Gypsum industry news

France: Saint-Gobain has launched Grow & Impact, a new strategic plan to increase profitable growth. The plan consists of new annual financial targets for 2021-2025, including organic sales growth of 3 - 5%, an operating margin of 9 – 11%, a free cash flow conversion ratio above 50%, a return on capital employed of 12 - 15% and an annual dividend payout ratio representing 30-50% of recurring net income. The company also announced a Euro2bn share buyback programme for 2021 – 2025.

Saint-Gobain has forecast full-year energy and raw materials costs of Euro1.5bn, up by 36% from its previous estimate of Euro1.1bn. Euro1.1bn (73%) of the new estimate is forecast for the second half of 2021. The group said that it will need a positive price impact of around 6% over the full year and of 8% in the second half of 2021 in order to offset this. CEO Benoit Bazin said “The Group will build on the success of its new local organisation and its multinational culture driven by performance and by proximity to its customers, in order to benefit fully from strong growth on its underlying markets. By capitalising on innovation and the power of data to enrich our range of solutions, Grow & Impact will enable us to outperform our underlying markets and maximise our positive impact in numerous areas.” He added “Our vision is to become the worldwide leader in light and sustainable construction. In a world moving towards net-zero carbon, Saint-Gobain aims to provide a full range of solutions that address three major issues of our time: drastically reducing the 40% of CO2 emissions linked to construction, protecting natural resources and facing the challenge of rapid urbanisation in emerging countries.”

US: CertainTeed plans to establish a new gypsum logistics facility in Jacksonville, Florida. The Saint-Gobain subsidiary plans to integrate a terminal dock operation on the St Johns River with environmental restoration of the riverside at an additional cost of US$70m. The site previously belonged to Kerr-McGee Chemical Corporation until 1978.Construction is due to begin in 2022 and reach completion before 2025. Once operational, the dock will be equipped with a bulkhead, a conveyor, an unloading ramp, truck staging areas and a small office. The site will employ an estimated 32 people.

Vice president and general managerJay Bachmann “We are deeply grateful to the City of Jacksonville for their support of our new logistics facility on the St Johns River, and we look forward to continuing our partnership with Greenfield to ensure the responsible stewardship of this Superfund site.” He added “This project will return a heavily contaminated Superfund site to productive use, creating dozens of full-time jobs and strengthening our company’s ability to serve our customers.”

UK: British Gypsum has signed the Building a Safer Future (BSF) charter as part of its wider commitment to raise building standards across the construction industry and provide transparency to its customers. The charter comprises five commitments that require registered signatories to put building safety first. The commitments include spearheading change and being the voice of building safety within the industry, being transparent in sharing key information with residents, clients, contractors and other stakeholders, and making safety a key factor when selecting construction partners.

Marketing director Stacey Temprell said “We recognise that becoming a registered signatory of the BSF charter is an important first step towards achieving the culture and behavioural change required in relation to the charter’s objectives around building safety. In confirming our support as a registered signatory, we will now be working to ensure that we embed the principles of the charter into our organisation’s activities.” Temprell added “In addition to signing the Building a Safer Future charter, we are making further improvements to ensure our product and system performance data is always up to date and accurate, so joining like-minded businesses in signing the Charter is a great way for us to demonstrate our commitment to this shift in building standards and put safety first.”

Spain: Saint-Gobain Placo has launched a new technical manual on environmental certifications of buildings. The Saint-Gobain subsidiary says that the manual will help professionals when addressing all certification requirements in Spanish construction. It takes a practical approach and details all processes and evidence necessary for each certificate. The company hopes to advance sustainable development by facilitating more comprehensive planning.

France: Saint-Gobain’s sales grew by 24.6% year-on-year to Euro22.1bn in the first half of 2021 from Euro17.8m in the same period in 2020. Earnings before interest, taxation, depreciation and amortisation (EBITDA) nearly doubled to Euro3.25bn from Euro1.64bn. Both sales and earnings were also higher than the comparable period in 2019.

“These first-half 2021 record results surpass even our second-half 2020 performance. This success reflects the profound positive changes in our organisation from Transform & Grow,” said Benoit Bazin, chief executive officer of Saint-Gobain. “It also reflects structural changes in our markets, which should show an acceleration in growth over the coming years.” The group added that it was planning to catch up with previously delayed expansion projects for the construction Industry and in façade and gypsum solutions in Mexico, India and China in the second half of 2021.

India: The Industries and Commerce Department of the Andhra Pradesh state government has granted Saint-Gobain India an extension to the duration a package of financial incentives will be available for the construction of its new gypsum wallboard plant at Atchutapuram, Visakhapatnam. The company now has until June 2022 to commence commercial production, according to the Hindu newspaper. The producer’s total investment in the project is US$268m. When finally commissioned, the plant will employ 450 locals. It will also manufacture float glass.

Saint-Gobain India also received permission from the department to change its name to Saint-Gobain Industries.

Kazakhstan: France-based Saint-Gobain subsidiary Zhambylgips plans to resume the production of gypsum wallboard. Kapital News has reported that the move will create jobs and lead to the development of transport infrastructure in the area, according to the company.

Norway: France-based Saint-Gobain plans to upgrade its 13Mm²/yr Fredrikstad gypsum wallboard plant in partnership with state-owned sustainable energy agency Enova. The Euro25m upgrade will expand the plant’s production capacity by 40% and make it, what the producer says, is the world's first carbon-neutral plasterboard plant. One feature of the plan is electrification of the currently gas-powered production process. The upgrade will be completed in early 2021.

Saint-Gobain is considering implementing the net-zero CO₂ plant project across others of its gypsum wallboard plants.

Romania: Saint-Gobain has begun construction of a new line at its Turda gypsum wallboard plant in Cluj county. The company plans to invest Euro45.0m in the project. The scheduled completion date is April 2023. The group says that the expansion aims to meet ‘rapidly growing’ local needs as well as those of the wider Central and Eastern European market, and to secure Saint-Gobain's leadership position within light construction.

France: Saint-Gobain recorded consolidated net sales of Euro38.1bn in 2020, down by 10% year-on-year from Euro42.6m in 2019. Earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 9% to Euro4.42bn from Euro4.87bn. Following a 12% like-for-like contraction in the first half of 2020, consolidated net sales grew by 5% on a like-for-like basis in the second half of 2020, with a 5% increase in gypsum wallboard volumes and a 1% increase in prices.

Chair and chief executive officer Pierre-André de Chalendar said, “The record results of the Group for second-half 2020 confirm the pertinence of the Group’s differentiation strategy and the success of its profound transformation begun several years ago. I would like to sincerely thank the teams for these excellent results achieved and for their unwavering commitment and solidarity."