Gypsum industry news

Kazakhstan: Switzerland-based EuroChem has signed an agreement with China National Chemical Engineering for the design, construction and commissioning of a chemical complex in Janatas, Jambyl Region. The third phase of the ongoing project will see the building of a site that will produce synthetic gypsum and calcium chloride as byproducts of the main processes. These byproducts will then be used used in construction materials and as reagents for the road construction, coal and hydrocarbon industries.

During Phase I, a phosphate mining complex was built and commissioned. As part of Phase II, a contract has been signed and the company has started construction of a sulphuric acid facility to be commissioned in 2026. Following the realization of Phase III, in 2027, the group will launch a chemical complex. The combined total investment to date and planned capital expenditure will exceed US$1bn and the project is included in the Integrated Kazakhstan Industrialization Roadmap.

Oleg Shiryaev, the Group President of EuroChem, said “The total annual output will exceed 1Mt/yr of mineral fertilisers and associated industrial products. The products from the new complex will be in high demand in Kazakhstan, other Central Asian countries, as well as in China, Russia and European countries.”

EuroChem is a global fertiliser company that manufactures and supplies nitrogen, phosphate and potash products. It employs 32,000 people worldwide.

Grenzebach said earlier this month that it is going to invest around Euro2m on growing its presence in Pune. The current sales and service branch will be merged with a new production site in the city in Maharashtra. The site will be used for the assembly of conveyor equipment and welding work for dryers and lehr ovens for the glass industry. Production at the new unit is expected to start in October 2023 and it will create around 30 new jobs.

The decision by the Germany-based equipment supplier to expand in India follows Saint-Gobain’s expansion plans in India. It said in late 2022 that it was planning to spend US$215m towards capacity expansion plans in 2023 as part of a larger investment in the region, of US$970m between 2022 and 2025. Its stated aim for the new investment is to grow its revenue to US$4.4bn in 2032 from US$1.5bn in 2022. To break this down, half of the group’s turnover in India comes at present from glass-related businesses, 30% from gypsum and construction chemicals and the rest from abrasives, ceramics and life sciences. Some examples of this planned investment include the acquisition by Saint-Gobain of Rockwool India, a stone wool manufacturer, in February 2023 and an agreement to buy UP Twiga Fiberglass, a glass wool producer. Saint-Gobain is the biggest gypsum wallboard producer by capacity in India with four plants, followed by USGKnauf, which runs two plants, and various independent producers.

Growing the wallboard market in India has long seemed like an enticing prospect given the country’s demographics, low production capacity per capita compared to Europe and North America, and sustainability trends. However, despite all of this, it is taking a long time to get there. One commentator on LinkedIn has suggested that this may be down to reticence from the construction sector to adopt the product. In his view wallboard in India has mainly been used for ceilings and for commercial and industrial applications but not for residential projects. Producers, such as Saint-Gobain are likely to be well aware of this. So it is interesting to note that two projects in India picked up awards in Saint-Gobain’s International Gypsum Trophy in 2023.

On the crude gypsum side, data from the Indian Bureau of Mines and the United States Geological Survey (USGS) show that India produced an estimated 4.3Mt of gypsum from its mines from reserves of 37Mt. These reserves are far smaller than other countries with large populations such as China, the US, Brazil or Türkiye. The country also produced an estimated 2.1Mt of flue gas desulfurisation (FGD) gypsum in the 2023 – 2023 financial year. However, the Cement Manufacturers Association (CMA) estimates that its sector used 13 – 17Mt in 2020 – 2021 when cement production was 331Mt and that this is forecast to rise to 20 – 25Mt in 2024 – 2025 when cement production reaches 491Mt. This corresponds to the 4 – 5% of gypsum that it is added to clinker when grinding it to manufacture ordinary Portland cement (OPC) and other cement types.

In acknowledgment of this gap between mining and usage, the Department for Promotion of Industry and Internal Trade (DPIIT) started promoting recycling gypsum from fertiliser production and power plants in May 2023. So far, its main focus has been on improving access to phosphogypsum stockpiles, although the target for FGD production is an ambitious 9.9Mt by 2025 – 2026. Unsurprisingly, gypsum exporters have benefitted from this situation. Oman, reportedly, exported nearly 5Mt of gypsum to India in 2022. Historically, Thailand and Iran have also supplied the Indian market with gypsum.

India remains the great maybe for wallboard adoption outside of North America and Europe. The latest round of investment by Saint-Gobain and Grenzebach may yet deliver on this. Both companies are looking at a range of light materials including glass and insulation not just wallboard. So far though, the main merger and acquisition activity by Saint-Gobain has been targeted on insulation companies. Once or if Saint-Gobain or anyone else starts buying gypsum companies or building new plants then we will have a sense that something is changing. Alongside this, the DPIIT’s plans to recycle more gypsum may help bring further attention to the local gypsum sector.

US: Fertiliser company Mosaic is seeking approval from the Environmental Protection Agency (EPA) to test using phosphogypsum on a pilot road project at its New Wales site in Mulberry, Florida. It hopes to test using the substance in three 60m sections of road, according to correspondence seen by the Tampa Bay Times newspaper. The proposed test road will use a mixture of sand with up to 50% phosphogypsum in a 25cm base. The road will then be monitored over the next 18 months.

The EPA originally approved the limited use of phosphogypsum in road construction in 2020. However, this was then subsequently blocked. Local legislation in Florida allowing the Florida Department of Transportation to study the use of phosphogypsum in road construction has been approved by the Florida Senate and House of Representatives but is yet to be signed off by Governor Ron DeSantis.

The Florida Industrial and Phosphate Research Institute estimates that around 1Bnt of phosphogypsum is stored in over 20 sites in the state. Over 25Mt/yr of phosphogypsum is generated, typically from fertiliser production. Environmental groups in the state have opposed Mosaic’s proposed use of phosphogypsum in road building due to its higher level of radioactivity compared to other forms of gypsum.

India: UltraTech Cement has transported a shipment of 57,000t of phosphogypsum by coastal and inland waterways to its Gujarat plant at Kovaya in Amreli district. The subsidiary of Aditya Birla Group says this is the first operation of its kind in the country, according to Orissa Diary.

K C Jhanwar, the managing director of UltraTech Cement, said "The cement industry plays a pivotal role in driving the circular economy in India through the use of industrial and municipal waste in cement manufacturing. This industry-first initiative of UltraTech Cement in using inland and coastal waterways for transport of phosphogypsum will help to further strengthen the role of the cement sector in driving the circular economy in India."

The cement company sourced the phosphogypsum from the Indian Farmers Fertiliser Cooperative and Paradeep Phosphates. Legacy stock of the by-product from fertiliser plants in the country are estimated to be about 70Mt.

Vietnam: Vietnam National Chemical Group’s DAP No 1 – Hai Phong fertiliser plant is exploring options to use phosphogypsum as an additive in cement production. The company is working with the government on finding a use for the by-product of fertiliser production, according to the Viet Nam News newspaper. Duong Duy Hung, the director of the Planning Department at the Ministry of Industry and Trade, said the Ministry of Construction and the Ministry of Science and Technology have been developing new standards and regulations on the use of phosphogypsum plaster for use in the building materials sector. A phosphogypsum dump at the plant is expected to be utilised by 2025.

Argentina: Canada's Centurion Minerals has achieved its design capacity level of 2000t/day in January 2017 at the Ana Sofia Property agricultural gypsum fertiliser pilot plant located in Santiago Del Estero. The plant and operating team have been able to extract, crush and bag approximately 1000t of material since the unti started operation. Some of this material has been sold and delivered to Argentine fertiliser distributors. Centurion's local joint venture partner is currently negotiating supply contracts with distributors in Argentina, Paraguay and Uruguay.

Gypsum is quarried at the site from near-surface, flat-lying beds within a sedimentary formation. The gypsum rock is fed into a hopper leading to primary and secondary crushers, then screened and sorted into two agricultural gypsum fertiliser products. The plant produces both a pellet-sized granular product and a powdered product, each comprised of a minimum 85% gypsum content, that are packaged into 1t big bags.

US: Gypsoil is stopping production at its pelletised gypsum fertiliser plant in Winona, Minnesota. The plant has been shut down due to poor market demand, according to the Winona Daily News. The US$5m plant opened in early 2016. It used synthetic gypsum from coal smoke stack scrubbers in Ohio.

Vietnam: Deputy prime minister Hoang Trung Hai has directed the implementation of solutions to treat waste at thermal power plants for energy conservation and environmental protection.

Trung Hai urged the concerned parties to more effectively implement Government Decision 1696/QD-TTg on measures to treat gypsum, ash and cinder from thermal power, chemical or fertiliser plants for the production of building materials. Special focus should be paid to the Vinh Tan in Binh Thuan, An Khanh in Thai Nguyen, Song Hau in Mekong Delta Hau Giang and Vung Ang in Ha Tinh thermal power plants, where waste treatment is a pressing issue.

He asked the Ministry of Industry and Trade and the Ministry of Construction to coordinate with localities to disseminate effective waste treatment models while supplementing and completing criteria on the quality of ash and cinder for recycling in cement and construction material production.

Vietnam is home to 19 operating thermal power plants with a total capacity of 14,480MW, which discharge about 15Mt/yr of ash and cinder. After 2020, the country is expected to have 43 thermal power plants with a combined capacity of 39,020MW, discharging over 30Mt/yr of ash and cinder.

India: The Haryana State government has prepared a contingency crop plan and has sought financial assistance as well as bonus on paddy and other kharif crops from the central government. Chief minister Bhupinder Singh Hooda said that the plan was formulated in consultation with CCS Haryana Agriculture University, Hisar. Hooda said that the State government has urged the central government to award an additional allocation of US$1.68m for gypsum during the current financial year.

India: The government of Telangana State will supply gypsum to farmers at a 50% subsidy. Telangana Markfed and AP Agros have been selected as the nodal agencies to supply the gypsum. The subsidy portion would be met from normal State plan, National Mission for Sustainable Agriculture and the National Food Security Mission (NFSM) programmes.