Gypsum industry news

Canada: CGC has entered into a definitive agreement to acquire steel framing components and gypsum wallboard trims producer Imperial Building Products (IBP). IBP operates five plants in Alberta, British Columbia, New Brunswick, Ontario and Quebec.

US: USG plans to make a US$4.5m expansion to a mill building at its Jacksonville gypsum wallboard plant in Florida. The plant also produces ceiling tiles and panels and flooring and roofing materials. The Jacksonville Business Journal newspaper has reported that the company has applied to city authorities for a permit for the expansion.

Canada: USG subsidiary CGC has begun the process of hiring employees to fill 100 roles at its Wheatland gypsum wallboard plant, scheduled to commence operations in 2026. The plant will produce CGC’s Sheetrock wallboard panels for the Western Canada market.

Plant manager Duane VanDuuren said “What will ultimately drive our success here is our people. The people we hire today will play a key role in creating the homes, workplaces and infrastructure of tomorrow in this region.”

Canada: CGC is holding a series of meetings between 5 November and 3 December 2024 in which to discuss the possible impacts of its upcoming Wheatland wallboard manufacturing plant in Alberta with the local community. The Canadian Press News has reported that 100 jobs will be created at the plant. Hiring will commence in early 2025, prior to the plant’s commissioning later in 2024.

Plant manager Duane Van Douren said "We are focused on making sure that the communities around us are well aware of who CGC is, and providing information about our plant and the build that is happening on our site right now, which started back in early spring 2024 and is progressing very quickly.”

CGC reportedly told the Toronto Sun newspaper that current anti-dumping measures have reduced the availability of gypsum wallboard in Canada by 65Mm² cumulatively since 2016. As a result, extant gypsum wallboard stocks are sufficient only to build 220,000 homes.

Canada: USG subsidiary CGC has begun construction of its upcoming Wheatland gypsum wallboard plant in Alberta. The plant will be equipped with a captive solar power plant, and designed for maximum energy and water efficiency.

USG CEO Chris Griffin said "Today's groundbreaking marks a significant win for CGC operations in Western Canada and for our ambitious growth plans in Canada more broadly. This project underscores our commitment to being the best wallboard manufacturer to do business with, particularly as builders, governments and communities across Alberta and the West work to expand housing starts, accessibility and affordability."

Georgia-Pacific officially opened its new gypsum wallboard plant at Sweetwater in Texas earlier this month. The US$325m project is situated next to the company’s existing plant at the site, Sweetwater West, on the other side of a road. Canada-based Gyptech said in 2021 that it was supplying the equipment for the new high-speed line at the site.

When Georgia-Pacific first announced the new project in 2020, it mentioned that it would be able to keep its logistics costs low, use raw gypsum reserves and the existing workforce. Despite this, the plant has still created over 100 new jobs. The company also said that it anticipated closing its 60Mm²/yr Quanah plant, also in Texas, depending upon market conditions. This came to pass in March 2023. Altogether, both plants at Sweetwater will have a production capacity of around 93Mm²/yr. This implies that the new plant has a production capacity of around 60Mm²/yr, given that the existing plant’s capacity is 30Mm²/yr. Funnily enough this is the same as the Quanah plant.

The new plant at Sweetwater may be a sign that the US wallboard market is picking up again. Georgia-Pacific has invested some serious money and it is targeting Texas, a leading area for construction nationally. However, it does come with a few caveats. Firstly, the new plant at Sweetwater is replacing existing capacity at Quanah. Secondly, it is using some of the advantages of the existing plant such as its trucks and its proximity to its customers. This suggests that the company may be wary of building a new plant in a greenfield location with all the potential risks that might involve.

US wallboard sales have regularly peaked and troughed over the decades, like many other commodity markets, as demand and production capacity race each other. Sales of wallboard peaked around the year 2000 and then again in the mid 2000s before tailing off following the 2007 recession. They have been recovering ever since and started to get close to the levels seen in the first half of the 2000s in 2022 when the United States Geological Survey (USGS) reported wallboard sales of 2.6Bnm².

Generally, the last tranche of new wallboard plants in the US were built or approved in the late 2000s before the financial downturn. These new sites included CertainTeed’s Roxboro plant in North Carolina and the Moundsville plant in West Virginia, Gold Bond Building Products’ Mount Holly plant in North Carolina and American Gypsum’s Georgetown plant in South Carolina. From this point though various plants were either closed or mothballed. Some of the latter have been restarted as the market slowly recovered. New plant projects in the 2010s tended to be upgrades or replacements. One example of this was USG’s plan to rebuild a production line at its Jacksonville plant in Florida, which was announced in late 2017 before Knauf took over the company in 2018. Another was National Gypsum’s scheme to reopen its Wilmington plant in North Carolina in 2019. At the same time in the 2010s there were a number of mergers and acquisitions including Lafarge’s sale of its gypsum business in North America in 2013, Knauf’s takeover of USG in 2019 and Saint-Gobain’s acquisition of Continental Building Products in 2020.

When Georgia-Pacific started building the new plant at Sweetwater in 2020 this marked the start of a new phase of US wallboard plant projects. American Gypsum announced plans for an upgrade to its Albuquerque gypsum wallboard plant in 2021, Gold Bond Building Products started building its long-delayed Eloy plant in Arizona in 2022 and it said it was spending US$90m on an upgrade to its Mount Holly gypsum wallboard plant in North Carolina in 2023, and CertainTeed revealed it wanted to build a second production line at its Palatka gypsum wallboard plant in Florida also in 2023.

Congratulations are due to Georgia-Pacific for the achievement at Sweetwater. Optimism for the US market in general may also be in order given the slow but steady stream of projects that have been announced and completed since 2020. The next step, when a company builds a new wallboard plant at a greenfield site in the US, looks set to happen when Gold Bond Building Products completes its Eloy plant.

US: USG has announced a strategic partnership with construction robotics company Canvas. The agreement intends to bring together USG’s expertise in building materials and Canvas’ experience in on-site robotics, notably in gypsum wallboard finishing. The companies hope to address industry issues such as labour shortages, schedule and budget overruns, quality inconsistencies and productivity and safety issues through their collaboration.

Canvas introduced its wallboard finishing machine to contractors in 2022. It can apply both level 5 and level 4 wallboard finishes. In contrast to manual application, the robot applies a single layer of joint compound over wet tape and telescopes to around 4.5m to do the vast majority of the work at height. It also reduces repetitive motion injuries and captures the majority of the dust produced by sanding.

Jonathan Hughes, USG’s Vice President of Estimating at Daley’s Drywall & Taping, said “As an early adopter of the Canvas machine, we see three clear benefits of the system: 1) it makes work safer for our tapers by eliminating dangerous dust, minimising repetitive motion injuries and reducing accidental falls; 2) the finish is amazing and consistent; and 3) the machine makes the work much faster, improving our productivity metrics and making us much more competitive.”

In March 2023 Canvas said that construction equipment manufacturer, Hilti, would now produce its robotic machines.

Canada: USG Corporation subsidiary Canadian Gypsum Company (CGC) plants to restart operations at its 2Mt/yr-capacity Little Narrows gypsum quarry in Nova Scotia. Construction Canada News has reported that the company expects the commissioning to take until early-mid 2026. Work includes the construction of a new crusher and conveyor systems, as well as a dock and ship loader, and the purchase of new mining equipment, including drills, loaders, excavators and haul trucks. When operational, the quarry will ship gypsum to markets along the east coast of North America, including Montréal, Québec.

USG Corporation CEO Chris Griffin said “This investment will cement our long-term commitment to the Canadian market and our dedication to providing the best experience for our customers across North America. CGC has a proud history of operations at the Little Narrows gypsum quarry, which was active from 1954 to 2016. We are deeply connected to Little Narrows and Cape Breton, and thrilled to return to drive economic growth and support the local community as a neighbour and partner.”

US: USG says that the Science Based Targets initiative (SBTi) has approved its 2030 emission reduction targets. The subsidiary of Germany-based Knauf said that it was one of just a few companies in the US building-product sector that has signed onto SBTi. The company has agreed to reduce its carbon emissions from manufacturing (Scope 1 and 2) at the WB-2°C (well below 2°C) level, which equates to a 30% reduction in greenhouse gas emissions by 2030. USG has also committed to reducing carbon emissions associated with purchased raw materials and services, transportation and waste generation (Scope 3) by 15% within the same period.

US: 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.