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.

China: Rui Silicone subsidiary Ruijiang has commissioned a new methyl hydrogen silicone oil RJ-202 plant in China following completion of a successful test run on 10 February 2021. The plant will supply the gypsum wallboard industry with methyl hydrogen silicone oil for use as a waterproofing additive. It will also produce hexamethyldisilazane RJ-HMDZ, hexamethyldisiloxane RJ-MM, heptamethyltrisiloxane RJ-HMTS and some other modified silicone oils.

Switzerland: Sika’s 2020 full-year sales were Euro7.29m, up by 3% year-on-year when adjusted for currency variations. Sales grew in the Europe, Middle East and Africa region by 4.4%, in the Americas regions by 1% and in the Asia/Pacific region by 13%. The group recorded market share gains in all regions. During the year it acquired Romania-based Adeplast, US-based CIDRA Concrete Systems and Egypt-based Modern Waterproofing Group. The acquisitions span concrete, mortars and insulation production. The company established new plants in China and Colombia. It upgraded plants in France, Switzerland and the UAE.

Chief executive officer (CEO) Paul Schuler said "The 2020 fiscal year was overshadowed by the global coronavirus pandemic, which had a number of serious repercussions for the construction and automotive sectors. Thanks to the strong motivation of our employees and their pronounced customer focus, Sika managed to perform successfully in this highly challenging market environment and achieve above-average results. We remain very well positioned in what is still a difficult environment – thanks to our innovative products and solutions, as well as to our employees, who continue to deliver their utmost even in times such as these. On behalf of group management, I would like to thank our global workforce of 25,000 people for the tremendous dedication they have shown and for the unique way they identify with our company."

The group confirmed its 2023 targets, saying “The company remains aligned for long-term success and profitable growth. With its focus on the six strategic pillars – market penetration, innovation, operational efficiency, acquisitions, strong corporate values, and sustainability – Sika is seeking to grow by 6 – 8% a year in local currencies up to 2023. From 2021, the company is aiming for a higher earnings before interest and taxation (EBIT) margin of 15 – 18%. Projects in the areas of operations, logistics, procurement, and product formulation should result in an annual improvement in operating costs equivalent to 0.5% of sales.”

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.”

Australia: Belgium-based Etex has agreed to buy Knauf Australia from Germany-based Knauf for an undisclosed sum. The company’s portfolio consists of three gypsum wallboard plants, located in Altona, Victoria, Matraville, New South Wales and Bundaberg, Queensland, and it employs over 300 people. The Australian newspaper has reported that Etex plans to treat the newly acquired asset as a going concern, in which it will retain existing staff, including management. The acquisition is subject to customary closing conditions, with finalisation expected in early 2021.

Paul Van Oyen, the chief executive officer (CEO) of Etex said, “This transaction is a major milestone in the execution of our strategic roadmap initiated two years ago. Since then, we progressively exited non-core activities, such as the clay and concrete roof tiles business, that no longer fits with our portfolio. Our strategy is focused on being a leader in lightweight solutions and modular construction, offering sustainable, cost-effective, high-performing and inspiring building solutions to our customers. Plasterboards play a key role in such solutions, and we are looking forward to collaborating closely with our new colleagues to open up new opportunities for growth.”

Etex previously acquired Lafarge’s European and South American gypsum wallboard assets at the same time as Knauf acquired the entity now known as Knauf Australia from Lafarge in 2011. Knauf maintains a presence in the Australian gypsum wallboard sector via its partnership with Boral, concluded in October 2020.

Australia: Belgium-based Etex has hired financial services provider JP Morgan to help it buy Knauf’s Australian gypsum wallboard portfolio, valued at around US$293m. The Australian newspaper reports that Saint-Gobain and China National Building Material (CNBM) are also interested in the sale.

Knauf is divesting the assets to satisfy the Australian Competition and Consumer Commission’s fair play rules following its purchase of Boral’s stake in the USG-Boral gypsum wallboard joint venture for US$1.05bn. The companies have until September 2020 to finalise the transaction.

UK: Etex Building Performance recycled 14% its Siniat gypsum wallboard products in 2019, a UK gypsum wallboard recycling record. The company says that the figure exceeds both the UK average of 8% in 2019 and the industry target of 10% in 2020. It attributed the achievement to its “substantial investments in operational improvements to reuse waste gypsum, which can also be recycled.”

The improvements consisted of an upgrade to gypsum wallboard production at the company’s Ferrybridge plant in West Yorkshire and the addition of a new recycling facility at the site. Its planned new gypsum wallboard plant in Bristol will be able to produce wallboard using a higher proportion of recycled gypsum and source part of its water intake from rain. The producer has additionally secured a dedicated supply of post-consumer gypsum from construction sites across England and Wales via its subsidiary Crucible Gypsum Recycling. It said it decided to form the subsidiary after taking part in the European Commission’s Gypsum to Gypsum research project, which “showed the importance of controlling the quality of post-consumer material and re-orientating the industry for the recovery of waste at the end of a building's lifecycle.”

Head of environment and sustainability Steve Hemmings said, "Recovering waste gypsum makes business as well as environmental sense. The plasterboard industry traditionally relied on quarried gypsum or desulphurised gypsum – the latter is becoming less available as the UK switches to alternative energy sources. Recycling offers a greener future for construction, but it requires investment and coordination across the supply chain. We're investing early to make sure we have the capability and capacity to continue leading the UK's gypsum wallboard sector and to provide more sustainable solutions for our clients.”

US: Georgia-Pacific has begun construction of a 65Mm²/yr gypsum wallboard plant adjacent to its existing 30Mm²/yr Sweetwater gypsum wallboard plant in Nolan County, Texas. The company says that the plant will start production in late 2022, following a total investment of US$285m and it will employ 120 people.

President Brent Paugh said, “The demand for our diverse gypsum products continues to be strong, especially in Texas. By having two production lines in Nolan County, Georgia-Pacific can strengthen its capacity to meet our growing customer needs in Texas’ residential, commercial and industrial construction.”

Romania: Etex has proposed investing Euro6m at the Rovinari thermal power plant run by Oltenia Energy in order to secure supplies of flue gas desulphurisation (FGD) gypsum for its Turceni wallboard plant. It wants to build a desulphurisation unit at the power plant following falling energy production at the Turceni power plant, according to Economica. Etex is currently in negotiation with Oltenia Energy over the proposal.

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.