Gypsum industry news

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.

Spain: Etex subsidiary Pladur says that its Gelsa gypsum wallboard plant produced 25Mm² of gypsum wallboard during 2022. This corresponds to volume growth of 30% year-on-year. The Heraldo de Aragón newspaper has reported that the 2022 figure corresponds to 83% of its operational capacity of 30Mm²/yr.

The Gelsa gypsum wallboard plant reportedly uses 2 - 4% recycled gypsum in its operations. This corresponds to 4000 - 6000t/yr of gypsum, in line with its own rate of production waste generation. The plant aims to recycle 30,000 - 40,000t/yr of gypsum in 2030.

Spain: Pladur Gypsum has officially opened its 12Mm²/yr Gelsa wallboard plant. The unit had an investment of Euro60m and it has created 75 jobs, according to the Periódico de Aragón newspaper. Start-up at the plant began in September 2018 and full production started in January 2019. The unit currently has a three-shift work pattern and this is expected to change to four shifts by the end of 2019.

Spain: Etex has become the sole shareholder of Pladur following the completion of a deal to buy all the remaining shares from Coemac. The deal was first announced in July 2017 and following customary closing conditions it closed on 22 December 2017. Pladur operates one gypsum wallboard plant near Madrid and it has been building a second plant at Gelsa that was due to open in mid-2017.

Spain: An agreement has been reached to make Etex the majority shareholder of Pladur, a Spanish manufacturer of gypsum products. Spanish sector peer Coemac currently owns 59.31% of the company, while Etex holds the remaining 40.69% of the shares. The agreement, which is subject to customary closing conditions, provides for the sale by Coemac of 35% of the shares to Etex, with an option for Coemac to transfer the remaining 24.31% in 2020. Closing of the transaction is expected to take place in December 2017.