutral solutions - is essential. This in turn would provide us with the confidence needed to invest decisively at the necessary pace and scale to reduce emissions, create decent green jobs, drive innovation, and accelerate the rebuilding of a resilient zero carbon economy."

France: Saint-Gobain’s says its sales for June 2020 rose by 3.7% on a like-for-like basis as markets recovered from the effects of the coronavirus pandemic. Its sales fell by 12.3% year-on-year on a like-for-like basis to Euro17.8bn in the first half of 2020 from Euro21.7bn in the same period in 2019. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) decreased by 32.4% to Euro1.64bn from Euro2.42bn.

“In a macroeconomic and health environment which remains affected by uncertainties, our earnings growth in June and outlook for the third quarter suggest that our operating income for second-half 2020 will improve significantly on first-half 2020,” said Pierre-André de Chalendar, chairman and chief executive officer (CEO) of Saint-Gobain. He added that the group’s portfolio of products, including those in energy-efficiency and renovation markets, positioned it to benefit from national and European stimulus plans supporting energy saving initiatives.

The group noted a 19.2% year-on-year sales decrease in the second quarter of 2020 due to the coronavirus pandemic, with very different situations between countries and markets. Most of its business segments reported growth in June 2020 with the exception of Asia-Pacific, where the Indian market held the division back. Gypsum sales helped deliver ‘robust growth’ in the US and Canada in June 2020. Strong growth in gypsum was reported in Brazil for the first half of 2020. Chinese sales in gypsum benefitted in the second quarter of 2020 from a new plaster plant, which originally opened in 2019, reaching full production capacity. The group’s High Performance Solutions division reported positive trends from its external thermal insulation solutions (ETICS) products in the second quarter of 2020.

France: Building Material Group (BMG) plans to build a 30Mm²/yr gypsum wallboard plant in Marseille. It has signed a lease with the port of Marseille Fos for a six-hectare plot of land at Caban, Fos-sur-Mer. The project has a budget to Euro60m and construction will start in 2020. Commissioning is scheduled for late 2022.

France: Saint-Gobain says that its overall group activity fell to 60% of 2019 levels in April 2020 due to the effects of the coronavirus pandemic. Since then its level of activity surpassed 80% ‘at comparable working days, with large variations by market and country,’ according to Regulatory News Service. The group expects a ‘challenging’ second quarter 2020 before a recovery in the second half of the year. It continues to preserve cash and reduce costs.

In Europe the group reported that, by the end of May 2020, Nordic countries had almost reached 2019 levels. Germany and Eastern Europe were still seeing activity levels below those of 2019. The UK has seen activity levels progress by around 10%/week since a low point in mid-April 2020 when activity were at a ‘virtual standstill’, reaching around 70% of 2019 levels in the last week of May 2020.

In the group’s Middle East & Africa region activity levels surpassed 50% of 2019 levels since a low in mid-April 2020. In France, activity in distribution came close to the 2019 level in the last week of May 2020, but with big differences by region and brand. Spain and Italy are picking up gradually, but remain below the average level of the region. The Netherlands remains close to a normal level of activity, while the Middle East and Africa remain impacted to varying degrees.

North America has reported a ‘contrasting situation state by state,’ but has shown improvement since the low point of mid-April 2020. Activity in May 2020 moved closer to 2019 levels due to ‘significant’ volumes in exterior solutions and a rebound in gypsum volumes. In Latin America, despite the health situation remaining difficult, activity is picking up week after week, from 40% in mid-April 2020 to around 80% in May 2020 with a ramp-up in Brazil.

In Asia-Pacific sales have now reached 2019 levels following the gradual restart of all its production sites in China in March 2020. India remains ‘severely’ disrupted with the restart dependent on the relaxing of confinement measures. The situation is varied across South-East Asia with a rebound in Vietnam where activity has surpassed 2019 levels, but disruptions still relatively significant in Thailand and neighbouring countries.