Gypsum industry news

Oman: The Ministry of Municipalities and Regional Resources says that commercial and industrial activities including gypsum manufacturing and installation can re-start operating following a coronavirus-related lockdown. The latest group of activities cleared to reopen covers over 50 commercial and industrial activities, according to the Times of Oman newspaper. The government initially implemented a lockdown in Muscat in early April 2020.

France: Saint-Gobain says that its overall group activity fell to 60% of 2019 levels in April 2020 due to the effects of the coronavirus pandemic. Since then its level of activity surpassed 80% ‘at comparable working days, with large variations by market and country,’ according to Regulatory News Service. The group expects a ‘challenging’ second quarter 2020 before a recovery in the second half of the year. It continues to preserve cash and reduce costs.

In Europe the group reported that, by the end of May 2020, Nordic countries had almost reached 2019 levels. Germany and Eastern Europe were still seeing activity levels below those of 2019. The UK has seen activity levels progress by around 10%/week since a low point in mid-April 2020 when activity were at a ‘virtual standstill’, reaching around 70% of 2019 levels in the last week of May 2020.

In the group’s Middle East & Africa region activity levels surpassed 50% of 2019 levels since a low in mid-April 2020. In France, activity in distribution came close to the 2019 level in the last week of May 2020, but with big differences by region and brand. Spain and Italy are picking up gradually, but remain below the average level of the region. The Netherlands remains close to a normal level of activity, while the Middle East and Africa remain impacted to varying degrees.

North America has reported a ‘contrasting situation state by state,’ but has shown improvement since the low point of mid-April 2020. Activity in May 2020 moved closer to 2019 levels due to ‘significant’ volumes in exterior solutions and a rebound in gypsum volumes. In Latin America, despite the health situation remaining difficult, activity is picking up week after week, from 40% in mid-April 2020 to around 80% in May 2020 with a ramp-up in Brazil.

In Asia-Pacific sales have now reached 2019 levels following the gradual restart of all its production sites in China in March 2020. India remains ‘severely’ disrupted with the restart dependent on the relaxing of confinement measures. The situation is varied across South-East Asia with a rebound in Vietnam where activity has surpassed 2019 levels, but disruptions still relatively significant in Thailand and neighbouring countries.

UK: British Gypsum says its wallboard capacity is at ‘approximately’ 80% of pre-coronavirus pandemic levels following the scaling up of its ‘Covid-19 safe’ operations and distribution plan. Managing director Matt Pullen said that the company’s plaster capacity was already at 80% and it was increasing supply volumes to merchant and distributor customers. It is continuing to allocate wallboard and plaster at lower levels than usual as it resumes normal production. It has also restarted taking new orders for its plasterboard recycling service. The subsidiary of Saint-Gobain shut down its non-essential operations in early April 2020 due to the coronavirus pandemic.

US: Gypsum wallboard distributor Foundation Building Materials reports that sales of wallboard fell slightly to US$202m in the first quarter of 2020. This was attributed to disruption caused by the coronavirus outbreak. Overall its sales across all business lines rose, in part due to an additional business day in the reporting quarter compared to the same period in 2019. It noted lower sales growth in states with stronger lockdown measures, including Washington, California, Michigan, New Jersey and Pennsylvania. Overall sales in April 2020 were reported as being 20% down year-on-year.

US: Johns Manville’s (JM) filtration products plant in Richland, Mississippi started production of nonwoven filtration media for use in face masks in April 2020. JM’s Engineered Products business decided to build on its existing capabilities and help meet market demand due to shortages in the US and Europe in relation to the coronavirus pandemic.

“Johns Manville is in a unique position to serve a market that is fulfilling a great need across the world,” said Mary Rhinehart, president and chief executive officer (CEO) of JM. “Our high-performance nonwoven material is designed to provide high levels of filtration for various types of face masks. We are proud of our teams in Richland and throughout JM for finding new ways to support the communities and people who are on the front lines of this global crisis.”

JM says its media meets or exceeds Level 1 BFE 95% (Bacterial Filtration Efficiency) and VFE (Viral Filtration Efficiency) requirements. These results were verified by a Food and Drug Administration (FDA) registered laboratory.

France: Saint-Gobain’s sales in the first quarter of 2020 fell by 9.8% year-on-year, to Euro9.36bn from Euro10.4bn. Sales fell in all regions except the Americas, where they rose by 4.8% to Euro1.37bn from Euro1.31bn. The company said that coronavirus decreased demand in Asian and the Pacific in February 2020 and Southern Europe, the Middle East and Africa in March 2020. Northern European sales were only affected in the UK in the last week of March 2020. The company predicted that demand would increase globally in the second quarter of 2020 given that construction has been deemed an essential industry in most countries.

Spain: France-based Saint-Gobain subsidiary Saint-Gobain Placo has donated plastic linings produced at its Quinto de Ebro laminated gypsum wallboard plant in Zaragoza to use in the production of personal protective equipment for medical professionals caring for coronavirus patients and those vulnerable to the virus. These include home-helpers who attend 250 elderly people in the Ribera Baja del Ebro region.

On 23 April 2020 Spain’s confirmed coronavirus case count was 213,024, with 22,157 deaths.

Armenia: The government has included cement production under a list of permitted economic activities able to resume from 16 April 2020. Azbarez News has reported that the present lockdown is scheduled to continue until 15 May 2020.

Australia: Boral has reported that, in most jurisdictions, its activities are currently considered to be within the critical infrastructure and construction sectors that are permitted and encouraged to continue as essential businesses. This includes Boral’s US Fly Ash business, which provides an essential service to the energy sector. In some areas however, particularly in North America and Asia, more stringent mandates and restrictions have resulted in temporary closures of several operations.

In addition, demand is declining in most markets and is expected to continue to decline, particularly in residential construction markets where the pipeline of work is substantially reducing in all geographies.

As a result, where it has sufficient inventory levels to supply customers, production curtailments are planned and are now taking place, including shift reductions and temporary plant closures. Boral says that these actions will help to conserve cash and minimise any unintended inventory build-up.

Boral is supporting employees impacted by temporary closures with access to paid leave, unpaid leave, flexible and remote working arrangements (where possible) and assistance with accessing relevant government support.

Belgium: Etex’s net profit was Euro176m in 2019, a rise of 26% year-on-year from Euro140m in 2019. Sales crept up by 1.5% to Euro2.94bn from Euro2.90bn. Etex chief executive officer (CEO) Paul Van Oyen called 2019 an ‘outstanding year’ in which Etex ‘significantly increased its plasterboard volumes, driven by a strong market in several countries’ and reduced its debt by 43% to Euro331m, its lowest level since 2011. This was thanks to the sale of its UK and Portuguese tile roofing businesses.

Van Oyen’s announcement was overshadowed by the current circumstances surrounding the COVID-19 outbreak. “Today, my thoughts mainly go to all of our colleagues and their families worldwide, especially the ones who have been infected with the coronavirus,” he said. “Etex will not change its identity as a result of this crisis: our priority is and will always be the health and safety of our colleagues and stakeholders worldwide. We are determined keeping our business running, and to continue to Inspire ways of living.” Van Oyen also paid his respects to those within the company who have died of coronavirus.