Gypsum industry news

Norway: France-based Saint-Gobain plans to upgrade its 13Mm²/yr Fredrikstad gypsum wallboard plant in partnership with state-owned sustainable energy agency Enova. The Euro25m upgrade will expand the plant’s production capacity by 40% and make it, what the producer says, is the world's first carbon-neutral plasterboard plant. One feature of the plan is electrification of the currently gas-powered production process. The upgrade will be completed in early 2021.

Saint-Gobain is considering implementing the net-zero CO₂ plant project across others of its gypsum wallboard plants.

France: Saint-Gobain recorded consolidated net sales of Euro38.1bn in 2020, down by 10% year-on-year from Euro42.6m in 2019. Earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 9% to Euro4.42bn from Euro4.87bn. Following a 12% like-for-like contraction in the first half of 2020, consolidated net sales grew by 5% on a like-for-like basis in the second half of 2020, with a 5% increase in gypsum wallboard volumes and a 1% increase in prices.

Chair and chief executive officer Pierre-André de Chalendar said, “The record results of the Group for second-half 2020 confirm the pertinence of the Group’s differentiation strategy and the success of its profound transformation begun several years ago. I would like to sincerely thank the teams for these excellent results achieved and for their unwavering commitment and solidarity."

US: Saint-Gobain in the US has entered into a 12-year Power Purchase Agreement (PPA) with Invenergy, a leading privately held global developer and operator of sustainable energy solutions, for 120MW of the 250MW Blooming Grove Wind Farm capacity in McLean County, Illinois, which recently began operations.

This agreement is the largest renewable energy deal to date for Saint-Gobain and is a key milestone in supporting the group's target to reach net-zero carbon emissions by 2050. The associated Renewable Energy Certificate System (RECS) represents 40% of the Group's CO₂ emissions from electricity in the US, resulting in a 21% reduction of Saint-Gobain's overall carbon footprint (scope 1 and 2) in the US.

With this agreement and other ongoing projects, the share of renewable electricity within Saint- Gobain's worldwide electricity consumption, will double in 2021, from 18.9% in 2020.

Spain: France-based Saint-Gobain has announced plans for a new Euro40m production line at its Quinto gypsum wallboard plant near Zaragosa, Aragon. The line will integrate recycled raw materials use and an Industry 4.0 digitisation programme to increase production, warehousing, transport and delivery automation.The scheduled commissioning date for the expanded facility is in 2022. When operational, the line will generate 70 new direct jobs. The government of Aragon has declared the work a project of regional interest.

The group says that the new line will enable it to capture the growth of the Spanish market and its rapid shift towards more complex needs and especially more lightweight construction systems.

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.”

France: Saint-Gobain recorded fourth-quarter sales of Euro10.2bn in 2020, up by 6% year-on-year on a like-for-like basis. The group noted a ‘strong pricing dynamic’ in the quarter. Its operating margin in the second half of 2020 was over Euro2bn, up by 20% year-on-year on a like-for-like basis. ‘Upbeat momentum’ in most markets buoyed results in the half.

The company said that the record second-half operating margin was achieved in part thanks to “successful portfolio optimisation measures under the ‘Transform & Grow’ programme, reductions in discretionary spending and a very positive price-cost spread. Its full annual results for 2020 will be published in late February 2021.

China: France-based Saint-Gobain plans to establish ten gypsum wallboard plants under the Communist Party of China (CPC)’s 14^th five-year plan. China Daily News has reported that the move aims to ramp up production capacity in order to meet growing gypsum wallboard demand. In 2021 building materials company intends to open two more units to produce calcined gypsum in Yangzhou, Jiangsu Province and Huzhou, Zhejiang Province respectively.

Asia-Pacific regional senior vice-president and chief executive officer (CEO) Javier Gimeno said, “China has recovered from the Covid-19 pandemic in an exceptional manner. We have seen the quick recovery of the Chinese economy and the many industries that we serve. In our segment, the Asia-Pacific region has remained largely positive in the third quarter, driven by the continued strong demand in China." He added, “Our business growth in China is linked with the development of the Chinese society and the growth of China's middle-income earners, who are more demanding in terms of quality and performance of products.”

Argentina/Peru: France-based Saint-Gobain and Chile-based Compania Industrial El Volcan have signed an agreement to cooperate in the Argentine and Peruvian gypsum wallboard markets. The companies will finalise the agreement in January 2021.

In Peru, Saint-Gobain will purchase El Volcan Soluciones Constructivas , a company specialised in the production and sale of wallboard. After this new entity has been merged with SG Productos para la Construccion, which specialises in the production and sale of mortars and has been wholly owned by the Saint-Gobain Group since December 2019, Saint-Gobain will retain a 55% stake in the new consolidated group and will sell the remaining 45% to the El Volcan group.

In Argentina, El Volcan will purchase from Saint-Gobain a 45% stake in the group including Tuyango, the historical plaster business, and Aswell, the plasterboard business acquired in the first quarter of 2019, with Saint-Gobain owning a 55% stake in this Argentine gypsum group.

France: Saint-Gobain’s like-for-like sales fell by 7.2% year-on-year to Euro27.9bn in the first nine months of 2020 from Euro32.4bn in the same period in 2019. Particular declines were noted in its High Performance Solutions and Asia Pacific divisions. However, overall sales improved by 3.2% year-on-year to Euro10.1bn in the third quarter of 2020.

The group noted that in North America growth in the third quarter was, “driven by volumes in exterior solutions and gypsum in a much better environment for prices, which were up overall.” It also noted a ‘sharp’ increase in its gypsum sales, continuing a trend from the second quarter and capturing additional market share.

France: Saint-Gobain is among 157 businesses which signed a letter to European Union (EU) members’ governments urging the enactment of higher 2030 greenhouse gas emissions reduction targets. The letter calls on all EU leaders to target a reduction of 55% by 2030 in line with the European Green deal.

Chair and chief executive officer (CEO) Pierre-André de Chalendar said, “The right decisions now can help create and protect healthy, thriving and fair communities and secure a roadmap for a prosperous economy. From a business and investor perspective, clarity on the net zero transition pathway and timetables for each sector - as well as policy that enables substantial investments in carbon neutral solutions - is essential. This in turn would provide us with the confidence needed to invest decisively at the necessary pace and scale to reduce emissions, create decent green jobs, drive innovation, and accelerate the rebuilding of a resilient zero carbon economy."