Gypsum industry news

US: The Economic Development Department of the state of New Mexico has granted American Gypsum US$0.5m-worth of funding for an upgrade to its Albuquerque gypsum wallboard plant in Bernalillo County. The grant will facilitate equipment and infrastructure modernisation. The department says that the producer will invest US$22m in the state between 1 July 2021 and 31 December 2022. It employs 140 locals including Pueblo Indian people, in whose lands its gypsum mine is situated.

State Governor Lujan Grisham said "This investment means New Mexico jobs will stay in New Mexico. I'm glad the state could partner with American Gypsum and ensure long-term viability of their operations, and stabilise a New Mexico employer."

US: Pacific Coast Building Products gypsum wallboard subsidiary PABCO Building Products has appointed Phil Bonnell as its new president from 1 July 2021. Bonnell began working at Pacific Coast Building Products in 2003 as Basalite Northwest and Canada operations general manager. He joined PABCO Building Products in 2017 as gypsum and paper senior vice president, and also took over responsibility of the company’s roofing operations in April 2021. Bonnell has a degree from Colorado State University and an MBA from Pepperdine University.

US: The United States Geological Survey’s (USGS) Gypsum in the First Quarter 2021 report has shown a 2% year-on-year increase in sales of gypsum-based board products to 624Mm² in the first quarter of 2021 from 609Mm² in the same period in 2020. Calcined gypsum used by board producers rose by 3% to 5.6Mt from 5.5Mt. Natural gypsum production fell by 4% year-on-year to 5.0Mt from 5.2Mt, synthetic gypsum production remained level at 3.6Mt and gypsum imports rose by 14% to 1.6Mt from 1.4Mt.

US: GMS has completed its acquisition of interior building products distributor Westside Building Material. The group says that it funded the US$135m deal with cash-on-hand and available borrowings on its revolving credit facility.

President and chief executive officer John Turner said, “Building on the momentum of our very solid fourth quarter 2021 earnings report, we are pleased to announce the successful completion of this transaction and welcome the Westside team to GMS. Westside significantly increases our reach in several major California markets and represents our first foray into the Las Vegas market. Expanding our geographic platform through accretive acquisitions such as this one continues to be a vital component of our strategic growth priorities.”

US: Eagle Materials recorded consolidated net sales of US$1.62bn in its 2021 financial year, up by 16% year-on-year from US$1.40bn. Its net earnings quadrupled to US$339m from US$70.9m. Its gypsum wallboard sales volumes increased by 6% to 265Mm² from 265Mm². The building materials producer increased its wallboard prices during the second half of the year due to improved demand outlook for single-family construction activity in the US and increasing demand for our products.

President and chief executive officer Michael Haack said, “Across all measures, fiscal 2021 was extraordinary for Eagle as we met and overcame challenges that were inconceivable just a year earlier. The resilience of our business model, our financial discipline and our team’s operational and strategic execution allowed us to deliver record financial results, integrate the largest acquisition in the company’s history and further streamline our business portfolio by divesting several non-core businesses, all while achieving industry leading safety performance. Our strong operating cash flow enabled us to reduce leverage to under 1.5 times net debt-to-earnings before interest taxation depreciation and amortisation (EBITDA), providing us with significant liquidity and increased financial flexibility.” He continued “As we begin our new fiscal year, Eagle is well-positioned, both geographically and financially, with ample raw material reserves to capitalise on the underlying demand fundamentals that are expected to support steady and sustainable construction activity growth over the near and long-term. We remain confident in Eagle’s prospects for continued growth and sustainable value creation for all shareholders.”

US: GMS has agreed to acquire gypsum wallboard retailer Westside Building Material for US$135m. The trader operates nine sites across California and Nevada. The producer says that the company’s current management will continue to lead the business.

President and chief executive officer John Turner said, “The acquisition of Westside reflects the continued execution of our growth strategy and brings together two leading organisations with shared cultures and entrepreneurial values. Westside’s differentiated platform provides a unique opportunity for GMS to expand our reach and capture significant growth opportunities in strategically important West Coast markets.” He added “We believe that through this combination we will create new opportunities to deliver world-class service to our customers and value to our stakeholders for years to come.”

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.”