Gypsum industry news

UK: Matt Pullen, the managing director of British Gypsum, says that the company intends to loosen restrictions on wallboard sales in August 2020. “Whilst we continue to see high levels of demand, we have sufficient capacity to supply your wallboard requirements without formal supply restrictions,” said Pullen. He added that the company’s plaster manufacturing plants continue to, ‘operate consistently at maximum capability.’

Gypsum plaster-based products have been in short supply in the UK since the local coronavirus-related lockdown started in March 2020. The subsidiary of Saint-Gobain suspended operations in April 2020 and Knauf stopped production at its wallboard plants in the UK at the end of March 2020. British Gypsum reported in late May 2020 that its wallboard capacity was at ‘approximately’ 80% of pre-coronavirus pandemic levels following the scaling up of its ‘Covid-19 safe’ operations and distribution plan. Etex’s Siniat said it was ending product allocation controls in early July 2020.

France: Saint-Gobain says that its overall group activity fell to 60% of 2019 levels in April 2020 due to the effects of the coronavirus pandemic. Since then its level of activity surpassed 80% ‘at comparable working days, with large variations by market and country,’ according to Regulatory News Service. The group expects a ‘challenging’ second quarter 2020 before a recovery in the second half of the year. It continues to preserve cash and reduce costs.

In Europe the group reported that, by the end of May 2020, Nordic countries had almost reached 2019 levels. Germany and Eastern Europe were still seeing activity levels below those of 2019. The UK has seen activity levels progress by around 10%/week since a low point in mid-April 2020 when activity were at a ‘virtual standstill’, reaching around 70% of 2019 levels in the last week of May 2020.

In the group’s Middle East & Africa region activity levels surpassed 50% of 2019 levels since a low in mid-April 2020. In France, activity in distribution came close to the 2019 level in the last week of May 2020, but with big differences by region and brand. Spain and Italy are picking up gradually, but remain below the average level of the region. The Netherlands remains close to a normal level of activity, while the Middle East and Africa remain impacted to varying degrees.

North America has reported a ‘contrasting situation state by state,’ but has shown improvement since the low point of mid-April 2020. Activity in May 2020 moved closer to 2019 levels due to ‘significant’ volumes in exterior solutions and a rebound in gypsum volumes. In Latin America, despite the health situation remaining difficult, activity is picking up week after week, from 40% in mid-April 2020 to around 80% in May 2020 with a ramp-up in Brazil.

In Asia-Pacific sales have now reached 2019 levels following the gradual restart of all its production sites in China in March 2020. India remains ‘severely’ disrupted with the restart dependent on the relaxing of confinement measures. The situation is varied across South-East Asia with a rebound in Vietnam where activity has surpassed 2019 levels, but disruptions still relatively significant in Thailand and neighbouring countries.

UK: Planning permission has been granted by Newport City Council for a new gypsum wallboard plant to be built by Associated British Ports (ABP). The unit will be built on empty land to the south west of Newport Dock’s South Dock, according to the South Wales Argus newspaper. The building will be up to 202m long and 110m wide, with a maximum height of 21m. Gypsum for the plant will be delivered by ship. The project is expected to create up to 70 jobs. Once complete, the facility will be leased to a manufacturer by ABP.

UK: British Gypsum says its wallboard capacity is at ‘approximately’ 80% of pre-coronavirus pandemic levels following the scaling up of its ‘Covid-19 safe’ operations and distribution plan. Managing director Matt Pullen said that the company’s plaster capacity was already at 80% and it was increasing supply volumes to merchant and distributor customers. It is continuing to allocate wallboard and plaster at lower levels than usual as it resumes normal production. It has also restarted taking new orders for its plasterboard recycling service. The subsidiary of Saint-Gobain shut down its non-essential operations in early April 2020 due to the coronavirus pandemic.

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.

UK: France-based Saint-Gobain subsidiary British Gypsum has announced the suspension of non-essential operations until 22 April 2020, subject to regular review in light of government advice. British Gypsum managing director Matt Pullen said, “Further information on when new orders can be placed and deliveries made will be available nearer the time, after the safe re-start of our operations.”

The company says that it will retain a ‘small-scale customer services, operations and logistics team to be able to provide drylining products to support those NHS and other Covid-19 response essential infrastructure and building projects.’

UK: Plans have been submitted for a gypsum wallboard production facility in Newport, Wales. Put forward by Associated British Ports (ABP), which owns the city’s port, the 15,000m² plant would be built next to Alexandra Docks. Once complete, the facility would be leased to a manufacturer by ABP.

A design and access statement prepared by Adams Hendry Consulting on behalf of the applicant said, “The manufacturing facility will make an important contribution to the local economy by providing new jobs, including manufacturing and office jobs. “It will generate approximately 70 full-time equivalent (FTE) direct jobs and it is estimated that the facility will support an additional 130 indirect jobs in the supply chain. The facility is expected to operate 24 hours per day over three shifts year-round.”

ABP requested an environmental impact assessment screening opinion for the application in July 2019, although Newport City Council decided in December 2019 that this was not required.

UK: Global not-for-profit organisation CDP has included Saint-Gobain on its Climate Change A-List 2019 for environmental transparency and performance aimed at facilitating a zero-net carbon economy. Only a handful of industrial producers achieved inclusion on the list, including US-based insulation producer OwensCorning and Germany’s HeidelbergCement and steel producer Thyssenkrupp. The company said that the listing commended its ‘ambitious commitment made in 2019 to achieve net zero carbon emissions by 2050, in line with the +1.5°C warming scenarios.’

UK: Saint-Gobain subsidiary British Gypsum has announced the removal of customer Gyproc gypsum plasterboard allocations with the resumption of normal distribution of its flagship product on order for up to next day delivery. The company said that capacity increases in 2019 solved its supply issue. “The level of effort, innovation and ingenuity that has gone into improving our supply capability has been significant,” said British Gypsum managing director Matt Pullen. “We go into 2020 with renewed confidence and positivity.”

UK: British Gypsum’s mine at Brightling near Robertsbridge has provided gypsum samples to researchers from the Natural History Museum. The rock specimens are intended to aid the scientists in looking at signs of past life in preparation for a joint European Space Agency and Russian Roscosmos State Corporation mission to send a robotic rover to mars in July 2020, according to the Rye & Battle Observer newspaper. Previously, NASA's Mars Rover Opportunity found bright veins of a mineral, which appeared to be gypsum, in 2011.

"Minerals like those found at Brightling hide clues within them that can tell us about the history of liquid water where they formed, and they have the potential to trap and preserve organic material. Studying these natural fresh samples on Earth that mimic not just the minerals, but also the formation environments we see on Mars, will give us an insight into the potential for life to be detectable at the ExoMars2020 landing site," said Louisa Preston, UK Space Agency Aurora Research Fellow and member of the Department of Earth Sciences at the Natural History Museum.