Gypsum industry news

US: GMS’s consolidates sales were US$2.19bn in the first half of 2021, up by 36% year-on-year from US$1.62bn in the first half of 2020. Its gypsum wallboard sales constituted 37% of its total sales at US$805m, up by 22% from US$659m. The company’s earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 70% to US$265m from US$156m, while its gross profit rose by 35% to US$708m from US$526m.

President and chief executive officer John Turner said “Net sales again topped US$1bn, with record levels of net income and adjusted EBITDA. Supply chain dynamics have led to all-time high levels of product inflation, which have been the principal driver of both sales growth and incremental profitability. He added “That said, our relentless focus on customer service and the solid execution of our strategic priorities have enabled us to capture the benefits of both this heightened product inflation across our portfolio as well as continued strength in the residential market.”

Turner concluded “While commercial activity remains well below pre-Covid levels, we were pleased to see certain commercial projects that were previously on hold receive approvals to move forward. With other positive signs also emerging, we believe that we are very well positioned as we head into the next calendar year to benefit from an eventual commercial construction recovery.”

US: Saint-Gobain plans to invest a total of US$400m in expansions to its operations including gypsum operations at four US sites. The group says that the sites are located in California and the Southeastern US. It said that the new capacities will apply the most advanced available technologies for industrial performance, safety and sustainability. This will reduce waste by 50% and CO2 emissions by 20% from current levels, according to the company.

Saint-Gobain said it hopes that the investments will strengthen its leadership in North America and accelerate its growth in the region by enriching its comprehensive range of solutions for light and sustainable construction.

US: Eagle Materials’ consolidated sales were US$985m in the first half of the 2022 financial year, up by 13% year-on-year from US$875m in the first half of the 2021 financial year. Its gross profit rose by 25% to US$282m from US$225m. The group recorded gypsum wallboard sales of US$339m, up by 30% from US$261m in 2020.

US: The government of DeSoto County in Mississippi has approved new rules banning the establishment of new phosphogypsum stacks in the county. The Port North Sun newspaper has reported that county commissioners unanimously approved the ordinance at a meeting on 26 October 2021.

Phosphate and potash producer Mosaic owns 9310ha of the county’s land area, of which it is seeking mining licences to cover 5670ha.

Commissioner Elton Langford described the ban as ‘preventative.’ According to the county’s Public Information Office, there were no pending gypsum stack licence applications in DeSoto County on 26 October 2021.

US: Cameron Ashley Building Products has opened its new Denver, Colorado, distribution centre, which will stock gypsum wallboard.

Manager Chase White said “I’m excited to join the Cameron Ashley team in the Denver market.” He added “We’re ready to hit the ground running, providing top quality products to a new group of customers.”

US: American Gypsum has received a licence from the Eagle County Board of Commissioners for the expansion of its 336ha Eagle County opencast gypsum mine near Gypsum, Colorado by 12% to 376ha. The Vail Daily newspaper has reported that the expansion will secure the company’s nearby gypsum wallboard plant’s raw material supply until 2046.

Plant manager Chuck Zaruba said “As the state continues to grow, we are an essential product for that to occur.” He added that the producer’s local operations provide more than 100 year-round jobs.

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.”

US: The US Geological Survey (USGS) has reported a 13% year-on-year increase in national calcined gypsum production in the first half of 2021 to 9.57Mt from 8.5Mt in the first half of 2020. The country’s gypsum mines produced 10.1Mt of natural gypsum, down by 3.8% from 10.48Mt in 2021. Synthetic gypsum production remained in line with first-half 2020 levels at 7.2Mt. In total, the US exported 17,900t of natural and synthetic gypsum, up by 8.2% from 16,600t. It exported 49,000t of calcined gypsum, up by 10% from 44,500t.

In the second quarter of 2021, the US exported gypsum wallboard to 29 other countries. Volumes totalled 19Mm2, up by 40% year-on-year. Canada accounted for 95% of gypsum wallboard exports. The US imported 20.9Mm2 of gypsum wallboard during the quarter, up by 54% year-on-year. All imports came from Mexico and Canada, of which Mexico supplied 16.7Mm2 (85%).

US: L&W Supply has agreed to buy the eastern gypsum distribution operations of Builders FirstSource for an undisclosed sum. The transaction is subject to approval by competition bodies and is expected to complete in the third quarter of 2021.

“The Eastern Gypsum business acquisition supports L&W Supply’s overall growth strategy. With the additional locations in the northeast and southeast, we solidify our position in these markets and strengthen our partnerships with area contractors,” said Dan Piché, L&W Supply’s president.

Builders FirstSource originally entered into the gypsum business through the acquisition of Probuild in mid-2015. Its eastern gypsum operations consist of 21 facilities located throughout the northeast and southeast US which generated sales of approximately US$160m in 2020. L&W Supply is a distributor for gypsum wallboard, ceilings, steel framing and other building materials used by commercial and residential specialty contractors.

US: Eagle Materials’ gypsum wallboard sales grew by 28% year-on-year to US$166m in the first quarter of its financial year to 30 June 2021 from US$130m in the same period in 2020. Wallboard sales volumes rose by 8% to 70.9Mm² from 65.4Mm². Wallboard earnings increased by 53% to US$63.3m from US$41.3m. The building materials producer attributed its increased revenue to higher sales and prices.

“These results reflect strong market demand in both of our major business lines and exceptional operational execution by our team. Our wallboard business continues to benefit from robust residential construction activity across our markets,” said president and chief executive officer Michael Haack.