Gypsum industry news

US: Eagle Materials has recorded consolidated sales in its 2022 financial year of US$1.9bn, up by 15% year-on-year. The group’s adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) was US$657m, up by 15%. Full-year light materials sales totalled US$804m, up by 27%, with gypsum wallboard and paperboard operating earnings of US$274m, up by 42%. The group sold 269Mm2 of gypsum wallboard, up by 3% year-on-year.

President and CEO Michael Haack said "As we look back on another extraordinary year, I am extremely proud of our team's ability to deliver record operating and financial results despite multiple external challenges, including transportation disruptions, supply chain constraints and, of course, continuing to navigate the Covid-19 pandemic.” He added "As we begin our new fiscal year, Eagle is well-positioned, both financially and geographically, to capitalise on the underlying demand fundamentals that are expected to support steady and sustainable construction activity growth over the near and long term. We expect that infrastructure investment should increase in the latter part of our fiscal year, as federal funding from the recently enacted Infrastructure Investment and Jobs Act begins in earnest. And, despite recent interest rate increases, housing demand remains strong across our geographies, outpacing the supply of homes. Nonresidential construction activity is also picking up."

Mexico: The price of gypsum and its derivatives has risen by up to 12% in April 2022 compared to pre-Russian invasion of Ukraine levels. Along with a rise in the price of other materials, this has increased the cost of new house builds by 25 – 30%.

The Mexican Ministry of Foreign Affairs has reported that Russia was previously Mexico’s 35th largest trade partner.

Brazil: Saint Gobain has predicted a 40% year-on-year turnover increase from its Brazilian operations to US$2.63bn in 2021. It said that it expects demand for its products from civil construction to have accounted for 67% of its income for the year.

In 2021, Saint-Gobain invested a total of US$52.6m in its Brazilian operations, consisting of 56 sites. It aims to increase its total income by 15% in 2022 compared to 2021 levels. During the year, it plans to commission a new gypsum wallboard plant at Mogi das Cruzes in São Paulo.

US: Saint-Gobain has agreed to buy construction chemicals producer GCP Applied Technologies. Reuters News has reported that the move continues Saint-Gobain’s industrial diversification, as it also seeks to maximise its growth opportunities from the US’s on-going infrastructure overhaul. Saint-Gobain expects to conclude the deal by 2023 and will finance the acquisition through cash on its balance sheet.

Chief executive officer Benoit Bazin said “After the successful acquisition of Chryso, GCP is the logical next step to expand Saint-Gobain's presence in admixtures and additives, which provide key solutions to de-carbonise the construction industry.” He added “This acquisition is a decisive step in establishing Saint-Gobain's leading position worldwide in construction chemicals, with total sales of more than US$4.51bn [combined], up from US$3.39bn.”

World: Market researcher Future Market Insights (FMI) has estimated that the global market for gypsum for all applications will record a compound annual growth rate (CAGR) of 5% between 2022 and 2030. FMI said that this will be due to a global rise in construction, driven by digitisation and technological advances. In order for growth to return, economic activity must first return to ‘normal’ in the wake of the Covid-19 outbreak, according to FMI.

Research agency Technavio has also given its forecast for growth in the synthetic gypsum market between 2020 and 2024. It has predicted a CAGR of 4%, with total growth of US$320m over the period.

France: Saint-Gobain has launched Grow & Impact, a new strategic plan to increase profitable growth. The plan consists of new annual financial targets for 2021-2025, including organic sales growth of 3 - 5%, an operating margin of 9 – 11%, a free cash flow conversion ratio above 50%, a return on capital employed of 12 - 15% and an annual dividend payout ratio representing 30-50% of recurring net income. The company also announced a Euro2bn share buyback programme for 2021 – 2025.

Saint-Gobain has forecast full-year energy and raw materials costs of Euro1.5bn, up by 36% from its previous estimate of Euro1.1bn. Euro1.1bn (73%) of the new estimate is forecast for the second half of 2021. The group said that it will need a positive price impact of around 6% over the full year and of 8% in the second half of 2021 in order to offset this. CEO Benoit Bazin said “The Group will build on the success of its new local organisation and its multinational culture driven by performance and by proximity to its customers, in order to benefit fully from strong growth on its underlying markets. By capitalising on innovation and the power of data to enrich our range of solutions, Grow & Impact will enable us to outperform our underlying markets and maximise our positive impact in numerous areas.” He added “Our vision is to become the worldwide leader in light and sustainable construction. In a world moving towards net-zero carbon, Saint-Gobain aims to provide a full range of solutions that address three major issues of our time: drastically reducing the 40% of CO2 emissions linked to construction, protecting natural resources and facing the challenge of rapid urbanisation in emerging countries.”

UK: British Gypsum has signed the Building a Safer Future (BSF) charter as part of its wider commitment to raise building standards across the construction industry and provide transparency to its customers. The charter comprises five commitments that require registered signatories to put building safety first. The commitments include spearheading change and being the voice of building safety within the industry, being transparent in sharing key information with residents, clients, contractors and other stakeholders, and making safety a key factor when selecting construction partners.

Marketing director Stacey Temprell said “We recognise that becoming a registered signatory of the BSF charter is an important first step towards achieving the culture and behavioural change required in relation to the charter’s objectives around building safety. In confirming our support as a registered signatory, we will now be working to ensure that we embed the principles of the charter into our organisation’s activities.” Temprell added “In addition to signing the Building a Safer Future charter, we are making further improvements to ensure our product and system performance data is always up to date and accurate, so joining like-minded businesses in signing the Charter is a great way for us to demonstrate our commitment to this shift in building standards and put safety first.”

New Zealand: The New Zealand government has announced the lifting of Level 4 lockdown outside of Auckland. Radio New Zealand News has reported that this will enable construction to resume. Inside Auckland, gypsum wallboard is among four ‘critical products’ that the government has allowed to resume production.

The Building Industry Federation (BIF) said that the government had listened to suppliers' concerns.

Spain: Saint-Gobain Placo has launched a new technical manual on environmental certifications of buildings. The Saint-Gobain subsidiary says that the manual will help professionals when addressing all certification requirements in Spanish construction. It takes a practical approach and details all processes and evidence necessary for each certificate. The company hopes to advance sustainable development by facilitating more comprehensive planning.

Australia: Boral recorded consolidated sales of US$3.87bn in the 2021 financial year, down by 6.7% from US$4.14bn in the 2020 financial year. It recorded a net profit of US$463m, compared to a loss of US$828m in the 2020 financial year.

CEO and managing director Zlatko Todorcevski said “Our full-year 2021 financial year results reflect the mixed market conditions we are continuing to experience in Australia during the pandemic. The value of total construction work was lower than the prior year, including in multi-residential, non-residential and infrastructure construction. Several major projects were completed during the period, with others delayed before new projects come on-line and reach materials intensity. While a lift in detached housing provided a boost to activity during the year, Boral’s earnings are predominantly exposed to construction activity outside of residential.”

He added “We have made substantial progress in our strategy to transform Boral into a stronger, better performing, more customer-focused organisation, with a core portfolio of businesses that deliver value throughout the cycle. Over the past year, we have progressed the divestments of several non-core assets, including completing the divestment of our interest in the USG Boral joint venture and announcing the sale of North America Building Products, achieving sale prices well above expectation. With total proceeds of almost US$3.25bn from completed and announced divestments to date, our strategy to focus Boral on the core Australian construction materials business is well advanced. And following a detailed assessment of strategic options for our North American Fly Ash business, we are now entering the final stages of a divestment of this business.”