Gypsum industry news

France: Saint-Gobain reported sales of €23.5bn in the first half of 2024, down by 6% year-on-year from €25.0bn in the same period in 2023. The group reduced its capital expenditure by 5% to €583m. €255m (47%) of this was invested in new capacity, down by 7%. Group earnings before interest, taxation, depreciation and amortisation (EBITDA) dropped by 2% to €3.65bn from €3.74bn. During the reporting period, Saint-Gobain accelerated efforts to reinforce its profitable growth profile with acquisitions in the light and sustainable building materials segments in Australia, Canada, India and the Middle East. Saint-Gobain said that it exceeded 67% of operating income being generated in “high-growth geographies,” namely North America, Asia and emerging countries. It now expects “double-digit” operating margins in 2024, for the fourth consecutive full year.

Chair and CEO Benoit Bazin said "Our first-half results once again demonstrate the success of Saint-Gobain's new profile, reflecting the group's ability to adapt to different macroeconomic environments and to continue to outperform. The roll-out of our comprehensive range of sustainable and innovative solutions and the resulting enhancement in our mix, together with our decentralised organisation by country with accountability on commercial performance and on proactive cost management, have enabled us to deliver a new record operating margin and strong free cash flow generation. I am very grateful for our teams' dedication and their contribution to the group's consistent improvement in its performance."

North America: Market research company IMARC Group has quantified the North American gypsum wallboard market at 2.9Bnm² in 2023. In a report detailing the outlook for the nine years up to 2032, IMARC Group forecast a composite annual growth rate (CAGR) of 2.6%, resulting in sales volumes of 3.6Bnm² in 2032.

North America: Market research firm IMARC Group has forecast a composite annual growth rate (CAGR) of 2.6% in the North American gypsum wallboard market between 2024 and 2032. It attributed the anticipated growth to rising regional levels of construction activity, amid increasing urbanisation. Additionally, it expects gypsum wallboard to remain its market share within the building materials segment, as a cost-effective, easy-to-use product for both residential and commercial construction applications.

North America: Saint-Gobain has signed a 100MW solar power purchase agreement (PPA), called Danish Fields, with TotalEnergies. The Danish Fields PPA will supply Saint-Gobain North America with solar energy for 15 years, commencing in 2024. Saint-Gobain says that it expects the PPA to eliminate 90,000t/yr of CO₂ emissions across its operations. This is the group’s third deal of its kind.

Saint-Gobain North America CEO Mark Rayfield said “With this agreement, Saint-Gobain North America will further reduce its CO₂ emissions, demonstrating how fast the manufacturing industry can transform when long term solutions are at hand. This renewable energy project is a new milestone on the way to meeting Saint-Gobain’s commitment to reduce Scope 1 and 2 CO₂ emissions by 33% by 2030 compared to 2017, and to reach carbon neutrality by 2050.”

North America: France-based Saint-Gobain has appointed Steve Williams president of its newly created construction chemicals North Americas unit. The unit combines GCP Applied Technology's speciality construction chemicals business and Chryso. Saint-Gobain acquired both GCP Applied Technology and Chryso in 2021.

Steve Williams previously worked as Chryso's North America president from 2019. Prior to this he was cement producer Titan America's sales and marketing director between 2012 and 2015. Williams holds a bachelor of science degree from Brigham Young University and a master’s in business administration (MBA) from the University of Florida.

US: Saint-Gobain plans to invest a total of US$400m in expansions to its operations including gypsum operations at four US sites. The group says that the sites are located in California and the Southeastern US. It said that the new capacities will apply the most advanced available technologies for industrial performance, safety and sustainability. This will reduce waste by 50% and CO2 emissions by 20% from current levels, according to the company.

Saint-Gobain said it hopes that the investments will strengthen its leadership in North America and accelerate its growth in the region by enriching its comprehensive range of solutions for light and sustainable construction.

France: Saint-Gobain’s sales in the first quarter of 2020 fell by 9.8% year-on-year, to Euro9.36bn from Euro10.4bn. Sales fell in all regions except the Americas, where they rose by 4.8% to Euro1.37bn from Euro1.31bn. The company said that coronavirus decreased demand in Asian and the Pacific in February 2020 and Southern Europe, the Middle East and Africa in March 2020. Northern European sales were only affected in the UK in the last week of March 2020. The company predicted that demand would increase globally in the second quarter of 2020 given that construction has been deemed an essential industry in most countries.

Australia: Boral has reported that, in most jurisdictions, its activities are currently considered to be within the critical infrastructure and construction sectors that are permitted and encouraged to continue as essential businesses. This includes Boral’s US Fly Ash business, which provides an essential service to the energy sector. In some areas however, particularly in North America and Asia, more stringent mandates and restrictions have resulted in temporary closures of several operations.

In addition, demand is declining in most markets and is expected to continue to decline, particularly in residential construction markets where the pipeline of work is substantially reducing in all geographies.

As a result, where it has sufficient inventory levels to supply customers, production curtailments are planned and are now taking place, including shift reductions and temporary plant closures. Boral says that these actions will help to conserve cash and minimise any unintended inventory build-up.

Boral is supporting employees impacted by temporary closures with access to paid leave, unpaid leave, flexible and remote working arrangements (where possible) and assistance with accessing relevant government support.

Australia: Boral Ltd has announced that its profit for the first half of the 2017-2018 fiscal year (from 1 July 2017 – 31 December 2017) rose by 13%. The company benefited from the 2017 acquisition of the US-based building products firm Headwaters Inc. and continued growth in its Australian business.

It reported a net profit of US$136.0m for the six month period, a rise of 12.7% compared to the same period of the 2016 – 2017 fiscal year when it made US$120.7m. Its profit before amortisation and significant items increased by 58% to US$$186.5m.

"These strong results confirm that our transformation strategy is on track," said Chief Executive Mike Kane. "The Headwaters acquisition has helped transform Boral into a construction materials and building products group with a greater geographic reach and improved prospects for growth."

Boral’s US business, which was only breaking even in 2015 – 2016, recorded a fourfold rise in earnings, despite adverse impacts from bad weather, including two hurricanes.

Kane also said Boral’s Australian arm, its largest divison, was ‘exceptionally strong’ during the half. Boral reported a 12% rise in earnings before interest, tax, depreciation and amortisation from that business.

"Higher revenues and earnings were driven by increased spending on infrastructure, in line with our expectations that a large proportion of our work would gradually shift from residential to infrastructure projects, primarily in the eastern states," said Kane.
Boral reported a 1% dip in earnings from its USG Boral division, a joint-venture with USG Corp., the largest US maker of gypsum wallboard, which operates throughout Asia, the Middle East, Australia and New Zealand.

World: With Boral's recent acquisition of Sunshine Coast Quarries, the company has spent USD250m in Queensland since April 2011. Boral's head of strategy and mergers and acquisitions, Matt Coren, said this move did not necessarily reveal a special focus on the state (or indeed on cement and concrete), saying, "You'll see us continue to invest in other markets."

Boral's recent acquisition spree, along with Coren's comments, has raised speculation that the group may be eyeing up bigger and more lucrative offshore investments. Following the decision by France's Lafarge to sell 80% of its European gypsum assets to Etex Group (announced on 14 July 2011 – read full story here), the spotlight has again swung to the possibility that Boral may be considering the French gypsum and plaster company's Asia-Pacific and North American assets. Boral and Lafarge have an existing joint venture plasterboard business in Asia and it is thought the Australian building group would like to increase its 50% stake or even buy out its partner entirely.

Credit Suisse has indeed recently labeled Boral as the 'natural owner' of Lafarge's remaining gypsum assets. Rohan Gallagher, an analyst with Credit Suisse said that Boral would need to raise equity to do the deal, but expressed doubt that facilities in the United States and Mexico (including six wallboard plants with over 300Mm2/yr wallboard capacity), would not be a wise choice for Boral in the present climate.

Nomura analyst Simon Thackray said that if Boral could increase its stake in the Asian joint venture by a further 10% and purchase a 60% interest in Lafarge's US business the group would need to spend about USD300m, which could be heavily dilutive.