Gypsum industry news

Europe: Etex has reported a solid financial performance aligned with its 2024 forecasts, despite experiencing market contractions across Europe in the new build and renovation sectors. Revenue fell 4.2% year-on-year to €1.93bn, with a recurring earnings before interest, taxation, depreciation and amortisation (REBITDA) decrease of 5% year-on-year to €377m. The company’s outlook for the rest of 2024 is a careful and regular evaluation in response to the current volatile market situation.

Belgium: Etex says that it ‘considerably’ progressed its Road to Sustainability 2030 plan during 2023. That year, safety intensity increased by 7%, and Etex established a global diversity, equity and inclusion ambassador community of 110 volunteers across 26 countries. In Europe, the company achieved 70% Environmental Product Declaration coverage as a percentage of its turnover, up from 58% in 2022. Etex raised its total use of recycled materials to 7.6%, and achieved a 23% reduction in Scopes 1 and 2 CO₂ compared to 2018 levels, in line with its 2030 target of 35%.

CEO Bernard Delvaux said “In the EU, more than 40% of energy consumed is used in buildings and more than 30% of energy-related greenhouse gasses emissions come from buildings. Next to new building activities, and according to current high energy standards, renovating old building stock should hence be a top priority. With our portfolio of building materials such as glass wool and extruded polystyrene insulation, gypsum wallboard, fibre cement boards and fire protection materials, Etex has the solutions to reach the ambitious targets. But in view of the huge challenge, a holistic and effective plan to boost renovation is needed, to finance and simplify the renovation process, in each of the EU countries.”

Belgium: Christoph Dorn has been elected as the new president of Eurogypsum, the Brussels-based European association representing the gypsum supply and processing industry. Dorn, a member of the Group Management Committee for Knauf Central Europe, takes over from Dr. Jörg Ertle of the Etex Group.

Dorn said "Taking over the presidency of Eurogypsum in 2024 is a great honour, as the gypsum industry has much to offer, sourcing domestic and multi-recyclable materials to decarbonise Europe’s buildings."

Belgium: Etex reported sales of €3.81bn in 2023, up by 2.5% from 2022 levels. The company's recurring earnings before interest, taxation, depreciation and amortisation (REBITDA) rose by 10% to €712m. It also raised its capital expenditure for the year, to €371m. Etex says that it was Europe’s leading gypsum recycling performer, with a recycling rate of 8.6% of all gypsum used. The group is ‘actively preparing’ to help rebuild Ukraine as soon as conditions permit.

CEO Bernard Delvaux said “Even more so than 2022, 2023 was a challenging year marked by volatility, uncertainty and severe drops in demand across the world, as we observed the continued impacts of increased energy prices and interest rates. Combined with tougher financing possibilities by banks, all these circumstances meant that both renovation and new construction levels dropped globally. Devaluation of some foreign currencies and hyperinflation accounting also had significant effects on our results. Despite all these challenges, I am extremely proud to share that Etex navigated these difficult waters very well and delivered yet again another record year. This includes our highest ever revenue and REBITDA, among others. This strong performance stems from our anticipation in making strategic decisions and changes at global, regional and local levels, ensuring continued proximity with our customers. This is also a result of even tighter cost monitoring in 2023, without ever losing sight of our long-term ambitions and continuing to improve our strong industrial footprint.”

Australia: Belgium-based Etex has acquired BGC Plasterboard and BGC Fibre Cement from BGC. The assets include the Hazelmere gypsum wallboard plant in Western Australia, as well as nine warehouses across Australia and New Zealand. Both businesses reported total sales of US$101m in the 2023 financial year.

Etex CEO Bernard Delvaux said “We warmly welcome our 200 new teammates coming from BGC. Joining forces with their plasterboard and fibre cement activities is a strategic opportunity for Etex. With this, we complement our gypsum footprint in Australia and, for our customers, we further increase the accessibility of our sustainable products and services.”

Etex already operates three gypsum wallboard plants in Australia, in New South Wales, Queensland and Victoria.

Securing sustainable energy sources has been the priority for some of Spain’s gypsum wallboard producers in recent weeks.

In late November 2023 Pladur revealed that it plans to use green hydrogen at its production plants from the second half of 2024 onwards. It will start at its Valdemoro plant near Madrid before rolling usage out elsewhere afterwards. The subsidiary of Belgium-based Etex is also considering trials with biomethane and biogas. Then a few weeks later in early December 2023 Knauf Ibérica announced that it is planning to build a 7.5MW biomass unit at its Guixers plant in Lleida. Commissioning is currently scheduled for late 2024. This follows the installation of solar panels at the site earlier in 2023. Along similar lines, Saint-Gobain Placo signed an 11-year power purchase agreement (PPA) with electricity company Endesa at the end of 2022 to supply 150GWh/yr of renewable energy. Together with a previous renewable energy deal this was expected to cover up to 65% of the group’s electricity requirements in Spain.

Wallboard plants all over the world have been embarking on sustainable energy drives in recent years but the particular drivers in Spain are worth mentioning. The country’s high electricity prices have frequently been raised by large-scale industrial users in the past, often in terms of competitiveness of exports. However, the situation worsened following the start of the war in Ukraine in early 2022 as the wholesale price of coal and gas jumped. The high price of gas in particular pushed the electricity prices up in Spain and wallboard plants typically use both sources of energy. The government eventually capped the price of gas and coal for power generation. It then offered an aid scheme for large-scale gas users but missed the gypsum sector out, much to the chagrin of the Asociación Técnica y Empresarial del Yeso (ATEDY), which complained about it at the end of 2022. The gypsum industry was later included in July 2023 when a funding scheme was announced. It’s unknown how much this initiative has helped wallboard manufacturers but the shift to renewables by the three main companies mentioned above tells its own story.

Despite the energy supply problems a new entrant to the wallboard market in Spain announced itself in March 2023. Italy-based Fassa Bortolo said it was going to spend Euro90m on building a wallboard plant at Tarancón in Cuenca. No commissioning date or main supplier name has been disclosed, but Italy-based Bedeschi did say in late November 2023 that it was providing raw bulk material handling equipment including an apron feeder, stacker, excavator and conveyor belt line. There has also been no word on how the new plant will power itself.

On the topic of exports, Spain has long been one of the world’s larger shippers of natural gypsum. Data from the Geological and Mining Institute of Spain (IGME) shows that the country exported 9.2Mt of gypsum in 2021 with a value of Euro60m. Whether this changed in 2022 when the energy prices increased is unknown at the time of writing. In 2021 Almería was the epicentre of the country, accounting for 70% of the 13Mt total volume of gypsum extracted that year with a quarry at Sorbas, operated by Saint-Gobain Placo, reportedly being the second largest in the world. Most of the gypsum extracted at Sorbas was then driven by truck to the Port of Garrucha, making it the busiest gypsum port in Europe by volume.

Eurogypsum, the European federation of national associations of producers of gypsum products, launched its industry roadmap to net-zero by 2050 on 9 November 2023 at the Global Gypsum Conference 2023, which took place in Chicago, US. Various actions and technologies were unveiled as part of the plan including some of the approaches being taken in Spain such as using ‘green’ electricity, biomass and green hydrogen. All of these suggestions were split into short, mid and final term feasibility categories. So, for example, using renewable sourced electricity is dependent on it being affordable and available. It was placed in the immediate category. Yet, using biofuels or green hydrogen is flagged as requiring investment, so deemed as short-to-mid term.

Spain presents a case where the cost of energy for industrial users may be aligning with sustainability goals. How this translates onto balance sheets remains to be seen though. These kinds of sustainable energy projects may only be slowing the inevitable as raw material and energy costs mount anyway leading to tighter margins, increased competition and potential consolidation. The gypsum sector in Spain may well be testing out slightly earlier than elsewhere how much a more sustainable world will actually cost.

Spain: Pladur plans to start using green hydrogen at its Valdemoro gypsum wallboard plant from the second half of 2024. The subsidiary of Etex will then roll out the use of hydrogen at its other plants in the country, according to Forbes. It is also considering using biomethane and biogas generated from organic waste in its production processes.

Peru: Nicolás Restrepo, the Andean Region manager for Etex, says that an ongoing upgrade to the Huachipa gypsum wallboard plant is set to be finished by 2025. In an interview with the Gestión newspaper he revealed that the US$31.5m project should be 60% complete by the end of 2023. Once commissioned the upgrade will double the production capacity of the unit.

Australia/New Zealand: Belgium-based Etex has signed an agreement with building materials company BGC to acquire the latter’s gypsum and fibre cement businesses. The gypsum business consists of wallboard, plasters, compounds and cornice production units, and includes the Perth gypsum wallboard plant in Western Australia. BGC also operates nine warehouses across Australia and New Zealand. Etex says that the deal expands its activities in the ‘attractive’ local market, with significant growth opportunities. Finalisation is expected in early 2024.

Etex CEO Bernard Delvaux said “This deal is a strategic opportunity for Etex to complement our footprint in Australia and further increase the accessibility of our products and services for customers. This will both reinforce our gypsum wallboard offering and position us well in the growing fibre cement activities through a broad product range and good channel access.”

Ireland/UK: Belgium-based Etex has appointed Oliver Cripps as its Head of Sustainability, UK and ireland to support its brands, including Siniat. His role will be to push the company’s sustainability agenda, heighten the environmental credentials of its operations and products and decrease reliance on raw materials.

Cripps has worked for 25 years in the sustainability sector in industries including tourism, land management and manufacturing. His previous jobs include Senior Sustainability Manager at Dyson Technology, where he led sustainability for the New Product Innovation and Research teams, and experience working with global furniture manufacturer, MillerKnoll to support research and development and corporate sustainability.