Gypsum industry news

Canada: US-based GMS has acquired DL Building Materials. The company distributes gypsum wallboard and other building products to western Quebec and eastern Ontario via two locations in Gatineau, Quebec, and Kingston, Ontario. Founder Richard Davis, general manager Shana Davis and the existing DL management will continue to lead the business. The acquired locations will continue to operate under the DL brand. No value for the acquisition has been disclosed.

France: Saint-Gobain’s says its sales for June 2020 rose by 3.7% on a like-for-like basis as markets recovered from the effects of the coronavirus pandemic. Its sales fell by 12.3% year-on-year on a like-for-like basis to Euro17.8bn in the first half of 2020 from Euro21.7bn in the same period in 2019. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) decreased by 32.4% to Euro1.64bn from Euro2.42bn.

“In a macroeconomic and health environment which remains affected by uncertainties, our earnings growth in June and outlook for the third quarter suggest that our operating income for second-half 2020 will improve significantly on first-half 2020,” said Pierre-André de Chalendar, chairman and chief executive officer (CEO) of Saint-Gobain. He added that the group’s portfolio of products, including those in energy-efficiency and renovation markets, positioned it to benefit from national and European stimulus plans supporting energy saving initiatives.

The group noted a 19.2% year-on-year sales decrease in the second quarter of 2020 due to the coronavirus pandemic, with very different situations between countries and markets. Most of its business segments reported growth in June 2020 with the exception of Asia-Pacific, where the Indian market held the division back. Gypsum sales helped deliver ‘robust growth’ in the US and Canada in June 2020. Strong growth in gypsum was reported in Brazil for the first half of 2020. Chinese sales in gypsum benefitted in the second quarter of 2020 from a new plaster plant, which originally opened in 2019, reaching full production capacity. The group’s High Performance Solutions division reported positive trends from its external thermal insulation solutions (ETICS) products in the second quarter of 2020.

Canada: CertainTeed Canada plans to close its McAdam gypsum wallboard plant in New Brunswick by the end of February 2021. It said that the decision was made after ‘an extensive review of our business,’ according to the Canadian Broadcasting Corporation (CBC). 50 employees are expected to lose their jobs, although the subsidiary of France-based Saint-Gobain says it will try to find roles at other CertainTeed and Saint-Gobain plants for them.
Production will stop at the unit at the end of August 2020. The plant will then continue using inventory until February 2021 with a skeleton staff. The plant was reported to be operating at 22 – 25% production capacity. The closure has been blamed on a decline for wallboard products in the Atlantic Canada region and elsewhere.

Canada: Red Moon Resources says it has restarted production for the season at its Ace mine in western Newfoundland. Overall production at the site in 2020 is expected to be less than in 2019 due to disruption to both operations and markets caused by coronavirus. The situation is expected to stabalise in 2021. The company mined 0.16Mt of gypsum and anhydrite from the site in 2019.

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.

Canada: Cabot Gypsum is investing just under US$5m on upgrade to its Port Tupper gypsum wallboard plant in Nova Scotia. Company president Marcel Girouard said demand for rented residential properties was driving the expansion, according to the Canadian Broadcasting Corporation. The project is expected to create up to 40 new jobs.

The wallboard producer has benefited from the building materials distribution network operated by its parent company, Acadian Drywall. It acquired the Port Tupper plant in 2011 following its closure in 2008.

Canada: Red Moon Resources says it has shipped over 0.13Mt of gypsum and anhydrite from its Ace mine in western Newfoundland since May 2019. Production is scheduled to continue into late October 2019 and the company is expecting for total production to exceed 0.15Mt in 2019. The company is working with Vinland Materials, a related company, to undertake contract mining operations and secure sales agreements for gypsum and anhydrite.

“We have successfully opened up the Ace mine and will continue to work towards a larger operation,” said Patrick J Laracy, President of Red Moon.
. “We have engaged some of the best operational resources in the area to make the mine a success and ensure its viability. The economic impact in the immediate area is significant with an estimated 45 people employed on a seasonal basis in mining, trucking, port facility, marketing, shipping and supervision. This is in addition to the utilisation of specific services such as drilling and blasting.”

Red Moon uses a deep-water port approximately 10km from the mine to ship the gypsum. The quarry site covers 12 hectares and has the potential for a 10 year mining life at an average production rate of 350,000t/yr. The company says that if it can access markets requiring production rates beyond the Ace mine capacity, the company is prepared to develop other existing gypsum deposits located on its mineral licences, which cover approximately 700 hectares of the historic Flat Bay gypsum mines.

US: GMS’s half-year wallboard sales have risen due to its acquisition of Canada’s Titan on 1 June 2018 and rising prices. Its wallboard sales rose by 14% year-on-year to US$652m in the half year to 31 October 2018, from US$573m in the same period in 2017. Overall, the wallboard distributor’s net sales increased by 25% to US$1.61bn.

Canada: Red Moon Resources has loaded its first shipment from its Ace gypsum mine in western Newfoundland. The company is working with Vinland Materials, a related company, to undertake contract mining operations and secure sales agreements for gypsum and anhydrite. A deep-water port connected by a haulage road is located approximately 9km from the mine. The site covers approximately 11.79 hectares and has the potential for a 10 year mining life at an average production rate of 350,000t/yr.

Canada: Red Moon Resources Inc. has said that it will commence development of the Ace gypsum mine in western Newfoundland after it received government approval for its plan for an open pit operation.

Operational work, consisting of scrubbing vegetation and overburden removal, has begun at the site. The Canada-listed explorer is working with Vinland Materials Inc. to undertake contract mining operations and secure sales agreements for gypsum and anhydrite. In addition, it is working towards initiating shipments in 2018, with sales contracts to be sourced by 2019.

Red Moon estimated potential resources of 3-5Mt within the mining lease, which was obtained in October 2017.