Gypsum industry news

US: Eagle Materials’ nine-month gypsum wallboard sales rose by 5% year-on-year to US$120m in the period ending on 31 December 2020 from US$114m. Volumes increased by 7% to 200Mm² from 187Mm². Group sales rose by 16% to US$1.28bn from US$1.10bn. Net earnings were US$273m, compared to a loss of US$1.54m in the first nine months of its 2020 financial year.

President and chief executive officer Michael Haack praised the performance in the quarter which ended on 31 December 2020, saying, “Despite continued pandemic-related economic uncertainty, our wallboard shipments were up by 9%, a third quarter record for American Gypsum. We continued to generate strong operating cash flow, which significantly improved our balance sheet and liquidity position providing us with increased financial flexibility.” He added, “As we continue to navigate the Covid-19 environment, I want to thank our team for their exceptional work under extraordinary circumstances, delivering strong results and keeping our strategic projects on schedule. We continue to closely monitor the disruptions caused by the Covid-19 pandemic and their possible impact on our business in current and future periods. We also continue to enforce strict health and safety protocols to protect our employees, customers and business partners, and we will continue to manage our cash flow prudently and protect our balance sheet.”

US: CPS Performance Materials has acquired Handy Chemical USA from Rain Industries. The two napthalene sulphonates producers are the only domestic suppliers of the dispersant to the gypsum wallboard industry in the entire North American region, according to Barney Heller, Hardt Chemical. The transaction concentrates napthalene sulphonates supply under single ownership in the region. The sale, which also included Rutgers Polymers, is valued at around US$87m.

Naphthalene sulphonates are produced using napthalene from the steel industry. Their use in gypsum wallboard production reduces the necessary water content, improving slurry stability, increasing line speed and strengthening the final product. Steel-producing countries such as China have previously exported napthalene sulphonates to the US. The market for gypsum wallboard in North America is estimated to be 45,000t/yr.

US: Eagle Materials recorded sales of US$875m in the six months between 1 April 2020 and 30 September 2020, the first half of its 2020 financial year, up by 16% year-on-year from US$756m in the first half of the 2019 financial year. Gypsum wallboard sales were 132Mm², up by 6% from 125Mm², while net earnings rose by 70% to US$192m from US$113m.

President and chief executive officer (CEO) Michael Haack said, “We are pleased to have delivered another quarter of record revenue and net earnings growth while further strengthening our balance sheet. Our end markets remain resilient as Covid-19-related uncertainty persists.” He added that, “the housing market continued its strong rebound” and that wallboard shipments rose by 6% in the second quarter. Good operating cash flow and a tax refund helped the company increase its earnings ‘significantly’ in the reporting period.

US: Georgia-Pacific has begun construction of a 65Mm²/yr gypsum wallboard plant adjacent to its existing 30Mm²/yr Sweetwater gypsum wallboard plant in Nolan County, Texas. The company says that the plant will start production in late 2022, following a total investment of US$285m and it will employ 120 people.

President Brent Paugh said, “The demand for our diverse gypsum products continues to be strong, especially in Texas. By having two production lines in Nolan County, Georgia-Pacific can strengthen its capacity to meet our growing customer needs in Texas’ residential, commercial and industrial construction.”

US: American Pacific Borates (ABR) has shared plans to begin mining natural gypsum at its Fort Cady borate mine around Barstow in San Bernardino County, California. The company says that it will extract its first batch for sale to the gypsum wallboard industry in mid 2021.

The Fort Cady borate mine works the world’s largest borate deposit. It also yields boron-enriched sulphate of potash for use as an agricultural fertiliser.

France: Saint-Gobain’s says its sales for June 2020 rose by 3.7% on a like-for-like basis as markets recovered from the effects of the coronavirus pandemic. Its sales fell by 12.3% year-on-year on a like-for-like basis to Euro17.8bn in the first half of 2020 from Euro21.7bn in the same period in 2019. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) decreased by 32.4% to Euro1.64bn from Euro2.42bn.

“In a macroeconomic and health environment which remains affected by uncertainties, our earnings growth in June and outlook for the third quarter suggest that our operating income for second-half 2020 will improve significantly on first-half 2020,” said Pierre-André de Chalendar, chairman and chief executive officer (CEO) of Saint-Gobain. He added that the group’s portfolio of products, including those in energy-efficiency and renovation markets, positioned it to benefit from national and European stimulus plans supporting energy saving initiatives.

The group noted a 19.2% year-on-year sales decrease in the second quarter of 2020 due to the coronavirus pandemic, with very different situations between countries and markets. Most of its business segments reported growth in June 2020 with the exception of Asia-Pacific, where the Indian market held the division back. Gypsum sales helped deliver ‘robust growth’ in the US and Canada in June 2020. Strong growth in gypsum was reported in Brazil for the first half of 2020. Chinese sales in gypsum benefitted in the second quarter of 2020 from a new plaster plant, which originally opened in 2019, reaching full production capacity. The group’s High Performance Solutions division reported positive trends from its external thermal insulation solutions (ETICS) products in the second quarter of 2020.

US: Eagle Materials’ sales from its Light Materials division rose slightly to US$153m in the first quarter of its financial year to 30 June 2020. Gypsum wallboard sales revenue growth offset declines in paperboard sales. However, earnings fell by 8% to US$44m. Gypsum wallboard sales grew by 7% to 65Mm2. Overall, the group’s revenue and earnings rose.

“While we are very pleased with our first-quarter performance, we recognise a high level of uncertainty persists in our markets and the overall economy: despite the decline in jobless claims from the March peak, total unemployment remains historically high; state and local governments face ongoing revenue pressure, which could have the potential to constrain infrastructure budgets; and, in some geographic areas important to our business, Covid-19 case numbers continue to escalate,” said Michael Haack, president and chief executive officer (CEO).
The group announced plans in May 2019 to split its Heavy Materials and Light Materials divisions into two independent businesses. However, it says the timing remains ‘uncertain.’

US: The Bureau of Land Management has approved American Gypsum’s proposal to expand its gypsum mine at Eagle, Colorado by around 40 hectares. The current quarry has been in operation since 1984. The mine and associated Eagle gypsum wallboard plant near Gypsum produce around 60Mm2/yr of wallboard and employ nearly 100 people. American Gypsum is the fifth largest producer of gypsum wallboard in North America, operating four wallboard plants.

US: GMS’ net sales from its wallboard products rose by 5% year-on-year to US$1.33bn in the financial year to 30 April 2020 from US$1.27bn in the same period in 2019. Its overall sales grew by 4% to US$3.24bn from US$3.12bn. Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) increased slightly to US$300m. Wallboard sales were stable in the fourth quarter of its reporting year as coronavrius-related market declines in late March and April 2020 caused total company sales to decrease in the period.

“Through mid-March 2020 we experienced favourable end-market trends and generated robust volume growth. Even as disruptions from COVID-19 began to escalate in the second half of March 2020, construction and building products distribution were deemed essential in the majority of our markets, which enabled us to keep most of our locations open. However, demand weakened significantly in late March 2020 and in April 2020 as customers delayed orders and building projects were paused due to mandated shutdowns in certain markets or as they focused on responding to the effects of COVID-19 on their businesses,” said John C Turner, Jr, president and chief executive officer of GMS.

US: American Gypsum has been chosen as a featured manufacturer with BSD SpecLink, a specification database designed to help architects hasten editing tasks and reduce specification production time. The gypsum wallboard producer recently added their products and specifications to the SpecLink system to make it easier for architects to incorporate American Gypsum products into their projects.