Gypsum industry news

US: Saint-Gobain in the US has entered into a 12-year Power Purchase Agreement (PPA) with Invenergy, a leading privately held global developer and operator of sustainable energy solutions, for 120MW of the 250MW Blooming Grove Wind Farm capacity in McLean County, Illinois, which recently began operations.

This agreement is the largest renewable energy deal to date for Saint-Gobain and is a key milestone in supporting the group's target to reach net-zero carbon emissions by 2050. The associated Renewable Energy Certificate System (RECS) represents 40% of the Group's CO₂ emissions from electricity in the US, resulting in a 21% reduction of Saint-Gobain's overall carbon footprint (scope 1 and 2) in the US.

With this agreement and other ongoing projects, the share of renewable electricity within Saint- Gobain's worldwide electricity consumption, will double in 2021, from 18.9% in 2020.

US: CertainTeed soil conditioner and soil amendment subsidiary Western Mining and Minerals has taken over management of the former CertainTeed gypsum wallboard plant site in Cody, Wyoming. The Cody Enterprise newspaper has reported that the plant will produce gypsum for agricultural purposes. The producer decommissioned the former wallboard plant in December 2020 after it ceased production in January 2020.

US mining operations manager Roberto Margutti said, “With the agri-gypsum business (and other business opportunities generated with the mine operation), we expect to grow the team from 30% to 50% in the next three to five years.” He added, “We are pleased to be building our new operation with support from many of the same employees who have worked in our drywall plant previously, who will now help operate and manage the agricultural gypsum business.”

US: Data from the United States Geological Survey (USGS) shows that national natural gypsum production was 20.5Mt in the US in 2020, down by 5% year-on-year from 21.5Mt in 2019. Synthetic gypsum production remained constant at 14.4Mt and calcined gypsum production fell by 2% to 17.2Mt from 17.5Mt. Crude gypsum exports fell by 13% to 32,200t from 37,000t and calcined gypsum exports fell by 21% to 89,400t from 113,000t.

Domestic calcined gypsum consumption totalled 17.2Mt, down by 1% from 17.4Mt. Calcined gypsum imports rose by 8% to 29,000Mt from 26,900Mt. Crude gypsum consumption also fell, by 3% to 40.9Mt from 42.0Mt. Crude gypsum imports fell by 2% to 6.03Mt from 6.14Mt. Mexico overtook Spain as the leading exporter of crude gypsum to the US in 2020.

US: GMS recorded consolidated net sales of US$2.47bn in the first nine months of its 2021 financial year that ended on 31 January 2021, up by 4% year-on-year from US$2.37bn in the corresponding period of 2019. Costs of sales fell by 4% to US$1.60bn from US$1.66bn. Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) fell slightly in the third quarter of the 2021 financial year to US$62.6m from US$62.7m in the third quarter of the 2020 financial year. Third-quarter wallboard volumes grew by under 1% and wallboard prices fell by 2%, resulting in a 1% sales decline.

President and chief executive officer John Turner said, “As a result of our team’s ability to seize opportunities and address challenges in dynamic market conditions, we delivered better than expected sales, higher net income and an improved adjusted EBITDA margin in the third quarter of the 2021 financial year. We continued to realise benefits from our on-going commitment to our strategic priorities: expanding share in core products, growing our complementary other products offering, platform expansion and improved productivity and profitability. During the quarter, we generated higher volume in wallboard, increased sales of complementary products and opened our Waco, Texas greenfield location.” He added, “We are excited to be celebrating GMS’s 50th anniversary in 2021, and I am confident that our focus on our strategic priorities and our team’s continued drive to execute will position us to generate value for our shareholders well into the future.”

US: International Paper’s net sales fell to US$20.6bn in 2020 from US$22.4bn in 2019, down by 8% year-on-year. Adjusted operating earnings dropped by 15% to US$3.06bn from US$3.61bn. Gypsum kraft paper volumes rose by 5% to 190,000t from 181,000t.

Chairman and chief executive officer Mark Sutton said, "Our performance while navigating through the impacts of the pandemic in 2020 reaffirms my admiration and appreciation for our employees and their on-going commitment to take care of each other and our customers. Above all, the health and safety of our employees remains our most important responsibility." He added, "In terms of results, International Paper delivered solid earnings and outstanding cash generation in the fourth quarter and full-year 2020. Our performance demonstrates the strength and resilience of our employees, our diverse customer base and our world-class manufacturing and supply chain capabilities. In 2020, we returned US$800m to shareholders and reduced debt by US$1.7bn to enhance our financial strength, while continuing to strengthen our packaging business through targeted investments. As we enter 2021, we anticipate continued strong demand for corrugated packaging and pulp and are poised to grow earnings as we take actions to build a better International Paper and accelerate value creation for our customers and shareholders."

Canada: US-based GMS has acquired DL Building Materials. The company distributes gypsum wallboard and other building products to western Quebec and eastern Ontario via two locations in Gatineau, Quebec, and Kingston, Ontario. Founder Richard Davis, general manager Shana Davis and the existing DL management will continue to lead the business. The acquired locations will continue to operate under the DL brand. No value for the acquisition has been disclosed.

US: Eagle Materials’ nine-month gypsum wallboard sales rose by 5% year-on-year to US$120m in the period ending on 31 December 2020 from US$114m. Volumes increased by 7% to 200Mm² from 187Mm². Group sales rose by 16% to US$1.28bn from US$1.10bn. Net earnings were US$273m, compared to a loss of US$1.54m in the first nine months of its 2020 financial year.

President and chief executive officer Michael Haack praised the performance in the quarter which ended on 31 December 2020, saying, “Despite continued pandemic-related economic uncertainty, our wallboard shipments were up by 9%, a third quarter record for American Gypsum. We continued to generate strong operating cash flow, which significantly improved our balance sheet and liquidity position providing us with increased financial flexibility.” He added, “As we continue to navigate the Covid-19 environment, I want to thank our team for their exceptional work under extraordinary circumstances, delivering strong results and keeping our strategic projects on schedule. We continue to closely monitor the disruptions caused by the Covid-19 pandemic and their possible impact on our business in current and future periods. We also continue to enforce strict health and safety protocols to protect our employees, customers and business partners, and we will continue to manage our cash flow prudently and protect our balance sheet.”

US: CPS Performance Materials has acquired Handy Chemical USA from Rain Industries. The two napthalene sulphonates producers are the only domestic suppliers of the dispersant to the gypsum wallboard industry in the entire North American region, according to Barney Heller, Hardt Chemical. The transaction concentrates napthalene sulphonates supply under single ownership in the region. The sale, which also included Rutgers Polymers, is valued at around US$87m.

Naphthalene sulphonates are produced using napthalene from the steel industry. Their use in gypsum wallboard production reduces the necessary water content, improving slurry stability, increasing line speed and strengthening the final product. Steel-producing countries such as China have previously exported napthalene sulphonates to the US. The market for gypsum wallboard in North America is estimated to be 45,000t/yr.

US: Eagle Materials recorded sales of US$875m in the six months between 1 April 2020 and 30 September 2020, the first half of its 2020 financial year, up by 16% year-on-year from US$756m in the first half of the 2019 financial year. Gypsum wallboard sales were 132Mm², up by 6% from 125Mm², while net earnings rose by 70% to US$192m from US$113m.

President and chief executive officer (CEO) Michael Haack said, “We are pleased to have delivered another quarter of record revenue and net earnings growth while further strengthening our balance sheet. Our end markets remain resilient as Covid-19-related uncertainty persists.” He added that, “the housing market continued its strong rebound” and that wallboard shipments rose by 6% in the second quarter. Good operating cash flow and a tax refund helped the company increase its earnings ‘significantly’ in the reporting period.

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.”