Gypsum industry news

US: USG has proposed to the Forest Service that it be allowed to conduct exploratory core drilling on National Forest System (NFS) lands south of its Shoals gypsum wallboard plant in Indiana. The drilling is intended to verify probable mineral resources within a 520ha area of NFS land ahead of future mining activities that would occur from the plant, according to the Washington Times-Herald newspaper. The USG drilling proposal is for a duration of two years beginning in the spring of 2023.

USG owns the subsurface mineral rights for mining gypsum deposits while the Forest Service owns the surface rights to a portion of land located within the Hoosier National Forest. The Forest Service previously gave permission for USG to conduct drilling on most of the land in 1995 but it is currently evaluating the impact it would entail, considering mitigation options and seeking public comment.

US: CertainTeed has updated its visual branding, including its logo. The new design was officially launched at the International Builders’ Show that took place in Las Vegas from late January 2023. The light building materials producer says that the exercise “represents a major paradigm shift for the manufacturer – reinforcing its customer-focused, comprehensive offering of light and sustainable building solutions and systems.”

CertainTeed’s chief executive officer Mark Rayfield said “As a leader at the forefront of the building sector, we recognised an opportunity to evolve how our customers specify our products." He added, "We're taking 'one-stop shop' to the next level by serving as a preferred source for cohesive systems and complementary products that not only help builders grow their reputation, but make it easier than ever to deliver on what matters most: performance, sustainability, and longevity."

The company says that the new visual identity is inspired by the creative ritual of reviewing and selecting materials in the early stages of construction or remodeling. Logo details, such as the cartouche, borrowed from the logo of parent company Saint-Gobain, serve as a nod to their connection, while the interlocking pattern acknowledges CertainTeed as an interdependent collective of connections - in its work, its communities, and the planet.

US: Georgia-Pacific will close its 60Mm²/yr Quanah gypsum wallboard plant in Texas on 1 March 2023. Local press has reported that the plant employs 166 people. Georgia-Pacific first announced its planned closure in 2020.

US: Eagle Materials’ consolidated sales were US$1.68bn during the first nine months of its 2023 financial year, up by 16% year-on-year from US$1.45bn in the corresponding period of the 2022 financial year. Its net earnings were US$361m, up by 20% year-on-year from US$300m.

In its gypsum wallboard business, the group noted increased sales volumes and prices, alongside a ‘sharp’ drop in raw material costs, during the third quarter of the 2023 financial year. Its gypsum wallboard volumes rose by 5% year-on-year to 67.6Mm² during the quarter. This resulted in a 23% rise in the business’ revenues, to US$235m.

US: American Gypsum has appointed Eric M Cribbs as its president. He succeeds Steven L Wentzel at the subsidiary of Eagle Materials who has decided to retire on 1 June 2023.

Cribbs currently works as Eagle Materials’ Executive Vice President of Concrete & Aggregates, Advanced Cementitious Materials, Logistics, and Procurement & Materials. A role he has held since early 2021. Cribbs joined the company in June 2015 and prior to his current position, most recently served as Vice President of Concrete and Aggregates, Safety, Logistics, and Procurement & Materials and Vice President of Concrete and Aggregates. Earlier in his career he worked as the US Northern Region Operations Manager for Halliburton. Cribbs holds an undergraduate degree in Petroleum Engineering from the University of Alaska Fairbanks.

Ukraine: A US White House official has accused the Wagner Group of conducting military operations near Bakhmut with the objective of seizing raw gypsum and salt deposits in the area. The official said that there were indications that monetary motives were driving the mercenary group and Russia’s "obsession" with the city, according to Reuters. The US government has previously accused Russian mercenaries of exploiting natural resources in the Central African Republic, Mali and Sudan to help fund Moscow's war in Ukraine. The Russian government has rejected the allegations.

Russia claims that its army took control of Soledar, a town near Bakhmut, on 13 January 2023. However, western European news sources have been unable to independently verify this. Etex’s local subsidiary Siniat Ukraine operated a gypsum wallboard plant on the outskirts of Bakhmut before Russia invaded the country in February 2022. The current status of the plant is unknown.

US: A worker died in a hopper accident at PABCO Building Products’ Newark gypsum wallboard plant in California in late December 2022. The Alameda County Fire Department said that incident occurred when the worker became trapped in the hopper following an inspection of a blockage, according to CBS News. Workers at the plant and firefighters attempted to rescue him but were unsuccessful.

US: Total sales of gypsum boards products grew by 2% year-on-year to 1.99Bnm² in the first nine months of 2022, from 1.94Bnm² in the same period in 2021. Sales grew particularly fast in the South Atlantic and East South Central regions, but they fell in the Pacific region. Data from the United States Geological Survey (USGS) shows that the total of uncalcined gypsum used in the reporting period rose by 5% to 15.7Mt and the total of calcined gypsum used increased by 2% to 17.9Mt. The supply of mined crude gypsum fell by 6% to 15.9Mt, imports rose by 1% to 5.11Mt and the supply of synthetic gypsum remained stable at 9.75Mt. Spain became the biggest source of crude gypsum imports so far in 2022 followed by Canada, Mexico and Türkiye.

US: GMS’ net sales grew by 27% year-on-year to US$2.79bn in the half year to the end of October 2022 from US$2.19bn in the same period in 2021. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) grew by 34% to US$356m from US$265m. Sales of wallboard increased by 37% to US$1.11bn from US$0.80bn.

John C Turner, Jr, the president and chief executive officer of GMS, said, “A significant backlog of homes under construction, continued strength in multi-family, and improving levels of commercial activity helped drive exceptional results for our fiscal second quarter.” He continued, “As a result, with favourable pricing across our product categories, positive volume growth in wallboard, ceilings and complementary products and the benefit of our AMES acquisition, our team achieved another quarter of record levels of net sales, net income and adjusted EBITDA and generated significant levels of cash flow.”

US: Georgia-Pacific’s Sweetwater West gypsum wallboard plant in Texas has completed an upgrade to its board-drying equipment. It has installed an Energy Optimization System (EOS), also known as a waste heat recovery unit, including new ducting, two new fans and a new exhaust stack, to an existing four-zone dryer. The newly upgraded system enables the collection of the waste exhaust from three zones of the plant and injects it into a fourth zone. This enables the burner in that zone to operate at a lower capacity. Around 2500t/yr of CO₂ is saved in the process.

David Neal, vice president of Gypsum Operations for Georgia-Pacific said, “Advancements in energy savings and resource consumption reduction are goals toward which Georgia-Pacific works every single day.”

Georgia-Pacific started building a second wallboard plant next to its Sweetwater West plant in late 2020. The new 65Mm²/yr unit was scheduled to start production in late 2022.