Gypsum industry news

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.

Spain: France-based Saint-Gobain subsidiary Saint-Gobain Placo has donated plastic linings produced at its Quinto de Ebro laminated gypsum wallboard plant in Zaragoza to use in the production of personal protective equipment for medical professionals caring for coronavirus patients and those vulnerable to the virus. These include home-helpers who attend 250 elderly people in the Ribera Baja del Ebro region.

On 23 April 2020 Spain’s confirmed coronavirus case count was 213,024, with 22,157 deaths.

Ireland: France-based Saint-Gobain subsidiary Gyproc has applied to the Environmental Protection Agency (EPA) to have its sulphate discharge licence for its Drummond, County Monaghan, mine increased by 530% to 1250mg/l from 200mg/l. The Irish Independent newspaper has reported that the higher level ‘would not occur year-round,’ according to the company, but ‘only at certain times.’ The EPA is ‘awaiting additional information from the applicant in order to make a decision.’

Algeria/India: France-based plaster production unit designer, manufacturer and installer Alphaplatre has announced its successful delivery of two AP400 vertical kilns to gypsum wallboard plants in Algeria and India. It says that each kiln has a capacity of 400t/day of gypsum.

France: Saint-Gobain has launched a game for smartphones and tablets called Saint-Gobain Brain to raise the company’s brand for recruitment. The game combines an exploration of Saint-Gobain’s business environments with the world of online gaming. It is initially available in French and English and will be translated and rolled out in the group's various countries in the course of 2020. The company also using the game to raise money for local charities through in-game donations.

France: Saint-Gobain’s net profit in 2019 was Euro1.45bn, up by 207% year-on-year from Euro474m in 2018. Its net sales were Euro42.6bn, up by 1.9% from Euro41.8bn in 2018. Saint-Gobain chairman CEO Pierre-André de Chalendar praised the year’s performance in spite of a ‘less supportive market environment in the second half.’ He said, “For 2020, in a more uncertain market environment, Saint-Gobain should continue to benefit from its attractive positioning and from the results of its ‘Transform & Grow’ initiative, and is targeting a further like-for-like increase in operating income with an uncertainty about the impact of the coronavirus.”

Algeria: France’s Alphaplatre has delivered an AP400 vertical kiln for a gypsum project in Algeria. The kiln has a plaster capacity of 400t/day. Alphaplatre's work on the project includes supplying equipment for gypsum preparation, calcination, grinding and bagging.

US: France-based Saint-Gobain has announced a 120MW wind power supply deal with Blooming Grove Wind Farm, the largest renewable energy contract in the gypsum wallboard producer’s history. The 12-year contract, which secures 120MW of the available 250MW of power for Saint-Gobain from the wind farm in Illinois, will reduce the company’s US carbon footprint by 21%, it says. “This makes North America a significant contributor in our global network towards helping meet Saint-Gobain’s sustainability goal of net-zero CO_² emissions by 2050,” said Saint-Gobain North America president and CEO Mark Rayfield.

US: Saint-Gobain is preparing to complete its acquisition of Continental Building Products in early February 2020. The announcement follows approval by Continental Building Products’ shareholders for the US$1.4bn deal.

Saint-Gobain said that the purchase of the gypsum wallboard producer would increases its presence in the US with its positioning in growth regions in the East and Southeast US. It would also widen its product portfolio and create the opportunity for at least US$50m in cost synergies and performance improvements by the end of the third year following the close of the transaction.

"This transaction will allow us to become a leading player in plasterboard and construction solutions across North America. It will enable the group to enhance its growth and profitability profile,” said Pierre-André de Chalendar, Chairman and Chief Executive Officer of Saint-Gobain.

UK: Global not-for-profit organisation CDP has included Saint-Gobain on its Climate Change A-List 2019 for environmental transparency and performance aimed at facilitating a zero-net carbon economy. Only a handful of industrial producers achieved inclusion on the list, including US-based insulation producer OwensCorning and Germany’s HeidelbergCement and steel producer Thyssenkrupp. The company said that the listing commended its ‘ambitious commitment made in 2019 to achieve net zero carbon emissions by 2050, in line with the +1.5°C warming scenarios.’