Gypsum industry news
US: A worker died in a hopper accident at PABCO Building Products’ Newark gypsum wallboard plant in California in late December 2022. The Alameda County Fire Department said that incident occurred when the worker became trapped in the hopper following an inspection of a blockage, according to CBS News. Workers at the plant and firefighters attempted to rescue him but were unsuccessful.
US: Total sales of gypsum boards products grew by 2% year-on-year to 1.99Bnm2 in the first nine months of 2022, from 1.94Bnm2 in the same period in 2021. Sales grew particularly fast in the South Atlantic and East South Central regions, but they fell in the Pacific region. Data from the United States Geological Survey (USGS) shows that the total of uncalcined gypsum used in the reporting period rose by 5% to 15.7Mt and the total of calcined gypsum used increased by 2% to 17.9Mt. The supply of mined crude gypsum fell by 6% to 15.9Mt, imports rose by 1% to 5.11Mt and the supply of synthetic gypsum remained stable at 9.75Mt. Spain became the biggest source of crude gypsum imports so far in 2022 followed by Canada, Mexico and Türkiye.
GMS’ net sales rise by 27% to US$2.79bn in first half
12 December 2022US: GMS’ net sales grew by 27% year-on-year to US$2.79bn in the half year to the end of October 2022 from US$2.19bn in the same period in 2021. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) grew by 34% to US$356m from US$265m. Sales of wallboard increased by 37% to US$1.11bn from US$0.80bn.
John C Turner, Jr, the president and chief executive officer of GMS, said, “A significant backlog of homes under construction, continued strength in multi-family, and improving levels of commercial activity helped drive exceptional results for our fiscal second quarter.” He continued, “As a result, with favourable pricing across our product categories, positive volume growth in wallboard, ceilings and complementary products and the benefit of our AMES acquisition, our team achieved another quarter of record levels of net sales, net income and adjusted EBITDA and generated significant levels of cash flow.”
Georgia-Pacific’s Sweetwater West gypsum wallboard plant installs waste heat recovery system
12 December 2022US: Georgia-Pacific’s Sweetwater West gypsum wallboard plant in Texas has completed an upgrade to its board-drying equipment. It has installed an Energy Optimization System (EOS), also known as a waste heat recovery unit, including new ducting, two new fans and a new exhaust stack, to an existing four-zone dryer. The newly upgraded system enables the collection of the waste exhaust from three zones of the plant and injects it into a fourth zone. This enables the burner in that zone to operate at a lower capacity. Around 2500t/yr of CO2 is saved in the process.
David Neal, vice president of Gypsum Operations for Georgia-Pacific said, “Advancements in energy savings and resource consumption reduction are goals toward which Georgia-Pacific works every single day.”
Georgia-Pacific started building a second wallboard plant next to its Sweetwater West plant in late 2020. The new 65Mm2/yr unit was scheduled to start production in late 2022.
Saint-Gobain appoints Steve Williams president of construction chemicals North Americas
21 October 2022North America: France-based Saint-Gobain has appointed Steve Williams president of its newly created construction chemicals North Americas unit. The unit combines GCP Applied Technology's speciality construction chemicals business and Chryso. Saint-Gobain acquired both GCP Applied Technology and Chryso in 2021.
Steve Williams previously worked as Chryso's North America president from 2019. Prior to this he was cement producer Titan America's sales and marketing director between 2012 and 2015. Williams holds a bachelor of science degree from Brigham Young University and a master’s in business administration (MBA) from the University of Florida.
US: The producer price index (PPI) of gypsum building materials ended September 2022 at a new all-time high of 351, up by 20% year-on-year from 292 in September 2021. The figure doubled decade-on-decade from 177 in September 2012. In the shorter term, it rose by 12% from 315 over the six-month period from March 2022, and by 3.8% from 338 over the three-month period from June 2022.
Eagle County Recycle supplies waste cardboard for gypsum wallboard backing production
17 October 2022US: The city council of Glenwood Springs in Colorado is aiming to implement single-haul refuse collection in order to eliminate the dumping of recyclables by 2023, local press has reported. A review of waste management practices found that the city has a recycling contamination rate of just 8%, yet 80% of waste sent to landfill consists of recyclable materials. Eagle County Recycle operates the city's waste management facility. The company says that it supplies waste cardboard for gypsum wallboard backing production in neighbouring Oklahoma.
Manager Jesse Masten said “The mill in Oklahoma that we send the cardboard to actually makes the paper backing for wallboard. Then, that paper backing is potentially sent back to the American Gypsum gypsum wallboard plant in Gypsum and used for the wallboard that they’re producing.”
CertainTeed recycles gypsum wallboard at Buchanan plant
14 October 2022US: Saint-Gobain subsidiary CertainTeed's Buchanan gypsum wallboard plant in New York has successfully participated in a gypsum wallboard recycling pilot. Together with contractors Structure Tone and Cooper Recycling, it processed 20t of gypsum from waste wallboard in its gypsum wallboard production.
CertainTeed interior products vice president and general manager Jay Bachmann said "For us to achieve our sustainability goals, we must change the way we think. By partnering with organisations in the community like Cooper Recycling and Structure Tone, we can get there faster." Bachmann continued, "As the only gypsum manufacturing plant in New York, our colleagues in Buchanan were able to create a true circular economy. From the creation of drywall products to construction, to processing scraps and back into drywall production, the material is continuously used and never leaves the state. This maximises our company's positive impact while working to minimise our environmental footprint. Our Buchanan plant has increased our capacity to reuse recycled material, and we look forward to growing this successful pilot into a long-term programme, while working with builders and recyclers across the state. Partnering with CertainTeed, New York builders have the opportunity to not only reduce waste at their job sites, but also gain Leadership in Energy and Environmental Design (LEED) points on their projects."
The Buchanan plant joins CertainTeed's units at Nashville in Arkansas and Palatka in Florida in supporting the company's circular economic efforts in the US. The Nashville plant commissioned a 65,000t/yr line in May 2022, while the Palatka plant increased the recycled content of its wallboard by 18,000t/yr in August 2022. The Palatka plant plans to install a new 100t/hr Rotochopper grinding unit to replace its existing trommel machine in its reclaim processing and screening operations.
US gypsum wallboard sales remain level in second quarter of 2022
02 September 2022US: Gypsum wallboard producers sold 1.32Bnm2 of gypsum wallboard in the first half of 2022, a similar amount to that in the first half of 2021. Total supply of gypsum fell by 2% to 20.3Mt from 20.8Mt. This was due to decline in mined gypsum supplies, although imports rose and synthetic gypsum supply remained the same.
Exports of gypsum wallboard fell slightly year-on-year to 18.6Mm2 throughout the second quarter of 2022, up by 10% year-on-year from 16.9Mm2. Canada received 95% of US gypsum wallboard exports. The US imported 22.9Mm2 of gypsum wallboard from eight countries. The figure corresponds to an increase of 10% year-on-year and 3% quarter-on-quarter. Mexico supplied 91% of US gypsum wallboard imports, followed by Canada with 8%.
Update on gypsum supplies, August 2022
31 August 2022Earlier this month the German Gypsum Association (GIPS) gave its approval for an inventory of natural gypsum deposits in Germany that was presented at the Conference of Economics Ministers that took place in early July 2022. The Federal Commission on Geosciences (BLA-GEO) had previously been given the job of taking an inventory of deposits and this was then put in front of the policy makers. The association’s stance was all about securing future supplies. In its view there will be no large-scale alternatives to natural gypsum supplies in the foreseeable future due to low recycling rates and falling production of flue gas desulfurisation (FGD) gypsum as coal power plants are shut down. So a list of where natural gypsum might be found is the start of conversations about which ones might be mined. Readers who are interested can download the inventory of German gypsum deposits here.
Security of supply of raw materials has been in the air since the end of the coronavirus lockdowns started to cause supply chain disruption around the world and the Russian invasion of Ukraine further exacerbated this and rocked energy markets. Part of the reaction to this new reality could be seen in a conference that the Federal Institute for Geosciences and Natural Resources (BGR) and the German Resource Research Institute (GERRI) ran, also in early July 2022. The state of German gypsum supplies was presented at this event too. The BGR-GERRI conference came up with a ten-point plan to strengthen the supply of raw material. Some of these recommendations were to grow domestic raw material extraction, expand recycling and the circular economy and keep supply chains closer internationally, ideally within Germany and Europe.
A focus on gypsum supplies isn’t restricted to Germany though. The issue arose in late July 2022 during an earnings call for US-based Eagle Materials’ first quarter results. These kinds of questions from analysts about supply of raw materials are common for a public company but it reinforces the general declining trend around the world of synthetic gypsum supplies. Craig Kessler, the chief financial officer of Eagle Materials, mentioned that a scarcity of synthetic gypsum might be creating cost pressures for other gypsum wallboard producers. Although he was quick to describe his company as a “natural gas or natural gypsum oriented business.” The wider picture in the US is that the ratio of natural to synthetic gypsum production has grown over the last decade. United States Geological Survey (USGS) data shows that it was 37% / 49% in 2011 compared to 53% / 32% in 2021, with the remainder imported in each year.
One more point to make here is that many of the new gypsum wallboard plant projects announced in the over the last few months have involved recycling in one form or another. For example, Siniat’s forthcoming wallboard plant in Bristol in the UK aims to achieve 30% post-consumer gypsum recycling. CertainTeed’s current upgrade plans for its Palatka plant in Florida are also recycling-based. Similarly, the subsidiary of Saint-Gobain also completed an upgrade in June 2022 to allow more recycling at its Nashville plant in Arkansas.
Finally, some of the thinking in Germany and elsewhere has been influenced by the current geopolitical situation in Ukraine. However, one potential consequence of prolonged disruption to European energy markets could be a delay to the decline of coal power plants as plant lifespans are elongated or even new ones built. This in turn could mean more synthetic gypsum supplies in Europe in the short to medium term. How all of this plays out in the placement of new gypsum wallboard plants in Europe over the next few years will be interesting to observe.