
Gypsum industry news
USG proposes exploratory drilling in national forest land in Indiana
13 February 2023US: USG has proposed to the Forest Service that it be allowed to conduct exploratory core drilling on National Forest System (NFS) lands south of its Shoals gypsum wallboard plant in Indiana. The drilling is intended to verify probable mineral resources within a 520ha area of NFS land ahead of future mining activities that would occur from the plant, according to the Washington Times-Herald newspaper. The USG drilling proposal is for a duration of two years beginning in the spring of 2023.
USG owns the subsurface mineral rights for mining gypsum deposits while the Forest Service owns the surface rights to a portion of land located within the Hoosier National Forest. The Forest Service previously gave permission for USG to conduct drilling on most of the land in 1995 but it is currently evaluating the impact it would entail, considering mitigation options and seeking public comment.
Ukraine: A US White House official has accused the Wagner Group of conducting military operations near Bakhmut with the objective of seizing raw gypsum and salt deposits in the area. The official said that there were indications that monetary motives were driving the mercenary group and Russia’s "obsession" with the city, according to Reuters. The US government has previously accused Russian mercenaries of exploiting natural resources in the Central African Republic, Mali and Sudan to help fund Moscow's war in Ukraine. The Russian government has rejected the allegations.
Russia claims that its army took control of Soledar, a town near Bakhmut, on 13 January 2023. However, western European news sources have been unable to independently verify this. Etex’s local subsidiary Siniat Ukraine operated a gypsum wallboard plant on the outskirts of Bakhmut before Russia invaded the country in February 2022. The current status of the plant is unknown.
US: A worker died in a hopper accident at PABCO Building Products’ Newark gypsum wallboard plant in California in late December 2022. The Alameda County Fire Department said that incident occurred when the worker became trapped in the hopper following an inspection of a blockage, according to CBS News. Workers at the plant and firefighters attempted to rescue him but were unsuccessful.
Saudi Arabia: National Gypsum says it has renewed the environmental permit for its Riyadh wallboard plant for a period of three years. The renewal follows a study by the National Center for Environmental Compliance. The wallboard producer has also confirmed that its environmental permits have been renewed at its plants and quarries in Dammam and Yanbu.
Update on Romania, December 2022
13 December 2022Two news stories to note over the last two months indicate growth in the gypsum wallboard market in Romania. Firstly, Knauf announced plans in mid-October 2022 to build a new 30Mm2/yr gypsum wallboard plant at Huedin in Cluj County. Then, Germany-based Grenzebach’s local subsidiary revealed that it had broken ground on the construction of an upgrade to its Iasi production centre.
Knauf’s announcement follows work by the existing wallboard producers with plants in the country to increase their own local capacity. Saint-Gobain started building a new production line at its Turda plant in mid-2021 at a cost of Euro45m. It hopes to have the project completed by April 2023. Etex started work in mid-2022 on a Euro6m sludge drying unit at a coal-fired power plant in Oltenia that will supply synthetic gypsum for use at its Turceni plant. It is also working on logistics upgrades to Turceni and a separate plaster plant at Aghiresu.
Graph 1: Growth rate of the construction market in relation to market volume in selected emerging countries, 2020 – 2030. Source: Saint-Gobain financial report using data from IHS.
An indication of Saint-Gobain’s interest in the Romanian market can be seen in its universal registration document for 2021 where it outlined its strategy. It presented a graph of forecast growth rates in construction markets in selected developing markets between 2020 and 2030. The countries that are underlined in Graph 1 (above) are those where Saint-Gobain made large acquisitions or investments in 2021. Romania is interesting on this graph because it is the European country with the largest predicted growth rate. It also has a relatively low market volume suggesting potential for market growth, although note that the graph only shows selected countries.
Another reason why Knauf might be interested in Romania is that it is the largest country in the European Union in which the company does not have a wallboard plant. Knauf’s own take from its press release about why it decided to build a plant in Romania was that local per capita consumption of gypsum wallboard was around 3m2/yr compared to at least 6m2/yr in more mature markets elsewhere in Europe.
Etex’s subsidiary Siniat Romania reported a 20% year-on-year rise in turnover to Euro60m in 2021. This compares to a 24% rise in turnover to Euro307m by Saint-Gobain Romania. Andrei Popa, Etex’s Country Sales Manager Romania & SEE, told Agenda Constructiilor that Siniat Romania’s turnover grew by 25% year-on-year in the first eight months of 2022. However, it is unclear what difference Etex Group’s acquisition of insulation producer URSA in June 2022 made to the figures in Romania. Popa also revealed that the rise in turnover so far in 2022 was mainly down to price rises. This in turn had been promoted by mounting energy costs, particularly gas. The company described itself as a ‘big consumer of gas’ and reported that the price had risen seven times over the past year. One more point of interest to mention is that Popa described Etex as one of the largest exporters in the country, with 40% of local production sent over national borders. This also aligns with what Knauf said about its new plant. It intends to deliver half of the production from its proposed plant at Huedin to Hungary, Serbia and the Republic of Moldova. The other half will serve the domestic market in the north of Romania with imports from Bulgaria expected to continue to supply the south of the country.
The data above suggests why Saint-Gobain, Etex and Knauf have all invested in wallboard production units in Romania over the last two years. The local market has growth potential and the companies are also focused on exports to neighbouring countries. All this investment may also have contributed to Grenzebach’s decision to enlarge its production site at Iasi too. The ‘fly in the ointment’ here in the short term is the disruption to energy markets caused by the war in Ukraine. Siniat Romania mentioned its concern over gas prices above. Saint-Gobain also made similar comments on a general basis for Europe in its nine month financial results in late October 2022. It said that it was preparing continuity plans for its gas-consuming plants in Europe but added that its gypsum wallboard production lines were ‘extremely flexible.’ However, Romania is better prepared for problems with gas supplies compared to elsewhere in Europe because it produces around 90% of its requirements locally. Despite energy concerns at the moment, the long term potential for the wallboard market in Romania remains promising.
Georgia-Pacific’s Sweetwater West gypsum wallboard plant installs waste heat recovery system
12 December 2022US: Georgia-Pacific’s Sweetwater West gypsum wallboard plant in Texas has completed an upgrade to its board-drying equipment. It has installed an Energy Optimization System (EOS), also known as a waste heat recovery unit, including new ducting, two new fans and a new exhaust stack, to an existing four-zone dryer. The newly upgraded system enables the collection of the waste exhaust from three zones of the plant and injects it into a fourth zone. This enables the burner in that zone to operate at a lower capacity. Around 2500t/yr of CO2 is saved in the process.
David Neal, vice president of Gypsum Operations for Georgia-Pacific said, “Advancements in energy savings and resource consumption reduction are goals toward which Georgia-Pacific works every single day.”
Georgia-Pacific started building a second wallboard plant next to its Sweetwater West plant in late 2020. The new 65Mm2/yr unit was scheduled to start production in late 2022.
Workers die at Chiyoda-Ute’s Yokkaichi gypsum wallboard plant
02 December 2022Japan: Two workers have died at Chiyoda-Ute’s Yokkaichi gypsum wallboard plant in Mie Prefecture. The accident occurred when three sub-contractors were conducting regular maintenance work near a wood waste boiler at the site. Local press reports that the workers became trapped in a dust collector during the incident. Chiyoda-Ute is investigating what happened.
Tanzania: Knauf Gypsum Tanzania says that it plans to more than double the production capacity of its 15Mm2/yr gypsum wallboard plant in Mkuranga, Pwani Region, to 43Mm2/yr. IPP Media News has reported that the company's planned investment in the project as US$49.3m. The producer expects that the expanded Mkuranga gypsum wallboard plant will increase its annual gypsum wallboard exports by 170%. When commissioned in 2025, the plant will be the largest in East and Sub-Saharan Africa.
Saint-Gobain’s sales grow by 14.5% to Euro38.4bn so far in 2022
10 November 2022France: Saint-Gobain’s sales grew by 14.5% on a like-for-like basis to Euro38.4bn in the first nine months of 2022 compared to Euro32.9bn in the same period in 2021. Strong sales growth was reported in all business lines although sales were driven in particular by the group’s High Performance Solutions business and its Asia-Pacific and North America regions.
The group noted that raw materials, freight and energy costs were growing, especially in Europe. It said that it had hedged around 80% of its natural gas and electricity purchasing needs for 2022 and around 60% for 2023. It has also been preparing continuity plans for its gas-consuming plants in Europe to ensure the flexibility of production to operate with less or alternative energy. The group said that its gypsum wallboard and construction chemicals production lines were “extremely flexible.”
By region the group said it had started the world’s first zero-carbon wallboard production at its Balsta plant in Sweden powered by biogas and ‘green’ electricity. In France it produced and marketed its Placo Infini 13 product, which is said is the first wallboard made from over 50% recycled gypsum.
British Gypsum switching fleet to biofuel
10 November 2022UK: British Gypsum has started converting its heavy-good vehicle fleet fuel source to the biofuel Hydrotreated Vegetable Oil (HVO) from diesel. The subsidiary of France-based Saint-Gobain expects to use 75,000l/week of HVO. This means that around 40% of its UK fleet will now operate on HVO fuel, with a further 10% using Liquefied Natural Gas (LNG). The use of multi-fuelled vehicles at this scale is expected to reduce its carbon emissions by approximately 70% year-on-year.
To support the implementation of HVO vehicles, the company has made several upgrades to site infrastructure that include a HVO refuelling point at its Robertsbridge plant and a new fuel island capable of delivering 110,000l/week at its distribution centre in Gotham.