Gypsum industry news

US: Two members of GMS’ board of directors, Peter Browning and Teri McClure, have won national awards for corporate leadership. Browning won the National Association of Corporate Directors’ Lifetime Achievement Award, which recognises commitment to the improvement of corporate governance. Meanwhile, McClure won DirectWomen’s Board Excellence Award for women lawyers who have served with distinction.

GMS chair John Gavin said "On behalf of the entire board of directors of GMS, I congratulate Peter and Teri for these well-deserved honours. It is gratifying to see that organisations like these recognise the incredible talent that we on the board get to experience every day. The selections of Peter and Teri for these important distinctions speak not only to this level of talent but also underscore our commitment to the highest level of corporate governance standards and promoting diversity and corporate governance principles. We are fortunate to have directors of such high calibre serving on our Board and benefit from their extensive knowledge and experience."

US: Xeriant has hired the National Fire Protection Association (NFPA) and another accreditation agency to test its NEXBOARD waste plastic-based wallboard for the construction market. The producer says that tests will include the NFPA 286 and the ASTM E84 fire safety tests, as well as tests of tensile strength, hardness, water resistance, acoustic and thermal insulating performance, and volatile organic compound emissions.

One can tell that gypsum wallboard is a popular product because companies keep trying to devise alternatives to it. A recent one is Breathaboard. The company making it, Adaptavate, announced in August 2023 that it had generated around Euro2.3m in its latest investment round. It is building a pilot production line in Bristol in the UK and attempting to licence its Breathaboard product, amongst other plans. Its take on wallboard is being marketed as a sustainable substitute that is made from crop waste, that sequesters CO₂ and that then can be composted at the end of its life. It is also promoting the product’s breathability and moisture buffering capabilities, hence the name.

Another new contender hoping to steal some of the gypsum wallboard market is Xeriant’s Nexaboard product. This one uses plastic waste as its alternative to gypsum. Florida-based Xeriant said in July 2023 that it had started to buy equipment and raw materials, was running pilot production and was testing its first samples. It too is working on getting its product used in pilot construction projects.

Both of these examples, and others over the years, have taken a pop at wallboard’s sustainability credentials. Adaptavate is rather quieter about what happens to all of that sequestered CO₂ when its product is composted and Xeriant does not mention the environmental impact of making the plastic it uses in the first place. Yet, it is a valid question to ask how sustainable is gypsum wallboard? This column has covered issues with the supply of raw gypsum from either natural, synthetic or recycled sources previously, so we will stick to the general picture here.

The late-lamented consultant Bob Bruce pulled together data from various studies for the Global Gypsum Conference in 2019 to estimate the CO₂ emissions from wallboard production. He estimated that the global average of CO₂ production by wallboard was around 2.4kg/m², equating to 24Mt/yr of CO₂ for the global wallboard industry. For reference, it is estimated by the Center for International Climate and Environmental Research - Oslo (CICERO) that the process emissions from clinker production alone released around 1.6Gt/yr of CO₂ in 2022. When compared by mass (as opposed to area) to other building materials, wallboard has a lower carbon intensity than many products such as glass, cement (made from clinker), plastics, steel and plywood. Timber, concrete and brick are all better than wallboard though. However, as Bruce pointed out, a lot more concrete is manufactured than wallboard. Bruce came up with a handful of suggestions for how wallboard production could reduce its CO₂ emissions such as the reduction of slurry water, local delivery, co-generation, increasing drying efficiency and so on.

The two big sustainability trends from the sector over the last year have been the drive to support higher recycling rates of gypsum and a move towards ‘greener’ sources of energy. This can be seen in the growing use of electrical energy from renewable sources such as the production of net zero CO₂ gypsum wallboard at Saint-Gobain’s Fredrikstad plant in Norway from April 2023. The group’s Montreal plant looks set to follow in 2024 following an upgrade, potentially making it the first net zero wallboard plant in North America. Chiyoda-Ute in Japan has also started using renewably-sourced electricity at its plants in Japan, but it is uncertain what other energy sources these sites are using. China-based BNBM also claimed in its half-year results that it had built four “nearly zero emission” gypsum board production lines in the reporting period.

Wallboard's market position in North America, Europe and elsewhere seems secure. However, it is in dynamic tension as it is both a potential replacement for more carbon intensive building materials and it could also be susceptible to new emerging products that can improve on its own emissions. The manufacturers of Breathaboard and Nexaboard are clearly hoping for the latter. Yet, as is often pointed out, giving more market share to wallboard from other common building materials could reduce CO₂ emissions from construction massively. The diversification of traditional heavy building materials companies such as Holcim into light building materials in recent years suggests that some businesses are seriously preparing for this possibility. No doubt, if global wallboard usage does start to rise significantly, the pressure will grow to make wallboard more sustainable and to devise even more alternative board products.

US: GMS’ net sales grew by 4% year-on-year to US$1.41bn in the quarter to 31 July 2023 from US$1.40bn in the same period in 2022. Sales of wallboard increased by 10% to US$571m from US$522m. However, the company’s earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 2% to US$165m from US$169m.

John C. Turner, Jr, president and chief executive officer of GMS, said “We were pleased to deliver a solid start to fiscal 2024 with first quarter results that were in line with our expectations, continuing to demonstrate the resilience of pricing in wallboard, ceilings and complementary products, as well as the strength and stability that our balanced end markets provide.”

US: Data from the United States Geological Survey (USGS) show that the sale of gypsum board products fell by 5% to 1.25Bnm² in the first half of 2023, from 1.31Bnm² in the same period in 2022. The total supply of crude gypsum grew by 9% to 20.4Mt. Notably, supplies of imported and synthetic gypsum increased in the reporting period. However, the USGS noted that on a quarterly basis “...variances are often the result of differences in weather conditions, which can impede or encourage construction activities, coupled with market demands that are often driven by residential and commercial building activity. Use of uncalcined gypsum remained stable, but consumption of calcined gypsum fell by 33% to 7.86Mt, due to reduced utilisation in board products. Spain, Canada and Mexico remained the main sources of import of crude gypsum. However, imports from Türkiye more than doubled to 195,000t.

US: Eagle Materials’ sales revenue from gypsum wallboard fell in the first quarter of its 2024 financial year due to declining wallboard sales volumes. The revenue from its Light Materials division dropped by 2% year-on-year to US$242m in the quarter to 30 June 2023 from US$248m in the same period in 2022. The company blamed this on lower gypsum wallboard sales volumes, although it was partially offset by higher prices. Its wallboard sales volumes declined by 4% to around 71Mm² from 74Mm². However, its earnings from its Light Materials division rose by 12% to US$98.1m from US$87.9m. Overall, the company’s total revenue grew by 7% to US$602m driven by strong cement sales volumes and higher prices.

US: Xeriant says that it has successfully tested a high-volume production process for its Nexboard alternative wallboard. The wallboard is made of recycled plastic content, and is 100% recyclable.

Recycling Today News has reported that CEO Keith Duffy said “The industry is desperate for a viable green alternative to gypsum board as part of a transition toward greater efficiency, safety and sustainability in building design. Drywall has essentially remained unchanged for over a century and is extremely vulnerable to moisture and mold. Our homebuilder clients are anxious to receive and approve our production samples so we can execute pending contracts and begin our quest to disrupt the building materials industry.”

US: CertainTeed plans to invest US$235m in an expansion to its 84Mm²/yr Palatka gypsum wallboard plant in Florida. The La Tribune newspaper has reported that the Saint-Gobain subsidiary will install a second production line to double the plant’s capacity. The company will also carry out work to increase the plant’s energy efficiency.

US: Albér Gypsum has developed an adhesive gypsum-based plaster ‘board’ product that can be used in place of traditional gypsum wallboard. Using the new process gypsum powder is first mixed with water into a mixture lightweight cement sprayer. The company has also designed a special spray gun for this purpose. The plaster is then sprayed onto the wall construction or/and insulation, evened out and left to dry for up to six hours. A patent is currently pending for the new method.

The developer says that the gypsum-based plaster product eliminates air pockets in a wall, covers electrical wires and tubes thereby reducing fire risk and is stronger than traditional wallboard. It takes half the installation time of regular wallboard and does not require fittings such as bolts or nails. The company says that the sprayable plaster creates less waste, is easily recyclable and does not use paper. Not using paper also prevents any cases of black mould. The gypsum mix used can be modified to create a harder or softer surface depending on the desired room acoustics.

US: Fertiliser company Mosaic is seeking approval from the Environmental Protection Agency (EPA) to test using phosphogypsum on a pilot road project at its New Wales site in Mulberry, Florida. It hopes to test using the substance in three 60m sections of road, according to correspondence seen by the Tampa Bay Times newspaper. The proposed test road will use a mixture of sand with up to 50% phosphogypsum in a 25cm base. The road will then be monitored over the next 18 months.

The EPA originally approved the limited use of phosphogypsum in road construction in 2020. However, this was then subsequently blocked. Local legislation in Florida allowing the Florida Department of Transportation to study the use of phosphogypsum in road construction has been approved by the Florida Senate and House of Representatives but is yet to be signed off by Governor Ron DeSantis.

The Florida Industrial and Phosphate Research Institute estimates that around 1Bnt of phosphogypsum is stored in over 20 sites in the state. Over 25Mt/yr of phosphogypsum is generated, typically from fertiliser production. Environmental groups in the state have opposed Mosaic’s proposed use of phosphogypsum in road building due to its higher level of radioactivity compared to other forms of gypsum.