Gypsum industry news

Belgium: Etex recorded first-half consolidated sales of Euro1.45bn in 2021, up by 18% year-on-year from Euro1.23bn in the first half of 2020. Its recurring earnings before interest, taxation, depreciation and amortisation (REBITDA) rose by 50% to Euro308m from Euro206m. The group increased its profit for the period by 98% to Euro139m from Euro70m. Its building performance division’s sales increased by 29% on a like-for-like basis to Euro1.03bn. Its residential segment recorded particular growth due to ‘dynamic’ renovation activities. All of the division’s operating regions performed well, with all product ranges progressing year-on-year in sales, volumes and margins terms.

Chief executive officer Paul Van Oyen said, “Although the on-going Covid-19 pandemic was still heavily impacting people’s lives, as well as the global economy, in the first half of 2021, the consequences for Etex cannot be compared to what we have experienced last year. The company benefitted from a very dynamic market, especially the home repair and improvement activities, as well as from the fact that our operations were hardly halted - whereas we suffered from several weeks of plant lockdowns in different countries during the second quarter of 2020. Moreover, the ambitious cost control measures we rapidly put in place last year continued to bear fruit in 2021” He added “Overall, we maintained our focus on local decision-making, enabling our leaders on the field to take the right steps and inspiring the trust of our people. More importantly, we never lost sight of our ‘Inspiring ways of living’ purpose in the face of many challenges. All of this while keeping our relentless dedication to the safety and well-being of our people, which is and will always be our number one priority.”

Romania: Etex Building Performance has announced plans to build a Euro6m sludge drying unit at Oltenia Energy Complex’s (OEC) Rovinari coal-fired power plant in Oltenia. The subsidiary of Belgium-based Etex will derive synthetic gypsum from the unit for use at its Turceni wallboard plant, according to Economica. It already operates a similar sludge drying unit at OEC’s Turceni coal-fired power plant.

Industrial director Gheorghe Budrugeac said "We count on the fact that both the OEC and the local and central authorities will understand the importance of the investment for the local community and the positive impact on the environment, therefore we expect no delays in the approval process."

Belgium: Etex has appointed Bernard Delvaux as its chief executive officer (CEO) with effect from 1 January 2022. He will succeed Paul Van Oyen when he retires at the end of 2021. Delvaux has held senior executive roles for over 30 years in large groups such as bpost, Proximus and Sonaca. Van Oyen joined Etex in 1990 as a laboratory and project manager active in the research and development department. He became the CEO of Etex on 2015.

Ireland: Belgium-based Etex has acquired multi-disciplinary engineering consultancy Evolusion Innovation. The group says that the new subsidiary will join its New Ways division. It said that the acquisition is ‘another step’ in the execution of its ambition to become a global leader in offsite construction.

Evolusion Innovation develops and certifies construction materials and components and high-rise building systems. It employs 40 people at its Cork headquarters in County Cork.

Belgium: Etex’s full-year consolidated net sales were Euro2.62bn, down by 11% year-on-year from Euro2.94bn. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 16% to Euro468m from Euro557m. The group called its bottom-line performance ‘stunning.’ It reduced its debt by 95% to Euro15.0m from Euro331m.

The coronavirus outbreak impacted performance across all regions. At the peak of the outbreak’s impact on the group’s operations in April 2020, it had suspended operations at 48% of its facilities globally. In Europe, sales increased year-on-year in Germany and Romania. This, a dynamic plasterboard market in the Netherlands and ‘good’ group performance in Eastern Europe failed to offset the regional decline. The impact was notably severe in the Benelux countries and the UK in the second quarter of 2020. In Latin America, sales were comparable with 2019 levels on a like-for-like basis. Asian and African sales experienced a decline, partly offset by the opening of new markets in Australia prior to the acquisition of Knauf Plasterboard in February 2021.

Chief executive officer Paul Van Oyen and chair Jean-Louis de Cartier de Marchienne said, “Although our order book for the first half of 2021 is positive, we expect our revenue to be affected by Covid-19-related volatility this year and the next. Despite this forecast, the performance culture that we have invested in over the last year is firmly in place and delivering results. In addition, our strategic acceleration of sustainability and customer experience initiatives will continue to bear fruit moving forward.” They added, “The acquisitions we made in 2020 will fuel our future growth in high-potential markets. In 2021, we will continue to identify new opportunities, as we are currently in an excellent position to make significant additional investments.”

Romania: Siniat Romania increased its turnover by 6% year-on-year to Euro51.3m in 2020. It attributed this to a growing residential sector, higher demand for logistics spaces and the need for adapted office due to the coronavirus pandemic, according to See News. The subsidiary of Belgium-based Etex Group expects turnover to rise by 5 – 10% to around Euro56m in 2021.

"The construction market in Southeast Europe was one of the most resilient economic segments in 2020. The shock caused by the spring lockdown was followed by a rapid recovery and by an increase in the second half of the year," said Etex Building Performance commercial director Andrei Popa.

The company operates two gypsum wallboard plants in the country and it holds an estimated market share of over 25%. Almost half of the output of the two plants is exported to 11 countries in Southeast Europe.

France: Belgium-based Etex has acquired a majority stake in offsite housing construction company e-Loft. The company employs 180 people and makes products in modular residential and other custom-designed buildings using its ‘3D wood’ building technology. It will join the group’s New Ways division. The division develops sustainable, industrialised and modular construction solutions.

Etex chief executive officer Paul Van Oyen said, “We are very pleased to welcome e-Loft into our New Ways division and enthusiastic about the growth opportunities that this strategic acquisition offers to both of our companies. The addition of e-Loft to our global team of experienced lightweight and modular construction businesses further reinforces our ambition to become a leader in future-focussed, sustainable building solutions.”

Australia: Belgium-based Etex has agreed to buy Knauf Australia from Germany-based Knauf for an undisclosed sum. The company’s portfolio consists of three gypsum wallboard plants, located in Altona, Victoria, Matraville, New South Wales and Bundaberg, Queensland, and it employs over 300 people. The Australian newspaper has reported that Etex plans to treat the newly acquired asset as a going concern, in which it will retain existing staff, including management. The acquisition is subject to customary closing conditions, with finalisation expected in early 2021.

Paul Van Oyen, the chief executive officer (CEO) of Etex said, “This transaction is a major milestone in the execution of our strategic roadmap initiated two years ago. Since then, we progressively exited non-core activities, such as the clay and concrete roof tiles business, that no longer fits with our portfolio. Our strategy is focused on being a leader in lightweight solutions and modular construction, offering sustainable, cost-effective, high-performing and inspiring building solutions to our customers. Plasterboards play a key role in such solutions, and we are looking forward to collaborating closely with our new colleagues to open up new opportunities for growth.”

Etex previously acquired Lafarge’s European and South American gypsum wallboard assets at the same time as Knauf acquired the entity now known as Knauf Australia from Lafarge in 2011. Knauf maintains a presence in the Australian gypsum wallboard sector via its partnership with Boral, concluded in October 2020.

UK: Belgium-based Etex has announced its acquisition of FSi Limited, a leading UK supplier of intumescent sealants and ablative-coated stonewool batts, which generated an operating profit of Euro22.0m in 2019. The new subsidiary produces its firestopping materials in Cowdenbeath, Fife, West Thurrock, Essex and Measham, Leicestershire, where it is headquartered.

The group said, “The move strengthens Etex’s ability to provide comprehensive lightweight construction solutions for clients through its building performance division, in particular complementing its Siniat and Promat brands, which provide plasterboard and passive fire protection systems respectively. The acquisition also supports Etex’s original equipment manufacturer (OEM) solutions for industrial clients through its industry division.”

Romania: Etex has proposed investing Euro6m at the Rovinari thermal power plant run by Oltenia Energy in order to secure supplies of flue gas desulphurisation (FGD) gypsum for its Turceni wallboard plant. It wants to build a desulphurisation unit at the power plant following falling energy production at the Turceni power plant, according to Economica. Etex is currently in negotiation with Oltenia Energy over the proposal.